With so many indicators pointing toward a recession, it’s a critical time for all firms to look at the factors that helped these high growth firms maintain their growth and increase profitability during a global downturn.
Law firm insights can provide a roadmap
The Hinge® Research Institute’s High Growth Study 2022, sponsored by LexisNexis® InterAction®, provides insights on the challenges faced by law firms and highlights how high growth firms escalated their success during a global downturn.
One of the key indicators for high growth firms is their greater reliance on customer relationship management (CRM) systems compared to their no growth counterparts.
CRM is more than a contact database
In these firms, CRM is used as a strategy, not simply a database, which aligns with objectives and the overall business plan. This allows those firms to get a much deeper value (ROI) from their CRM with a better understanding of their clients (and prospects), based on reliable data, and the ability to uncover new opportunities for business.
High growth law firms that are effective at integrating CRM as part of the firm’s culture follow a change management plan to ensure user adoption is firm-wide:
- Communication – The firm should answer the following questions for each user: “What does this change (CRM) mean to me?” and “What’s in it for me?” through a variety of communication channels to provide a feedback loop.
- Training – Integrated into existing business process to develop their skills, behavior, and attitude to achieve maximum benefit from the system.
- Motivation – Offering incentives and sharing success stories to help users connect.
Allocate sufficient marketing budget on CRM
While preparing for a recession may mean some budget cuts (we’re always trying to get more efficient), allow for spending that will help your billable professionals focus on keeping current clients happy and finding new business.
Automate processes
In the Hinge Institute’s High Growth Study 2022, high growth law firms were 43% more likely to rely on marketing automation platforms and email marketing platforms compared to their low growth counterparts. This not only frees up time but also provides data and insights to produce more effective marketing campaigns.
Outside experts
Don’t try to do it all on your own, even during a time of economic downturn. Use your marketing, business development, and software experts to find ways of operating more efficiently and uncovering business opportunities from existing and prospective clients.
Read more about preparing for a recession in Legal Magazine’s article: A Blueprint to Brace for a Recession.
Authors
Kelly Waffle
Managing Director, Hinge® Research Institute
Leveraging his deep leadership experience in corporate marketing, marketing consulting, and creative agency environments, Kelly drives the Hinge Research Institute’s growth and thought leadership. On any given day, he can be found helping large companies get a better understanding of the professional services market through the Institute’s custom or licensed research—or advising firms and companies how to use research to drive content strategies and campaigns.
Before joining Hinge, Kelly spent more than 15 years acquiring hands–on B2B and digital marketing practitioner and management experience, guiding clients through the complex interplay of technology, processes, research/data, programs, creative, and analytics.
