This is the third in a series of posts about our whitepaper titled “Building a data driven professional services firm” which is all about how to be data driven, not data wary.
In this post, we are going to look at whether big data is right for all types of law firms, but for the full detail – you’ll need to visit our website to access the whitepaper in full.
Data analytics is useful for all organisations, but it depends how you use it.
For high street firms, we see big data being an incredibly useful tool for managing a large list of transient customers, who might contract a service from you for a relatively short period of time (I.e. a property purchase) – then never engage with your company again. How do you keep track of those customers? How do you ensure you are the go-to firm when they come to sell that same house? What about when they need a will writing?
Being able to capture this information within a CRM tool and analyse the data to see where you should target and which marketing methods work best means that
For B2B companies with large clients, analytics can be helpful in preparing individual reporting back to the clients – as the billing information will be vastly more complex for multi-year, multi-service contracts where fees are generated across a range of different departments. Reporting helps these clients to stay on top of their legal partner’s fees, understand how their chosen firm is performing against KPIs and ensure that firms are explaining where their fees are being generated from.
For larger providers who operate at scale such as Alternative Business Structures (i.e. multinational insurance companies offering legal services), big data gives these organisations the ability to monitor their entire operations and make efficiency changes that could mean the difference between a 1% profit increase or decrease.
In our whitepaper, Martyn Wells, IT Director at UK leading law firm Wright Hassall, offers his views on how data analytics is changing service delivery in the legal sector.
Martyn highlights how smart interfacing will become more of a requirement as customers want to natively instruct their legal partners from inside their own ERP systems, or handle invoices through their own procurement tools without having to separately pick up the phone to instruct a lawyer.
This means that lawyers have to be able to integrate with these systems and be up to date with the technology being used by their clients. And it means that data has to be able to flow through these different systems in a safe and secure manner.
Wells also cites that data will be useful for firms operating a fixed price model, as access to data tools will enable legal organisations to closely monitor fees and associated activity being carried out by lawyers to ensure profit margins remain at an appropriate level.
For the full whitepaper, and to read about how Wright Hassall use business analytics tools to create client dashboards for their customers, visit our website to download the report.