To Market Consistently or to Do So in Bursts: Assessing Your Practice Area’s Purchasing Mindset

There’s a reason why disparate practice groups require different marketing approaches and it has a great deal to do with the context in which each operates. By this, I mean that the very nature by which potential clients go about deciding with whom they wish to contract for a particular kind of legal service has, or at least should have, a big influence on the types of marketing vehicles that are best to be employed. Not only that, but the practice area to be promoted may also determine when marketing activity is to be scheduled and for how long.

Allow me to explain.

Consider two examples. In the first, an estate planning or wealth management firm decides it wishes to engage in a multi-faceted marketing effort designed to generate new clients relatively quickly. Even casting aside the requisite web site and related activities for a moment, there is a wide range of marketing options available to this firm. It can invite target prospects to a seminar, offer white papers on its web site or run short bursts of advertising to suggest prospects contact the firm regarding a service the firm touts as being essential. Its message is relatively simple: “In order to create or maintain wealth, you need to do a number of things. We will advise you on what to do.”

Now consider a personal injury practice that wishes to also generate new business quickly. Here, the options to promote over the short term are much more limited. This is because no one needs (let alone thinks about) a PI attorney until that moment when one has been injured due to the fault of another. There is very little, if any advanced planning involved in the decisionmaking process. Who to hire only becomes a critical question at that moment. That is why PI firms and attorneys must implement ongoing marketing efforts so that the client is aware of them when that moment arises. And it could be at any time. Their message is basically, “We’re here when and if you need us.”

In many ways it is akin to how one goes about looking for a physician. I know before my first child was born, my wife did a lot of homework as to which pediatrician best suited us. The same can be true for an internist, an OB-GYN or a dentist. Yet, one typically doesn’t question which urologist, heart specialist or orthopedic surgeon to visit until one has a need to visit one.

This is one, albeit critical reason why marketing personal injury services usually requires greater financial outlays than a similarly sized estate planning practice. The same holds true, though perhaps to a lesser extent for criminal law. Unless you are planning to commit a crime and to being caught, you probably have not given much thought to who your defense attorney will be. Conversely, as with estate planning, a tax attorney may be able to “push” inquiries from potential clients. A family law practice? I would suggest it lies somewhere in between. Individuals considering a divorce may do considerable research into their options – but it is difficult for family lawyers to target those “considering” divorce.

Where your particular practice area falls on this spectrum of being able to promote for the short vs. the long term impacts not just the financial resources you will need, but may also determine when you implement your marketing initiatives. Going back to that tax attorney for example, the time between the end of January and April 15th usually makes sense. Family lawyers may wish to consider the period right after the holiday season. For that poor PI or criminal law firm however, there may be no especially good time to pursue such cases.

By the way, the same holds true for business-to-business practices. There are certain legal services that a business knows that it will need (e.g., transaction matters), while there are others that may make sense only at a particular moment in time (e.g., bankruptcy).

The point is, that when determining the marketing vehicles to use, how much and when to use them, as well as the kinds of costs that may be involved to effectively implement a program, it is important to have a good understanding as to the inherent nature of the client’s decisionmaking process.

Marrying IT with the Legal Marketing Function

Businesses of all kinds have historically had a difficult time reconciling the respective roles of those in the marketing and in the accounting/financial departments. It has always been understood that marketing should "pay out." Yet those who performed that function had difficulty articulating how each element of their program contributed (for better or worse) to the company's bottom line. 

Now however, that “fuzziness” of respective roles has carried over into the IT department as well. Marketers of all kinds (and legal marketers in particular) might well ask where marketing begins and ends. More often than not, in today’s information driven society, it begins and ends at the desk of the firm’s technical guru. 

For proof, one need look no further than the importance CRM software plays in the business development process. If attorneys (particularly at larger firms) had to procure, understand, implement, train and then utilize such applications on their own, it is doubtful this technological advance would be as widespread as it is today. Same holds true for the marketing guys who may well understand how to develop a message, place an ad, disseminate a press release or even create a pay-per-click campaign, but who at the same time, would have difficulty recognizing the compatibility of one legal application with another.

So much of legal marketing today revolves around online activities. Yet it is the IT folks who understand the benefits (and limitations) of the various social media outlets, the changing algorithms involved in search engine optimization, the capabilities of online dissemination services, and the potential of the firm’s web site to convey everything the firm wishes to convey.

The law firm that places too great a distinction between marketing and information technologies runs the very real risk of inefficiency, but even more important, is almost certain to miss out on opportunity. A much wiser approach is to promote the full integration of the IT folks into the marketing decision making process.

By doing so, law firms are almost certain to discover ways in which to efficiently stand out from competitors through both substance and style. And even in the information age, “standing out” is still what marketing is all about. 

It’s a New Year. Time to Start “Pondering”

A few years ago, I opened my annual series of blog posts by concentrating on such traditional marketing functions as creating a firm-wide marketing plan, developing an appropriate promotional budget, and determining optimal target markets to pursue.  But every once in a while, I believe it is wise to step away from the “traditional” and indulge in a little creative brainstorming designed to push one’s firm in directions it might previously have not considered. And really, there’s no better time to do this than at the start of a new year.
 
Without the benefit of research or hard data, without the input of “experts,” colleagues, wives, husbands, boyfriends, girlfriends or even mother-in-laws, it’s a good idea to just ponder the future of the business that we’re in and gaze into the crystal ball as to how law firms will stand out in the future. Some sample questions to consider are noted below:
 
What is the future of online marketing?
Many have stated that “content is king,” but at some point we must ask, “If everyone is bombarding the world wide web with content for their web sites, their blogs, their social media posts, etc., at what point will we have reached message saturation?  And when that point comes, how will law firms reach out to new prospects and customers?  Will we return to more traditional media? Find new ways of using the internet? Or perhaps find completely new ways of reaching out to our prospects? The answers may not be very clear now, but staying ahead of the curve now is one way of avoiding irrelevancy down the road.
 
What new practice areas might emerge or even be created?
Years ago, I was surprised to be contacted by a law firm that focuses its practice exclusively on the area of reproductive law. I had never heard of that before, nor had I ever really thought about how law firms might niche themselves so narrowly.
In every industry, and in every part of life actually, there are highly specific areas of knowledge that if leveraged and promoted smartly, can lead to greater levels of profitability. For example, one of our law firm clients focuses a big part of their practice on bullying. Many other firms focus on high technology, but one could drill that down further to emphasize “technology and ethics,” and go further still by becoming the “leaders” in all of the legal issues related to social media.
 
Who will be the new and/or “hot” cluster target groups?
We’ve had baby boomers, yuppies, Generation Xers and soccer moms. What’s next and what might the current socio-economic landscape suggest for how groups of people might soon be categorized?  The current generation of Facebookers and Snapchatters will soon become our clients, our employers and our colleagues.  How does that bode for how law will be practiced?  What opportunities exist to reach them?
 
What is the future of interpersonal networking?
How will we schmooze in the future? Is business development still really about face-to-face interactions or are we heading to a world in which our clients and colleagues are people we never see and perhaps may never actually meet?  What effect will this have on the law practice of tomorrow, particularly those B2B practice areas where personal interaction has been such a staple of revenue growth?  Will business still be conducted on the golf course or simply move over to the cyber version of that same golf course. Wherever it is going, if you can be there first, so much the better.
 
What values will resonate the most?
What will your firm’s calling card be?  Quality? Price? Value? Speed? On-line Accessibility? Changing times demand changing thoughts on such attributes.
 
Where will your geographic market be?
Everyone else is going global? Do you need to be there as well? Are you positioned to do so? How will you accomplish that?
 
The list of questions of course could go on and on. And if you were expecting brilliant answers to the above, I am sorry that you’re probably disappointed. The point is however to underscore the value of first generating the questions.  Because it is only through those questions that we can start to stand out from the many others with whom we compete for share-of-mind, clients and revenue. 

If you would like to discuss strategies for marketing your practice in 2015, contact us at (856) 810-0400.

So,... How Did You Do? 10 Questions to Ask about Your 2014 Business Development Efforts

In a few weeks, you will all be besieged by scores of emails, promotions, and invitations, etc. asking you to begin the new year “right” by purchasing whatever product or service is certain to make 2015 the “big” one in terms of revenue, new client generation, and cost efficiency.

But before you begin the 2015 planning process, this may also be a good time to take a step back and assess 2014, because all products and services aside, this is the best way to ensure that successful initiatives are duplicated or enhanced, and that any mistakes made are avoided.

So, that in mind, I offer you the 10 questions every managing partner/legal marketing professional should ask as 2014 winds to a close:
 

1. How successful was 2014 in terms of new client generation?   Were increases in firm revenue a result of ongoing or repeat client business or the result of the firm’s business development initiatives?
2. Where did new business come from?  Was new revenue concentrated amongst a relatively small group of clients or scattered across a wider range of new clients?
3. Which marketing activities were most effective in generating new business?  This is a trick question, because not all marketing tools can be easily measured and most new business comes through exposure to a number of different types of business development efforts.  That being said, either quantitatively or qualitatively, is there a sense as to what worked this year and what did not?
4. Which practice areas benefitted the most from business development initiatives?  Very important.  Different practice groups have different marketing needs. Did the firm ”do right” by each group in terms of implementing the most effective marketing strategies?
5. Were human resources employed in the most profitable manner possible?  Let’s face it.  Not everyone is good at everything. Some individuals are natural salespeople while others are more comfortable sticking strictly to “lawyering.”  And even among those who are particularly good at generating new business, different people have different skills.  Some write brilliant articles.  Others are terrific presenters. And still others are just gifted when it comes to making small talk at a social or business function. Did the firm take all of this into account in implementing its 2014 plans? 
6. How efficient was the business development function?  It’s great to have generated new revenue, but far less so, if the expense involved outweighed that revenue. Aside from obvious out-of-pocket costs, how did internal processes affect the business development function? Were marketing committee meetings productive? Did outside vendors get clear direction from the firm and did the various projects flow through the firm smoothly and swiftly?
7. How was the firm perceived?  Did the firm get adequate feedback from current clients, new clients and prospective clients as to the perceived quality of a) the firm’s work product, b) the firm’s image and c) the firm’s sales “pitch.” 
8.  How successful were firm competitors in 2014?  Did competitors make inroads into the firm’s business?  Steal any clients? Did any new competitors emerge? If so, what are their strengths and weaknesses?
9.  What relevant issues, trends, news events were “hot” subjects during the past year?  Did the firm leverage its expertise in certain areas of the law? Did it keep an eye on happenings in the world, the community, the legal industry and its target industries?
10.  How did the results of 2014 compare to what had been anticipated and planned for one year ago?  How good was the firm at forecasting its future and spotting opportunities and potential trouble spots?  What might the firm have done differently to better anticipate and meet its practice-building needs?

So, there you go.  Ten questions to ask yourself before the curtain drops on 2014.

But think, once you’ve answered them, you’ll truly be ready for the next big assignment – developing your attack plan for generating more business in 2015.

If you would like to discuss strategies for marketing your practice in 2015, contact us at (856) 810-0400.

What Goes into a Law Firm Marketing Plan?

We are often asked by clients and prospects to develop a legal marketing plan on their behalf. This is always an intriguing proposition because what some view as perhaps a two-page outline of the promotional activities to be pursued, a true marketing plan offers something far greater. Such plans provide a more detailed picture of where the firm stands, its goals, and how it plans to achieve them.

A full-fledged marketing document should address the following areas:

Background 

• Firm History 
• The Services it Provides 
• The Geography it Serves 
• The Types of Clients it Serves
• Businesses vs. General Public vs. Government Entities
• Age, Income and Gender Demographics
• Psychographic Profiles
• Attorney Billing Rates 
• Firm Reputation
• Firm Strengths
• Firm Weaknesses
• Results of Marketing efforts to Date 

Industry Overview

• General Trends
• Seasonality
• Client Development Cycle (from awareness through initial consult and retainment)
• Attorney Billing Rates
• Competitive Framework 
• Competitor Descriptions (e.g., size, number of attorneys, strengths, weaknesses, etc.)
• Competitor Reputations and Positionings
• Analysis of Competitive Communications (e.g., ads, web site, brochures, etc.) 

Objectives & Strategies

• Vision/Mission Statement
• Long-Term Goals & Rationale (e.g., increase revenue to $XXX to support partner payouts of $XXX)
• Long-Term Strategies (e.g., generate greater awareness of the firm among a particular business or consumer segment)
• Short-Term Goals (e.g., Obtain $XXX in revenue in the upcoming fiscal year)
• Short-Term Strategies (e.g., Implement social media campaign, broaden geographical target, add new practice area, etc. 

2013 Strategic Plan

• Improvements to Firm Services
• Billing Rates
• Promotional Program
• Objectives
• Budget & Rationale
• Target Market
• Target Audience(s)
• Marketing Mix/Budget Allocation 
• Activity A (e.g., development of new web site)
• Activity B (e.g., PR campaign) 
• Activity C (e.g., social media effort)
• Creative Development 
• Positioning of the Firm 
• Benefits the firm provides (particularly vs. competitors) 
• Substantiation for Benefits
• Communications Hurdles 

Opportunities & Red Flags

• Indicators of Success (i.e., milestone to be achieved/interim metrics)
• Plan Assumptions 
• Firm Strengths as Related to the Marketing Plan
• Firm Weaknesses and Red Flags as Related to the Marketing Plan (i.e., firm may or may not be able to effectively implement activity A for such and such a reason)

Implementation

• Plan Flowchart & Timetable 

While a full-fledged marketing document such as this may not be realistic or feasible to implement on an annual basis, we have seen it be an extremely worthwhile exercise for law firms undergoing a transition, requiring a new direction or seeking to tap into new growth areas.

Budgeting for Legal Marketing in the New Year

Most of us begin 2013 with hopes and plans for a big year in terms of generating new business, more revenue and greater profit. With that however, comes the unavoidable task of determining how much should be allocated for the law firm’s marketing function.

There are several ways to answer this, the most common being the standard 2-5% of the firm’s anticipated revenue. However, much more effective is to take a task approach in which the firm’s marketing budget becomes a function of its objectives.

In taking such an approach, it is important that several difficult questions be addressed:

1. Are the marketing activities designed to generate new clients over the short term only or should some of the funds be more long-term focused? This will dictate the types of activities utilized and the relative costs involved.  For example, a new firm brochure or web site may not get the phones to ring immediately, but can set the stage for significant success down the road.
2. How are resources being defined? If it only includes dollar outlays, then certan marketing vehicles such as search engine optimization and social media may make good sense. If the term “resources” is broadened to include “time,” then the drain on manpower may make such activities prohibitive. (Of course, an outside service can be handled to manage these efforts, thus again skewing the allocation of resources to being more dollar-focused).
3. Is the concept of frequency being taken into account? Generating awareness and new business requires that prospects be continuously exposed to the firm, and often through a multiplicity of channels. To do anything less is money wasted.
4. Will a better year only be a function of obtaining new clients or will it also be a function of higher rates and/or the cross-promotion of firm services? Both initiatives may require investments of time and/or money.

Ultimately, once the determination is made as to a) the firm’s objectives and b) the strategies it will employ to reach these goals, only then can the specific dollar amount (and or internal costs) required to achieving them be determined. The budget allocation of 2-5% of firm revenue is really only a guideline. Actual budgets must look at a wide range of variables, including the current image of the firm and the level of its awareness it enjoys among its target group.  

How to Set Your Marketing Budget

As a new year begins, it’s important not to put off the unavoidable - establishing the firm’s annual marketing budget. Many either simply abide by industry guidelines which suggest that 2-5% of firm revenues should be allocated towards the promotion of the practice, or they just don’t develop one altogether.

But guidelines are just that – guidelines. Usually a wiser approach to budget-setting is to take a “task” approach. Such an approach requires careful consideration of a series of questions addressed in a very specific order:

What should the marketing effort accomplish?
There may be several answers to this, each suggesting a whole range of possible tactics. A firm may be seeking to raise its profile within the community, promote a particular practice area, educate potential clients, highlight the hiring of a new attorney or any combination of such matters. In addition it should determine the relative importance of each of the stated objectives.

What are the potential strategies for each defined objective?
This includes addressing the key issue of the optimal “marketing mix.” The marketing mix is a function of a number of things including the nature of the services being offered, the target audience, the extent and character of the competition, geographical considerations and the economic times. Any and all possible marketing tools should be explored for their viability in addressing the challenges posed in the first question.

How will each potential tactic/marketing tool be maximized?
It’s not enough to develop an advertising campaign if the ad is only going to run once or twice. The most wonderfully designed web site will prove ineffective if the site is not ranked high on the search engines. And a content-rich seminar will not “pay out” if it garners an insufficient number of potential prospects to “convert” into clients. It is important to determine the threshold level of commitment to each activity that will be required in order to make it a success. How many ads? How high a rank on the search engines? How many seminar participants?

What is the cost to implement each potential marketing activity?
This can require some digging but is necessary in order to determine the optimal dollars required if the firm were to implement everything it wished to do at a sufficiently high/strong level (e.g., running ten ads instead of one or two).

Making the requisite cuts
In most cases, implementation of all possible marketing tools utilized at their optimal levels will result in a dollar figure well beyond the realistic scope of the firm. This is where the art of budget-setting comes in to play.

Two options exist. The first is to cut the level of spending allocated to each of the activities. Hence the advertising campaign, the web site optimization, the promotion of the seminar, etc., are all implemented - but at reduced levels. The problem with this is that the level of marketing activity will fall below the threshold necessary to make any of the programs effective. A preferred option is to instead, focus on just some of the potential activities – but at levels high enough to ensure their success. Which activities should be supported in such a way becomes a function of whether the activity addresses the more important of the objectives as determined in Step 1 and by their relative cost.

If you have questions regarding setting your marketing budget, e-mail Les Altenberg or call (856) 810-0400.