Over time, the landscape of the legal industry has been continuously changing. Technology advancements played a significant role in the transformation of outdated legal paradigms. Gone are those days, when legal research and writing was one of the toughest jobs of all.
With the help of the Internet, research for any fact or case has become simpler. Lawyers and attorneys are undoubtedly showing more interest in this facet and adopting digital technologies to simplify their work processes.
However, relying entirely on tools is not enough as you have to revise some strategies as well. When it comes to revenue growth, you will encounter many challenges like economic pressure, changing customer expectations, lack of resources, and a lot more.
That’s the reason, looking back at your previous strategies and making necessary amendments are crucial to staying ahead of your competitors. Today, we’ll be discussing the top three challenges that law firms face for boosting revenue growth and ways to avoid them:
Blowing Off Existing Clients
Do you know the Partio Principle rule, known as 80-20? It describes how lawyers can earn 80% of revenues from 20% of clients. More so, according to the research by Harvard Business Review, it is five to 25 times costly in acquiring new clients. After being mindful about so many studies and facts, still, many law firms forget their existing clients in the sprint for acquiring new ones.
Enhancing your revenues from the existing client base requires little efforts that include being in touch consistently with the clients by sending wishes on special occasions, charging them less through discounts, organizing a referral program, etc.
But when it comes to acquiring new customers, you’ll have to invest in marketing campaigns, lower the prices to attract more customers, and do a lot more. Being an attorney, you love to focus on one client case at a time, then why not apply the same methodology for client retention?
Expelling Outdated Routines
It doesn’t matter how big or small your legal organization is, there’s a limit to the number of hours individuals can bill. However, with legal technology, firms can eradicate these restrictions and become more proficient in their work. Technologies like AI help law firms to forget about their repetitive tasks of billing, document management, etc., by simplifying the process.
AI has the ability to work and think like a human, which is why legal research has become quite easier compared to other technologies like Blockchain; it has a streamlined contract management process which introduces smart contracts. It also decentralizes all the data from contracts and stores it securely, which eliminates the insecurity for a data breach.
More so, there are many automated tools available in the market that help law firms to simplify administrative and billing tasks. Some of which are mentioned below:
- Wolters Kluwer
Build a Futuristic Milieu
Developing a better work culture in your law firm can help you enhance growth opportunities. You should focus and motivate your business development team so that they can bring more leads and boost the overall revenue.
With the adoption of new technology, lawyers can build a healthy environment for employees by enabling them to work on managerial tasks rather than wasting hours on the repetitive task.
Besides the use of technology, the trend of availing legal support for law firms is also becoming popular that allows attorneys to work proficiently by outsourcing their non-core activities. You could find plenty of LPO companies that offer a wide range of legal services worldwide.
It quickly helps you cut down on the operational expenses by eliminating the need for hiring additional resources or investing in technology. Outsourcing firms are already equipped with the required infrastructure and tools. Their internal teams are always updated with the changing trends in the market.
Working in the right environment boosts employees’ morale that eventually enhances overall business revenue. Allowing them to work on what they are best at will help provide you with better results.
Not Providing Personalized Services
As every business is shifting towards technological trends, clients’ expectations are also changing. Modern customers are expecting services that are easy to access and convenient such as e-commerce shopping, obtaining required information at just one click, and a lot more.
Attorneys should embrace such tools and methodologies to stay connected with their clients. Video conferencing, billing online, receiving online payments, offering personalized services, etc., are some of the ways to keep your clients contented.
Law firms should look back and reconsider their every strategy to enhance their revenues as it is the best option. It not only helps lawyers to identify their mistakes but also helps to overcome the upcoming challenges that one may encounter in their business lifecycle. That’s the reason in order to identify better opportunities, legal firms should revisit their strategies and implement changes accordingly. The days of legal research and writing has gone, we are now in the digital age where law firms can take advantage of emerging technologies.