High street firms ‘fear for the future’
The future of many high street firms could be in jeopardy unless they adopt a more customer-friendly approach to business, according to a new study.
Some 87% of lawyers in sole practitioner and small firms already fear for their future, the analysis found, with many citing the competitive threat from 2011 of increased competition from alternative business structures (ABSs).
The research was conducted for LexisNexis’s law firm comparison website, LawyerLocator. Some 60% of 150 firms surveyed by YouGov said they expect their business to suffer when ABSs enter the legal market, while 21% said they had already suffered as a result of the Legal Services Act.
According to director of LawyerLocator, Rob Farquharson, small firms fear that the post-ABS market will be dominated by cheaper, commoditised services rather than qualified solicitors. However, he also drew attention to a separate YouGov poll of 2,052 members of the public, which found that 60% said the most important factors when choosing a lawyer are specialist legal knowledge and an ‘approachable’ service – ‘precisely the domain of good high street law firms’.
‘Our research has revealed that people want accessible, trusted advisers who are experts in their field, not simply cheaper services provided by a call centre-based business,’ said Farquharson.
Consumers are looking for firms that offer a transparent, consumer-friendly and cost-effective service using up-to-date technology and delivery methods, Farquharson added. Firms must adopt this model if they want to survive, he suggested.
The survey showed many firms have made progress over the last three years – 85% have invested in IT; 47% have developed an online element to their practice; and 37% have changed their working hours to compete with bigger organisations.
The consumer poll revealed that 70% of the public do not have a lawyer to go to should the need arise. Farquharson said firms needed to a lot more to raise their profile and attract these potential new clients.
He added: ‘Practitioners need to take matters into their own hands. With great change comes great uncertainty and it will be the practices that adapt quickly that will be the practices of the future.’
Comments
High street firms
ABS seems far away and probably nothing to worry about unless we survive the current cull by the lenders, and insurers.
Why fear the inevitable?
ABS's are already upon us. Take action. If you don't you only have yourself to blame. Clients will have more choice but that won't mean that everyone will make that decision based on cost alone.
Where there is change there is opportunity.
I feel that the sea change which looks likely to appear more overtly may have some silver in its lining, yes change will need to be implemented but once a decision has been made to seize new opportunities with advertising (becoming ubiquitous) and streamlined (new technology) why should a local firm not continue to provide an affordable, quality service.
www.solicitorswakefield.org/
Nightmare scenario
Do you lie awake some nights worrying about a problem which later, in the cold light of day seems easy to address or worthy of being ignored?
All these researchers and experts talk about change and a new world as if there hasn't ever been change.
If you have been a Solicitor for over 20 years, have you not been told about the end of your world only for you to survive in the changed environment? Sure some have fallen by the way side. More will. But I think that the threat from ABSs is overblown hype.
Law is not a commodity (not matter what experts say) and many clients are not consumers. A trust is established that develops into a relationship.
Sure things could be done better, faster, more efficiently. That has always been the way. That isn't news.
Which ABSs are actually going to enter the market?
Which services will they be providing?
If ABS's area certain threat then takle comfort dear colleague fronm the experience of certain banks and certain retailers of being estate agents. Now if that is not a commoditisable industry I dont know what is. But look at how that market is structured, in your locality, and that moght give you an idea about law. Think also of accountancy. Why aren't Tescos and Asda and the Co-Op falling over each other to offer tax planning advice or accountancy services?
You have a database of clients.
Write to them all and tell them you still exist, what you do and invite them to send their friends and family to you to experience the good service they had. Invite your old clients back.
Another press release by an interested party........
Lawyerlocator is presumably another one of those companies seeking to worry firms about the LSA and issuing press releases to increase that worry. A company that runs a panel is not where I'd look for research results that say anything other than what would promote that company's business. It is disappointing that some prominence is given to this type of press release. Please woudl the Gazette look for its own stories rather than relying on press releases from interested parties to fill the ever decreasing news copy.
As for the LSA.......... what work do most small firms rely on? Conveyancing and Wills and Probate. Conveyancing has been open to competition with minimal controls for years - Countrywide Conveyancers being the main example. Wills work is not even regulated and there is nothing to stop anyone doing that work without the LSA. Yes, there is a threat that new entrants will do the work better. But will they?
Surely no one in their right
Surely no one in their right mind will sit back and do nothing? Co-op already offer legal services and more big brand names will follow. Yes, it remains to be seen how good they will be but you should use and protect your client data bases irrespective of the LSA. Do not underestimate the might and ability of the likes of Tesco. Start building your defences now, whilst you have time!
The Chinese have a curse, "May you live in interesting times"...
It's all interesting stuff.
As someone who works with solicitors, each day, might I suggest three unpalatable things;
1) The general public don't trust solicitors.
2) ABS will drive many more law firms out of business.
3) The public will want to deal with the "brands" they know.
If you don't promote your brand now I would respectfully suggest the next couple of years might be problematic. ...