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The Managing Partner of a small to mid-size firm faces a number of challenges related to marketing the firm. This survey, the first of its kind, shows that most firms with 10-80 lawyers have made a concerted effort to dedicate at least some effort to marketing.

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Page 1: Research Summary

© Marketing Sense for Business LLC, 2012

Bruce Segall, [email protected]

Smaller Law Firms Take Note…Marketing is Here to Stay

Study OverviewThe Managing Partner of a small to mid-size firm faces a number of challenges related to marketing the firm. For example, what is the appropriate level of marketing expenses and staff? Is it even necessary to have a marketing function at all? Based on a literature scan and polling of relevant online communities, there is no accessible data to guide the MP on this subject.

In response, Marketing Sense launched an online study in July 2012 (see http://marketingsense.questionpro.com). We invited our existing legal contacts and provided the link via discussions to the relevant LinkedIn groups and Legal MarketingAssociation SIG’s. The study resulted in 107 responses from firms with between 10 and 80 lawyers, and all size firms within the target range were well-represented. In 73% of the cases, in-house marketers or other staff responded for the firm, while attorneys accounted for only 16% of respondents. The remaining 11% of respondents were outside consultants very familiar with how a particular firm handles marketing.

Key Finding – Many Firms Have At Least One MarketerA significant majority of these firms have at least one full-time marketer:

0% 20% 40% 60%

No Marketing

Rely on Outside Consultants

Part-time Marketer

Full-time Marketer

More than One Full-time Marketer

Per Cent of Respondents

Per Cent of Respondents

Page 2: Research Summary

© Marketing Sense for Business LLC, 2012

Note: The “part-time marketer” category includes firm staff people who have marketing as part of their job descriptions. Any future efforts to collect more data should separate those with marketing background/focus from those with an administrative focus.

Key Finding – Among Small FirmsSmall firms – those with 10-20 lawyers – rely on full-time marketers far less. The largest segment – 33% - has a part-time marketer or includes marketing as part of a staff person’s role. 30% divide any marketing up between attorneys and staff, i.e. they have no marketing function. Still, even among small firms, 20% have a full-time marketing person, and 10% even have more than a full-time marketing person. The remaining 7% rely on outside consultants.

Another group of respondents – the 16% of respondents who are attorneys - are less likely to have a full-time marketing person at their firm. One could hypothesize that if the study included more attorney respondents (as opposed to marketing people), the results would have shown that a greater percentage of firms do not have a full-time marketing person.

Satisfaction With StaffingA large number of respondents report that their staffing arrangement is very effective in helping them meet their growth and business objectives. 59% are in the “top two boxes”, with an additional 22% moderately satisfied. Perhaps smaller firms who have moved recently to hire marketing people are pleased with the results.

2012 Vs. 2007Reflecting on their progress over the last five years, the vast majority (68%) find their efforts more effective in generating new business. Only 4% found their marketing program to be less effective. Interestingly, many firms – 40% of those surveyed - are spending the same on marketing as they did five years ago. Just slightly more (41%) are spending more on marketing than five years ago. A few factors could be at work behind the data. Increased competition may have caused firms to spend more over the last few years, while the Great Recession and a general move towards in-house staffing (see below) may limit spending. Congratulations to the many firms who are achieving more while spending the same amount.

Compared to five years ago, 46% of respondents have shifted to rely more on in-house staff, although some 16% rely more on external agencies. Most of the remaining 38% report no change along this dimension. A closer look at the data does not reveal any relationship between shifting resources in-house and having a more effective marketing effort.

Page 3: Research Summary

© Marketing Sense for Business LLC, 2012

Using Scarce Marketing ResourcesSeminars/speaking opportunities and individual attorney marketing are the most frequently used marketing activities. Well over 80% reporting being involved in each of these over the past five years. Firms are least likely to develop and implement practice group marketing (at 60%), and direct mail/email/newsletters and PR are also weak. Developing practice group objectives and issuing newsletters (more recently e-newsletters) have been a mainstay of law firm marketing for years, so this is an interesting finding. Perhaps some resources have shifted to websites - nearly 70% of firms have launched a newwebsite over the last five years.

Planning For The FutureThe vast majority of respondents (68%) are planning to increase marketing efforts somewhat over the next five years, with most of rest (21%) planning a “great increase.” Only 3% planned a decrease. Therefore, even those small firms without a full-time marketer might want to seriously consider their plans for the future.

While social media is reportedly taking over other areas of marketing, this is not true in the smaller firm arena. The percentage planning a “great increase” over the next five years is 28%, just slightly higher than the 21% planning a great increase in overall marketing efforts.

Verbatim Comments and In-Depth DiscussionsIn addition to the quantitative study, respondents had the opportunity both to supply additional comments via the survey and through a follow-up phone interview. The following themes came from comments plus 11 interviews:

Focusing is the best way to yield results and demonstrate continued ROI (Return on Investment) of marketing to the firm (5 respondents). Some marketers focus on selective attorneys/practices, others on social media and still another on improving proposal “win rates.”

Partners understand that it may take a while to prove the ROI from marketing, but that they need to make the investment (4 respondents). One firm increased its investment in marketing in response to a smaller, local competitor’s efforts, and other firms are experiencing strong revenue to support marketing.

Not surprisingly, Partner compensation is an issue in getting attorneys to focus on marketing (4 respondents). The billable hour is still “King.”

Page 4: Research Summary

© Marketing Sense for Business LLC, 2012

Marketers in smaller firms are a “community of friendly competitors” and need to learn from one another (3 respondents).

Marketers get bogged down in administration and coordination, rather than value-added projects (3 respondents). Especially those who were previously assistants or report to the firm administrator get pulled into non-marketing tasks.

Dealing with attorneys can be a challenge (3 respondents). For example, they do not appreciate the high level of background work a quick turnaround times that marketing often requires.

Finally, we spoke to one respondent with another perspective. He reported that lots of smaller firms dismissed marketers in the last recession and are slow to rehire. On the bright side, he sees a promising future for mid-size firms vs. the AmLaw 100/200 – fewer conflicts, high quality work, capacity for smaller matters, and a competitive billable rate.

Next StepsMarketing Sense invites additional respondents to the survey, particularly Managing Partners and Legal Administrators -http://marketingsense.questionpro.com. Those who have already responded are welcome to contact [email protected] for an in-depth phone or in-person discussion, either one-on-one or before a group.

After collecting additional data, Marketing Sense will distribute an in-depth PowerPoint presentation and write an article. Please contact [email protected] to receive these materials once they are available.

Note: For more information about Bruce Segall and Marketing Sense, visit:www.linkedin.com/in/brucesegallwww.marketingsense2.com