Written by:
Grant Yuill
Head of Marketing & Customer Engagement
Modern law firms are expanding and evolving in response to global economic swings and significant technological breakthroughs. Although many businesses claimed an “above average” year, it was also a time of difficulty and development.
This article looks at some of the trends that have influenced law firms during the last year. We’ll look at law firm problems and growth patterns, as well as how different sectors dealt with the year’s economic strains. The tale of 2024, so far, is about more than simply growth stats; it’s also about the strategic decisions that led to those numbers. It focuses on how law firms used resources and vendors to stay ahead in an increasingly competitive industry.
The developing marketing methods used by legal firms across a diverse range of legal practice areas, the importance of technology in improving client satisfaction and operational efficiency, and the difficulty of budgeting for and integrating new technologies into old systems. We hope that this article will provide insights into the collective mentality of the legal sector in the digital age, highlighting both its successes and the challenges it continues to face, with a particular focus on improving client experience and leveraging current marketing trends for law.
Performance and Growth of Law Firms in 2024
Last year, legal firms saw a dichotomous growth pattern. The range of growth achieved by these companies reflected the chaotic economic conditions of the time. More than half of the law firms we researched, regardless of size, reported growth rates ranging from 5% (less than inflation) to a staggering 20%.
This number, however, only shows half of the tale. The other half of the companies were in the dark about whether their billings had increased or decreased, a tribute to the year’s unstable market conditions.
The conveyancing legal sector, in particular, faced a series of unique obstacles, showing the need to adapt and streamline their practices for efficiency. Fluctuating interest rates had a direct impact on mortgage rates, throwing a long shadow over this sector. The figures were stark: more than half of conveyancing law firms reported no growth, and another 30% were unable to determine their growth status. These data reflect the sector’s struggle in an environment where economic variables play a large and, at times, unpredictable role.
Spirit of Optimism
Despite these problems, there was a spirit of optimism throughout the sector. Half of the firms surveyed expressed optimism, forecasting an increase in billings over the next 12 months. This optimism was not without caveats, as less than 5% of organisations expected a decrease in billings, indicating a cautious yet hopeful vision for the future.
Growth and Technology
2024 is also a year that emphasises the value of changes and strategic thinking. A surprising proportion of companies were simply unaware of their growth KPIs, which could be addressed with a legal practice management solution like, aiming to automate and streamline their operations. Denovo, which provides insights into important performance indicators such as revenue growth, new business sources from potential clients, and more.
The most significant challenges to growth in 2024
Over the last 12 months, law firms have faced tough challenges, including client growth and retention, inflation management, and staff well-being. Approximately one-third of the firms identified growing and maintaining clients as their main challenge. While this is a long-standing difficulty for businesses, having it at the top of the list is noteworthy.
Inflation was another big challenge, as reported by roughly 30% of the businesses. Rising prices undoubtedly have an impact on operational expenses, pricing strategies, and customer billing. Firms have little choice but to negotiate these economic demands while providing competitive and customer-friendly services.
Employee well-being seemed to be a close third challenge, showing the industry’s increased appreciation of the value of work-life balance, mental health, and overall job satisfaction. Again, this is not a new concern for law firms, but the elements that influence employee well-being evolve with each new generation of lawyers.
Client Development and Law Firm Marketing Trends
2024 highlights a crucial dilemma for law firms: the pursuit of client development and retention. This effort was particularly noticeable in smaller businesses, where the risks for obtaining and retaining a strong client base of potential clients remain extraordinarily high. However, our study revealed not only a story of challenges but also of emerging methods in the face of adversity.
Marketing Difficulties
One major obstacle is marketing, which is an important yet often underutilised tool in the legal industry. Surprisingly, one out of every four law firms admitted not engaging in marketing. However, this pattern appears to be improving when compared to the prior year. In 2022, nearly half of law firms conducted internal marketing initiatives (often as an added obligation), while just 6% used external marketing suppliers. As a result, a stunning 47% of enterprises had no marketing initiatives at all. The move in 2023, although slow, may reflect a rising awareness of the role of marketing in client growth and retention in 2024.
Referrals
Referrals remain the most effective opportunities for recruiting new clients, with more than half of organisations attributing their recent client growth to this traditional approach. However, the landscape is not static in this sense, with constant evolution in legal services demanding agile adaptation and and increased online presence when trying to attract clients.
Digital Marketing
The use of digital footprints began to gain popularity, with one in every seven businesses claiming search engines as their primary source of new clients. This digital transition reflected a larger trend: the legal industry’s gradual but consistent use of online platforms and digital marketing methods.
Marketing Trends
The 2022 data provided additional insight into this trend, indicating a shift towards leveraging technology to streamline operations. Referrals (31%), company websites (17%), and search engines (14%), were the three most popular routes for gaining potential new clients that year. Other digital channels such as advertising both digital and physical, social media, and pay-per-click advertising also contributed significantly to new client acquisition.
The transition to a more integrated marketing strategy could mean an awakening in the industry. While word-of-mouth and referrals remain beneficial, a digitised world requires more than the old approach, encouraging law firms to leverage email marketing and follow marketing trends for law to enhance their client experience. Law firms are recognising the value of a multifaceted marketing strategy that combines the credibility of referrals with the broad reach of internet platforms.
Goals and Trends for Choosing SaaS Providers
Law firms’ requirements for choosing SaaS providers show a thoughtful and strategic approach to embracing technology. Our survey yielded fascinating insights into the goals that drive these decisions, indicating an ever-changing view of the role of technology in improving legal practice.
Making it easy and simple
When choosing a SaaS provider, 50% of law firms ranked “ease of use” as the most significant factor to consider. This desire demonstrates an economical approach; many law firms want technology solutions that are easy to use and integrate into their regular daily operations without requiring high learning curves. The emphasis on ease of use demonstrates the industry’s realisation that the true value of technology is found in its accessibility and simplicity of implementation.
Automation
A lot of companies chose to automate and streamline their workflow features as high priorities as well. This decision reflects a growing understanding of the benefits of simplifying tasks and optimising workflows. Law firms are increasingly looking for practice management software that can perform standalone activities while also providing efficiency and structure to their operational procedures.
Cost
It’s interesting that price, which is often the most important factor in many industries, wasn’t as important to law firms when choosing SaaS providers. It was considered the third most significant, with less than one-tenth of enterprises citing it as a critical determinant. This trend represents a change away from traditional cost-centric approaches and towards valuing usefulness and efficiency over cost.
Shifting trends
The comparison of statistics from 2022 added depth to this story. The priorities were effectiveness (79.13%), simplicity of use (71.84%), and cost (58.5%). The transition in 2024 to a greater emphasis on simplicity of use and a reduced emphasis on cost demonstrates a shifting attitude. Law companies are looking for solutions that cause least disturbance and maximise efficiency, which is the basis of value for many organisations.
Technological Advancement and Its Impact on Success
2024 shows a legal landscape characterised by both growth and challenges, demonstrating law firms’ endurance in adjusting to global economic dynamics and technological advances. Despite the dichotomous growth and uncertainty, cautious optimism persists, emphasising the significance of smart decision-making, flexibility, and the potential to leverage marketing trends for law to grow your law firm. Integrating Software as a Service (SaaS) solutions as the industry shifts from Automation to a focus on artificial intelligence demonstrates its dedication to technological improvements.
Client growth, inflation management, and employee well-being remain significant challenges, prompting law firms to prioritise client acquisition and retention through leveraging marketing efforts. While referrals continue, a gradual but increasing acceptance of digital marketing indicates a shift towards a more integrated approach.
Law firms are increasingly relying on SaaS vendors, acknowledging the importance of technology in improving workflows. However, the challenge is to ensure seamless connectivity and avoid siloed activities. When choosing SaaS vendors, prioritising ease of use, automation, and workflow features over cost demonstrates an evolution in value towards functionality and efficiency.
As law firms go forward into 2024 and beyond, it will be vital to embrace technology strategically, ensure seamless integration, and prioritise user-friendly solutions. The legal sector will continue to adapt to challenges and opportunities by adopting more online content marketing and management software that provides valuable insights in to firm performance and client expectations. Staying current with new trends and remaining flexible will be essential for long-term success.
If you are looking to grown your legal practice through the use of the best legal practice management software, reach out to us and book a demo.
If you require marketing consultancy you can contact directly – grant@denovobi.com.
