♫ Zoom Zoom Zoom ♫
A Capoeira song performed by Jibril Serapis Bey.
When it comes to legal services, it seems that many law firms see price as the sole basis for competition. However from a marketing perspective, price is but one of seven criteria that make up the ‘marketing mix’ for services. Since legal services are ‘intangible economic goods’ lawyers have to sell the perceived benefits of their services and see how they match up against the needs of the clients. All other things being equal, clients evaluate services on price. But this assumes that you are delivering commodity-like services that are largely indistinguishable from those offered by the competition.
If you can distinguish your services from the competition and come closer to meeting the discerned needs of the client as compared to the competition, you are now engaged in a differentiation marketing strategy. This is based on Michael Porter’s work at Harvard Business School.
From this matrix, you can see that there are two major determinants of how you market your practice. The first is whether you appeal to a large target market or a smaller one. The second criteria is whether you choose to compete on price or on differentiating or distinguishing your services from the competition. The focused differentiation strategy seeks to market niche legal services to a target market. There is another factor at work here. Distinguishable legal services have a higher margin as compared to cost-focused strategies.
As you start to think about how to distinguish your services from those of the competition you move from thinking about the ‘reference value’ of your services (your price compared to the price of competing services) to the ‘differentiated value’ of your services (how the quality and method of delivery of your services compare to the competition).
When you start thinking of how this is done in other markets, for example in the automobile market, you see that autos can take you (and others) and transport them to new locations – that is their function and on this level they are commodities. Every auto sold does this. What distinguishes one auto to another can be neatly summed up in the phrase used by Mazda: “Zoom Zoom”….
In subsequent columns we will explore each of the 7 components in the service marketing mix and what they mean for lawyers.
♫ All of these lines across my face
Tell you the story of who I am
So many stories of where I’ve been
And how I got to where I am
But these stories don’t mean anything
When you’ve got no one to tell them to
It’s true… I was made for you
Oh yeah, well it’s true… that
I was made for you…♫
Lyrics and music by Phillip John Hanseroth, recorded by Brandi Carlile.
The beginning of September is always the start of the new year for me. Perhaps it was so many years spent in school and the inevitable association with the start of the newly-minted school year. Perhaps it is coming back from a summer vacation refreshed and invigorated and with new energy for projects. Perhaps it is because I have been talking to many people who have plans for when they get back in September in terms of branding and setting a new strong strategic direction for their firm.
Either way, I believe that September is a wonderful time to refocus, regroup and decide the future direction of your practice. What changes would you like to see? Over time law firms can lose their focus on their core services – what do they do best. They can also lose touch with their core values and their strategic direction as they take on new files and clients that pull them in new directions. September is a perfect time to sit back with your colleagues and think about where the firm is going. Do you wish it to explore new opportunities? Or are you being pulled into areas that no longer represent the reasons you formed the firm in the first place? What is gnawing on you about the firm? What would you like to change from both a firm-wide and personal perspective? Start a list..and have your colleagues do the same – and arrange a time (on a weekend) to hone in on all this and come to a consensus on where all of you would like to go.
Come together and discuss the firm..its direction, focus, what makes it special and distinct – and what should be the future direction of the firm. What is your story? Have you been drawn away from the clients, activities and associations that drew all of you together in the first place? What is your marketing focus for the next while? What would you like to change regarding the management of the firm? What about technology? Have you fallen a bit behind in this area and need to incorporate plans for upgrades and new ways of doing things? Are there categories in the finance area that you would like to tighten up, such as the collection of old accounts receivable and the tightening up of credit extended to clients? How about looking at your budget and seeing if the expenses in the group “we have always been paying this” should be looked at again if for no other reason to see if there are other vendors who might be less-expensive?
Personally I think one of the important measures is whether you have remained a ‘client-focused firm’. My late colleague and friend Milt Zwicker’s acid test was whether what was done in the firm provided value to the clients – or not. If not he would change or modify the policy or procedure so that it benefitted clients as much as possible.
I think focusing on the story of the firm and how it carries you into the future is also important. This is the culture, the invisible bond that draws all of you together and forms the backbone of the belief system of the firm. Organizations can change their culture and focus, but the story is the glue that connects the past with the future and tells why you are where you are. It is important to connect with the story of the firm, since after all, the firm was made for you to be able to provide value and meaning to your clients.
(cross posted to tips.slaw.ca)
♫ Get on your boots and visit the North Pole
Try every sport until you score a goal
Follow the path of a butterfly
Go to Ground Zero and do nothing but cry
We don’t know how much time left we got left in this world
This beautiful world…♫
Lyrics and music by Nelly Furtado, Rodney Roy Jerkins, Rodney Jerkins, recorded by Nelly Furtado.
Having just returned from my summer vacation, I came across an article on Lifehack.org that struck a resonate chord deep within me. The article is entitled: The Ultimate Bucket List: 60 Things You Should Do Before You Die. Perhaps it was the all-too tragic death of Robin Williams. Perhaps it was my visit to Ground Zero this summer. Perhaps it was just the sense that life is passing by all too quickly. I do know that I wished I had written this article as I think that Thomas Mondel has done an excellent job and he should be justifiably proud of what he has crafted.
What is on the list of things that he has compiled? Here is just a sampling:
Forgive the people who treated you poorly. Thomas states that there is nothing more refreshing than to sincerely forgive someone. Just forgive then and move on – it gets rid of the anger and it frees up your mind.
Be curious about people. Thomas observes that the people who are interested in others are the most interesting people themselves. Learn to listen and learn something new from everyone you meet.
Swim Naked. In the best case this is under the crystal clear sky. Yahoo!
Email one of your heroes and Meet up with one of your heroes. Try to reach out to the people who you value or you feel inspired by. As Thomas notes, how awesome would it be if your hero actually responds?
Witness the birth of a child. I totally agree with Thomas – it is kinda magical! Thank you Lauren for being my magical moment!
I hope you read the entire article by clicking here. The time to start on our own bucket list is now…we never know how much time we have left.
(cross posted to slaw tips.ca)