SURVEY: marketeers spend less than 1% of budget on research


Law firms are failing to invest in market research - even though it is 'fundamental to building a sustainable business', it has been claimed.



Around one-third of law firms, according to a survey by the Professional Marketing Forum (PM Forum), spend less than 1% of their marketing budget on market research. And virtually none of the responding law firms spend more than 5%.



The findings were based on the responses of 165 professional services firms, of which 55% were UK or US law firms. UK law firms focused the great bulk of their research on client satisfaction, needs and background. US law firms, by contrast, placed greater emphasis on research into market opportunities.



PM Forum executive director Richard Chaplin said: 'Gathering reliable insights into client and market needs is not a luxury item. It is fundamental to building a sustainable business.'



He added that it was 'ridiculous' to spend less than 1% of a marketing budget on research and that '10% was nearer the mark'.



One business development manager at a top City firm said: '[The amount we spend] is extremely small, but ought to be a lot higher. It is probably equally the case for a lot of other firms. We really need to invest more in finding out what our clients think about us and where the opportunities for developing new business lie.'



Jonathan Rayner