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The legal market is changing (as it always does), but many lawyers haven't noticed. That's a key finding from the 2024 Report on the State of the U.S. Legal Market released earlier this year, and it has important implications for your practice growth.
Here's what's happening: Since the 2008 financial crisis, clients have quietly but steadily gained more power in the attorney-client relationship. They're shopping around more, demanding competitive pricing, and splitting up work between different firms. Many lawyers, especially at larger firms, missed these changes because strong deal flow—fueled by low interest rates—masked the underlying shift.
But here's the reality all lawyers need to face, according to the Report: Clients are actively looking to move work to more cost-effective providers. This isn't just about cutting costs—it's about finding lawyers who can deliver more value for every dollar spent.
So what does this mean for your practice? Here are three specific actions you can take to get ahead of this trend:
First, take a hard look at your client relationships. Are you waiting for clients to raise concerns about costs, or are you proactively discussing value and efficiency? Schedule conversations with your key clients specifically focused on understanding their cost pressures and business objectives. Don't wait for them to bring it up.
Second, get specific about your value proposition. "Quality legal work" isn't enough anymore—every lawyer claims that. What makes working with you more efficient? How do you help clients do more with less? Document specific examples where you've helped clients achieve better outcomes while managing costs.
Third, rethink how you package and deliver your services. Could some matters be broken into smaller pieces? Could you offer fixed-fee options for certain types of work? The goal isn't to compete on price, but to demonstrate that you understand and can adapt to your clients' needs.
Remember: Clients aren't just looking for cheaper lawyers. They're looking for lawyers who understand their business pressures and can help them navigate them. Every challenge creates opportunity, and this market shift is your chance to position yourself as exactly that kind of lawyer; a true trusted advisor.
And here's something else that’s important to consider: While some lawyers are resisting these changes, you can turn this market shift into a growth opportunity. Many of your competitors are likely still operating as if it's 2019 – focusing solely on technical expertise while ignoring clients' evolving needs around efficiency and value. This creates an opening for lawyers who "get it."
Think about it: Every time a client becomes frustrated with a firm that won't adapt, that's an opportunity for someone else to step in. Look for chances to pitch work to clients who are currently using larger, less flexible firms. Show them specifically how your approach is different – perhaps you offer more predictable pricing, faster turnaround times, or a more focused team structure. The key is to position yourself as the solution to the very problems that are driving clients to move their work around.
The bottom-line: The lawyers and law firms that recognize and adapt to this new reality will thrive. Those that don't may find their client relationships aren't as secure as they thought.
Which category will you be in?
Jay Harrington is president of our agency, a published author, and nationally-recognized expert in thought-leadership marketing.
From strategic planning to writing, podcasting, video marketing, and design, Jay and his team help lawyers and law firms turn expertise into thought leadership, and thought leadership into new business. Get in touch to learn more about the consulting and coaching services we provide. You can reach Jay at jay@hcommunications.biz.