Collaboration continues to be a source of frustration for marketing professionals, while a new study shows marked improvement as digital initiatives increase
RALEIGH, North Carolina, Dec. 16, 2019 /PRNewswire/ -- Law firms pursuing too many new business opportunities are adversely impacting their business development efforts, according to a study released today by LexisNexis InterAction. This lack of focus and poor prospect targeting was among the top obstacles for business development success, along with a lack of follow-up and heavy competition.
As was the case during the last two years, only 49% of U.S. firms identified their business development efforts as successful, and 25% of firms in Europe and Asia Pacific cited their business development efforts as successful, based on findings from the 2019 Law Firm Marketing & Business Development Survey.
While Big Law marketing and business development professionals report significant improvement in their collaboration with other departments in their firms, cross-firm collaboration continues to be a challenge. Forty-two percent of survey respondents cited "cross-firm collaboration" as their top challenge, compared to 56% in 2018. Conversely, 52% of 2019 respondents now rate their collaboration across the firm as "successful."
Practice groups and firm leadership top the list of departments that marketing and business development collaborate with most, but collaboration with the IT department is increasing as many firms deploy more digital marketing technologies to drive success and the majority of prospective clients (66%) request information on the firm's technology. Looking ahead, respondents indicate they plan to prioritize digital initiatives, with 70% saying they expect to increase website and social media investments in 2020.
"As technology continues to support marketing and business development initiatives and reporting capabilities, IT is becoming a strategic partner for helping drive growth among top law firms," said Meghan Frank, Global Director of Marketing, LexisNexis Legal & Professional Software Solutions. "Improved technology integration combined with actionable data greatly enrich client engagement and can help firms grow new business development opportunities."
Other key findings of the study include the following:
- In addition to cross-firm collaboration, top challenges for marketing and business departments include handling client growth and deepening current client relationships.
- European/Asian firms report that the lack of a key account management structure is negatively impacting client retention.
- 1 in 5 firms expect major changes to marketing and business development investment in 2020, and 38% expect spend to increase, which will likely increase the need for collaboration.
- Very few law firms (9%) are using analytics to track business opportunities over their lifecycle, missing key indicators of success.
"While most firms are using technology to maintain client data, many are still not using it to create the insights needed to drive better decisions, improve client service and create focused firm growth strategies," said Scott Wallingford, VP and General Manager of LexisNexis Software Solutions. "Leveraging client data will help overcome these challenges, providing critical insights to focus business development planning efforts and ultimately achieve improved client service and firm growth."
The Law Firm Marketing & Business Development Survey was conducted between August and October 2019. A total of 103 legal marketing and business development leaders and C-suite executives across the U.S., Europe and Asia Pacific were surveyed, including 40 Am Law 100 chief marketing officers and chief business development officers. The majority of respondents represent established firms that maintain several offices and have over $500 million in annual revenue.
The full Legal Marketing & Business Development Survey is available for download here.
InterAction is a client relationship management (CRM) solution that is built from a foundational understanding that winning a services contract is notably different than selling a good. We partner with clients and thought leaders to develop and deliver an innovative portfolio that helps you uncover value in your contacts while improving your ability to deliver meaningful relationship experiences. We aim to be a partner that helps you grow your book of business while making sense of what technology can do and deploying it responsibly. As a result, you can stay focused on the opportunities for growth where you have the best chance of succeeding. With technology centres of excellence in Raleigh, North Carolina; London, UK; and Shanghai, China; LexisNexis has access to the best academics and technology partners across the globe. For more information about InterAction, go to www.interaction.com
About LexisNexis Legal & Professional
LexisNexis Legal & Professional is a leading global provider of legal, regulatory and business information and analytics that help customers increase productivity, improve decision-making and outcomes, and advance the rule of law around the world. As a digital pioneer, the company was the first to bring legal and business information online with its Lexis® and Nexis® services. LexisNexis Legal & Professional, which serves customers in more than 130 countries with 10,000 employees worldwide, is part of RELX, a global provider of information-based analytics and decision tools for professional and business customers.