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Small law firms typically operate in the business-to-business sphere (B2B), and as much as market trends affect them, they also impact their clients. Trust, confidentiality, status, brand name and reputation used to determine which firm clients picked, however, this has changed drastically in recent years. 

The Bellwether 2023 report has investigated small law firms and solo practitioners' ability to anticipate, react and adapt to clients' differing needs and demands over the turbulence of the last few years. To understand clients' needs, firms must understand what affects them in the current market environment and how to deal with their new expectations. Being able to attract and retain clients is critical and will shape the winners and losers in the current and future legal arena. 

Clients and current market trends

81% of respondents of the Bellwether 2023 report believe attracting new business will be one of their biggest challenges over the next 12 months and 79% of respondents also believe that retaining current clients will be a top five challenge. 

Our previous article, ‘Five essential tips to manage client expectations’, explored current market trends, such as:

Higher expectations of round-the-clock interaction

Since the pandemic, we have all become more familiar with the use of tech in our working lives. Zoom meetings or video conferencing are the new standard form of interaction, which has led to an increased emphasis on immediate results, exemplifying this on-demand, 24/7 culture. This ultimately results in you being available 24/7 and turning tasks around immediately. 

Demands for greater transparency

With open-sourced data and cloud-based CRM systems, clients know they can instantly access information. Firms can add or edit information at any time, enabling more opportunities for collaboration. But, greater transparency also comes with a greater sense of accountability. 

Price sensitivity and value for money

Taking into consideration the current economic climate and the uncertain future, businesses are understandably becoming increasingly price-sensitive. The cost-of-living crisis so soon after the Covid-19 pandemic means clients need the best possible return on investment. They want results and expect competitive rates and to be able to prove and demonstrate value for money. 

Fee flexibility

Clients are demanding fairer billing practices. Double billing has long been a problem, and with increased transparency and the ability to have greater flexibility with fees, it’s possible to investigate solutions. Platform law firms, for example, are increasingly opting for a fixed-fee basis, removing the risk of double billing and billing hours targets.

The bottom line is that client expectations have never been more demanding, and firms are working harder than ever to meet them.

Find out how Lexis+ can increase your productivity, saving you time to work on high-value tasks.

How are small law firms responding to these trends and demands? 

The Bellwether 2023 report also delved into small law firms and sole practitioners' client acquisition and retention strategies. When asked how they feel their firms will fare in the next 12 months, an astonishing 46% of respondents said they expect to grow, while just over a third predict stability. 

For growth, 59% rank "acquiring new clients" as a "very important" tactic. And, to remain stable, 69% rank "maintain good customer service" as "very important" tactic. 

For those who "didn't know" or "preferred not to say" how the next 12 months will go, more than half are aware of the need to improve their current client service offering. But, only 19% said it was "very important". Surely, this suggests a change in approach is needed in some aspect, tech or billing? 

Read the Bellwether 2023 report to discover possible solutions to ensure your firm is part of the 46% expecting to grow. 

What can firms do to improve their client management?

To be a market leader, new and innovative ways to manage, meet, and exceed client expectations must be found. This is perhaps the most challenging task of all.

Debbie Sumner, the go-to-market advisor for small law firms and sole practitioners at ³ÉÈËÓ°Òô, said: "It could suggest that client needs are evolving, and they're worried about keeping pace."

We recently spoke with Daniel Coombes from the award-winning firm Family Law in Partnership (FLiP), ranked as a leader in client service, to find out how firms can practically become more client-focused.

Coombes said firms need to have a "client-first culture". This means constantly acting in the best interest of the client: 

• Enable cost-efficient working and investments in IT. FLiP streamlines the "onboarding" of new clients. This provides a comprehensive overview of their situation before the first meeting and there’s no cost to gather information.

• Invest in training and being a "learning" organisation. Develop lawyers' skills and offer a holistic approach to clients. Coombes believes training is key to helping lawyers to adopt a client-first culture. 

• "Do we mediate or litigate?" Coombes believes better ways need to be found to recognise successful out-of-court settlements. Of course, appearing in a "reported case" is attractive, and directories place significant weight on such issues when ranking lawyers, but is it in the client's best interest?

• Finally, this should go without saying but, look after your staff. To best look after clients, lawyers need to look after themselves. 

Of course, it’s very easy to say, but can be very hard to implement with significant obstacles in the way such as time, money, and outdated or unsuitable IT systems. Yet, it's the smaller firms leading the way in offering flexible payment options, such as fixed, capped, or flat fees, that work for the client rather than the firm. 

Here are some of our top tips for your clients: 

Communicate: Good communication is the cornerstone of a good client relationship. Establish modes of communication and keep clients updated. 

Set realistic working hours and deliverables: Set and agree on realistic boundaries. Of course, the hours and timelines will depend on the nature of the work, and particularly time-sensitive work could allow for some flexibility. But, working hours must be sustainable.

Utilise technology: Transparency doesn’t mean clients can access all your information all the time. Use case management systems to navigate expectations and manage what clients can access. This way, clients can track your progress without you being available 24/7.

Administration: Another area to look into to increase productivity. Clients don't want to pay for admin. By using tech efficiently lawyers have more time to provide high-value advice and improve the client relationship. 

How are small firms doing? 

Small law firms pride themselves on their high-touch client experience, and most of the lawyers included in the Bellwether 2023 report felt their law firms enabled them to provide a good service to their clients, 88% said they were "quite" or "very satisfied".

Interestingly, although perhaps not surprisingly, 50% of respondents said their firms now offer alternative fees as a result of demands from both new and existing clients. The growing awareness of the cost-saving benefits of alternative fees means this is increasingly becoming the new ‘normal’, with only 8% only offering the billable hour payment model. 

The decision for small law firms and sole practitioners to offer more flexible payment options shows their willingness to understand their clients' needs and provide a highly personalised service, find out what more can be done to meet and exceed your clients’ wants and wishes in the Bellwether 2023 report. 

Download and read today. 

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