Andy Lopata writes in Professional Marketing magazine using the findings in the survey regarding networking and referrals: click here
PRESS RELEASES
AUGUST 2011
SURVEY OF LAW FIRMS REVEALS RECOVERY RATES TAKING A BATTERING
The National Solicitor Selling Survey gives a detailed insight into how legal firms are winning clients and reveals this year that the number of firms seeing recovery rates fall has trebled, whilst those seeing recovery rates rising has halved. This suggests that any confidence that the sector had ridden out the worst of the recession may have been misplaced. Rather, solicitors are seeing a time lag in the impact of the recession on their clients as the realisation hits that a large proportion cannot pay.
Other significant findings include:
- The biggest increase in usage of a marketing medium is for telephone marketing. In 2010, only 34% of respondents said they used this marketing method. In 2011 this had virtually doubled to 63%
- The pricing structure with the biggest increase was retainers: 78% of 2011’s respondents use them compared with 31% last year.
- There was a tripling in those reporting up to a 10% fall in prices compared to 2010.
- The proportion of solicitors experiencing strong price pressure almost doubled from 21% in 2010 to 39% in 2011.
- Firms showing a decline in customer numbers jumped from 4% to 12% in the two years: three times as many firms think they are losing clients now compared to 2010.
- Coaching (26%) and skills development (34%) are rated as the second and third most effective ways to motivate staff.
- At 23% of firms, less than 10% of employees are involved in business development and only 11% of firms expect over 90% of employees to carry out business development activities.
- The responsibility for sales and marketing appears to have reduced for top level committees (to 8% in 2011 from 23% in 2010), with no-one having principle responsibility at 3% of firms.
- The ability to generate new clients is a consideration when recruiting for all legal professional roles at 71% of firms responding.
- 52% of respondents believe that ABS’s are a threat to their firms.
The National Solicitor Selling Survey (NSSS) is the only detailed examination of solicitors and how they are shaping up in a new legal landscape shaken up by the Legal Services Act 2007. In the wake of the Carter Review, Jackson Review and the Clementi Report there is no doubt that traditional, dedicated legal partnerships will increasingly be in competition with other organisations. The full introduction of Alternative Business Structures later this year will be one of many changes that the sector can see either as a threat or an opportunity.
The partners in the survey are pricing experts Inon, sales specialist A&P, business psychologist Thompson Dunn and online survey firm Clarity Surveys.
The survey was conducted in May 2010 using an online questionnaire and 107 legal professionals completed it. Participating respondents have received a full copy of the comprehensive 30-page report and analysis.
Notes to editors
Andy Szebeni, managing director A&P Training, is available for interview. Images are available.
The 8-page executive summary can be downloaded for free at www.sellingforsolicitors.co.uk.
A full copy of the report and analysis with 19 figures and accompanying tables is available for press use upon request.
May 2011
PRESS RELEASE
NATIONAL SOLICITOR SURVEY EXPECTED TO REVEAL CHANGES PROMPTED BY LEGAL SERVICES ACT
The National Solicitor Survey (NSSS) launches its second survey following a very well received set or results in 2010. Professionals from more than 100 law firms responded to last year’s survey and the organisers expect an even higher response in 2011.
Highlights from the 2010 survey
• 63% of solicitors using radio and TV advertising considered it ineffective: 3% consider client referrals ineffective
• 67% reported strong or moderate price pressure from clients
• A mere 15% believe commission is an effective motivator for the legal sector, 18% believe a promise of equity stake works as an incentive
• 40% of firms with more than 10 fee-earners had no written strategy for winning new clients
• Less than 50% of firms rated their ability to develop new business as better than average
• 39% rated coaching and mentoring as an effective or highly effective way to motivate staff to generate new business
In response to feedback, this year’s survey is shorter but allows respondents to make a wider range of responses. This means that the questionnaire will generate even more detail and the organisers hope this will allow even more incisive findings.
The second survey should reveal some very valuable trends around the time of the implementation of the Legal Services Act in the Autumn. By gathering detailed information about how solicitors generate business now, we will have a unique insight into the changes in behaviour in the wake of the impending major liberalisation. The survey will also aim to answer questions such as: How can firms get all their staff to participate in generating new business? Is the growth of social media relevant to lawyers? What new pricing structures are being used in the sector?
The previous survey revealed how many solicitors rely on traditional methods of marketing to find new clients. All relied on referrals and partnerships with other firms.
Those experimenting with newer media, particularly online social networking and business networking events suggested mixed results compared to old favourites such as referrals from existing clients.
The NSSS is an online survey open to all legal professionals in England and Wales involved in – or overseeing - new business development. Email invites are sent to several thousand potential respondents and those completing the questionnaire receive a copy of the detailed results, worth £460.
The questionnaire will be open for responses from 17 May until 2 June and analysis of the results will be publicly available from 13 July. Potential respondents can register at www.sellingforsolicitors.co.uk and can access a link to the survey.
The partners in the survey are pricing experts Inon, sales specialist A&P, business psychologists Thompson Dunn and online survey firm Clarity Surveys.
The first survey was conducted in July 2010 using an online questionnaire and 105 legal professionals completed it. Solicitors who participated in the survey who gave their full names have received a full copy of the comprehensive 6,000-word report and analysis White Paper; anonymous contributors received an executive summary.
Notes to editors
The following are available for interview and pictures are available on request:
Andy Szebeni, Managing Director A&P Training
Leigh Caldwell, Chief Executive of Inon
Charlotte Conrad, Consultant Psychologist at Thompson Dunn
More information on the survey is available at www.sellingforsolicitors.co.uk.
A full copy of the 6000-word 2010 White Paper is available upon request including detailed tables, figures and statistics from the individual questions.
September 2010
BUSINESS DEVELOPMENT MANAGERS RESULT IN TRIPLING OF SOLICITOR TRAINING INVESTMENT
A national survey of solicitors has revealed the dramatic effect of the presence of Business Development Specialists in firms. Where there is a BDM the average days of training invested per member of staff in marketing-related training was 8.25 days. In firms without BDMs this was a mere 2.7 days per year. This will have a significant impact in firms as the presence of BDMs becomes increasingly common across the sector.
Other significant findings include:
• 63% of solicitors using radio and TV advertising considered it ineffective: 3% consider client referrals ineffective
• 31% of firms now regularly use retainers, 8% have adopted “time-banking” as a pricing format
• Only 39% of firms have a documented system of cross-selling
• 67% reported strong or moderate price pressure from clients; 66% have not changed their prices in the last year
• Only 17% of firms believe that the introduction of new services will be a source of revenue growth
• The ability to generate new clients is a consideration when recruiting for all roles at just 42% of firms.
• Praise, coaching and mentoring and bonuses were considered to be the most effective techniques to motivate staff to generate new business. They were rated effective or highly effective by 47%, 39% and 28% of respondents respectively.
• A mere 15% believe commission is an effective motivator for the legal sector, 18% believe a promise of equity stake works as an incentive
• None of the sample assigned implementation of a sales strategy to an external party
• 40% of firms with more than 10 fee-earners had no written strategy for winning new clients
The National Solicitors’ Selling Survey (NSSS) is the first detailed examination of solicitors and how they are shaping up in a new legal environment shaken up by the Legal Services Act 2007. In the wake of the Carter Review, Jackson Review and the Clementi Report there is no doubt that traditional, dedicated legal partnerships will increasingly be in competition with other organisations.
The partners in the survey are pricing experts Inon, sales specialist A&P, business psychologists Thompson Dunn and online survey firm Clarity Surveys.
The survey was conducted in July 2010 using an online questionnaire and 105 legal professionals completed it. Solicitors who participated in the survey who gave their full names have received a full copy of the comprehensive 6,000-word report and analysis White Paper; anonymous contributors received an executive summary.
Notes to editors
The following are available for interview and pictures are available on request:
Andy Szebeni, managing director A&P Training
Leigh Caldwell, chief executive of Inon
Charlotte Conrad, consultant psychologist at Thompson Dunn
More information on the survey is available at www.sellingforsolicitors.co.uk.
A full copy of the 6000-word White Paper are available upon request including detailed tables, figures and statistics from the individual questions.
April 2010
National survey launched examining solicitors and their marketing
Four companies have combined forces to launch a national research project that will reveal how solicitors are reacting to the dramatic changes that are likely to hit the sector in the next few years.
The National Solicitors’ Selling Survey (NSSS) will be the first detailed examination of solicitors and how they are shaping up in a new legal environment shaken up by the Legal Services Act 2007. In the wake of the Carter Review, Jackson Review and the Clementi Report there is no doubt that traditional, dedicated legal partnerships will increasingly be in competition with other organisations. The new organisations are less likely to be constrained by the traditions that have defined how solicitors attracted new customers and latterly priced their work. This threatens to be potentially the biggest shake-up of the UK legal sector in the last 200 years and the NSSS will be the litmus test for solicitors’ attitudes in the UK.
Andy Szebeni, director of sales and customer services specialist A&P says “the impending establishment of ‘Tesco Law’ threatens to redefine legal services in the same way that Direct Line shook up the consumer insurance sector. This survey will show what solicitors are doing to prepare for the changes and how they are ensuring their survival.”
Charlotte Conrad of business psychology consultancy Thompson Dunn commented, “Our initial discussions show that, whilst some solicitors do not believe there is a need for drastic change, others are fundamentally changing the way they run their businesses. This survey will help to explore the importance that is placed on business development within these organisations.”
“Over time the model for the way solicitors find clients, quote for work and deliver services will have to adapt to the inevitable regulatory changes, plus the moves made by possible new competitors”, notes Leigh Caldwell. Leigh is chief executive of Inon, a software provider that helps professionals profile their clients and optimise their pricing. “This survey will shed light on solicitors’ attitudes and we hope we can provide useful information to help the legal profession prosper under increasing pressure on recovery rates and competition for clients”, he adds.
The NSSS will be conducted in conjunction with online survey specialist Clarity and will be undertaken via Clarity’s web site. Over 300 respondents are expected to take part each quarter, representing firms from the Magic Circle and boutique firms as well as individual local solicitors. The NSSS will track changes and the results will be made available to all respondents.
The National Solicitors’ Selling Survey will publish the results of the survey each quarter and we expect the reports to be valuable barometers of changes among solicitors with regards to generating new business.
The National Solicitors’ Selling Survey welcomes any solicitors that are interested in taking part in the 8-minute online survey and they should contact info@sellingforsolicitors.co.uk or go to www.sellingforsolicitors.co.uk to register their interest. The first survey will launch at the end of June and responses will be taken until the middle of July. Solicitors who participate in the survey will have the opportunity to access to the full white paper for free, letting them find out in detail what their peers are thinking.
Notes to editors
The following are available for interview and pictures are available on request:
Andy Szebeni, managing director A&P Training
Leigh Caldwell, chief executive of Inon
Charlotte Conrad, consultant psychologist at Thompson Dunn
More information on the survey is available at www.sellingforsolicitors.co.uk.
Background information on the previous reports mentioned is available on request.