Shopping around

Law firms are anxious to acquire more marketing muscle.

But a good web site is only part of the process.

Chris Baker explains that business development and client care are also vital

The big sell is coming, recent research has suggested, with many law firms set to boost their marketing efforts in some form or another.

But some would argue that the economic climate is not quite right for such a move.

A survey of 82 firms by recruitment consultants Chambers & Partners found most large firms may not be raising their spending, but they do intend to increase marketing staff over the coming year (see [2003] Gazette, 6 March, 8).

And in small firms of one to 44 partners, 25% have plans to expand their marketing capacity.

This rose to 50% in firms of 75 to 149 partners, and all of firms with 150 partners or more.

But how will this work be done?

Small firms have a problem when it comes to marketing - more often than not the resources are not there and sometimes have to be fought for.

Nick Jarrett-Kerr, chairman of the Law Society's law management section, says: 'The larger firms have all got a marketing department of sorts - some employ 100 people or more.

Small firms are lucky if they can get a marketing manager, so their marketing work is either done by themselves or outsourced.'

Some of these smaller firms have grasped the nettle and appointed marketing partners, but when it comes to design, brochures, print, or branding they still have to look to outside agencies, he adds.

Management consultant Simon Young is a former managing partner at Devon-based firm Veitch Penny, and sits on the Law Society Council representing the law management section.

Speaking in a personal capacity, he says: 'It's all about balancing expense against the benefit.

Part of the problem is that half of the advertising will be effective, and half will not - but we don't know which half.

And I don't think the profession is very good at monitoring the responses it gets to its advertising.'

But the small firms increasingly understand that marketing is a good way to level the playing field.

Design firm Hildebrand has worked on design, brochures, Web sites and branding for small and large firms.

Maximising Web site services seems to be an emerging trend.

However, chief executive Matthew Luxon says partners and clients can prefer a physical brochure to a virtual one on the Internet.

'Some clients don't have access to the Internet, so it's always a good idea to keep that in mind,' he adds.

But more and more law firms are expanding the services they offer on-line, he says.

'The smaller firms tend to look more for strategic input from us when we are developing their marketing,' Mr Luxon continues.

'They often ask us to look at their wider communications and branding issues, rather than just a specific piece of literature.'

David Anderson, a partner at innovative two-partner east London firm Sykes Anderson, says his practice focuses its marketing on branding the firm as providing quality services in a transparent way.

It has fee calculators on its Web site, and clients can track cases on-line.

A recent three-month advertising campaign on LBC radio in the capital proved 'highly successful' in attracting people to the Web site for probate and inheritance tax issues, he says.

And on the commercial side, an e-commerce joint venture with Country Life magazine has given access to business know-how and financial muscle that otherwise would not have been attainable for a firm of Sykes Anderson's size.

'The price has been constant change and software upgrading within our organisation,' Mr Anderson says.

While there are significant differences between the ways small and large law firms market themselves, there is some crossover.

'Know thy client' is a mantra no matter how many partners the firm has.

'In some ways, it's easier at the small end of the market, but equally if you are dealing with business institutions you need to get to know them better than in the past,' says Mr Young.

For the large firms, business development and client care would appear to be the key.

Mr Jarrett-Kerr says: 'Business development is something that is going to increase - marketing that is up close and personal.'

Mr Young agrees: 'A good number of firms are getting more professional in their approach to management and generally the marketing goes hand in hand with the strategic, business-planning side.

It's becoming more and more difficult to separate the two.'

Good business development is akin to the corner shop, says Matthew Gorman, global head of business development at City firm Clifford Chance.

'It's like the grocer who knows everyone who comes through the door, as opposed to the large supermarket.

Smaller firms have always known their clients well, but it can be more difficult for large firms.'

Clifford Chance's marketing tends to focus on 'looking after the clients that make up the lion's share of our work,' he says.

The firm has implemented a client focus programme, with teams set up around favourite clients, and has around 90 people working in offices around the world that concentrate more on client relations than marketing, he says.

'The larger firms are all looking at client relationship management and looking at industry groups such as healthcare, the automotive industry, communications and media technology, and financial institutions,' Mr Gorman says.

Clients like their lawyers to know the language of, and developments in, their fields.

Marketing this new focus has become all about developing the firm's Web site to add value, instead of the traditional approach of using the Internet as a means of letting the public know you are there.

Automating traditional legal services, such as on-line tracking of cases, the option to buy training via the Web site, and access to the firm's intranet, are all seen as good marketing tools.

And they have the added bonus of making an often monolithic law firm appear more customer focused and client friendly.

Sandra Hewett, head of London public relations consultancy SHMR, says: 'Marketing-savvy partners can achieve a great deal in business development with good marketing and PR support.

As business people purchase legal advice for individuals or teams, they won't want a first approach from a marketing or sales team.'

What they will want, she says, is networking by partners and follow-ups that lead to meetings where offers can be pitched.

'The big firms also have a lead in having a good database to whom they can mail newsletters and seminar invites,' Ms Hewett adds.

'They take up a lot of work and need constant updating, and are often rubbish in professional firms.

But backed up by good management, and telephone or face-to-face follow-up meetings, they are invaluable and can extend a firm's reach.'

Mr Gorman maintains there is still a strong role for more traditional marketing, such as PR work and newsletters, no matter how large the firm is.

A press release issued in the wake of the recent Schneider-Legrand antitrust case resulted in coverage in business pages in several countries, and appearances on international television business news programmes.

'It raised our profile and we got more work as a result,' he says.

'PR is part of the armoury of any law firm.'

Jonathan Fox, chief executive of mid-sized London firm Collyer-Bristow, was one of the first law firm chief executives, and before that worked as a marketeer with companies such as Boots.

He insists: 'The key point with marketing is that it does not have anything to do with branding.

Business development is a different issue completely.'

What Mr Fox sees as marketing, he says most firms would say were the 'nice to do' activities, such as seminars and newsletters.

'These are low-impact activities, while business development is high impact.

Contacting your clients, researching and analysing the sector - that's what you do to stay in business.'

Mr Fox can see problems with law firms boosting marketing.

He says it could send out the wrong message, no matter how glossy the literature or technologically advanced the Web site.

'Large firms are concentrating on branding, but if you look at the clients they are finding it tough at the moment,' he explains.

'It's a question of balance - it's all very well to maintain business development spend, but we have got be careful and know what the economic market is.

'I've talked to about 50 clients in the last six months and they are all struggling.

They see someone doing marketing and think "we cannot afford to do that".

It sends out mixed signals.'

Ms Hewett adds: '[Law firms] can look at branding issues, although I don't think they will ever achieve brand awareness comparable to IBM or Barclays because they are not product-led and do not have the advertising.'

All agree on one thing: all firms must improve their internal communications.

Mr Gorman maintains that this is a particular challenge for the large firms.

'Getting the same message out across 32 offices in 19 countries is extremely important,' he says.

Hildebrand's Mr Luxon agrees, adding that once internal intranet systems are running effectively, they can be put on-line to give clients an extra level of access to information.

'The most successful communication strategies use a combination of media,' he says.

'Clients of law firms vary greatly and some may prefer printed material.

Core messages that don't change can often be better handed out in that way, but changeable information is much more cost-effective on the Web.'

Law firms of all sizes are running in the same race to provide client-focused services to reflect changing customer needs.

As the client becomes more demanding for easily accessible information, the law firm will attract more customers by providing it.

Mr Luxon adds that even barristers' chambers are now asking for his services.

But it is widely maintained that this is not just something that can be decided overnight.

Marketing, or if you prefer, business development, has to be a core part of the firm's strategy and with buy-in from across the practice.

As Mr Anderson puts it: 'You must look critically at the internal workings of the firm before you try to project your branding of quality.

Otherwise you are involved in short-term advertising and not long-term brand building.'

Chris Baker is a freelance journalist