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There’s a lot of talk about competitive intelligence these days, especially as law firms seek to find new sources of business. In response, companies are offering lawyers products and services that identify information for use in their marketing. But if you don’t really know how you want to use the data, the result can be simple information overload.
From internal client retention data to information on prospective clients’ litigation matters to trends in targeted industries and beyond, competitive intelligence resources have clearly become more plentiful and more focused in recent years. What is less clear for many law firms is precisely how to use the information.
While competitive intelligence can be factored into firm strategy and guide decision making in a range of areas, one of the most common and best uses in law firms comes in the area of marketing. Here’s a review of some sources for that purpose, along with ways to use the information that can contribute to more effective marketing and business development efforts.
Main Types of Information
Generally, information can be defined in the following ways:
The chart below outlines some examples.
PRIMARY – INTERNAL: Conducting an in-house survey of the firm’s lawyers to identify or solicit targets for new business in the area of infrastructure projects
PRIMARY – EXTERNAL: Having an outside company survey firm clients in the energy field to assess their satisfacion with the firm and identify needs for additional services
SECONDARY – INTERNAL: Checking HR and alumni databases to determine whether any lawyers or staff went to the same school as a prospective client
SECONDARY – EXTERNAL: Having research done on Chambers and Partners and related sources to identify top competitors in a particular practice niche
To facilitate collecting and reporting internal data, there are many varied and increasingly helpful software packages available to firms, from time-and-billing tracking applications to business intelligence products like Redwood Analytics.
Likewise, external data and information are available through an ever-growing platform of sources, including some vendors with longstanding relationships with law firms (such as Thomson West and Lexis-Nexis), numerous generally available sources (like the U.S. Department of Commerce and other government agencies), and other providers fairly new to the industry. Let’s match some sources with marketing uses next.
Researching Prospective Clients
From a business development standpoint, the most valuable information is often that which provides insights on prospective clients, to assist in making a pitch or a proposal for business. Some of the more popular external information sources for company information include these:
Sorting through the sometimes voluminous results from a company search can be time-consuming and difficult—especially for a busy lawyer who doesn’t have time to pour through a 3-inch binder of company data just hours before a meeting with a prospect, for example. So, whether the synthesizing is done by the firm’s library staff, the marketing department or a firm associate, it makes sense to develop a snapshot of the most salient issues and information for the requesting lawyer. This might include:
Of course, the responsible lawyer should also check the firm’s client database or CRM system to learn whether the firm has additional contacts at the prospective client company, and then contact any colleagues having relationships to get information and perhaps assistance in the pitch.
Doing More: Other Research Uses
In addition to applying it for new business development, competitive intelligence research can be used to promote and strengthen your marketing efforts in the following ways.
In addition, firms can usually benefit from monitoring legal industry trends when developing a range of initiatives. Say, for example, that your firm is considering putting together a “green” marketing initiative. By searching the Web sites of law firms with similar programs, you can learn what they call their groups, which substantive practices are involved, in what activities they are engaged and a host of other information to help your group avoid reinventing the wheel.
Overall, competitive intelligence research tools have come a long way in law firms. Still, the biggest challenge is often finding ways to use the results to enhance marketing efforts and make those efforts more efficient. The key is to remember that any investment in such research needs to be coupled with a facility to analyze, synthesize and make the data useful for the firm’s lawyers.
Sally J. Schmidt, President of Schmidt Marketing, Inc., has counseled more than 400 law firm clients over the past 20 years. She was the first president of the Legal Marketing Association.
► For more on how to put competitive intelligence to use, see these articles in the March 2008 Law Practice : “How to Create and Use Competitive Intelligence: 45 Tips for Law Firms” by Ann Lee Gibson and “Competitive Intelligence Roundtable: Tactics, Tools and Lessons to Be Learned,” moderated by Dennis Kennedy.