Economic forecasts for 2020 are varied and volatile. Consider a small sample of recent headlines:
• Miami Economist Sees 80% Probability of a Recession in 2020
• Recession to Start December 2020
• No Recession Before the 2020 Election, Goldman Chief Predicts
Depending on who you believe, a recession is likely next month, next year or later. Timing issues aside, as a lawyer, you are in the risk management business, so it’s critical to safeguard your business before a potential economic slump.
To be sure, law firms will have myriad concerns on the expense side, from overhead to compensation. However, focused attention on the other side of the ledger — stimulating firm revenue — can alleviate the need for drastic cuts and tough decisions.
Here are three marketing resolutions that can improve your firm’s position in 2020:
Stand for something.
As the ABA Journal reported, “Law firms at greatest risk in a new recession are ‘full-service, destination for nothing special’ law firms.” Now is the time to take a fearless self-inventory. What are your standout services? In what industries do you truly excel? What does your firm do better than anyone else?
It’s tempting in a partnership to try to please all of your internal constituents with generic one-size-fits-all marketing, but it could cost you with the external constituents who ultimately pay your bills. Firms that are not viewed as extraordinary or essential are easier to abandon.
Action: Make an honest assessment of your firm’s true differentiators. What do you have that is authentic, ownable and relevant to the marketplace? (Bonus points if this is a recession-friendly practice area, such as bankruptcy, employment or contingency litigation.)
Court your clients.
Speaking to Bloomberg Big Law Business, legal consultant Brad Hildebrandt said firms with loyal clients are better positioned to weather a recession intact. Do not take your clients for granted. Remember they are facing a recession, too, and that could mean paring down their professional service providers. (Those one-size-fits-all firms are especially vulnerable here.)
Despite the evidence that clients who are invited to participate in law firm feedback are more satisfied, more likely to recommend their firms and less likely to switch, Acritas reports that only 16% of clients have gotten the ask.
Action: Check in with your clients — earnestly and meaningfully. A strategic approach to client feedback can help you spot problems before they escalate and identify areas for growth. Most important, it shows your clients that you respect and value them; as StoryCorps says, listening is an act of love. A simple net promoter score survey is a great place to start.
Tell your story. And tell it again.
I’ll never forget one client feedback interview from my tenure as a law firm CMO. The client was a company the firm had represented for more than 50 years. At one point in the interview, the client said, “It would be wonderful if the firm was in [a specific city].” We had operated an office there for nearly two decades. By assuming this long-term client knew all there was to know about us (and followed our every move), we potentially lost out on a host of matters in a jurisdiction where they needed help.
Don’t assume your prospects and clients know everything you can do for them — especially in today’s environment of news overload and social media noise.
Action: Remember the marketing Rule of Seven, which states a prospect needs to hear your message seven times — and in seven ways — before making a purchase decision. A smart communications campaign will not be self-promotional, intrusive or cheesy; it will educate your targets and demonstrate your value. It will reach them on their terms — whether that’s on a social media feed, in the news or at an event.
All told, when it comes to marketing in a recession, Harvard Business Review put it wisely:
“Although it’s wise to contain costs, failing to support brands or examine core customers’ changing needs can jeopardize performance over the long term. Companies that put customer needs under the microscope, take a scalpel rather than a cleaver to the marketing budget, and nimbly adjust strategies, tactics, and product offerings in response to shifting demand are more likely than others to flourish both during and after a recession.”
