Marketing Mailbag : Bothwell Marketing, Inc.

Firms Shouldn't Cut Marketing Efforts During Economic Slowdowns

published in the Daily Journal

Dear Puzzled:
Certainly law firms are affected by the current economic climate, and most firms are looking for places to trim expenses. Marketing always seems like such an easy target. After all, what immediate pain will the firm feel if they cut advertising, or trim client entertainment dollars. The truth is it can cause greater pain for the firm down the line if marketing efforts are not handled with care.

Lawyers are notoriously skeptical about marketing at the best of times, but regardless of the economy every business needs to maintain marketing efforts to stay healthy. That means taking care of existing clients and looking for new ones. There are several reasons why a down economy is the right time to do both.

Taking care of loyal clients
Remember, when business is slow other firms will be looking at ways to attract new clients and your clients will be vulnerable to better offers. As a defensive strategy, you need to continue marketing to your existing customers. Maintaining strong relationships with valued clients is critical right now and will give you a competitive edge in good and bad times. Be interested in how your clients are faring. Pay them personal attention by making sure to meet with them face to face on occasion, whether for lunch, dinner or some other social event. A good personal relationship goes hand in hand with a solid business relationship and is your best defense against competition.

Perhaps now is also the time to find out how satisfied clients are with your firm=s performance. Could you do better? The answer is invariably, yes. If you haven't done so already, consider getting feedback from your client, either formally through a client survey or informally. Ask how you could improve your services. Act on the data that you receive. Show clients that you are making tangible efforts to maintain the highest level of service.

At this time clients will also be paying far more attention to costs. Scrutinize your accounting procedures and study client bills carefully to make sure all the charges make sense. That way, if a client comes back to you with questions, you can provide a quick and knowledgeable response. In my experience, what clients are looking for are not necessarily lower prices, but better value and informed attorneys. Good service in this area can pay big dividends.

Attracting New Clients in a Weak Economy
Getting new clients is often the result of combined efforts. A law firm should provide institutional marketing support in the form of events, materials, advertising and public relations support, while the lawyers are the sales force. During the headiest days of hot tech-driven economy many firms were jumping for the first time into advertising and other costly promotional activities. New economy magazines were bursting at the seams with advertising. In December 2000 the recently defunct Industry Standard still weighed in at over 250 pages, more than half of which contained advertising. Today, the ranks of advertisers are thinner, but you will still find those firms who are committed to their brand.

Branding can be an arduous and expensive process – it will definitely take far longer than one economic cycle to create a powerful brand. Corporate giants like Coca-Cola and McDonald=s have spent billions of dollars over the years on their brand. In fact when McDonald's cut back on advertising during the recession of the early 90s Taco Bell was quick to step up their own advertising investment and quickly stole market share. We are in one of those downturns again, and Kevin Lane Keller, marketing professor at Dartmouth University's Amos Tuck School of Business, warns, "People who starve their brands now will be paying for it in the future."

With lower advertising rates and less competition in the marketplace now could be the time for your firm to start a branding vision. Advertising, conference sponsorships, and other marketing and media costs can be highly negotiable. In addition there are less law firms out there with competing dollars and savvy firms can gain visibility and name recognition quickly. There are obvious advantages to sponsoring events when you are the only sponsor or advertising in a journal with few advertisements. Sending out a direct mail piece to an audience that is not being bombarded with a multitude of other promotional pieces will also have more impact. Make sure that you use good judgment about where you advertise and which events you decide to sponsor, but take advantage of the weakened market.

If you decide to forsake marketing and advertising now, coming back into the marketplace at a later date may be more difficult, more expensive and less effective. With some careful planning and attention to the changed climate, the firms that are interested in being around for the long haul will invest in creating and maintaining a strong presence while keeping an eye on retaining their existing clients. We are truly in an environment where contrary actions can reap rewards.