Law Practice Management Asked and Answered Blog

Category: Marketing

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Dec 13, 2016


Law Firm Marketing – Marketing a Litigation Defense Practice

Question:

Our firm is a fourteen attorney general practice firm located in Dayton, Ohio. Two of our attorneys focus their practice on personal injury defense and the other attorneys are transactional attorneys. While the practice is doing well overall, our litigation work is dropping off. I would appreciate any ideas that you have pertaining to marketing a litigation defense practice.

Response:

Insurance carriers are a leading purchaser of insurance defense services – but so are self-insureds – big box retainers, national restaurants and food chains, sports arenas, shopping centers, and municipalities. Typical decision-makers:

The law firm needs to know who they want to target and often have to make application to get on the panel/list of approved counsel, respond to RFP’s, submit proposals, etc. to get the business.  In other words, the law firm needs to first get on the list. Then the law firm needs to cultivate relationships with the typical decision-makers.  This is getting harder as many companies have policies against such other than education formats such as seminars, presentations, etc.

Some marketing tools needed to market a defense litigation practice:

I would start by developing a target client list, an action plan, and go from there.

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John W. Olmstead, MBA, Ph.D, CMC

Dec 06, 2016


Law Firm Client Development – Getting and Keeping Clients – Roles for Associates

Question:

Our firm is a twenty two lawyer insurance defense firm in Seattle. Over the years we have told our associates that they were hired to work on firm business and there was no requirement for them to develop or bring in client business. In fact we specifically asked them not to bring in business. Now we are rethinking that policy. Many of our equity partners are retiring and we are finding we have a group of grinders – with very few minders or finders capable of either retaining existing clients or bringing in new clients. What are your thoughts?

Response:

Over the years, I have seen many law firms hire associates and tell them that there is plenty of work and they are hired to service the firm’s work and there is no need, or even desire, for them to develop and bring client business into the firm. For years, these associates meet their billable hour expectations, work their files, and get good results on their cases.  Twenty years later they are still associates – what went wrong? What are they not equity partners? Often it is because they have not developed client business.

Successful lawyers in private practice must not only do excellent legal work for their clients they must also develop client business. I believe that each attorney must invest money and time in building and promoting their expertise, professional reputation, and their personal brand. Law firms should not only encourage but should require, support, and fund (money and non-billable time) marketing/business development at the individual attorney level. Client development skills have to be developed and practiced early on.

Due to your client base (insurance companies) it may not be that easy for associates to actually bring in new clients unless the firm is diversifying into other practice areas (unless that is your goal). However, they can start by being good minders – client relationship managers – and work on getting more business from existing clients and maintaining client relationships that the firm has.

Client Development is externally focused – relationship management is more internally focused.

Skills for developing new clients and those needed for maintaining good relations are not the same.

While you associates will each have different abilities they should be honing their skills in one of the following areas:

Rainmakers – win new business from new clients and their strength is networking.They serve on boards, attend events, play golf, and entertain clients; prospective clients.

Hired Guns – win new business from new clients – emphasis on expertise.(They speak, write, give seminars, and become experts in a specific field)

Brain Surgeons – win new business from existing clients – internal focus; emphasis is on expertise – they solve problems that others cannot.

The Point Person – wins new business from existing clients and have an internal focus.

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John W. Olmstead, MBA, Ph.D, CMC

 

Nov 15, 2016


Law Firm Client Development – Using Social Media

Question:

I am the partner recently put in charge of marketing in our eight lawyer general practice firm. For years we have simply relied on referrals from past clients, lawyers, and other referral sources as our sole means of client development. A few years ago we invested in a website. We are now considering whether we should invest in social media. I welcome your thoughts.

Response:

A recent survey conducted by FindLaw reports that a majority of consumers says that social media plays a major role in deciding which attorney to hire and they would be likely to hire an attorney who has an active presence on social media such as Facebook, Twitter, and LinkedIn.

The FindLaw survey found that 84 percent of American adults use at least one form of social media, with Facebook the most popular (73 percent), followed by Instagram (28 percent), Twitter (27 percent), LinkedIn (21 percent), and SnapChat (16 percent). Fifty-four percent of consumers say they would be likely to hire an attorney who is active on social media. This is particularly true for younger consumers. Sixty-nine percent of survey participants between the ages of 18 and 44 would hire  attorneys who are active on social media.

Since your firm is a general practice firm I assume that a majority of your clients are individuals rather than businesses. If this is the case you should have an active Facebook presence for this audience and an active LinkedIn presence for your professional audience. Your LinkedIn profile should be updated periodically. You should post to your Facebook account at least once a week.

Your biggest investment is your time and you can get carried away. Some of my clients outsource Facebook postings to their website providers or others that provide such services.

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John W. Olmstead, MBA, Ph.D, CMC

Sep 27, 2016


Law Firm Marketing – Client Development for an Insurance Defense Firm

Question:

I am the managing partner of a thirty attorney insurance defense firm in Arlington, Texas. While we are still in our first generation – several of our partners are approaching retirement and some of our relationships in our insurance company clients are also retiring. We are looking for ways to shore up and expand our client base. We would appreciate your suggestions.

Response:

You need to get on more "approved lists" of insurance companies. Once you are on these lists you have to entice claims manager to use you as opposed to other law firms that are on their approved lists. In other words establish relationships with numerous claims managers throughout the company. This is harder than it used to be due to policies that many companies now have prohibiting various forms of networking such as dinners, gifts, ball games, etc. Now days it seems that educational venues is one of the few formats that is not frowned upon. 

Here are a few ideas to get started:

  1. Become involved in every possible organization that involves insurance claims, ACCA, and other such groups.
  2. Join and become actively involved in these groups.
  3. Offer to give speeches and presentations to these groups.
  4. Develop relationships with news reporters and have an effective public relations program that insures that you get all the PR you can when you have successful outcomes in your cases.
  5. Speak at ACCA and RIMS (Risk Insurance Management Society) conferences.
  6. Form alliances with bigger regional and national insurance defense firms.
  7. Research target companies and make application to get on their approved lists.
  8. Obtain listings in A.M. Best and Martindale.
  9. Get on the speaker list with seminars groups that target the insurance industry client industry – for example Perrin Conferences.
  10. Have a quality website that demonstrates expertise and a e-newsletter that provides information that will help claims managers and adjuster be more successful.

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John W. Olmstead, MBA, Ph.D, CMC

Jul 26, 2016


Law Firm Marketing – How Much Should We Be Spending on Marketing?

Question:

I am the managing partner of a 12 attorney firm in Providence, Rhode Island. In our recent partner meetings we have been discussing ramping up marketing. How much should we be spending on marketing?

Response:

Studies that have been conducted indicate that law firms that provide services to business firms (B2B) spend approximately 2.4% of fee revenue on marketing. However, law firms that focus on individual consumers (retail law if you will) spend much more – 10%+ of fee revenues on marketing – especially if strong referral networks are not in place. I have several PI, SSDI, Elder Law and Estate Planning firm clients that are spending 10%+ of their fee revenue or greater on marketing. I have some extremely successful PI firm clients spending 20% of their revenue on marketing. 

The amount of appropriate investment can depend upon referral networks in place. I have successful PI and Estate Planning firms that are spending very little on marketing, are getting all of their business from their referral networks, and spending next to nothing on marketing and advertising. (By referrals I am speaking about professional referrals not involving a referral fee and client referrals. If referral fees are involved they should be considered a marketing cost) So it depends upon your situation, the type of cases you are going after, etc.

Be careful of spending to be spending. Marketing expense scan be a deep hold that yields no return on investment. Insure that your marketing investments are targeted, well thought out, measured, and are working. Determine up from whether your goal is long term brand building or short term lead generation going in.

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John W. Olmstead, MBA, Ph.D, CMC

 

May 24, 2016


Law Firm Marketing – Using Webinars to Market an Estate Planning Practice

Question:

I am the managing partner of a six attorney boutique estate planning practice located in Madison, Wisconsin. We had a great year last year financially as we have the last several years. However, this year (2016) we are off to a terrible start. Our new matter intakes are down by twenty-five percent. We have a very proactive marketing program – print advertisements, directory listings, top notch website, and we do seminars for prospective clients. I know other estate planning attorneys that do more seminars than we do. Should we be doing more seminars? I would appreciate your insight. 

Response:

I have other estate planning law firm clients telling me that their new client intakes are down this year as well. I think it is a demand/timing issue. Regardless of the amount of advertising I find that most estate planning firms receive the bulk of their clients from past client referrals, referrals from friends, and referrals from other professionals including lawyers. Some of my estate planning law firm clients that spend the least on advertising are the most successful financially.

Regarding seminars, I believe they are not having the same impact that they did in the past. More and more people are going to the internet for information and content. State Bar Associations are reporting that more and more CLE programs are being delivered electronically via the internet in the form of webcasts and webinars. College degrees, law degrees, and LLM degrees are being offered via the internet. I believe that traditional face-to-face seminars will draw less qualified prospective clients than in the past.

I would still look for opportunities to "partner up" with organizations that are willing to sponsor seminars but I would resist the temptation to sponsor and fund seminars yourself.

You might want to experiment with sponsoring your own educational webinars for clients and prospective clients and look into webinar products such as www.GoToWebinar.com. The expense would be minimal and you may have better results.

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John W. Olmstead, MBA, Ph.D, CMC

 

 

 

May 10, 2016


Law Firm Client Relations: Lost Client Survey

Question:

I am a member of our firm's executive committee. We are a 16 attorney business transactional firm in Seattle. Recently the firm has lost several key clients and we want to know what we can do determine why this happened and what we can do to improve client retention. I would appreciate your suggestions.

Response

I would conduct a lost client survey. This type of survey is used if your firm wants to know why you have lost a particular client or group of clients. With this survey interviews are conducted (usually by telephone or in person) with clients that no longer do business with your firm. Let the client know that you are sorry that he or she is no longer doing business with your firm and that you are interested in learning from your mistakes. Understanding your client’s reason for leaving will help you make improvements for future clients. One of the greatest benefits for this type of survey is that you are often able to discover the specific reason a client left.

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John W. Olmstead, MBA, Ph.D, CMC

Apr 12, 2016


Law Firm Client Satisfaction – Exceeding Client Expectations

Question:

I am owner of a four attorney firm in Amarillo, Texas. We represent both individual and institutional clients. Recently, we have had numerous complaints from clients advising us that our services took longer than expected and fees were also higher than expected. I would appreciate your thoughts?

Response:

Based upon client satisfaction surveys (telephone interviews) that we do for law firms we find that one of the biggest problems is that the attorneys are doing a poor job of managing client expectations. Your clients get frustrated when you promise one thing (timeline or fees) and the result is very different – especially when the work takes longer than promised or the fees are higher. Even though you don't structure it as a promise your clients take it that way. The key is to under promise and over deliver. I suspect that upon the initial client meeting you are under estimating the timeline and low balling the fee range. Reduce the promise – increase the - timeline and fee range and then shoot to deliver under that range. This will do wonders for improving the client relationship.

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Mar 01, 2016


Law Firm Marketing – Estate Planning Firm & Importance of Lawyer Referrals

Question:

I am the owner of an estate planning firm in Oklahoma City. I have four associates that work for me in addition to two billable paralegals and three staff support members. I am looking for ways to improve our business development and marketing. The majority of our business comes from past client referrals and referrals from employees and friends. We spend a considerable amount on advertising which includes our website, print ads, collateral materials, newsletters, etc. We would like to do more to increase client business. I would appreciate your thoughts?

Response:

I find it interesting that you did not mention referrals from other lawyers. I have many estate planning/elder law clients that receive a major portion of their clients from referrals from other lawyers. This should be a key component of your marketing plan. Your business development and marketing efforts should address this potential referral source. You should be investing targeted time:

Review your website and see if it speaks to both your individual clients (mom and pop clients) as well as professional referral sources such as other lawyers.
 

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John W. Olmstead, MBA, Ph.D, CMC

 

 

 

Feb 09, 2016


Law Firm Marketing Director – Are We Ready For One – What Should we Look For?

Question:

We are a 25 lawyer insurance defense firm in Northwest Dallas. We are managed by a managing partner, firm administrator, and director of human resources. We have been discussing the need for a marketing director. Are we too small? If we decide to hire one what should we be looking for and where should we start our search?

Response:

There is no magic size. I have seen five lawyer firms effectively use a marketing director and thirty lawyer firms that do not have one. It all comes down to your firm's specific need, what you are wanting to accomplish, and what the lawyers are willing to let a marketing director do.

While the popular title is marketing director, director of client and business development, etc. some marketing staff in smaller firms often function more as marketing coordinators and event planners. If you are looking for someone to help the firm devise a competitive strategy, lead the firm's strategic planning effort, help diversify the practice, etc., you need to look for an experienced marketing director with five plus year's experience in law or other professional service firm marketing at a director level.

If you need someone to update the website, write bios, write blogs, update social media, create brochures, and plan and coordinate events – you may only need a marketing manager or coordinator with excellent writing skills. Prior experience in law or professional service firm marketing is a plus but not required. Journalism and mass communications are popular degrees for this position.

The Legal Marketing Association (LMA) is an excellent source for finding candidates. Here is a link to the LMA job bank

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John W. Olmstead, MBA, Ph.D, CMC

 

 

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