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It happens sometimes. A clever ad falls flat. A marketing program that would get an 'A' in most MBA programs produces yawns for a law firm. A direct mail letter to a well-thought out target audience lands with the thud of huge silence. Why?
Because the differences between marketing a product and marketing a professional service are wide and profound. Because professionals rarely understand that unlike other areas of marketing, law firm marketing requires that lawyers themselves actively participate in the process. In product and other forms of service marketing, the people who make the product are generally isolated from the marketing process ' but lawyers must be deeply involved in it.
This doesn't mean that the professionals must be qualified marketers ' it takes more than understanding the mechanics, it takes experience and practice and knowing what works and what doesn't. But with a little effort, and with the help of a professional marketer who understands professional services, lawyers can become sufficiently comfortable with the mechanics and strategy to be helpful to the marketing program. Professional services marketing demands that the professionals must supply the grist for the marketing mill. It requires, as well, an understanding of the differences between marketing a product and marketing a professional service.
Differences between product and professional services marketing
Lawyers have historically not been concerned with the market ' they are concerned with being lawyers, and meeting their own personal needs for professionalism. That was sufficient pre-Bates, but not now, because it's not a competitive approach in a seriously competitive environment.
As the late corporate philosopher, Peter Drucker has often noted, the role of a corporation is to make a customer. Lawyers have the same ultimate responsibility ' to generate a client ' but the path to it is different. Those differences significantly affect the nature and practices of professional services marketing. For example…
Some time ago, at a law firm marketing conference, an executive of an international ad agency was describing how he markets his supermarket clients. 'What I do for them I can do for you.' We were stunned. I raised my hand and asked, 'You can sell legal services the way you sell supermarkets?' He replied, confidently, 'Yes, I can.' To which I responded, 'Does that mean that if I have a matrimonial practice, and do a good job of marketing, I can persuade you, a happily married man, to get a divorce?' End of discussion.
What These Differences Mean
Why are these differences significant? Because law firm marketing can rarely produce clients where there is no prior need for legal services. Yes, it's true that there are exceptions, in such practices as personal injury or when you're addressing people who have rights they didn't know they have (for example, some class action suits or new tax laws). And because both ethical and rational considerations limit the degree to which law firms can distinguish themselves from their competitors. Therefore, there must be a different set of objectives for law firm marketing, such as to…
A typical example of this process at work is in a direct mail letter or other direct response or targeted marketing campaigns. While most products may be sold directly in response to a direct response campaign, the well-crafted direct response campaign for lawyers and accountants has the sole objective of generating the opportunity for the professional to make a personal presentation. The sale is made in person, most often by the lawyer who will serve the client.
For a large international firm, I developed a four paragraph system that produced a return of 50% ' 50% of the recipients of the campaign agreed to meet with us. In paragraph one, we stated the problem in the most dire way we could. Paragraph two said, 'we can help.' Paragraph three said 'this is who we are.' Paragraph four said 'we'll call you on Monday to set up an appointment.' And 50% of the letters' recipients agreed to meet.
There is, then, a time lag between the beginning of a marketing program and finding results. Understanding these distinctive marketing principles, then, and pursuing these objectives, can produce results, as measured by such factors as increased inquiries, increased opportunities to propose, and ultimately, a better understanding of client needs and how to meet them.
It happens sometimes. A clever ad falls flat. A marketing program that would get an 'A' in most MBA programs produces yawns for a law firm. A direct mail letter to a well-thought out target audience lands with the thud of huge silence. Why?
Because the differences between marketing a product and marketing a professional service are wide and profound. Because professionals rarely understand that unlike other areas of marketing, law firm marketing requires that lawyers themselves actively participate in the process. In product and other forms of service marketing, the people who make the product are generally isolated from the marketing process ' but lawyers must be deeply involved in it.
This doesn't mean that the professionals must be qualified marketers ' it takes more than understanding the mechanics, it takes experience and practice and knowing what works and what doesn't. But with a little effort, and with the help of a professional marketer who understands professional services, lawyers can become sufficiently comfortable with the mechanics and strategy to be helpful to the marketing program. Professional services marketing demands that the professionals must supply the grist for the marketing mill. It requires, as well, an understanding of the differences between marketing a product and marketing a professional service.
Differences between product and professional services marketing
Lawyers have historically not been concerned with the market ' they are concerned with being lawyers, and meeting their own personal needs for professionalism. That was sufficient pre-Bates, but not now, because it's not a competitive approach in a seriously competitive environment.
As the late corporate philosopher, Peter Drucker has often noted, the role of a corporation is to make a customer. Lawyers have the same ultimate responsibility ' to generate a client ' but the path to it is different. Those differences significantly affect the nature and practices of professional services marketing. For example…
Some time ago, at a law firm marketing conference, an executive of an international ad agency was describing how he markets his supermarket clients. 'What I do for them I can do for you.' We were stunned. I raised my hand and asked, 'You can sell legal services the way you sell supermarkets?' He replied, confidently, 'Yes, I can.' To which I responded, 'Does that mean that if I have a matrimonial practice, and do a good job of marketing, I can persuade you, a happily married man, to get a divorce?' End of discussion.
What These Differences Mean
Why are these differences significant? Because law firm marketing can rarely produce clients where there is no prior need for legal services. Yes, it's true that there are exceptions, in such practices as personal injury or when you're addressing people who have rights they didn't know they have (for example, some class action suits or new tax laws). And because both ethical and rational considerations limit the degree to which law firms can distinguish themselves from their competitors. Therefore, there must be a different set of objectives for law firm marketing, such as to…
A typical example of this process at work is in a direct mail letter or other direct response or targeted marketing campaigns. While most products may be sold directly in response to a direct response campaign, the well-crafted direct response campaign for lawyers and accountants has the sole objective of generating the opportunity for the professional to make a personal presentation. The sale is made in person, most often by the lawyer who will serve the client.
For a large international firm, I developed a four paragraph system that produced a return of 50% ' 50% of the recipients of the campaign agreed to meet with us. In paragraph one, we stated the problem in the most dire way we could. Paragraph two said, 'we can help.' Paragraph three said 'this is who we are.' Paragraph four said 'we'll call you on Monday to set up an appointment.' And 50% of the letters' recipients agreed to meet.
There is, then, a time lag between the beginning of a marketing program and finding results. Understanding these distinctive marketing principles, then, and pursuing these objectives, can produce results, as measured by such factors as increased inquiries, increased opportunities to propose, and ultimately, a better understanding of client needs and how to meet them.
End of year collections are crucial for law firms because they allow them to maximize their revenue for the year, impacting profitability, partner distributions and bonus calculations by ensuring outstanding invoices are paid before the year closes, which is especially important for meeting financial targets and managing cash flow throughout the firm.
Law firms and companies in the professional services space must recognize that clients are conducting extensive online research before making contact. Prospective buyers are no longer waiting for meetings with partners or business development professionals to understand the firm's offerings. Instead, they are seeking out information on their own, and they want to do it quickly and efficiently.
Through a balanced approach that combines incentives with accountability, firms can navigate the complexities of returning to the office while maintaining productivity and morale.
The paradigm of legal administrative support within law firms has undergone a remarkable transformation over the last decade. But this begs the question: are the changes to administrative support successful, and do law firms feel they are sufficiently prepared to meet future business needs?
Counsel should include in its analysis of a case the taxability of the anticipated and sought after damages as the tax effect could be substantial.