Mysteries of Law Firm Marketing
post # 109 — June 18, 2006 — a Client Relations post
On Wednesday, June 21, I will be doing a webinar with Larry Bodine on Law Firm Marketing.
Details are given here
On Wednesday, June 21, I will be doing a webinar with Larry Bodine on Law Firm Marketing.
Details are given here
Scott Nicholls, of CourtClerk.net wrote in with the following question:
You argue in your article Strategy Means Saying No that companies should choose a positioning, a point of differentiation, and beware of diffusing their focus. However, there is a phenomenon I call “collapsing service placement”. As an example, FedEx innovated and differentiated with tracking services in the early 1990s, but by the late 1990s many companies offered it and it was no longer a differentiator.
We sell data. The data is public information regarding individuals who have received a speeding ticket or face other legal action. As new competitors, who lack any new differentiators of their own, enter the marketplace, there is increasing price competition.
So, it seems to me that constant service line innovation is required if my company is to be “the premier provider of direct mail marketing services for attorneys.” The question becomes: how many / which ancillary services do you need to develop to support your position as the market leader?
For example, are the following logical service line extensions in support of an overall strategy or are they the wanderings of a vagabond company?
Provide graphic services to help customer differentiate their direct mail product;
Provide on-site training for customers to use the services;
Provide CRM software for real-time campaign tracking;
Provide Call-Center to help customer handle the volume of calls generated from the direct mail letters
It’s possible that, in the extreme case, we end up giving the core data away and people pay for our ancillary services! Not that I’m advocating this, but I think the progression is certainly possible.
Here’s my question: What processes should a company implement to determine if the creation of an ancillary service in support of its strategy is appropriate?
Scott, you have helped me clarify an important point. When I said we have to learn to say “No” that absolutely does not mean that we can stay where we are and never change.
Other business writers (especially Hagel and Brown , with their book on “Dynamic Specialization”) have taught us that without innovations, organizations die, but without a focus they are uncompetitive.
What’s needed is both a solid, focused core, with, at the fringes, much studied, entrepreneurial experimentation. (Yes, I know “studied” and “entrepreneurial” sound like two different things, but you need both.)
But that still doesn’t mean you say “Yes” to every opportunity that comes along. Some of the opportunities will be milking your asset, not building it. There’s a difference between uncontrolled pursuit of all new business, and the thoughtful examination of new opportunites.
The key to successful innovation is allocating a sufficiently large percentage of your time and resources in well-planned experiments. This doesn’t mean try a lot of things with a little effort. Just as your question suggests, it means having a mentality that asks – given my strengths and enthusiasms, and given the clients’ possibly unmet needs – what’s the next thing to try, and how can we invest in a small scale experiment that tells us if there’s a real opportunity there?
The mentality I am describing still requires discipline and focus – saying “no” to things that serve only as distractions.
So, how do you decide which are the right diversifications? I would apply the three tests that I included in my article It’s Not How Good You Are, It’s How Much You Want It. The three tests are:
a) Does this stuff turn us on sufficiently – could we get really excited about it?
b) Can we do something new and special with this – can we make a contribution?
c) Will customers and clients really pay for this?
Find something that meets all three tests and you have a winner!
OK, everybody else. Let’s help Scott. What do YOU think should be the criteria and process by which he decides how to extend his business?
For those who can’t get enough of my opinions, there are two new interviews with me posted on a hidden corner of my website called “Interviews With David “.
Coert Visser, a Dutchman who has built one of the most useful websites about consulting , interviewed me first aout my experiences in blogging .
Then, he asked me to review some of the management and marketing principles I have advocated over my career, summarized as The Only Competitive Advantage in Professional Services.
For those who would like an overview of my philosophies and conclusions, the two new articles are a very good place to start.
I talk often about the incredible role that Kathy, my wife, has played in my professional success – she’s a good coach, and a wonderful person with whom to talk things through.
Now it’s my turn to be supportive.
Kathy is in the process of launching a web-based business teaching novices how to cook – through short videos to be downloadable onto iPods, so that they can be carried into the kitchen, to the supermarket, and so on.
It’s all still in development, but you can see some short video-clips of Kathy talking about here idea at startcooking.com and read about the ongoing saga of bringing it to fruition in her new blog .
Advertising Age has just run a survey of readers asking them if they were concerned at the moves of major consulting firms (IBM, Accenture, McKinsey) into the kinds of marketing work that could influence both choice and control of agencies. Most readers concluded that the ad agencies had every reason to be nervous.
For decades, ad agencies have defended their territory as special. In the latest survey, Rick Pike, senior VP-media director of Inter/Media Advertising said: “Consultants who are not experienced advertising professionals cannot remotely understand the nuances and intricacies of an art form such as marketing and advertising-which ultimately is all about human behavior.” (It is, however, unclear, what it is the backgrounds of advertising agency people that make them peculiarly qualified to understand the nuances and intricacies of human behavior.)
Everyone knows advertising is becoming a shrinking percentage of marketing, and was never ALL of it to begin with. As the holding conglomerate movement showed (WPP, Ominom, IPG, Paribas) the game for years has been to try and convince clients that a full, cross-disciplinary approach to marketing communications could be achieved.
There has been only one problem with this: the promise has never has been delivered. From as long ago as Y&R’s infamous “Whole Egg” approach through many other slogans, all the marketing conglomerates have proved is that they are incapable of designing and executing fully integrated marketing plans to their clients.
Apart from the problems of cross-boundary co-ordinations (each of these agencies within the comglomerates tend to be separate firms and profit centers) the larger problem has been that while the mega-agencies or agency networks have occasionally (VERY occasionally) been able to deliver a sensible, comprehensive package of marketing communications tools and approaches, they still lack a critical missing ingredient – an ability to understand the full picture of what is involved in marketing a product or a service. Marketing communications is not all of marketing.
The networks have tried to rectify this over the past decade with experiments in hiring MBAs from prestigious schools, and giving them fast-track positions to take on managerial and client relationship roles. Most of these experiments have failed, not least because the MBAs culture, attitudes and salary expectations have been hard to integrate into an agency culture.
For decades, there has been a huge hole in the advisory market. No major consulting firm built its reputation and the bulk of its practice on giving marketing advice. The likes of McKinsey, BCG and Bain did Strategy; the accounting-based firms did IT, the actuarially-based firms did Human Resources, and many Wall-Street firms built major institutions out of giving financial advice. Even the lowly topic of Operations was used to build major institutions like AT Kearney and other firms that focused on productivity, quality and supply chain management.
But where were the marketers? Who was giving corporations, anywhere in the world, their top marketing advice? Basically, no-one – except for a few small if respected firms.
The move of IBM, McKinsey and Accenture is dangerous not because they are going to know more about advertising than the advertisers. What they represent (in very different ways) is the theory that having tired of paying for unexecuted strategy and 30-second ads that accomplish little, corporations might be ready for a totally new approach to service – a group of people who hold themselves out as knowing something about how you actually market and sell products and services.
It’s not clear where the people who know those things are housed today, and whether or not the big-3 consulting firms can hire them.
But battle has been joined, and I don’t think things are ever going to be the same.
I hope other people are getting as much benefit from the advice contained in the reactions and comments to my blog on Creating Awareness. I also hope people will continue to joint that conversation.
However, I suspect that other people, as well as me, are rapidly beginning to realize the intertwined complexity of marketing. It’s not just complicated, it’s truly complex .Everything influences everything else, and it’s completely unclear where to start.
When I wanted to promote my consultancy, everyone said “write a book”. So I did that, and then asked – but how do I promote a book?
I treasure the responses that came back from publishers and publicists alike: “Well, there are no guarantees. There are some things we can try. Every book is different. We’ll give it our best efforts, act with good faith and good intentions. It’s really up to what you do. Maybe you should start a website.”
So, I did that. But then I asked, how do I make my website popular? Start a blog, they said.
Then, when I said how to I promote my blog, good friends said “People will get driven to your blogs if they hear about you in their trade press – get quoted or print your articles in print media. Do more seminars and invite the press. But how do I entice the press? Write more articles.”
Whoops! Back where we started!
If you read the commenters on the last blogpost (and you should – it’s GREAT stuff!) you’ll see things like “use your podcasts to promote your blog”. Well, yes, but forgive me being petulant if I ask “But how the heck do I promote my podcats?”
I”ve been just as guilty over the years of trying to make things linear. In my first book, Managing the Professional Service Firm I argued that among the top tactics to create awareness in a professional business were speeches and seminars, and I was dismissive of things like direct mail. “But how,” people would write in for years to come, “do we get people to come into our seminars? Don’t we need direct mail to get them to attend?” Ouch! Good point!
The same topic came up when I was discussing the possibility of building a “Wikipedia” about professional businesses. “The key” he said “Is that it’s easier to pull that off if – like you David (he’s a charmer) – you have a strong existing brand to build it on.”
This was flattering, but ultimately frustrating. He’s saying that I can make the new things (and the new marketing media) work better if I’ve already succeeded (and am plugged in.) Actually, that’s not bad for me because I’m 58 years old, I’ve published numerous books, I’ve built the website, so I’m ahead of the game – I have something to build on.
But, boy, that must be immensely annoying for those just starting out, trying to get their market’s attention. “Get famous, kid, and all the tactics for getting famous will be available to you!”
It’s like the pop music that’s my hobby. If you’re already famous, you get press coverage, invited to interviews, they review your latest album in the music magazines and they display your latest release at the front of the store. If you’re a band just starting out, none of these things are accomplished easily – if at all!
And in some small way, I have that challenge. Part of what I’m trying to do is to reach NEW audiences (outside the traditional professions where I have spent most of my time.) In that situation, my marketing challenge is as tough as any new “band”: we’ve got this killer record recorded, but no one will stock it, play it, display it. And the advice on where to START is all over the map! (And yes, I have read the books on Buzzmarketing!)
I’m luckier than most – I’ve got something to build on, and I have a little money to invest in this (hard-to-understand, incomprehensibly complex) process. I feel bad for others just starting out trying to think their way through this minefield.
That’s why I hope everyone out there will keep contributing to this blogpost (and the last one ). I’m determined to write an article (or some articles) shedding a little more light on all this. I see pieces of an answer, but at the moment they are only tantalizing glimpses!
Can I ask your advice, for a change?
Along with every enterprise, I face the challenge of creating awareness of my activities. I often describe my reputation as being like the measles – spots of great inflammation, surrounded by vast areas of untouched territory.
I don’t have much difficulty meeting the financial targets of my business. That’s not where my challenge lies.
Rather, I am trying to think through how to bring my website and blog to the attention of a broader audience in order to serve them – make my free materials (articles, podcasts, videos, blog, etc.) available to more people who might find them useful.
Since I’m not selling anything, and I’m supposed to be some kind of consultant who gives marketing advice anyway, it should all be obvious and easy, right?
Not necessarily.
As my experience in past years with published books proved, you can know a lot about how to get hired as a consultant for many thousands of dollars, and still know absolutely zero about how to get people to part with $20 for a hardbound book. Being good at one doesn’t automatically make you good at the other.
Even though I’ve had some big sellers, I still don’t know how to market books. Only one of my books ever hit the weekly best-seller lists, and it went on to sell the least number of total books compared to those that grew solely by word of mouth.
I used to be frustrated that people who could have derived benefit from them didn’t read my books, until it dawned on me that most businesspeople don’t read books. Even though content is king, effective marketing is unavoidable. The trouble is, no-one really knows what effective marketing IS! No-one knows what works (reliably.)
I’m finding the same is true in hyperspace. I have put a lot of effort into creating the content of my website and must now I have to learn how to “market” a free website!
I have spent the past six months trying to build a resource-rich, helpful (I hope) website with lots of accessible, free resources. The next task is to “drive traffic to the site” (as they say.)
Many of you reading this “discovered” my work somehow. The question now is how to make it easier for others (many, many others?) to do so.
My primary goal is to get people to register their email addresses on my site, and I do offer a free subscription to my future articles to people who do this.
However, I am VERY reluctant to engage in anything that gives even the appearance of a hard sell (“Register now and receive these special gifts.”) I also don’t want to spam anyone.
I do already participate in blog carnivals and I’m reasonably active in the blogosphere. I give lots of interviews.
I’m thinking of doing a broad range of things. Should I do any “click-through advertising?” Should I attempt to get e-mailing lists from somewhere? Are there things I can do to encourage people – and make it easier – to tell more of their (your?) friends about my materials?
Advice, please. What’s an effective, but classy, way to do this?
I began the week inviting you to rate yourself on a variety of dimensions. This post does the same thing, but invites you to rate your demonstrated track record on building mutually beneficial, mutually supportive relationships in the following areas of your life:
A) With clients
B) With subordinates
C) With colleagues
D) With those you report to
E) With your close family
F) With your extended family
G) With friends
Use the following scale:
What do your answers say about you? Are you happy with the situation? What could you do about it?
Also, it’s time to offer my very sincere thanks to those who participated in People, Passion and Principles during the month of May. They are:
Commentors
Scott Allen , Stephanie West Allen , Annette , David B , Mark Baker , Martin Bamford , Uri Baruchin , Ben , Bill, Barend Blondé , Eric Boehme , Jerry Bogart, Ed Boulton, Gary Bourgeault , Kevin Brennan , Duncan Bucknell , James Bullock, Shawn Callahan , Geoff Considine , David , Norman Dragt , Francis Egenias , Eric , Anna Farmery , Brad Farris , Kathy Fish, Gareth Garvey, Phil Gott , Clive Griffiths , Dennis Howlett , Hunter, Jol Hunter, Lee Iwan , Patrick Jacques, Joan , Stuart Jones , Jose , Kok Van Der Weijden, David Koopmans , Bruce Lewin , Karen Love , Tim MMF , Bruce MacEwen , Greg Magnus , Lisa Mather, Hugo Matislaw , Ed Mays, Mike , Matt Moore, Steven Pearce , Bill Peper, John Eric Pollabauer, Manoj Ranaweera , Suzanne Rose , Bill Sherman, Carl Singer, David A. Smith , Brian Sommer , Ava C. Thorin, Stefan Topfer , Coert Visser , Ian Welsh, Jay Wynn, John Zapolski
Trackbacks
Bruce’s Blog (also: here)
Career Intensity Blog – David V. Lorenzo
Expertise Marketplace – Professional Service Firm Marketing Blog
Golden Practices (also: here)
In Search of Perfect Client Service
Marketing – Communications – Greg Magnus at eoecho
Oplossingsgerichtmanagement (also: here)
Come on in, everyone else – the water’s fine and we don’t bite in this pool!
I have noticed something very strange about engaging in discussions (and even disagreements) with people.
The more you disagree with them, taking the other side in an argument, the more vehemently they push their original point of view. However, if you don’t disagree, but restate their point in an exaggerated form, they often back down, or at least tone down their original statement.
This works so well, I’m thinking of copyrighting the idea and calling it “Maister’s Exaggeration Ploy.”
(I know, I know, there’s little new in this world and someone else probably thought of it before me, but I don’t think I stole this from anyone. And if I did, I can’t remember from whom.)
To see how my principle works, imagine a family member, say, a brother, who is upset at how he has been treated by a cousin. Your brother says: “I’m really upset with Jimmy. He had no right to speak to me that way!”
Because you want you brother to calm down and get over it, you might say: “Don’t let it bother you. Perhaps he really didn’t mean to be unkind.”
As valid as your point may be, you can bet your remarks will only serve to annoy your brother. After all, you appear to be defending cousin Jimmy by downplaying his intentions. This will set your brother off on another tirade, and also, probably, cause him to get annoyed with you, too.
But what if you had said: “You’re right! Jimmy’s a louse. He always has been! I think we should have nothing to do with him, ever again! Let’s leave him off the invitation list for all family gatherings from now on!”
Nothing with people is a certainty, but I would bet that your brother’s next remarks will be something like: “Well, maybe it wasn’t that bad. I’m upset, but there’s no point over-reacting.” You have calmed him down by agreeing with him and exaggerating his own point!
The same principle of exaggeration applies in the workplace. If your boss (or client) berates you because you were late in delivering something, don’t fight back, saying it was his or her fault (especially if it was!)
Instead, say: “I realize what a problem this has created for you. I’m really sorry that I caused you such turmoil. Can you help me figure out a way to prevent this in the future?” The boss (or client) will, with high probability, calm down and you’ll survive! Or at least the odds will be more in your favor!
Try my approach out. Let me know if it works for you!
For my 100th post, a day of major celebration!
Today, at 12 noon, I go to Faneuil Hall in Boston to take my oath to become a citizen of the United States of America.
Thank you, America!
I take my oath in memory of my English parents, Alf and Bertha, who encouraged me to pursue my dreams and abilities, wherever they took me.
In memory of my aunts, Paula and Betty, US citizens since just after World War II, for inviting a very innocent teenager to spend the summers with them and first introducing me to the wonders of this fabulous country.
Thanks to Jim Heskett, Bob Hayes and (the late) Daryl Wyckoff who guided me through my studies at Harvard Business School, keeping the faith (when I had none) that I would graduate, and for helping me win a position on the faculty of the school in later years, thus enabling me to build a career in the US.
And a universe of thanks to Kathy, my very American wife, for everything and more.