How Big Data Supports Law Firm Client Retention
In the race to adopt new technology and new business concepts, it is no secret that the legal industry comes in last. Law practices have always been and continue to be perceived as old-fashioned, and a great number of lawyers like it that way. However, many law firms are realizing the true potential and impact of several technological developments, especially when applied to legal services. Among these new developments, BIG DATA has become a useful tool for legal practitioners everywhere.
What Is “Big Data?”
In simple terms, big data is the management and processing of massive amounts of information involving a market, sector, or company. The important thing is not the data or its management, it’s the application of such information into a certain industry – big data provides the tools to predict case outcomes based on jury profiles, it can help predict the best potential candidates [for a position/job], and data can help firms better understand invoicing and cost-effective services.
Several studies conducted show that clients leave firms for several reasons, but rarely ever, for lack of expertise, knowledge or quality. Clients seem to make such an important decision based on invoicing, pricing, approachability, and customer care – so why don’t firms consider big data to help retain those clients?
Getting & Properly Using “Big Data”
Big data can help law firms in social aspects not directly related to the legal profession. Big data needs to be used for client retention. Social behavior and the general consensus around and about legal services are powerful sources of information. That information holds the key to better retention. Many firms handle thousands, if not millions, of clients. This information, properly handled, can provide extremely valuable data for future reference and can be applied to better understand both current and potential customers.
So What’s the Problem?
Making good use of the massive amount of information that law firms gather over decades of existence is crucial to better understand their business structure, and how to make it better. However, the key to data processing is to set questions that will be answered by the big data. Just like the magic eight-ball, if you do not ask the right question, the eight-ball cannot return relevant results. The same goes for the data under consideration. For the entire process to work properly, the perceived value of the information must be considered.
That’s where innovation comes in. In some form, technology has been used in biglaw for many years. Though the industry has been distrusting of many new applications. If the right questions are asked, law firms can know why clients leave, where they went, and how to avoid the practices/behaviors that made clients switch firms in the first place. Simple surveys to historical records of invoices, every legal practice can learn from their clients, as it is known that recurrent clients are the heart and soul of profitability in the legal industry. Subscribe to the Leopard Blog for discussions on firm management, diversity, law firm insights, and other relevant topics.
Leopard Solutions is an online resource for real-time legal data and insights for law firms, corporations, law schools, recruiters, and attorneys. Our suite of data intelligence tools helps you with business development, firmographics, marketing, and data analysis. Our tools are popular with HR teams, talent acquisition/recruiters, business development, sales, and marketing teams.