2020-04-18 By Joseph C. Settles
Profitability is one of the most common goals in law firms. Unfortunately, this isn’t an easy endeavor. From the intensity of the competitive landscape to the changing market demands, many obstacles can hinder a firm’s goal of being profitable. Keep on reading and we’ll share some tips on how law firms can generate higher revenues.
1. More Efficient Billing Practices
Billing can be a nightmare in many law firms. A good solution is the use of reliable legal billing software. This will improve efficiency and client satisfaction, making it a driver of profitability. With the right software, the law firm can customize invoices, send them electronically, and collect payment through online channels.
If you are looking for a high-quality law firm billing software, one option that you might want to try is RocketMatter.
2. Focus on Customer Satisfaction
For a long time, law firms have been inward-facing. The focus is often on lawyers, including increasing billables. It is now time to consider a shift from lawyers to customers. This is possible by finding ways to deliver the highest level of customer satisfaction by going beyond expectations. When customers are happy, they will be more loyal. They will promote the law firm. And in turn, this means higher profits for the firm.
3. Better Pricing Strategy
Pricing has a direct impact on the profitability of a law firm. This makes it important to choose the right pricing strategy. Traditional pricing models are focused on billing by the hour. To be more profitable, it will help to consider alternative pricing arrangements. The firm and the client must negotiate to find a pricing scheme that works best for both parties.
4. Effective Marketing
Marketing can make or break law firms, making it crucial to tap both online and offline strategies to promote legal services. Start by building a solid online presence, such as by having a search-engine-optimized website. Social media and email marketing will also help to reach the target audience.
5. Going Green
By going green, law firms can improve their business image. In turn, this will result in a positive public perception and can be influential in driving profitability. To add, this will also bring down the costs of operation. Law firms can even be eligible for government subsidies, such as tax benefits.
6. Exceptional People
This is perhaps the most obvious when it comes to generating more revenues. Law firms should invest in their lawyers and paralegals, among other employees. As with other industries, human resources are the most important assets. From robust hiring practices to comprehensive training, law firms should have competent people to help propel the organization’s success.
Confronted with an uncertain future, profitability is not an easy feat for most law firms. Especially because of the competition, it is difficult to compete head-to-head with more established names. From having more efficient billing management to investing in exceptional people, the things mentioned above are crucial in driving a law firm’s revenue.