Law firms are losing out on millions of pounds in missed opportunities to cross-sell services according to research by Passle, the AI-powered thought leadership platform for professional services. Chief marketing officer Connor Kinnear explains why.
Law firm marketers have spent years trying to encourage lawyers to cross-sell to clients the different services available in their firm.
What should be easy money is being left on the table by the majority of firms according to our research among senior marketers and business development professionals. Three quarters believe it is the single biggest missed opportunity to boost profits in an increasingly competitive market.
Indeed, firms estimate that maximising cross-selling opportunities could add an average 12% to their bottom line. Based on the annual revenue of the top 100 law firms according to The Lawyer, that works out at an average of around £44 million annually per firm.
What’s the incentive?
We spoke to 150 firms – half in the UK and half in the US – and found that the reasons for cross-selling stalling were largely the same.
Fear of appearing pushy and disinclination to share clients were most commonly cited, but busy lawyers were also thought to be reluctant to see it as part of their job – at least not without incentives being offered.
Growth isn’t just about landing new clients but nurturing relationships so you can get maximum value out of the ones you already have. By deepening your understanding of existing clients’ needs, you can identify new opportunities to support them.
This not only strengthens client loyalty but also drives more consistent and sustainable revenue. By engaging with different departments, you can unlock untapped value and create new income streams without the time and cost of acquiring entirely new business.
Put simply, it’s about making your firm more resilient and, in the event of volatility in the market, that could mean the difference between lawyers keeping and losing their jobs.
Taking the lead
Senior and Managing Partners must lead from the front if they want colleagues to take cross-selling more seriously and encourage a culture of collaboration across the firm.
Raising awareness internally is often the first challenge. How can you expect clients to be aware of the breadth of a firm’s capabilities if its fee earners are not?
Focus on building real connections between lawyers from different practice areas. Champion teamwork and reward those whose cross-selling helps generate new business.
For lawyers who are concerned about appearing pushy, it’s also about getting your internal messaging right – cross-selling isn’t just about selling a service but providing a solution to a client’s problem, showcasing your firm’s combined strengths and saving them the time and trouble of having to look elsewhere.
The right tools
Firms must give lawyers the right tools and training if they want them to succeed at cross-selling, from creating easy-to-use knowledge platforms, making it simple for them to see the range of expertise and who does what, to coaching them on the best way to approach the subject with clients.
That’s why we created CrossPitch AI, a new tool which allows lawyers to instantly tap into their firm’s full offering and source and share thought leadership content that their clients may be interested in.
Passle says it has seen email open rates more than double – from the industry average of 18% to 39% – because recipients know that the content will be relevant to them.
The tool, which can be set up in minutes, will also help improve firms’ website performance, using a combination of Passle’s own data and AI to match professionals by name, location, sector, expertise and role and return much more accurate results when prospective clients search for a lawyer.
No one likes losing business to their competitors but that is exactly what’s happening – and it’s avoidable. Marketers must use all the tools at their disposal to get lawyers on board or risk losing millions to competitors.
Connor Kinnear has more than 20 years’ experience in sales and marketing and, in 2013, launched Passle alongside co-founders Tom and Adam Elgar. The AI-powered platform for professional services enables experts to engage with their key clients and stakeholders and currently boasts over 100 legal and professional services clients including Deloitte, Freshfields, Linklaters, A&O Shearman, Reed Smith and Ropes & Gray.