The legal market is becoming increasingly competitive, and law firms need to ask themselves hard questions if they want to stay ahead. A 2016 paper published by the SRA highlighted the growing challenge of competition in the legal industry—particularly the rise of US firms in the City and accountancy firms establishing legal teams. Clients now have more choices than ever before, and the influx of non-traditional competitors has intensified the pressure on pricing and client retention.
These competitors often have sophisticated business development teams whose primary goal is to capture market share, making it even more important for law firms to critically assess their strategy. Here are the key questions every law firm should be asking:
1. How Can You Continue to Succeed in an Increasingly Competitive Market?
With the growing number of legal professionals and alternative legal service providers, simply delivering excellent legal services is no longer enough. Clients have more options than ever before, and many competitors are offering comparable services at competitive prices. To stand out, your firm needs to differentiate itself—not just through quality of service but by how you build and nurture client relationships, position your firm, and add long-term value.
2. How Can You Maintain Your Leading Edge?
Even if your firm currently holds a leading position in the market, complacency can be dangerous. Staying at the top requires continuous innovation, strategic business development, and proactive client engagement. Are you actively seeking ways to innovate, deepen client relationships, and capture new opportunities, or are you relying too heavily on past successes?
3. How Can You Remain Competitive But Still Profitable?
The continued economic recovery has led to increased pressure on fees. Clients are more price-conscious than ever, but lowering fees too much can eat away at profitability. Striking the balance between competitive pricing and maintaining healthy margins requires a thoughtful approach to fee structures and service delivery models.
- Are you exploring alternative fee arrangements?
- Are there ways to increase operational efficiency without sacrificing the quality of service?
4. How Do You Handle Rumors of Firms Doing Work for Free?
In competitive markets, some firms may offer heavily discounted services or even work for free to attract clients. This practice can create challenges, especially if clients come to expect lower pricing across the board.
How can you compete without devaluing your services? The answer lies in communicating your value propositioneffectively. If clients understand the long-term value you offer, they’ll be less likely to focus solely on price.
5. How Do You Ensure Your Clients Are Firm Clients, Not Attached to Individuals?
One of the greatest risks law firms face is the mobility of lawyers. With partners and associates moving firms more frequently, how do you ensure that your clients remain loyal to your firm and not just the individuals who serve them?
Building strong, institutional client relationships is essential. Your firm should be positioned as a trusted partner, with multiple points of contact across the organization, rather than relying on a single attorney to hold the relationship.
- Are your client relationship management systems in place?
- Are you building deep relationships with your clients beyond the initial point of contact?
How Autem Helps Firms Address These Critical Questions
At autem, we work with law firms to address these very challenges, ensuring they are equipped to thrive in a competitive legal market. Our strategic approach focuses on building long-term value, strengthening client relationships, and enhancing business development capabilities so that your firm can maintain its competitive edge while safeguarding profitability.
Here’s how we can help:
- Strategic Business Development Planning
We work with your firm to create a bespoke business development strategy that identifies opportunities in the market and aligns with your long-term goals. Our strategies focus on client retention and new business acquisition, ensuring that your firm remains competitive while also profitable. - Client Relationship Management
autem helps firms implement CRM systems and strategies that ensure your clients become firm clients, not just clients of individual attorneys. We work to deepen institutional relationships and provide training on how to manage client relationships across the firm, ensuring stability even as lawyers move around. - Competitive Positioning and Pricing Strategies
We help firms navigate the tension between competitive pricing and profitability. Our team works with you to create fee structures that are attractive to clients while maintaining your margins. We also assist in developing value-based pricing models that communicate the long-term value your firm provides, reducing the emphasis on price alone. - Marketing and BD Alignment
autem ensures that your marketing efforts and business development strategies are aligned so that your firm stands out in a crowded market. We work to elevate your firm’s brand positioning, ensuring clients understand your unique value proposition. - Crisis Management for Competitive Challenges
When rumours of free work or heavy discounting arise, autem helps you craft a communication strategy that reinforces the quality of your services and long-term value. We help position your firm as the superior choice, focusing on the results and strategic insights you offer rather than pricing alone.
The Result: Staying Competitive and Profitable in a Crowded Market
At autem, we help law firms navigate an increasingly competitive market by developing innovative strategies that strengthen client relationships, improve profitability, and ensure your firm remains at the top. Our approach ensures that you stay ahead of the competition without sacrificing your firm’s integrity or profitability.
