A New Generation of Legal Marketing

The following research is an exclusive to Marketing The Law Firm and has heretofore not been published. We are thrilled that The BTI Consulting Group has chosen MLF to premier this research.

' Elizabeth Anne 'Betiayn' Tursi, Editor-in-Chief

By Marcie L. Borgal Shunk

The BTI Consulting Group's brand new research with law firm marketing leaders reveals three powerful shifts in the world of legal marketing:

1. Marketing spending per attorney climbs more than 20%;
2. Marketing staffs expand by nearly 15%; and
3. Business development takes center stage as a key objective.

The BTI Consulting Group (BTI) recently completed its third annual survey of Chief Marketing Officers and top marketing professionals at America's largest law firms. We interviewed more than 120 legal marketing leaders, including CMOs and directors of marketing, business development and client relations. BTI probed marketing leaders about their goals and objectives, strategic priorities and primary marketing tactics. We also defined exact spending, budget and staffing figures.

Marketing Spending Climbs Nearly 20%

America's largest law firms increased their investment in marketing by between $1 and $2 million last year. At the largest law firms, marketing spending hit $9.01 million or 2.2% of firm revenue. Mid-sized firms spent an average of $3.06 million, or 2.1% of firm revenue.

On a per-attorney basis, marketing spending grew even more rapidly. Marketing budgets per attorney climbed nearly 40% at firms of all sizes. At the largest law firms, marketing budgets per attorney rose to $14,400; at large mid-sized competitors they hit $11,800 (See, Table 1, below).

[IMGCAP(1)]

Half of Marketing Dollars Dedicated to
Salaries and Business Development

Law firms dedicated the bulk of increased marketing dollars to two primary areas:

1. Salaries, including both higher salaries and additional staff; and
2. Business development.

Salaries and business development combine to account for about 50% of legal marketing budgets. Seminars and events, marketing communications and public relations round out the top five budget categories at the largest law firms. At mid-sized firms, marketing communications captures the third highest budget, followed by advertising and seminars and events (See, Table 2, below).

[IMGCAP(2)]

Marketing Staffs Expand by Nearly 15%

Marketing support hit its highest point this year, with staff increases of more than 15%. BTI's survey uncovered that the most significant changes at America's largest law firms, which have expanded marketing staffs by nearly 50% since 2003, from 18.6 to 27.6 full-time employees (FTEs). Mid-sized firms enjoy more modest increases and hover at an average of 8.3 FTEs.

Attorney-to-FTE ratios at firms of all sizes have improved, helping marketing departments to manage increased workload and drive broader initiatives. Each marketing FTE supports 32 attorneys at a large law firm and 36 attorneys at a mid-sized firm.

Business Development Takes Center Stage

Sharp rises in spending and staffing arrive as legal marketing turns its focus to hands-on business development. BTI's analysis reveals an increased demand ' both from internal and external clients ' for sophisticated, client-focused business development. Top marketers are responding to this demand by making critical changes to how they staff, structure and manage their legal departments. These include:

• Defining discrete job functions to support business development; and
• Adopting new approaches to drive business development.

In the past 12 months, 32.6% of CMOs have re-defined or created new, discrete roles on their marketing teams. These roles are primarily aimed at improving client intelligence and boosting the firm's profile in select, targeted arenas. Specific job functions include practice-specific specialists, public relations point persons and market research managers.

Another 24.4% of marketing leaders have intensified their focus on business development. They have adopted new approaches that are proven to drive revenue growth and generate more business. Some key tactics include:

• Hire a new Director of Business Development;
• Establish accountability for specific business development goals; and
• Separate marketing and business development functions.

A New Generation of Law Firm Marketing

Contrary to oft-voiced criticisms about the lack of support for legal marketers, BTI's research reveals an increasing flow of money and personnel into law firm marketing departments. This investment signals the start of a new generation of legal marketing.

Gone are the days of slick, glossy brochures and a nonchalant attitude toward business development. Today, legal marketing is playing an integral role in developing and attracting new business. Many law firms are raising their expectations of marketing in tandem with their heightened investment. Savvy law firms are looking for marketing leaders who can deliver tangible results. For CMOs, this means finding better and more sophisticated ways to:

• Track and measure performance;
• Gather intelligence about existing clients and new prospects;
• Motivate attorneys and staff to embrace sales;
• Drive increased profits per partner; and
• Benchmark competitiveness.

The most successful marketing leaders have already made impressive strides to move legal marketing forward. As more law firms warm up to the importance of marketing, BTI expects to see a greater preponderance of these key elements that are proven to drive growth and deliver tangible, lasting results.

The results of BTI's exclusive analysis will be available to benchmarking partners this month. Expanded results and analysis will be included in BTI's 'Sourcebook of Law Firm Strategies,' due for publication in early 2007.

The following research is an exclusive to Marketing The Law Firm and has heretofore not been published. We are thrilled that The BTI Consulting Group has chosen MLF to premier this research.

' Elizabeth Anne 'Betiayn' Tursi, Editor-in-Chief

By Marcie L. Borgal Shunk

The BTI Consulting Group's brand new research with law firm marketing leaders reveals three powerful shifts in the world of legal marketing:

1. Marketing spending per attorney climbs more than 20%;
2. Marketing staffs expand by nearly 15%; and
3. Business development takes center stage as a key objective.

The BTI Consulting Group (BTI) recently completed its third annual survey of Chief Marketing Officers and top marketing professionals at America's largest law firms. We interviewed more than 120 legal marketing leaders, including CMOs and directors of marketing, business development and client relations. BTI probed marketing leaders about their goals and objectives, strategic priorities and primary marketing tactics. We also defined exact spending, budget and staffing figures.

Marketing Spending Climbs Nearly 20%

America's largest law firms increased their investment in marketing by between $1 and $2 million last year. At the largest law firms, marketing spending hit $9.01 million or 2.2% of firm revenue. Mid-sized firms spent an average of $3.06 million, or 2.1% of firm revenue.

On a per-attorney basis, marketing spending grew even more rapidly. Marketing budgets per attorney climbed nearly 40% at firms of all sizes. At the largest law firms, marketing budgets per attorney rose to $14,400; at large mid-sized competitors they hit $11,800 (See, Table 1, below).

[IMGCAP(1)]

Half of Marketing Dollars Dedicated to
Salaries and Business Development

Law firms dedicated the bulk of increased marketing dollars to two primary areas:

1. Salaries, including both higher salaries and additional staff; and
2. Business development.

Salaries and business development combine to account for about 50% of legal marketing budgets. Seminars and events, marketing communications and public relations round out the top five budget categories at the largest law firms. At mid-sized firms, marketing communications captures the third highest budget, followed by advertising and seminars and events (See, Table 2, below).

[IMGCAP(2)]

Marketing Staffs Expand by Nearly 15%

Marketing support hit its highest point this year, with staff increases of more than 15%. BTI's survey uncovered that the most significant changes at America's largest law firms, which have expanded marketing staffs by nearly 50% since 2003, from 18.6 to 27.6 full-time employees (FTEs). Mid-sized firms enjoy more modest increases and hover at an average of 8.3 FTEs.

Attorney-to-FTE ratios at firms of all sizes have improved, helping marketing departments to manage increased workload and drive broader initiatives. Each marketing FTE supports 32 attorneys at a large law firm and 36 attorneys at a mid-sized firm.

Business Development Takes Center Stage

Sharp rises in spending and staffing arrive as legal marketing turns its focus to hands-on business development. BTI's analysis reveals an increased demand ' both from internal and external clients ' for sophisticated, client-focused business development. Top marketers are responding to this demand by making critical changes to how they staff, structure and manage their legal departments. These include:

• Defining discrete job functions to support business development; and
• Adopting new approaches to drive business development.

In the past 12 months, 32.6% of CMOs have re-defined or created new, discrete roles on their marketing teams. These roles are primarily aimed at improving client intelligence and boosting the firm's profile in select, targeted arenas. Specific job functions include practice-specific specialists, public relations point persons and market research managers.

Another 24.4% of marketing leaders have intensified their focus on business development. They have adopted new approaches that are proven to drive revenue growth and generate more business. Some key tactics include:

• Hire a new Director of Business Development;
• Establish accountability for specific business development goals; and
• Separate marketing and business development functions.

A New Generation of Law Firm Marketing

Contrary to oft-voiced criticisms about the lack of support for legal marketers, BTI's research reveals an increasing flow of money and personnel into law firm marketing departments. This investment signals the start of a new generation of legal marketing.

Gone are the days of slick, glossy brochures and a nonchalant attitude toward business development. Today, legal marketing is playing an integral role in developing and attracting new business. Many law firms are raising their expectations of marketing in tandem with their heightened investment. Savvy law firms are looking for marketing leaders who can deliver tangible results. For CMOs, this means finding better and more sophisticated ways to:

• Track and measure performance;
• Gather intelligence about existing clients and new prospects;
• Motivate attorneys and staff to embrace sales;
• Drive increased profits per partner; and
• Benchmark competitiveness.

The most successful marketing leaders have already made impressive strides to move legal marketing forward. As more law firms warm up to the importance of marketing, BTI expects to see a greater preponderance of these key elements that are proven to drive growth and deliver tangible, lasting results.

The results of BTI's exclusive analysis will be available to benchmarking partners this month. Expanded results and analysis will be included in BTI's 'Sourcebook of Law Firm Strategies,' due for publication in early 2007.