You don’t need me to tell you that these are some interesting times to be in the legal arena. Client demands are rising. Corporate legal departments are handling more matters in-house. Non-traditional service providers are growing their capabilities to get larger slices of the “legal pie” that law firms have considered exclusively their own.
A telling indication of the current competitive environment is the increasing state of law firm consolidation in corporate legal departments. The 2018 CounselLink Enterprise Legal Management Trends Report reveals that 60% of companies using CounselLink have 10 firms or fewer that make up at least 80% of outside counsel fees. According to the 2017 Law Firms in Transition survey, conducted by Altman Weil, 52% of firms in the study report that equity partners don’t have enough work, and 62% say that non-equity partners are working below desired capacity.
Leading law firms transcend these market challenges by PROactively using business development as a tool to stay ahead of competition and stay in front of clients.
According to our 2017 Law Firm Marketing and Business Development Survey, only 16% of attorneys have dashboards that show the health of their pipeline. This includes critical information such as who they should contact, relationship risks, and business development activities. Maintaining greater visibility into opportunities and contacts has been proven to move the needle when it comes to engaging new business and strengthening the bottom line.
Although some firms are reluctant to entrust technology as a means to grow their bottom line and better serve clients, the Altman Weil survey reveals that nearly 50% of the firms reported that they do rely on technology to improve service delivery performance. Chances are, as these firms become more comfortable with technology, they will also become more eager to embrace data-driven tools. These tools can then help them manage relationships PROactively versus REctively, and better support their business development efforts.
For an up close and personal examination of current legal industry trends and how technology can augment a firm’s innate intelligence, join us at Accelerate 2018. You’ll hear from marketing and business development leaders on ways they’re using automation, improved data quality, and data-driven decision-making to PROactively engage with current and future customers.