General business development issues

Which would you prefer: the customer you attract, or the customer you pursue?

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This blog post is based on a #2020futureoflawthought I posted last week on social media – ‘Who pays you better, the client you attract or the client you pursue?’.

It occurs to me that law firms are much more willing – and even better resourced – to pursue customers than they are to attract them. We have dedicated pursue customer resources to hand – such as bids, tenders and pursuits teams. And we are willing to offer discounts and other ‘value adds’ to new customers that we would never think of offering to existing and loyal customers.

And what do we get for throwing all these resources and efforts in to pursuing customers?

If we are honest, and have a really good bid/tender/pursuit team to call on, somewhere between 50%-70% win conversion rate! Which is not to say that conversion rate is profitable, because in many cases to get us across the line it isn’t!

Create distinction

Recently I started listening to Scott McKain’s daily ‘Project Distinction podcast. It’s a great podcast that lasts around 10 minutes; around the same time as I made my social media post, Scott ran a week long series on how the ‘hard sell’ had had its day (the $55 million dollar ‘lost’ sale is a funny listen and a serious lesson in to why the 7 touches sales method is dead IMO).

Scott is also the author of ‘Create Distinction’, a book I have just started reading on the back of his daily podcasts that I have really enjoyed.

Anyhow, both Scott’s podcast and what I have read of his book so far have made me come to the realisation that the traditional law firm approach of pursuing a customer is actually the wrong way of doing things. Instead of pursuing customers with great value adds and discounts, we need to get much better at attracting customers – to our areas of expertise and to our superior service delivery.

Become a person of interest
Timely Andrew Sobel – one of the greats in my opinion – also touched on the issue of attracting versus pursuing customers in his blog post last week: ‘C-Suite Strategies Part IV: Become an Irresistible Person of Interest’.

In the post Andrew asks:

What if, however, the situation were reversed, and senior executives were *drawn to you*? What if, instead of you waiting in the long line outside their office, they were waiting in a line to meet *you*?

Fair question: what indeed?

Andrew then sets out six ‘strategies’ (more like ‘tips’ in my opinion) on how to become a person of interest, that include:

  1. Sharpen your expertise while expanding your knowledge breadth
  2. Develop your thought leadership
  3. Be seen as someone who is at the crossroads of the marketplace
  4. Become a person with interests
  5. Build an eclectic network
  6. Develop, manifest, and communicate your core beliefs and values

Something to think about this week then: would you prefer to be attracting or pursuing customers?

As always though, interested in your thoughts/views/feedback.

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Does your law firm use personas in its tender response preparation?

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I first came across the use of “personas”, in the buying-cycle, in ‘This is Service Design Doing’ by Marc Stinkdorn, Edgar Hormess, Markus, Adam Lawrence, and Jakob Schneider. This is one of those books that have a pivotal impact on your thinking and go directly into your Top 20 reading recommendations.

But it has been a while since I last picked the book up. And so when I was reading ‘Personas – A Simple Introduction’ by Rikke Dam and Two Siang  this week (as material for this week‘s newsletter)  it brought me immediately back to Service Design Doing; especially, or probably more particularly, who Dam and Siang define “persona” as being:

Personas are fictional characters, which you create based upon your research in order to represent the different user types that might use your service, product, site, or brand in a similar way. Creating personas will help you to understand your users’ needs, experiences, behaviours and goals. Creating personas can help you step out of yourself. It can help you to recognise that different people have different needs and expectations, and it can also help you to identify with the user you’re designing for.

How many law firm business development / tender / pitch / pursuit / etc professionals use this concept  in their bid/no bid process? Not many would be my guess.

But think of the benefits of your law firm role playing (or at least giving a chair to) the following personas in any tender “bid/no bid” discussion:

  • the Procurement person’s persona
  • the Legal operations person’s persona (increasingly) – CLOC / ACC and the growth of legal operations
  • the Client/user persona
  • the Client/payer persona
  • the GC persona
  • the CFO persona
  • the CEO persona
  • the In-house lawyers persona
  • the Business Managers persona

And the list can go on and on.

If your firm played this game, do you think you might start to get a little better at wining tenders?

As always though, interested in your thoughts/views/feedback.

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How to spot a bad client and knowing when you should fire them

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I’ve long been a fan of Ron Baker’s ‘Baker’s Law: Bad Customers Drive Out Good Customers’. His comment that:

By viewing your firm as an airplane with a fixed amount of seats, you will begin to adapt your capacity to those customers who appreciate—and are willing to pay for—your value proposition.

is spot on.

But it really wasn’t until last week, when I read an article in smallbiztrends.com, that I’d come across a comprehensive checklist of ways to identify those bad customers from the good ones.

The article –  ‘How to Spot Bad Customers – and How to Deal with Them’ – sets out ’10 Ways to Identify a Bad Customer’. They’re great and should be pinned on every lawyers homepage:

  1. They Don’t Pay On-Time (Or Ever)
  2. They Don’t Pay Enough (Or Don’t Want To Pay)
  3. They Have Unclear or Changing Demands
  4. They Want ALL the Attention
  5. They Aren’t Available
  6. They Aren’t Honest
  7. They are Abusive or Threaten Your Staff
  8. They Make Unreasonable Demands
  9. They Complain to Anyone Who Will Listen
  10. They Don’t Listen to You

How many of us can identify with most, if not all of these!?!?

It’s a great post. As is Baker’s. Read them (while noting that there is a 13 year gap between the two posts and not a lot has changed!)!

As always though, interested in your thoughts/views/feedback.

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Stress in legal affects more than just lawyers

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I want to start this post by acknowledging how far the discussion around mental health and wellbeing has moved within the Australia legal industry since the death of Tristan Jespon in October 2004. In part I put the moving of this needle down to the work of my good friend Justin Whealing while he was editor of Lawyers Weekly and in part I put this down to the continued work of Jerome Doraisamy, also of Lawyers Weekly and Minds Count (the new name for The Tristan Jepson Memorial Foundation). Don’t get me wrong though, there are many many others who have played both active front-line and support roles in ensuring the issue of mental health and wellbeing is taken more seriously in our profession (see RUOKAY Day for example).

That said, while I think all of these initiatives and discussions are fantastic and are standouts that should make us extremely proud of the direction the industry is taking in Australia, almost every single conversation that I have been involved in on this issue has related to the mental health and wellbeing of lawyers – and, more specifically, junior lawyers. So it was great to see a report published earlier this month by fSquared Marketing on the issue of ‘Legal Marketing Mental Wellness’.

The subtitle of this report – ‘Stress in legal affects more than just lawyers’ – sets out the parameters of the journey the reader is about to undertake. And if you are left in any doubt about this, one of the first paragraphs of the Report cuts to the rub of the issue and totally grabs your attention and is also so very true.

It reads:

What about the legal marketing and business development professionals who are tasked with growing firms how is their mental health? They work in the same high-pressure environment as attorneys after all, and often under their direct management. Might the traditional pyramid structure, with equity partners at the peak, lead to stress cascading down the hierarchy to fall on the shoulders of the marketing and BD staff?

As someone who has worked on the front-line for over a decade my response is – ABSOLUTELY!

Taking a look at some of the responses I was particularly saddened, although not overly surprised, by these two graphs:

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both of which were followed up by:

  • When reflecting on their own experiences, 83% of respondents listed their level of stress as at least a 7 on a scale of 1-10. No respondents reported feeling “very little to no stress”.
  • 71% of respondents agreed or strongly agreed with the statement: “I have too much work assigned to me.”
  • 76% agreed or strongly agreed with the statement: “There is a lack of resources in my department/assigned to marketing.”

And the following two highlighted comments made me sad that I personally am not delivering on my duty to my team and that the industry more generally really needs to address this issue:

“Much of the stress would be alleviated with stronger leadership from firm management, as well as from growing the marketing/business development team.”

“It is unfortunate that law firms segregate mental health awareness between lawyers and non-lawyers. Somehow they feel that staff (with whom they work directly) do not suffer from the same level of stress that the lawyers do.”

As damning as that last statement is – and never underestimate how damning it is, I want to end this post on a positive note, and that is this:

62% agreed or strongly agreed with the statement: “My team’s ‘wins’ in marketing are celebrated”.

I certainly hope my wonderful team think so!

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*if you are having issues in this area, no matter what firm you are from, never feel shy to reach out. I don’t promise to have the answer (frankly I won’t), but I will try and help you find that answer.

Thinking of starting a podcast?

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Over the past week I’ve had three different people inform me that they were starting podcasts and ask me if I would be willing to be interviewed. Honoured as I am by such requests, I did also wonder why such interest in me and podcasts more broadly?

In mulling this over I recalled a recent podcast (5 June 2019, Podcast #227) between Sam Glover and Bob Ambrogi on ‘The State of Legal Blogging & Podcasting‘ on the Lawyerist podcast.  Listening to this again today it struck me how many great tips these two give out (for free) to anyone looking to start a podcast; some of which are (fast forward to 29 minutes into Sam’s talk to really get the best out of these):

  • are podcast a fad or here to stay?
  • has the revenue model for podcasts been worked out?
  • have we really thought through the market penetration issue (more people don’t listen to podcasts than do)?
  • is there too much content already out there? if there is, what are you doing to be a little bit different?
  • how often should you be producing material – daily, weekly, monthly?
  • should you be framing your podcast with music at the start and end?
  • what equipment should you be using?

Taking all that on board and still want to produce a podcast? Then these are three things that Sam and Bob say in their podcast that should also be considered:

  1. it’s more work than you think it is going to be
  2. it’s really tough to build a subscriber base
  3. the right people over lots of people (love this saying)

On that last point, independent of Sam and Bob’s chat, I also heard this week that the average podcast lasts 7 issues.

To help you overcome this, Bob makes a brilliant suggestion in the podcast – if you are attending a conference take your recording equipment with you. And someone who does that really, really well is Ari Kaplan.

I hope you enjoy all the links. Listen to them – they are great (and free!); and, as always, love to hear your thoughts/views/feedback.

Does your firm include client feedback sessions as part of its client agreement?

80% of firms believe they provide a great client experience. Only 8% of clients believe the experience is great.

In last week’s PSM podcast David Lecours (from whom the title this post is taken) and Josh Miles have a great chat about the issue of ‘Client Feedback’.
It’s a brilliant 28 minute chat – with loads of insight and tips and my 5 big take-outs were (in no particular order):
  1. does your firm include client feedback interviews/sessions as part of its engagement letters? – if not, how serious is your firm about this?
  2. clients who rate you between 2 and 3 (out of 5) are the ones you need to speak to the most because they’re the ones who will give you the most honest feedback.
  3. never forget to ask the interviewee: what service do you wish we could offer you that we’re not currently offering you?’, and
  4. what didn’t I ask you today that you’ve been dying for me to ask you?
So that’s 4, where’s number 5?
This comment by Josh Miles:
“even if a client is not having the best experience, just the fact that they have been asked at this point sometimes the flattery or the thought of that makes them develop a little more affinity towards the firm just by virtue of having been identified as someone that their feedback matters.”
Go over and spend 28 minutes of your life listening to a great chat on the most important part of our business – our clients!
As always though, interested in your thoughts/views/feedback.

Is your law firm selling dirt?

Earlier today I heard a wonderful exchange between Mark Stiving and Reed Holden (of Pricing with Confidence fame) on Mark’s Impact Pricing podacst

I’ve lifted the following [short] transcript, of part of their conversation, straight from Mark’s website (with all credit to Mark)

Reed Holden: It would be fair to say that dirt is a commodity. Yeah. What David did is he went out and had a conversation with the customer. So David asked a couple of questions. He said you know, what do you really need from us? And he goes, well, Geez, you know, we spent a lot of time waiting for you guys to fill up the trucks. Well, why is that important as well? Because it’s costing me a hundred bucks an hour to get through your facility. Well, how would it be valuable? Who cut it in half? So sure it would save me 45 bucks an hour, 45 bucks an hour, a 16-ton truck works out to about 253 bucks a ton. And what they did is they implemented a, what I’ll call a flanking gate strategy and when you want it to the quarries that were two gates. At gate B, there was a line of trucks. At gate a, there was no line of trucks and there was a d five dozer sitting in there ready to load up the trucks. And so a sales guy would go in and have a conversation with, you know, a cement contractor or an asphalt contractor who were the primary customers. Think about it. Cement and asphalt contractors all have to bid in order to win the business. So it’s a very price-oriented business and the sales guy would go in. Then the contract will say how much, how much is your dirt today? And the sales guy would say it’s gonna cost you 11 bucks a ton. And the guy would come in said, well you have a competitor in here at 10 50 the sales coach, oh are we can meet 10 50 in fact we can meet 10 25 but you have to go through gate B and the quarry and the contracts, what’s gate B? It just not services fast. And the contract will quickly calculate that they would save money by paying a little bit more for the dirt. And you know it’s, we use it as, I mean we’ve extended that to professional services. In fact, we’ve done a lot of global work and extremely high-value professional services and both consulting and financial, the legal business. But you know, the commodity story tells it all because it, if it works in commodity, I guarantee you it works in the high-value stuff. But hit it with a simple conversation.

to which Mark replies:

Mark Stiving: Dirt. You’d think we’re selling dirt. But in truth, we’re not selling dirt. We’re selling a solution to a problem which includes using the truck as efficiently as possible as we’re delivering dirt to our customers.

So my question to you is this: ‘Is your law firm selling dirt, and if it is, what’s your solution that goes with it?’

As always, interested in your thoughts/views/feedback, but whatever you do listen to the whole episode here.

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