In the latest instalment of a continuing series on law firm marketing, Sebastian Fox looks at the importance of teamwork in winning clients
Solicitors' firms devote much time and many resources to winning new clients.
How effective is this effort? Of course, the answer will be that it varies tremendously - not only between different firms, but also between different individuals within firms.
Some fee-earners seem naturally adept at picking up the telephone to cold-call targets (the 'rainmakers'), while others find the prospect frightening.
Many law firms take the view that winning new clients does not require a structured approach and effort.
Clients may not want to use a solicitor, but there are many circumstances when they have to do so.
Therefore, to a certain extent, the work sells itself, particularly in such areas as conveyancing, personal injury and probate.
How long will this situation last? As clients become more demanding and competition more intense, those firms not actively seeking new clients and providing the sorts of services clients want all the time will eventually fall by the wayside.
Furthermore, with the Clementi review of competition in legal services under way, it may only be a matter of time before some aggressive competitors come on to the scene.
But it is certainly not too late to start developing client-winning skills.
One approach taken by many firms is to insist that all fee- earners actively seek new clients.
Clearly, firms need new clients to replace those lost through natural wastage, but there is no reason why responsibility should be divided equally among fee- earners.
Look at your firm as a team of individuals with differing skills, non-legal as well as legal; some will be good at manage-ment, some will be good at developing client relationships, while others will excel at winning clients.
You will find that playing to your team's strengths, rather than asking everyone to be good at all these skills, will raise productivity and ensure that your firm's resources are used in the most efficient and effective way.
Adjusting how the billing targets are apportioned among the team can then enhance each individual's efforts.
In other words, tailor targets to fit the other responsibilities allocated to the individual.
Having clearly identified which individuals will be responsible for winning new clients - and providing them with the time and freedom to do it - adopt a logical system to maximise your chances of success.
Firstly, you will need to identify your target market.
Typically, clients with similar needs can be grouped together for the purposes of targeting (which is known as market segmentation).
By segmenting your potential clients in to clearly defined groups, it will be easier to achieve economies of scale in your efforts and will allow you to tailor your message so that it is relevant to the target group.
Segmentation also:
- Divides the potential target market in to manageable chunks;
- Helps develop your firm's skills and reputation among that potential group of clients, and;
- Helps you identify potential opportunities more easily.
Various databases and organisations can provide information on companies in your area or target field.
Or you can commission an agency to conduct research specific to your needs.
The second stage is to determine what you are going to say to the targets - what is your selling message? What makes you different from the competition and why should potential clients come to you? It is definitely worth having this established so that all the fee- earners charged with winning new clients have a common understanding of what to say.
When you are ready to start, give people time to prepare for the contact, be it over the telephone or in a meeting.
This will be particularly vital in the early stages until they become more familiar with the sales pitch.
The third stage is twofold: follow up all leads, and continue to make regular contact.
It is a rare coincidence if you happen to contact a client at the precise moment he needs your help.
But if you make regular contact and remain at the top of his mind, he will think of you first when he has a need.
Too often, promising leads fall by the wayside because they are not followed up and someone else capitalises on the opportunity.
Persistence and patience are key to converting an initial contact to billable work.
Lastly, be systematic.
If you have segmented your target market, ensure that everyone's efforts are focused in the right places.
Create a cross-departmental team that has responsibility for managing and driving the process.
This will avoid duplication of effort and to share the benefit of everyone's experience.
Bear in mind that winning new clients is essentially a numbers game.
Think of the process as a funnel - the greater the number of contacts made at the top, the greater the amount of work generated at the end of the sales process.
Some estimates calculate that only 10-15% of all initial contacts convert into instructions.
By simply increasing this conversion rate, you can significantly increase the inflow of new clients.
Work out how many contacts have to be made annually to ensure your minimum required new instructions.
Where firms act predominantly for individuals rather than doing commercial work, the principle is the same.
The greater the number of people contacting your firm, the greater the work it generates.
To increase the numbers of contacts, you have to develop a cohesive plan that covers:
- Segmentation - who do you want to work for and why? What sort of work do you want to do for them? What sort of relationships do you want with your clients?
- Differentiation - what do you do that distinguishes you from the competition?
- Communication - how and what will you communicate to potential clients?
- How will you manage your reputation and awareness of your firm amongst the target clients?
- Workflow - how will you manage new contacts and instructions to ensure an even flow of work and the best client service?
A note of caution: while winning new clients is extremely important, it is of equal importance to know which clients you want to work for, and when to walk away.
After all, where is the benefit in winning a new client at a low profit margin at the expense of more profitable work? There may be instances when you need to do this to enhance your reputation in a particular market.
However, too often law firms focus on increasing turnover at the expense of profitability.
This is all about team effort.
Teams performing best are those that play to the strengths of the individuals, not those that re-train everyone to be all-rounders.
Law firms are no different.
Sebastian Fox is a marketing consultant and is a former marketing director at national law firm Eversheds
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