Industry views from InfoTrack: the case for tech
This article was originally featured as an industry analysis in the March 2018 issue of LPM. To read the issue in full, download LPM.
Having attended numerous law conferences, I always find there is someone who will stand up and suggest that technology used by solicitors is out of date. But in my opinion, that is not necessarily the case. A better way of looking at it is to ask whether law firms are using the right systems, because technology can be pivotal to how you service your clients, add value to your business and create a point of difference.
Sadly, the legal market has been let down by false dawns and unfulfilled promises by tech providers, and this has led to firms continuing to do what they have always done, rather than asking themselves what’s best for them, their staff and their clients. The technology that exists for law firms has become disparate and tends to work in isolation, meaning practices must visit multiple websites to conduct their tasks rather than a central hub – the CMS. How is it then possible to believe any advertising that says: “We’ll make you more efficient and more profitable.” Legal workers then have a mindset of thinking everyone is the same as them.
Law firms need to remain open-minded, curious, and garner an education around the market. That’s not easy. So, what is our view of the market and what can we do?
Demanding consumers
In many client-facing industries and professions, the landscape is constantly changing, with consumer attitudes toward technology and services advancing rapidly. It’s already visible within the motor industry, for example. It’s a rainy Sunday afternoon at home, and you’re thinking about buying a car. If it’s a new car, you are more likely to go direct to a manufacturer’s website and configure a vehicle to your own specification to get an idea of what it will be like first. Manufacturers are good at giving a breakdown of costs very early in the purchase, to tempt you into buying from them. To do that, they also incorporate insurance, finance and road tax into that price, so although you are dealing with the DVLA, and insurance and finance companies, you are doing it all through one place rather than visiting multiple sites. It’s even possible to live chat for immediate answers to questions. Today, we no longer have to enter a building to make an inquiry and establish a price. That’s what we have become accustomed to in terms of immediacy of service.
While we may not want to be compared with car manufacturers, there’s no denying that they have developed an effective approach. By using technology to provide transparency through price at the early stages, they can appeal to their customers faster and give them the information they need to make decisions throughout the process, all from a single place.
Great expectations
In research that has recently been conducted by InfoTrack, 41% of respondents who have moved home over the last three years said they now want to self-serve information, demonstrating a real synergy in the way they buy a vehicle or order an item using the likes of Amazon. Consumers want the ability to log in and view progress themselves, and at a time that’s convenient to them. Indeed, the research shows that the expectation of a phone call is down, as people no longer want, nor expect, a call. In fact, the number of people who expect ‘digital communication’, in the form of instant messages, text or portals is up 86%, and that excludes emails. Overall, the consumer has changed thanks to the technology they are using. This proves that there is a real shift in the market, and these consumers are of a variety of ages, genders and backgrounds. Clearly, technology isn’t just for millennials.
At the LPM London conference in February 2018, where I was fortunate to sit on a panel, a question was asked as to whether technology should be focused for Generation X rather than the millennials. The reality is that technology is being adopted and used by consumers of all ages, both in their personal and professional lives. That’s because it’s incredibly intuitive and easy for people to use. Look around you and you’ll see people of all ages using technology already. Think about what apps you are using on your smart devices.
Do you use Uber or a bank account app via your mobile? Do you have an Amazon Echo or a Google Home in your house? Such is our demand for immediate responses, these assistants are now making it easier to ask a question and receive a quick answer. That’s responding to a need to be more efficient than keying in a question to Google. Our behaviour has been influenced by this type of technology – the kind that is responding to a need – a more efficient way of finding information.
The shift continues to be driven by businesses (startups and established) implementing technology that offers a smarter way of conducting tasks, and that encourages people down this route.
Peter Carr, partner and head of IT at Fisher Jones Greenwood (FJG), was also on the aforementioned panel, and he discussed their recently implemented chatbot – a form of artificial intelligence that enables the client to ask specific questions of that firm in order to make a decision. Although this isn’t currently commonplace, the approach is correct, as FJG demonstrates how it really is catering for the consumers of now with an understanding of how they behave with technology. Ultimately, whether the time is now or in the future, it will be ready and able to deliver on its clients’ needs, which is for immediacy, because with the likes of Amazon’s Alexa and Google Home, we are now interacting in a very different way, and we are becoming accustomed to having immediate responses and to conversing with something that isn’t actually human.
Evolving service
Working in what is essentially a service-based industry, we consider ‘service’ to be a very important word. But we need to delve into the meaning of the word. It no longer means simply giving your clients a phone call and an update – the word service has naturally evolved to incorporate technology. To customers, service now means that the firm is talking to them in the way they prefer and at a time that is convenient to them. Servicing new business doesn’t have to be tricky if you have the right technology in place, but remember that it all starts with first impressions.
So, think for a moment on how your firm quotes for new business. How long does it take from a phone call to sending the quote out? If you are unable to quote on the phone or with immediacy, you may have lost your potential new client to another firm that can conduct the same task within a minute or two and can provide the information over the phone or electronically via its website. The recent InfoTrack home-mover research demonstrates that 39% of movers now look to instruct on the first quote. Interestingly, this has decreased from 50% some years ago because movers now often request multiple quotes. It stands to reason that if they can’t get that quote from their couch on a Saturday evening via one firm’s website, they will simply move on to one that can generate the information they need immediately, and that provides them with the ability to hit ‘instruct’ at a click of the mouse.
Value adds
The value of technology cannot be understated within a law firm. Not only does it allow you to deliver on the needs of clients, the implementation of technology means you apply real value to your business. In 2006, the biggest businesses in the world by market cap were generally oil giants such as Exxon and Total. By 2016, however, this same chart is occupied by technology companies, including Alphabet, Facebook, Apple and Microsoft. Similarly, in April 2017, Ford, the largest manufacturer of vehicles in the world, was knocked off its perch of market value by Tesla. The importance here is to understand that placing technology at the heart of a business is now where the value is seen. Ford is an automotive brand trying to become a technology business, whereas Tesla is very much a technology brand with an automotive business. That’s no longer lost on Ford – its global CEO recently admitted that simply building vehicles wasn’t going to win them back any market value.
Although law firms can build their own technology, this naturally comes with high maintenance costs, a continuous investment of funds and the employment of specific departments to maintain and build integrations. Luckily, there are several legal tech providers now incorporating solid third-party integrations, particularly in the case management area, so your firm doesn’t have to. Also, at this lower price point, firms of any size can have access to the same powerful integrations that can help deliver the best possible experience for users and service to clients, whether it is procuring information or creating seamless workflows.
Change management
There are barriers to change within any organisation. Change is huge and often resisted by staff who might have reason to say no or an excuse to avoid it. The reality is that clients and consumers are changing and firms need to move with the times. When implementing change, it’s important to bring the staff on that journey and ensure you sell them the benefits in terms of their time so they can buy in to it.
Employees need to have a balance in their lives and if you can sell the benefits of saving time through the benefits of great technology you can also help them understand how simple it can be. Demonstrate the positive points most relevant to them, the simplicity and ‘smartness’ of the technology, and employees are much more likely to want to come on that journey with you. Choose your suppliers carefully – select those who will be able to offer you that future technology that allows you to change the game, win new business and deliver different aspects of what I have talked about throughout this article.
Different is good
To see what impact adoption of technology can have on a business, law firm or otherwise, we can reflect on the stories illustrated by Kodak, Blockbuster and many others who failed to adopt future-thinking technology at pivotal times and refused to change. Around the world about 11,000 startups are created every hour, and many are beginning to offer legal services. These are the businesses that will be building and competing with law firms in a very short space of time, and firms need to be prepared. There is an immediate opportunity for practices to start thinking about how technology can be utilised to give them a real edge.
Using the right technology not only gives you efficiency, it gives you a differentiation. That’s important because the InfoTrack 2017 home-mover research suggests that consumers struggle to see the difference between solicitors, which, when coupled with the inability to get an immediate response, leads them to shop around.
However, if you’ve got an ability to quote immediately, send contracts and information out via a portal, have documents signed electronically and provide a streamlined and seamless online service, it really will set you apart from your competition. Using the right technology empowers you, whether it’s AI or simply easier and more enjoyable technology that performs multiple tasks and reduces the amount of rekeying.
In summary, small, medium and large law firms need to ensure that all levels of staff are open-minded to what is out there in terms of technology and understand where their future lies. Steve Jobs alluded to the notion that if clients are asking for technology you are possibly already too late. When we know people are already asking to talk to your firm out of hours, we also know that Peter Carr at Fisher Jones Greenwood is delivering a solution. If you are doing the same thing over and over again and you aren’t winning new business, have you looked at new business management systems such as lead management tools? If your client asks you not to post anything to them, do you know which electronic solutions exist to obtain an electronic signature? Ultimately, incorporating simple, smart technology builds value into your business, creates a point of difference and is pivotal to how you service your clients. And it doesn’t need to be expensive.
