Last week we were speaking with a well-respected member of a law firm management team about innovations and shifts in law firm marketing. During the discussion, he said: "We know 50% of the monies we spend on marketing are wasted, but the problem is, we just can't figure out what 50%." Great quote...not so great a problem to be facing when law firm profitability is under attack - and law firm marketing is such a key component of success in the new world of legal services.
Break down the meaning of the statement, and a couple of points pop-out:
- Law Firm Marketers (and Management) are having trouble tying efforts to results - they lack the business intelligence they need to evaluate return-on-investment of marketing activities.
- Without meaningful information to show true value of marketing investments, law firm management has two options: Option A: Cut the marketing budget by 50% or Option B: Keep the marketing budget as-is, and continue the known waste for fear that the wrong 50% might get cut!
What if law firm management had different choices? Spend less, get the same return OR spend the same and get full value of that investment? Either option adds to law firm profitability. The first hits the bottom line, and the second hits the top and bottom line...which choice does your law firm want to make?
Regardless of which option your law firm chooses, you will need to innovate how you view, execute and report on marketing efforts. But this really isn't a big deal - because the fact is, you have to do that anyway! Competition in the legal industry has already transformed - with outsourcing, insourcing, pricing pressures, alternative fee arrangements - its an onslaught. Your firm HAS to transform its marketing or you will be obsolete before you know it.
Here's the rub for law firms...new age marketing is based on collaboration. Collaboration within your law firm (cross-attorney) and collaboration with your prospects and customers. This is where law firm management faces the biggest challenge - culture and behavioral change.
Elegrity helps law firms navigate the labyrinth of these changes by employing proven business process transformation approaches and supporting technologies. We help law firm management embed marketing into daily operations, with auditable and reportable connections between efforts and returns. See our earlier posts for information on ways to overcome those challenges...and look for more posts on law firm marketing in the coming weeks.