Dear Snap-D, As most firms do, we frequently get pushback from clients on our invoices. How can we make our invoices more of a value-based tool rather than an excuse to question our fees?
A: Ah, the monthly invoice. Clients dislike receiving them as much as attorneys dislike creating them. There is a way to create those invoices, however, so that they aren’t so painful.
First of all, avoid general language. Your clients may not be skilled in legalese, and they would like to understand the work as best possible. Clear, understandable language that is broken up into categories. Keep it simple.
While some lawyers tend to describe every task completed, include only what was done and point to the actual benefits or result(s) achieved.
Some firms are including cover letters that describe the work and outcomes as well as the opportunity to ask clients for sincere feedback on service.
One firm in Canada actually grants their clients an option to pay a discounted bill if they aren’t completely satisfied with the service received. I can’t say that I support or recommend doing this, but, it is a way to make the invoice … unique?
Q: Are there any trends you see for law firms as a whole in 2015?
A: I believe if you place law firms in three separate buckets (small, medium or large), it’s fair to say that each bucket will have its own trends.
According to American Lawyer’s survey from the AmLaw 200 managing partners, in 2014, 78 of the survey’s 100 respondents described themselves as somewhat optimistic about 2015. Sixty-six percent of respondents characterized the morale of their partnerships as somewhat optimistic. Twelve percent of the respondents said they were very optimistic, and 7 percent described their partnership as very optimistic.
As always, the major source of unease is increased competition and pricing constraints. When surveyed about where growth will be, 38 percent said they expected to see the most revenue growth in their corporate practices in 2015, while 24 percent expected to see the most revenue growth in litigation.
Also according to ALM, efforts at innovation and increased efficiency in the delivery and billing of legal services remain popular.
Finally, while enthusiasm for lateral hiring has been muted, the de-equitization trend continues. The good news? Don’t look for cutbacks to hit the associate ranks. Ninety-five percent of the survey respondents said it is unlikely that their firms would lay off associates in 2015.
All in all, all sounds good. Go out and put it to action.
Q: What are the top three areas we should focus our marketing budget on for 2015?
A: The top three areas for you are very different than the top three areas for me. Marketing and business development is not a one-size-fits-all solution, so you need to identify what your firm’s goals are and develop your budget around those goals.
I suggest looking at last year’s marketing budget to see where you spent your marketing dollars and assess whether your initiatives worked or not. In addition, if you haven’t already embarked on rolling out marketing plans for each attorney, this is of utmost importance.
Have everyone forecast what he or she would like to do to expand their individual practice so they are in sync with firmwide goals.
Finally, take a look at your client base. Clients are your easiest source of new business, so take a look at what you’ve done for them last year, strategize with them for next year and service the heck out of them. They will appreciate the added effort, and you will enjoy the added benefits as well.