The Lawmatics Blog

There's no doubt about it — lawyers are some of the hardest working people. It's important to note, however, that behind every great lawyer is often a great legal assistant. To the untrained eye, legal assistants and paralegals are often falsely perceived as interchangeable. But despite some shared duties, their responsibilities and education differ significantly.

The distinction between a legal assistant and a paralegal

From appointment setting, to legal document preparation, to billing and invoicing, it takes a lot to run a law practice. A legal assistant — sometimes referred to as a legal office assistant — is someone who works closely with attorneys, helping shoulder the brunt of their administrative work. In doing so, attorneys can focus on their substantive legal work.According to the American Bar Association, a paralegal is defined as someone qualified by education training or work experience who is employed or retained by a lawyer, law office corporation, governmental agency, or other entity and who performs specifically delegated substantive legal work for which a lawyer is responsible. Unlike legal assistants, they spend more time doing work like researching laws and helping prepare and brief attorneys for their actual trials. Some might even say a paralegal is practically a lawyer, they just can’t represent clients in court, or provide legal advice.

Education

Unlike legal assistants, a paralegal must receive special training and certification in most states with some exceptions. Although the requirements can vary, typically legal assistants may only be required to have a high school diploma.That said, a career in legal support is fast-paced and competitive. Legal assistants hoping to stand out amongst applicants may opt to become certified accredited legal professionals. (CLP) Although it is not technically required to be a legal assistant, it can demonstrate your eagerness and commitment to supporting the busy and demanding world of a lawyer. Some attorneys will only consider certified legal assistance when going through resumes, so it certainly puts candidates at an advantage.

Duties of a legal assistant

Client communication

One of the most critical aspects of finding and retaining clients is being communicative. With lawyers having much on their plates, building and researching their cases, being responsive and timely is challenging. This is where legal assistants can be incredibly convenient. They can get back to prospective clients via email, providing more information about the law firm, sifting through voicemails, and making follow-up calls. Although they can't offer any legal advice, they can answer basic questions about the law firm, which can significantly lighten a lawyer's workload.

Scheduling

The scheduling aspect of running a law firm can be a hindrance to your workflow. Your clients have busy lives of their own, so agreeing to a time that works for both you and them can result in perpetual email back and forths. Busy lawyers don't always have the time to get stuck in an email vortex trying to schedule a simple consultation. Not only can legal assistants handle the scheduling aspect of appointment setting, but they can also help avoid client no-shows and mix-ups by sending out appointment reminders.

Billing

Billing is a tremendous undertaking unto itself. In the absence of law firm time and billing software, lawyers may opt for a legal assistant to do their invoice preparation and billing tasks for them to free up hours of their week. Any invoices that are left unpaid, will usually be followed up on by legal assistants, attempting to collect payment and accommodate clients by offering flexible payment options.

Document organization

It goes without saying that there are a lot of documents that go into each matter. Legal assistants may help gather requested documents that lawyers need for a case and help organize files between clients.[oxygen-template id="6129"]

Essential skills of a legal assistant

1Organization

Legal professionals operate in a fast-paced environment. A great legal assistant is there to help bring order to the chaos, and clarity to the confusion. Someone with great structure and a natural ability to take on piles of documents and files and organize them accordingly is a key component to getting everything done fast enough.Prioritization is of equal importance: knowing what work is urgent, and what can wait. Because lawyers work with such tight deadlines, a legal assistant serves to keep attorneys on track with their deadlines, appointments, and court appearances.

2Lead management

It's critical to know where each of your prospective clients stand to avoid any missed opportunities. Ideally, a law firm should have a law firm CRM in place to ensure that information about clients and cases is easily communicated between legal assistants and attorneys. Since a CRM stores everything in one central location, you never have to wonder what tasks need to be done next or who has been followed up with. Pipeline management makes it easy for everyone in your law firm to stay on top of how new clients are progressing, and what needs to be followed up with next.

3Interpersonal skills

In most law firms, lawyers don't have the bandwidth to answer the phone every time it rings, nor should they. A legal assistant is there to provide basic information about the law firm and answer any questions that don't require legal advice. It helps if a legal assistant has great interpersonal skills, and is able to maintain an accommodating and pleasant demeanor. In addition to handling phone calls, legal assistants are frequently in charge of responding to emails and greeting clients when they come into the practice, so a basic understanding of legal terminology is a big plus.

4Technology skills

Technological skills are one of the most important attributes of a legal support professional. More and more modern law firms depend on legal technology such as CRM, legal client intake software, and case management software, so it’s necessary to know your way around them. Even in the absence of legal software, traditional firms on a manual system will still require some technical knowledge as they will be expected to use a word processor and spreadsheets. Not to mention, as e-filing becomes more ubiquitous in the courts, one must know how to electronically file a document.Simply put, it’s important for any legal assistant to be tech savvy, and ideally familiarize themselves with the most common software frequently used in law firms, so they can apply their knowledge of the programs if they're hired.

5Time management

In a law office, time equals money. The faster attorneys can complete their tasks, the faster they can get paid, and take on more clients. In reality, a large portion of a lawyer's to-do list is administrative tasks that eat up a significant portion of their day. That's why they need to rely on a legal assistant to help complete their tasks so they can focus on their clients. Therefore, legal assistants must be extremely punctual and capable of effectively prioritizing their time. A legal assistant with a quick turnaround and the ability to meet deadlines with ease is an asset to any law firm.

Legal assistants vs CRM software

Legal assistants can find themselves with a substantial amount of tasks on their plate. A legal CRM can help lighten their load by automating and streamlining tedious manual processes. However, some law firms may choose to opt for one or the other. There are some things a CRM can do that a legal assistant can't, and vice versa. Knowing the differences can help you decide whether you'd like one over the other or both.

A CRM captures your leads

A legal CRM can capture your leads automatically, and help you manage their status in one central location. Suppose a lead goes to your website and fills out a client intake form. Your CRM will instantly capture that information and push it into your database without requiring manual entry - this is the first step in law firm contact management. From that point on, CRM can systematically fill out forms and contracts with all of the acquired contact information into the right fields. That means, rather than having to ask an assistant to fill out a lengthy contract for you, potentially risking errors, a CRM can generate something like an attorney-client agreement within a matter of seconds by simply taking the information directly from your database.

A CRM nurtures on autopilot

A CRM follows up automatically when it matters most. Choosing a CRM with advanced automation features not only streamlines your law firm's communication, but it gives your clients the impression that they're being tended to at each stage of the client journey, when in fact it's your CRM communicating on autopilot.Modern AI makes it possible to send out personalized, and targeted emails that make each lead and client feel like you're talking directly to them rather than a generic blanketed email. While an assistant can certainly follow up on your calls and emails for you, manually communicating is much more laborious with greater risks of errors.In many cases, the period of time between a contact shifting into a client from a lead takes a significant amount of time. Relying on your legal assistant to follow up month after month may not be realistic. A CRM allows you to put together a drip campaign to continue nurturing leads from month to month increasing your chances of them becoming hired clients.

A CRM automates your onboarding

Every time you onboard a client you usually follow the same steps regardless of the case type. Estate planning lawyers require forms on their clients' assets. Real estate lawyers usually need photos of the title. Criminal defense lawyers might need wavers of appearance — you get the idea. Relying on an assistant to send the same email and form out and go over the same steps every time you onboard a client, can be a waste of energy when A CRM can automate all this for you.

A CRM automates appointment setting and follow-ups

With a CRM, there's no need for a legal assistant to call leads and clients to ask what time works best for an appointment. Automated appointment scheduling takes the hassle out of finding a time that works for everyone. It's as simple as sending a link with only the available time slots that you want your leads and clients to see. Clients can self-schedule with ease, and you'll receive an appointment confirmation. Your calendar is then auto-populated with appointments that have been scheduled around your availability. Not only does a CRM allow clients to self-schedule, but it also sends out automated appointment reminders significantly decreasing your chances of no-shows or mixups.

A CRM helps you make data-driven decisions

Your CRM can give you real-time insights thanks to legal reporting software directly built-in. Comprehensive reports can help you pinpoint what's working and what's not in your law firm, from where your best leads are coming from, to who your most productive staff members are. A CRM can be a game-changer for making better business decisions based on real data.

Efficiency: the primary goal

Ultimately, a legal assistant is there to help lawyers stay more organized and on top of their administrative work. Although at first glance, a legal assistant may seem like enough to streamline your administrative tasks alone, a closer look at what a CRM can do may help you realize that an assistant can only do so much with the number of hours they're given a day. And although a legal assistant can be incredibly helpful, a CRM like Lawmatics can save your firm so much time and money that you are actually losing money by not relying on automation software to boost your productivity.Lawyers looking to simplify and facilitate their legal assistant's administrative tasks should seriously consider a CRM as a supplemental tool. Alternatively, since not every lawyer's budget allows for paying a full-time staff member, a CRM can be a practical substitute to perform the duties of a legal assistant.One thing is for sure, if you're serious about growing your law practice, then you'll need to deliver an exceptional client journey from intake to closed matter, and you need all the help you can get. Are you interested to hear more about how Lawmatics CRM, client intakemarketing automation for lawyers can put your efficiency on hyperdrive and optimize the client experience? Sign up for a free product demo today!Sources CitedABA, Educational Information for Paralegals, Paralegal vs. Legal Assistant: Differences and Similarities, americanbar.org, November 08, 2021https://www.americanbar.org/groups/paralegals/profession-information/educational-information-for-paralegals/Lindsey Dean, 7 Ways eFiling Benefits Your Law Firm (and Boosts Your Success) onelegal.com/, August 3, 2017https://www.onelegal.com/blog/7-ways-efiling-benefits-your-law-firm/Online Master of Legal Studies Programs, Paralegal vs. Legal Assistant: Differences and Similarities, onlinemasteroflegalstudies.com, February 2021 https://onlinemasteroflegalstudies.com/career-guides/become-a-paralegal/paralegal-vs-legal-assistant/

As a new lawyer, law firm billing can be daunting. You want to make sure you're billing correctly and ethically, but you also don't want to spend too much time on billing (which is non-billable). If you're a summer associate or a new lawyer trying to navigate the challenges of billing, stay tuned to find tips for billing that will help you navigate the waters of legal billing.In this article, I'll discuss the most common billing methods for lawyers and the ethical duties when it comes to billing. I'll give tips on how to track your time efficiently, how to bill for various legal services, and how to handle client invoices.

MRPC 1.5. overview

Before we dive in, it's important to note (despite being obvious) that we'll discuss the Model Rules of Professional Conduct (MRPC) 1.5. Still, you will need to follow your state's Rules of Professional Conduct to ensure that you are compliant in your state.

What is a reasonable fee?

MRPC 1.5 discusses client agreements, attorneys' fees, and contingency fees. The main discussion in Model Rule 1.5 is what factors make a fee considered reasonable. The rule explicitly lists eight factors among those that determine if a fee is reasonable:

1. Time and labor required, novelty & difficulty of issues, a skill required

1. The likelihood that would preclude other employment

1. The fee customarily charged for similar services and in similar areas

1. The amount involved and results obtained

1. Time limitations under which operating

1. Nature and length of the relationship

1. Experience, reputation & ability of the lawyer

1. Whether the fee is fixed or contingent

While the eight factors listed in Model Rule 1.5 are not exhaustive, they provide a good starting point for determining what is considered a reasonable fee. Keep in mind that each state's Rules of Professional Conduct may have additional factors to consider when determining reasonableness.When billing your clients and ensuring law firm profitability, be sure to take into account the time and labor required, the difficulty of the issues involved, as well as your skill level and experience. And always remember to be transparent with your clients about what you're charging them.

Put the fee agreement in writing

When it comes to legal billing, it's essential to put the fee in writing. A fee agreement, sometimes known as a retainer agreement or a representation agreement, is a legal contract that describes the terms of the attorney-client relationship. The agreement should specify your legal fees and who will work on the issue.A written fee agreement will ensure that both you and your client are on the same page, and it will help prevent any misunderstandings; your client can refer to it later if there are any questions or disputes about the bill.The fee agreement should state:

• How much money you will charge
• The lawyer's hourly rates
• A mention of anyone else in the lawyer's office who works on the case
• How often you will invoice
• A description of expected expenses

Considerations for contingency fees

A contingent fee agreement needs to be in writing and signed by the client. That fee agreement needs to explain the basis of the fee, including the percentage, and detail any specifics like percentage to the law firm in the event of settlement, trial, and appeal.If you take a case on a contingent fee basis, you agree to assume financial risk. So, if the case is a loss, you will not recover any fees. It's imperative to detail all expenses the client may be liable for in case of a loss at the start of the matter.If applicable, the client fee agreement should detail expenses that will be deducted from the recovery. Note if the costs will be deducted before or after calculating the contingent fee. Finally, the agreement must notify the client of any expenses for which the client might be liable.

7 Common issues with billing practices

Model Rules 8.4 and its state counterparts restrict behavior that includes deception, fraud, and misrepresentation. Below are some of the common pitfalls that include misrepresented fees and services.

1Double billing

At its most basic definition, double billing is when you invoice two clients for work done during the same time period. If you end up doing an hour of research that can apply to two matters, split the difference and invoice each client .50 (30 minutes).Double billing becomes more of an issue if you are traveling for a client matter but end up doing work for a second client during the travel downtime. It's great to be proactive, but you might be better off single-tasking on the primary matter at hand.

2Block billing

Lumping together many distinct tasks into a single billing entry is block billing. This billing practice is dubious because you fail to accurately report the time it took for each task individually. Timesheets need to be clear and easily interpreted by someone reviewing them.There may be instances where block billing is appropriate, like during travel. But generally, avoiding block billing is a best practice that benefits the client, and if a fee dispute later arises, you'll be thankful you took the time to have accurate timesheets.

3Marking up your time

Inflating your time spent working is the same as marking up your time. Only invoice for your time working on a matter to ensure that you are not overcharging your clients and help maintain a good relationship with them.

4Excessive billing and "value" billing

This one might be a bit obvious, but be sure that you only bill for services provided when you bill your client. Some attorneys have claimed that the value of their services is enough to charge additional fees and high rates.Many fee disputes occur when a client perceives that an attorney has billed an unreasonable or excessive time on specific tasks. Unlike marking up timesheets, if there are legitimate reasons tasks took longer than anticipated, you can talk to your client and give them precise, descriptive time entries. You can use this dispute to educate a client about your work and potentially avoid a fee dispute down the road.

5Charging for unnecessary processes

Generally speaking, you will want to avoid wasteful, unnecessary, or redundant processes. There are instances of lawyers charging for unnecessary travel (think: this trip could have been an email).Of course, those are egregious circumstances. Start small in your work routine. As you get comfortable in your work processes, start seeing where you can trim down any inefficient processes. Pro tip: there is a lot of fat that can be trimmed when it comes to streamlining client intake.

6Maximizing your minimum time increments

Don't be the attorney who bills in half-hour or hour increments (yes, it's happened). The issue with billing at a slightly higher rate, even at .25 hours (15 minutes), is that there might be too much padding for the billable tasks. Billing at .25 hours might inflate the invoice. If there were to be a fee dispute, a higher time increment would be examined thoroughly.There will be a standardized rate at your law firm that you must follow. The standard increments, which are more about convenience, used by most firms are as follows.

• 1/10 of an hour (6 min)
• 1/6 of an hour (10 min)
• 1/4 of an hour (15 min)

Take a reasonable and balanced approach and choose the billing increment that is acceptable for your practice area.

7Charging clients for law office overhead

More simply put, do you bill a client for creating a bill? Clients do not expect to pay for your administrative tasks. It's best to remit tasks like accounting services to general services done by the law firm.The ABA has declared this unethical, but many states handle this differently. Some states say it's permissible to include overhead as long as you clearly state those fees in the client fee agreement. You can always reach out to your state's Ethics or Grievance department to talk through the appropriate billing practices for your firm.

11 Tips to get you from billing novice to invoicing all-star

When starting out as a young lawyer, it's essential to track your time efficiently, bill for various services, and handle client invoices. Practice makes perfect, and it is possible that introducing these methods can make you more efficient and effective.Billing clients is a highly challenging aspect of any practice. However, the company must develop a good timekeeping and billing process. Technology has helped with many complex tasks and considerably reduced the time involved.

1Know your law firm billing processes

Your law firm must establish a clear, documented billing policy that will give you a reference point and create a standardized process. But you'll find that billing processes vary between law firms. For example, some clients do not pay for meetings with other lawyers in the office, lawyer travel time, and time spent doing administrative tasks.

2Invoice requirements

There may be specific invoice requirements and formats at your firm. Typically, invoices require the matter name and unique identifier (usually a case number), a description of the work completed, and the timekeeping information (name, title, rate). Standardizing your invoices helps maintain consistent customer service, ensuring smooth billing processes.

3Explain the legal fees in the agreement

As it's one of the tenants of MRPC 1.5, it is critical to get everything in writing when it comes to legal billing. A representation agreement is a legal contract that gives a clear overview of the attorney-client relationship. You will specify the terms of your fees, your colleagues who will handle the problem, and the period you will work together.The attorney-client agreement can serve as a resource; in case there are any concerns or disputes regarding the bill, they can refer to it again. Ultimately, an agreement will guarantee that both you and your client are on the same page.

4Be a better time keeper

You can keep track of your time in different ways. It is essential to record the time you spend on work tasks as soon as you do them. You can use a legal pad, a billing program, or even your smartphone to do this.Additionally, you can estimate the amount of time a task will take before starting it. Knowing how long you expect to take on a task will help you stay on track and avoid underestimating or overestimating the amount of time a particular task will take.The most important thing is to be consistent in keeping track of your time. This way, your records will be accurate.

5Start using minimum time increments

Instead of jotting down something as short as two minutes and 38 seconds for email or 46 seconds for document submission to the customer and putting it all up, use the 10-tenth hour minimum time increment. Any task, or set of tasks, that is one to six minutes denotes 0.1, or a tenth of an hour. From there - you scale up, so between 8 - 12 minutes is 0.2, 13 - 18 minutes becomes 0.3, etc.Experienced senior lawyers utilize this billing best practice to ensure their time is never under-reported, as it helps to add more value to the minutes. Check with your law firm to see their standard minimum time increment.

6Enter time daily

From here, I think you're getting the hint that the more frequently you track your time, the better odds of capturing an accurate picture of your work daily.One way to ensure that you track your time daily is to make it a habit. You can do this by setting aside a specific time each day to review your time entries and update your timesheet, which will help you stay on top of your work and ensure that your billing records are accurate. Time and billing software makes this as seamless as possible. Read our post on legal process outsourcing for more information.

7Single task

Single-tasking means that you do one thing at a time. So, when you are editing a brief for a matter, you aren't also answering phone calls or checking email. To be better at single-tasking, you need to create an environment conducive to it. So, turn off notifications on your phone and computer, close any unnecessary tabs in your internet browser, and keep your workspace organized. You may also want to set time limits for how long you work on certain tasks so that you're not distracted by other things.

8Don't underestimate your time

Underestimating your time can happen for two reasons. First, if you are not keeping consistent records of your tasks, you may forget tasks, like phone calls, you've completed. This omission will make it appear you spent less time on a matter than you did.The other reason for underestimating time is that sometimes new lawyers think they should be faster as a task than they are. Talk to your manager instead of getting in your head about your speed and pace. Ask them what amount of time they expect tasks to take. In the meantime, those tasks to you the time you tracked- so write it down.

9Break down your entries

As for the billing entries, divide the tasks into separate entries to make sense of the cost of the time. For example, a review of medical records does not require time if it is voluminous. The bill is for "Review and preparation of draft medical documentation ." Give the customer several pages and why this project is beneficial.

10Itemize your bills

Start noting the timed breakdown of your tasks and activities on your bills. Itemizing your bills will help you avoid block billing. Below is an example of a detailed time-tracked list.02/22/2022: Zoom conf. with expert witness Wardle (1.0); reviewing documents for cross prep (.3); sent comms to and from client re: files(.3); reviewed new eDiscovery files (2.4); prepared exhibits for defendant (1.5); Zoom conf. with court for motions (.5).Total: 6.0 hours

11Master your billable time

Tracking your time diligently and detailed with a law firm CRM will add administrative time to your workday. But the lasting value is that you won't have to go back to recreate a day or weeks' worth of billable time-- which would be nearly impossible to do accurately.You have a responsibility to your clients, which is why billing ethics are so important. The tips we've outlined today should help bill with ease and efficiency. Remember, following these steps will ensure you maintain professionalism in all aspects of your practice. It not only helps you stay out of trouble but also creates transparency with your clients.At Lawmatics, we understand the importance of proper attorney billing and invoicing procedures. That's why we offer software that helps attorneys stay compliant with ethical standards while also getting paid on time. Our team is passionate about assisting lawyers in succeeding, and we're here to answer any questions you may have about our products. Contact us today to learn more about how Lawmatics can help your firm streamline its billing process and increase collections.

Frequently asked questions

?How do new lawyers get better at billing?

New lawyers can do a few things to get better at billing. First, they should track their time accurately and break down their tasks into separate entries. This will help them to understand the cost of the time they are spending on each activity. Second, new lawyers can itemize their bills using detailed timesheets to avoid block billing.Finally, they should master their billable time to bill clients for the work they have completed accurately. By following these tips, new lawyers can bill easier and ensure that they are getting paid for their work.

?How do you calculate billable hours for a lawyer?

To start calculating billable hours, you need to know your minimum time increment for work. Most attorneys invoice in increments of six minutes, but some law firms choose to bill in 10-minute or 15-minute increments.Lawyers need to track their time and break it down into specific tasks to calculate billable hours. Itemizing an invoice gives transparency into how much each service or activity costs.When billing by the hour, it's important to keep track of the time you're spending on each task. This will help you stay organized and ensure that you're billing accurately. You should also break down your tasks into separate entries to understand the cost of each activity.

?Do lawyers double bill?

Double billing is when a lawyer bills a client for the same work twice. This can be an ethical issue, as it can misrepresent the lawyer's time and services to the client.Double billing can also be illegal in some cases, leading to overbilling of clients. Lawyers who double bill may be subject to disciplinary action from their state bar association.Lawyers need to avoid double billing to maintain transparency with their clients. By billing accurately and honestly, lawyers can build trust with their clients and avoid potential issues.

?What are the most common types of billing methods for lawyers?

There are three common types of billing methods for attorneys. The type of practice typically dictates which method a law firm will use.Hourly rates are the most common type of billing method for lawyers. The hourly billing method uses a fixed rate, and the lawyer charges for the amount of time spent on a matter.Fixed rates are a common billing method for lawyers. With a fixed rate, the lawyer charges a set price for the scope of their work. Both parties are aware of the cost of the work ahead of time.Contingency fees are a fee arrangement in which the lawyer receives a percentage of the damages awarded to the client. Alternatively, the lawyer can receive a set amount regardless of the case's outcome. This fee arrangement is common in personal injury cases and is beneficial to both the lawyer and the client.

?What are the ethical duties of a lawyer when it comes to billing?

There are several ethical duties that lawyers must adhere to when billing. First, they must be accurate and truthful in their billing statements. Lawyers should not misrepresent the time they spend on a task or the services they provide. Second, lawyers must charge a fair and reasonable fee for their services, so they cannot overcharge or bill for work not completed. Third, lawyers should avoid double billing to maintain transparency with their clients. By billing accurately and honestly, lawyers can build trust with their clients and avoid potential issues.

Sources Cited

American Bar Association, Rule 1.5: Fees, April 14, 2020 https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/American Bar Association, Rule 1.5: Fees — Comment, August 16, 2018 https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_5_fees/comment_on_rule_1_5/American Bar Association, Ethical Considerations for the Future of the Billable Hour, Scott Groverhttps://www.americanbar.org/groups/young_lawyers/publications/tyl/topics/ethics/ethical_considerations_the_future_the_billable_hourAmerican Bar Association, Tasty Solutions to Timekeeping, Billing, and Accounting, Ann M. Guinn, February 17, 2021 https://www.americanbar.org/groups/gpsolo/publications/gp_solo/2014/july-august-2014/tasty_solutions_timekeeping_billing_and_accounting/State Bar of Wisconsin, Ethical Dilemma: Can You Bill a Client for Creating the Bill?, APRIL 04, 2018 https://www.wisbar.org/newspublications/insidetrack/pages/article.aspx?Volume=10&Issue=6&ArticleID=26264Billing Pitfalls and Pratfalls: Avoiding the Ethical Issues that Snag Attorneys https://www.manhattan-law.com/wp-content/uploads/2019/08/Billing-Pitfalls.pdfLexology, Good billing practices is an ethical duty, Randy (J. Randolph) Evans, Shari L. Klevens and Alanna Clair, November 21 2016 https://www.lexology.com/library/detail.aspx?g=aee19c1c-451c-401b-b954-36ddd3f3a55fHGexperts.com, The Client's Guide to Law Firm Overbilling, https://www.hgexperts.com/expert-witness-articles/the-client-s-guide-to-law-firm-overbilling-25863

About 4 years ago, Roey Chasman (CTO) and I set out on a journey to build something transformative for the legal industry. Law firms were changing. They were beginning to recognize that being a good lawyer wasn’t enough. In order to be successful they had to focus on their business; they had to start to think like a CEO and not just as a lawyer.

Filling a major gap in the industry

As an entire industry began to shift, we realized that while there are so many tools out there to help lawyers be lawyers, there was nothing designed to help them run and, more importantly, grow their business. This is where Lawmatics was born. Designed to provide lawyers with the tools and data they need to run head first into the increasingly competitive landscape that is the legal industry, Lawmatics has helped thousands of lawyers by automating their firms, from intake to email marketing and so much more.As a tech company, we are obsessed with our product. Our exceptionally enthusiastic customer base is a rich source of ideas on improving and updating said product. And ultimately, what matters most to us is building a product roadmap to address their unique needs. To that end, it’s incumbent upon us to solve the problems legal professionals experience in their day-to-day business operations. Pair the feedback of our customers with our team’s vast experience in the legal software space and you get a pretty magical vision for where Lawmatics can grow.

An unexpected turn of events

A strange and unexpected thing happened not long ago: Our customers started clamoring for something we never thought we would do. But we could not jump into this without further investigation — so investigate we did. Here’s what we uncovered.Traditionally, the big software platforms for law firms — particularly practice management platforms — have been built around one thing…time and billing. And this makes sense. After all, lawyers have to bill and get paid. However, something profound came to light. While lawyers have to track time and invoice, this isn’t what they want to do at all.This is where it gets interesting. Lawmatics helps lawyers with the things they want to do: They want to grow their business; they want to market more and convert more leads; they want to understand their business data more. Lawmatics helps them with what they want to do, not necessarily what they have to do. But it’s this recurring “have to” that we could no longer avoid. Our customers professed, “if you could just give us some time and billing we can just live in Lawmatics for everything.”

Introducing Time & Billing in Lawmatics

We are so proud to announce that we are adding a time and billing module to the Lawmatics platform. Unlike in other practice management systems, time and billing software for lawyers in Lawmatics is an optional, out of the box component of the platform. If you don’t want it, you don’t have to use it; it does not fundamentally change the platform as you know it. We also still maintain all the robust integrations with other time and billing platforms that you love.By adding time and billing, we become the first end-to-end, lifecycle CRM platform for legal. Think ACRM, your Attorney-Client Relationship Management platform. Time and billing is part of the attorney-client relationship, as is intake, document management, calendaring, and post-case follow up.We hope that you find value in having time and billing built into the Lawmatics platform. If you’ve read this far, and you are intrigued to learn more about this new addition to the Lawmatics platform, let us know here and we will give you early access. You can also access the full press release here.At Lawmatics, we are committed to building the best product that legal tech has ever seen. We will continue to listen to our loyal customer base and evolve the platform to meet that lofty goal. Thank you for taking this journey with us.

Running a law firm requires an extraordinary amount of labor. Regardless of your productivity or the size of your team, at some point, you have to accept that there is a ceiling on your output. There is a way, however, to take on a greater workload, cross action items off your list faster, and grow your business without bringing on full-time staff.

What is legal process outsourcing?

Legal process outsourcing refers to the process of transferring routine tasks from your workload to external sources including AI and automation, e-discovery companies, stand-ins for your court appearances, freelance lawyers for extra help on a case, will and trust preparers, content writers for legal articles and more.With so much going on in a law firm, it can quickly start to spread your attention in 10,000 directions. As such, it can be difficult to devote your attention where it matters most in your law firm. The goal of outsourcing is to gain more time and keep your costs low, thereby maximizing output and profitability. In doing so you’re able to focus your energy on new and existing clients while an LPO service handles the rest.

Outsourcing Vs. offshoring

Though outsourcing and offshoring sound similar — even interchangeable — there is a clear distinction between the two. Whereas legal process outsourcing refers to delegation of tasks outside the firm, legal services offshoring entails outsourcing departments of your firm, such as customer support and marketing, to other countries. Offshoring boasts a lower overhead as labor costs in other countries are lower for greater output.On the whole, the main differentiator between the two terms is location and benefits.

Areas for legal process outsourcing

1Legal client intake

The client intake process is one of the most laborious and time-consuming parts of running a practice. Lawyers looking to streamline their client intake, and tedious manual data entry can turn towards AI and automation to do it for them. Automation itself is not a new concept, although it may seem relatively new for lawyers since it's still relatively in its infancy. However, lawyers looking to spend more time on billable work, and less time on time-draining manual processes should not dismiss the benefits that outsourcing to AI and automation can offer.A recent 2020 report showed that lawyers using legal technology like a CRM and client intake software collected 40% more revenue per lawyer compared to four firms that weren't utilizing these technologiesOutsourcing legal services to AI can not only help lighten busy lawyers' loads, but it can also significantly elevate the client experience. Statistics show that nearly half of all law firms fail to reply to their prospects within three days. Legal software like client intake software can be programmed to reply instantly, creating a great first impression that is more likely to result in client conversion. From that point on, clients are tracked every step of the client journey, ensuring that no balls are dropped on communication or scheduling.

2Court appearances

Although the common perception of a day in the life of a legal professional may be passionately defending their clients in court, the truth is that court appearances are often quite short, sometimes as little as several minutes in front of the judge — if any. Lawyers may be required to wait around for hours before their matter is called by the judge. When you also factor in travel time, that’s a lot of time lost. While this may be obvious to you, it’s likely not obvious to a non legal professional, like your clients.As such, billing disputes can arise. Clients may not agree with having to pay for the travel and waiting time when in reality, only moments were spent interfacing with a judge.This is where legal outsourcing services can help your law firm. You can, in fact, hire a company that makes court appearances for you for a flat fee, sparing you the commute hours as well as those spent idle in the courthouse.There are a number of different court appearance services to choose from, the highest-rated of which are:

• Appear Anywhere
• Attorneys on Demand
• Appear Me

3Staffing

If your law firm needs litigation support on a particular case with an extra pair of hands, legal outsourcing companies can provide extra staff. They assist you in finding a qualified and skilled lawyer to aid you in your project, either remotely, or in your office for the duration of your choice.With business process outsourcing companies like Hire an Esquire, you’ll receive recommendations on the best on-demand candidates for your needs. Once you find the right fit, make it easy to bring them on board, by keeping everything organized in a legal CRM like Lawmatics. Detailed and highly visual dashboards make it easy to keep all your leads and clients' details in one centralized location. With everything in one place, you never have to worry about everyone being on the same page. Quickly find the information you need, by organizing your clients' records with customized categories and tags, ensuring that any extra staff you bring on will hit the ground running.

4Document review

Document and contract review can be one of the most expensive and time-consuming parts of e-discovery costs. Lawyers can find themselves overwhelmed with piles of documents relevant to their case. Many of them are online files and emails that are extremely disorganized which can be a problem, particularly when there are large sums of data to review.The data has to not only be collected, but also processed, filtered, and produced, which requires a considerable amount of time and effort to analyze and organize. With the voluminous quantities of records and documents, many lawyers with limited staff don’t have the means to review it all themselves.Outsourcing document review makes it possible to review it all without bringing your workflow to a halt. In turn, your law firm saves valuable time, and is a more cost-effective solution than doing it yourself.

5Virtual assistants

Outsourcing a virtual legal assistant for your law firm can provide extra support for time-draining tasks like document management, marketing automation, and research. Virtual legal assistants are a simple way for legal experts to save more time, and increase their profits . Virtual legal assistants are not to be confused with virtual assistants which are software applications.Each of these versions of a virtual assistant has its individual pros and cons. Virtual assistant software can provide assistance 24 hours out of the day. However, any technology may lack core features that only a human could carry out. Making the choice between outsourcing to a human virtual assistant or virtual assistant software for your law firm will depend on the type of tasks you're looking to outsource as well as your priorities. If you manage to find the right fit for your law firm, you won't just find a reduction in your costs, and spend less time on administrative tasks, but you can also significantly improve your client experience.[oxygen-template id="6136"]

Benefits of outsourcing

Lawyers easily work more than 50 hours a week on average. Between juggling the incoming calls, advising their existing clients, attending court hearings, and trying to bring in new clients, an extra set of hands would work wonders at any practice. The pressure to get it all done can be overwhelming, so law firms inundated with work can significantly benefit from outsourcing their routine tasks.And although the specific tasks may vary depending on their practice area, the following tasks are typically universal:

• Document preparation
• Phone calls
• Client meetings
• Onboarding clients
• Consultations
• Email marketing
• Billing-related tasks
• Following up with leads

A recent study shows that the average lawyer spends less than three hours a day on work they can actually bill for. So, lawyers looking to expand their practice and elevate the client experience can rely on outsourcing to help lighten their load. Here are some benefits of legal process outsourcing:

Cost-effective

One of the greatest benefits of legal process outsourcing is that it's more cost-effective than doing everything yourself. The more hands that you have on deck, the more work you can take on, and the more revenue you'll generate. Although outsourcing requires a fee, the return on your investment is well worth it and more cost-effective in the long run. The result is less pressure without the full price tag attached to a full-time associate.

Simplified processes

Instead of allowing yourself to drown in everything that goes into a law practice, outsourcing paired with harnessing the power of legal technology will restore your sanity, and elevate your client's experience with your law firm. You can streamline your processes, such as your legal billing process, and simplify the way you run your law firm. Delegate those day-to-day tasks to law firm CRM and client intake software to automate your day-to-day follow-ups and administrative tasks while outsourcing the additional legal work to external talent. In doing so, you will eliminate the chaos in your practice, and impress your leads and clients with a transparent and painless client experience.

Saved time

Attorneys without the luxury of a front desk staff find themselves having to follow up with lead inquiries personally, on top of all of their administrative action items, all while handling their existing clients' cases. As a result, burnout is an ever-looming threat. By outsourcing, you’ll not only give yourself the opportunity of a better work-life balance but also deliver consistent and high-quality legal services that make each client feel valued and attended to.

Fewer errors

A huge area of concern for lawyers is human error. According to Lawyers Mutual, in 2021, litigation errors made up for one-third of all the claims reported. Outsourcing reduces the amount of work that you have to take on and puts an extra pair of eyes on potential errors like incorrect client information, ​​missed statutes of limitations, lapsed alias and pluries summons, and missed discovery deadlines. When combined with CRM features like document automation which takes your clients' information directly from your database and plugs it into your PDF, and scheduling software that keeps you on track of your most important dates, you can ensure that you avoid costly errors that can set you back.

Better client experience

You can't be an expert at everything. Outsourcing makes it easy to find someone qualified for specific law services that fall outside of your practice area.Having more help with all of your to-do's means you'll be able to focus on other aspects of your business that can enhance the customer experience. Combine a systematic intake process with outsourced services and you'll be able to fine-tune the client journey, and make your customers feel valued and followed up with at every stage. When you're bogged down with too much work, it's hard to find time for your clients. Yet when you can comfortably run your law practice and catch your breath, your clients can sense it. In the absence of chaos, you'll deliver a better overall client experience.

How to get the most out of legal process outsourcing

Identify where you could use help

There are all sorts of tasks that your law firm could outsource. To determine what services you could most benefit from, it helps to ask yourself where the problem areas are. Legal custom reporting software makes it possible to gain valuable insight as to where your law firm has to grow. Follow key metrics such as:

Number of billable hours

This is one of the most straightforward ways to track your law firm’s productivity. If you're spending over 60 hours a week in the office and only a small portion of it is dedicated to work you can bill for, then you may benefit from outsourcing.

Number of matters opened

Keeping track of how current matters are open can help you identify how close you are to reaching your goals.

Number of tasks completed

Running reports on your firm's total number of tasks compared to how many have actually been completed, will paint a clearer picture of what areas you could outsource.

Average work rate

Individual performance is equally as important to overall law firm performance. Law firm performance management is essential; measuring the average work of each member of your team can help you calculate whether you need backup for your current workload.

Outsource your law firm’s most time-consuming legal work and boost your profits

The most profitable law firms know that time is money. If you're looking for ways to build a more profitable law firm then look no further than legal process outsourcing. To get the most out of your time, cut your costs, and ultimately lighten your workload, legal process outsourcing should be paired with the right legal technology.Sources CitedClio, Legal Trends Report, Clio.com https://www.clio.com/resources/legal-trends/Lawyers Mutual, Common Errors in Litigation Claims, January 18, 2022 https://myemail.constantcontact.com/Lawyers-Mutual-ALERT.html?soid=1118263556714&aid=66LxvoBVR88Grand View Research, Legal Process Outsourcing Market Worth $35.9 Billion By 2025, May 2019 https://www.grandviewresearch.com/press-release/global-legal-process-outsourcing-lpo-market

Profitability and revenue are often used interchangeably, but they are far from the same thing. Revenue certainly factors into profitability, however, it’s net profitability that enables you to both grow and accurately forecast your firm’s growth rate. Failing to look at one without the other doesn’t give you the full picture. While an increase in clients typically correlates to an increase in revenue, your overhead and administrative costs per client are critical in determining your profit margin. Without an upward trending arrow in your profitability, how can you expect to expand and remain competitive?To that end, law firms in the United States looking to boost their overall profitability need to find a balance between minimizing costs while maximizing revenue using the following tips.

1. Stop wasting time on manual administrative tasks

You only have so many hours in one day. To get the most out of them, it's imperative that you spend each minute wisely. There is an exceptional amount of administrative work that goes into managing a law firm, and there’s no weaseling out of it. Even if you hire extra staff to handle the workload, more man-power equals more costs. Law firms looking to boost their productivity yet keep their costs down need to turn to legal technology.Technology, such as legal time and billing systems, can help you run a much more efficient law firm with smoother processes, and better organization. The latest legal trends report shows that law firms who use legal technology like client intake and CRM collected 40% more revenue per lawyer compared to firms that were not using this kind of software.From phone calls to consultations to drafting up complex paperwork, running an office is a lot of work. Automation makes it easy for legal professionals to hand off the busy work so that they can focus on what matters most at their law firm — the clients! By optimizing your legal intake process you'll increase your productivity, and gain more time. And as a lawyer, your time is synonymous with cold hard cash.

2. Offer e-payment

Step one to generating a profit is getting paid. This is best achieved by optimizing and streamlining your law firm billing process through a legal billing software that allows clients to pay via credit card or other online payment option. The most recent trends report revealed that 65% of clients prefer to pay with a credit card. If the majority of your clients prefer being able to pay with a credit card as a consumer, then why wouldn't they expect the same with their lawyer?The truth is that the average American doesn't have the means to pay a $10,000 retainer in cash. Even if they do have $10,000, chances are it’s not liquid. Consequently, asking your clients to pay by check may delay the billing process. Offering E-payment either via automated payments, or transfers, is incredibly convenient for your typical legal consumer and accelerates payment substantially.According to the 2020 trends report, around 60% of all law firms accepting credit card payments get paid on the same day that they bill, and another 85% get paid within a week. If you have a substantial amount of outstanding balances, offering alternative forms of payment incentivizes legal clients to pay faster, and in full.

3. Deliver a top-notch client experience

The cornerstone of your law firm's overall success is delivering outstanding customer service. And believe it or not, your client's overall satisfaction often has nothing to do with the outcome of their case. There are a considerable number of clients out there who are thrilled with their lawyers despite an undesired outcome in their case. This is because delivering attentive and client-focused legal services matters.The better service you provide the more satisfied your clients will be. To that end, you should start looking for ways that you can creatively give your clients what they want while also adhering to any billing ethics guidelines. Identifying patterns in your former clients' feedback and reviews is a great place to start. From there, you can implement changes in the way you engage with your clients to deliver a better experience that will consequently lead to a steady stream of new business and profitability via word of mouth.

4. Respond with haste

One of the most consistent complaints about lawyers is a lack of communication. A quick response is one of the most influential elements of converting clients. Every minute that you wait to get back to someone is an opportunity you're giving that prospect to go with a competing law firm.Per this scenario, we can’t stress the importance of legal technology enough to ensure that you get back to leads and clients immediately. Automation tools make it easy to follow up the minute someone calls your law firm or sends a legal client intake form. Their information is stored in your CRM, and their client journey is tracked every step of the way, ensuring that you never miss an opportunity to follow up. Text messaging software for law firms is another great way to improve client communication and response time. In short, the more you can engage your leads and clients with swift replies, the more profitable your law firm will become.

5. Make it easy to communicate with you

The more business you have, the less realistic it is to stop what you're doing and pick up the phone for a 10-minute call each time your clients have a question. However, making your clients wait for a status update on their case may quickly agitate them. Offering a solution like a client portal provides instant client service without you having to sacrifice your productivity.Clients can log in to their own communication portal where they can access any important documents and notes related to their case, and even send you a message. Legal software like Lawmatics makes it possible to see all of your client interactions in one single place, so it's easy to follow your communication when your clients have questions.In addition to a client portal software for law firms, Lawmatics client intake software and legal CRM comes with two-way SMS messaging. Since not all clients have the same communication preferences or access, offering SMS is a great way to make your clients feel even more connected to you.

6. Offer automated appointment scheduling

Trying to find a time for a consultation that works for both your client and you can often lead to a long-drawn-out series of emails. Eliminating the bottlenecks associated with appointment scheduling can be a great time saver, and can help you take on even more business. Automated appointment scheduling allows you to send a link to your clients where they can choose from only the available dates you want them to see.They'll receive automatic appointment reminders, and so will you, ensuring that there are no mix-ups or no-shows. Client no-shows are a serious threat to your profitability. Each time that you schedule a portion of your day to meet someone, and they don't show up, you're losing valuable time that you could have spent on more revenue-producing activities.

7. Speed up your document process

Drafting up complex legal documents can be time-consuming, and prone to error. Unfortunately, these errors can be quite expensive to fix, not to mention time-consuming. Legal document automation can shave hours off of your workday, generating everything from retainer agreements to affidavits within seconds.Document automation tools often feature custom fields which can be used to merge any preferred data from your matters and contacts, and auto-fill it directly into your boilerplate PDF and word documents. Not only do you save time, but you ensure greater accuracy. Document assembly is only half the battle, however. You typically need your clients to sign and send important contracts back to you in order to get the ball rolling on their case.But the longer it takes, the longer it will take to get a fee agreement signed. Many lawyers require their clients to print sign and scan these papers back to them, which can take a considerable amount of time. Offering an alternative and faster way to get documents signed, isn't just easier for your clients, it's also ideal for you. Electronic signature for legal documents makes it easy to create sign and send documents from the palm of your hand. Since your clients no longer have to complete multiple steps to return important signatures to you, you'll streamline your processes, and be able to take on more work, ultimately boosting your profitability.[oxygen-template id="6132"]

8. Demonstrate to clients that you’re not motivated by money

Many law firm owners can come across as inauthentically eager when trying to convert a lead into a client. Being overly sales-y can give off the impression that you value money over your clients' well-being.To combat this, take time during your consultation to be a good listener to your prospective client rather than waiting for your turn to speak. And if you ultimately decide that you're not the right fit for a potential client’s case, direct them to someone who is. Your helpful and compassionate approach to referring them to another legal professional is something they won’t forget. If ever someone in their network is looking for representation in your practice area, there’s a decent chance they’ll send someone your way.

9. Know your worth

As more and more lawyers gravitate towards a flat fee pricing model, it's less and less necessary to track your billable hours. That being said, it's still important to ensure that you're getting paid adequately for the amount of work you're putting in.It’s incumbent upon attorneys working on a flat fee scale to use legal reporting software as a timekeeper to calculate hours spent per client. By measuring the duration of time it takes to finish a task based on case type, you'll have a better idea of how to set a fair pricing structure. After measuring how much time you're spending on cases using a legal timekeeping software, you may be shocked to find that you're undercharging significantly for the amount of work you’re putting in.Increasing your prices, however, doesn't always give you a competitive edge. One of the primary reasons why people don't hire lawyers is because they feel they're overpriced. Instead of raising your prices and continuing to work long hours, why not work fewer hours and keep your prices where they are?The key isn't in your prices necessarily, but rather boosting your efficiency. By delegating your most time-draining tasks to automation, you’ll automatically have more bandwidth to take on more clients, and increase your revenue.

10. Start a blog

A strong online presence in and of itself is a lead generation tool. And the more leads that you generate, the more profitable your law firm will become. One of the best ways to instantly start increasing your visibility is by adding a blog to your website. A blog is a great way to drive more web traffic to your website and rank higher on Google. Any content you create on your blog may be repurposed by other publishers, which means increased visibility for you. Think of it less as giving away free legal advice, and more as creating educational tidbits that will generate leads over and over again for years to come.For more detailed tips on how to optimize your law firm website for SEO, check out our guide here.

11. Generate a following on social media

Once upon a time it may have seemed crazy for law firms to advertise on a platform like Facebook — oh how things have changed. As it stands, social media is one of the best places to build an audience. Social media boasts a considerable amount of influence and taps into a variety of different demographics. From LinkedIn to Facebook, to Instagram, social media should be an integral part of your law firm marketing strategy.It's all a numbers game.The more shareable and informative content that you create, the more followers you'll accumulate. The more followers you have, the higher your clout and credibility. Consider your volume of followers as valuable to consumers as your Google Review scores. So, before you dismiss social media as a place for sharing exotic vacation photos and baseless conspiracy theories, think again. It can be a powerful lead magnet that you should not disregard.

12. Set goals

Increasing your law firm profitability is a great goal, but without true quantitative milestones, it's rather dismissive. In order to see the kind of results that you want to see, you should set strategic goals that are specific, measurable, attainable, and timebound. These can then serve as a map for how you plan on increasing your profitability over time. They can be a driving force behind your business decisions, and help you stay focused and committed to planning your law firm's future.Once your goals have manifested and are written down, track them. Though data and law may seem like an unlikely match, the most profitable law firms are the ones that keep a close eye on their key metrics to determine their profitability. Tracking your profitability can be done by following financial KPIs like:

• Net overhead
• Fee per matter
• Revenue billed per month
• Fee per new matter
• Revenue per employee
• Amount of revenue per matter
• Realization rate (amount billed vs amount of billable work)
• Revenue collected per month
• Amount of firm debt
• Anticipated annual costs
• Operating account balance
• Amount of accounts receivable (AR) outstanding
• Net income as a percentage of revenue

A CRM and client intake software like Lawmatics comes with built-in law reporting software that’s easy to use and simple to understand. Because Lawmatics allows you to run reports on only the data you want to see the way that you want to see it, you can easily track your revenue in an easy-to-read format.

13. Create a business development plan

We get it, you're a lawyer, not a marketing professional. Nevertheless, the only way to start increasing your profitability is by getting the word out about your law firm and creating strategic opportunities. Unlike law firm marketing, business development for lawyers is less about advertising your law firm and more about building connections and finding opportunities for revenue that will play a critical role in your long-term law firm market performance strategy.You should constantly be exploring new sales opportunities and identifying potential revenue. From cross-selling to your current clients, and expanding new practice areas to your law firm, there are many different ideas for developing a business strategy. By building strong client relationships, networking as much as possible in law firm culture, and encouraging referrals, you'll be on the right track to creating a profitable law firm business plan.

14. Stop relying on case management software for your client intake

While case management software may be an incredibly useful tool for law firms' day-to-day operations, it's not enough to streamline your client intake process or engage your contacts in a timely, meaningful way.The client intake process requires a tremendous amount of work, more than most case management software can handle. Client intake & CRM software organizes your client's information and helps attract prospective clients, follow up with them, and engage them every step of the client journey. It also ensures that you make a great first impression, and will follow up automatically without you having to ask if it's been done or notIf you hope to stay top of mind with clients, client intake & CRM software is essential for enhancing the attorney-client relationship starting at the client intake process.Many firms are so focused on new and current clients that they forget how valuable former clients are. 70% of law firm business comes from referrals. Forgetting to continue to engage your former clients is a huge missed opportunity. Client intake & CRM software will continue to send messages to former clients with updates about your law firm, as well as other messages like wishing them a happy birthday. Continuing to engage your clients beyond their case is key to creating lasting relationships that lead to more and more business.

Drive your law firm’s profitability with Lawmatics

Since the onset of the pandemic, lawyers have been hit with more challenges than ever. Increasing your law firm profitability is essential for weathering these difficult times. Yet, despite these challenges, increasing your profitability is still possible by using the right technology.Explore Lawmatics software features including CRM, client intake, reporting, and marketing automation for lawyers.Are you ready to see how Lawmatics can help you increase your profits and save more time? Sign up for a free product demo today!

Sources Cited

Clio, 2020 Legal Trends Report, Clio.comhttps://www.clio.com/resources/legal-trends/2020-report/Youlegal.com, Five Reasons Why Lawyers Are So Expensive, Apr 18, 2018https://youlegal.com.au/you-legal-blogs/five-reasons-lawyers-expensiveDavid Finkel, 22 Simple Tactics to Increase Profitability, Inc.com, Sept 14, 2016https://www.inc.com/david-finkel/22-simple-tactics-to-increase-profitability.html

The million-dollar question — how do lawyers get more clients? Lawyers are up against more challenges than ever in today’s legal market — some might even call it a crisis. While legal services were once considered a seller's market, with lawyers holding all the cards, and clients having no choice but to accept the client experience they were delivered, we now find ourselves in a buyer’s market. Clients aren’t settling for lawyers having the upper hand anymore, and expect more for less. Not to mention, with over 1.3 million licensed attorneys in the United States, the competition is fiercer than ever. Long story short: Consumer choice is at an all-time high, and legal services are no exception.

Biggest challenges lawyers face getting clients

!Slow response times

Perhaps one of the most surprising statistics about lawyers is that they are astonishingly slow at getting back to potential clients. A recent benchmark study on the law firm intake process concluded that 42% of the time law firms failed to respond to leads within three days. Studies consistently show that response time has a substantial effect on a customer's buying choice. Consequently, if lawyers hope to secure a steady stream of new clients, prioritizing a swift response time to new inquiries is essential.Practices typically fall into one of two camps when it comes to responsiveness. Those in the first camp are oblivious to the fact that their stagnancy or decline in client acquisition comes as a result of poor responsiveness. The remainder understand the importance of response and recognize their lack of responsiveness as a stumbling block yet falsely attribute lack of staffing to the problem, as a smaller firm. (Spoiler alert: even solo attorneys can reply immediately by harnessing the right tools.)

!Poor marketing strategy

Attracting and retaining clients starts with your marketing strategy. You can be the best lawyer in the world, but if no one knows you or your law firm exist, they’ll hire the first seemingly reputable lawyer who shows up on Google. For a detailed guide on how to create a powerful digital marketing strategy that checks all the right boxes to attract a new client, check out our guide on the best marketing tools for law firms.

!Lack of positive reviews

We live in a review-fueled world where people value online reviews as much as they would a personal recommendation from a close friend. When someone searches for a lawyer online, their decision often hinges on the number of stars next to the firm’s name.Attorneys with poor ratings (3 or fewer stars) should read their reviews carefully and address the grievances therein since 90% of consumers will base their decision on what the reviews say. If a prospective client comes across enough positive reviews of your practice, they can assume you have a good reputation, thus increasing the likelihood of an inquiry. Another thing to keep in mind is that online reviews are like credit scores. Having zero reviews is the same as having poor reviews, so don’t hesitate to ask former clients to share their experiences!

!Lack of lead tracking

Surprisingly, one out of every four law firms doesn't track their leads — at all. No spreadsheets, nothing scribbled on a sticky note — zero, zilch, nada. Now, if this were a basic business 101 class, you’d have to unlearn this behavior almost immediately.The problem with failing to track your leads is that you have no idea what's working and what's not when it comes to marketing or onboarding. Keeping track of your potential customers doesn't just help you acquire more clients, it helps you develop a better marketing strategy. Keeping tabs on the pathways of your leads allows you to pinpoint your best marketing sources and make better business decisions.When you consider that the average law firm takes three or more days to get back to an incoming lead, it's hardly surprising that these same law firms aren't tracking their potential clients either — a major missed opportunity.

!Failure to collect contact information

According to a recent study, law firms answering incoming lead inquiries failed to collect necessary qualifying case information 90% of the time. Half of the time, not even contact information such as a phone number is collected. If only one-tenth of prospective clients are getting through the inquiry phase, how can firms hope to achieve sustainable growth? The truth is that a lot of lawyers have no idea what they're doing when it comes to getting clients. Unfortunately, law school does not prepare you for the business aspect of running a law firm, so, many lawyers find themselves missing huge opportunities for more clients.A recent study concluded that almost 40% of law students who graduated in 2014 were unable to find jobs in the legal profession, and the current demand for lawyers is showing 0% growth. So, as you can see, the enormous imbalance between lawyers and demand for lawyers puts lawyers at a disadvantage. The lack of market demand makes it more challenging than ever to expand your practice.At the same time, the average American has experienced at least one legal issue within the last two years that they could have used a lawyer for. Yet, they did not end up hiring one because they couldn't afford it. What this tells us is that people need lawyers, they simply don't have the means to afford one. So, if you hope to build your client base, you need to find creative ways to tap into the legal Greenfield.

How clients find their lawyers

The first step to overcoming the aforementioned challenges and strengthening the attorney client relationship is understanding what makes clients tick. With a clearer picture of how the average client finds their lawyer, you can market yourself effectively to appeal to their “buyer” personas.

1Google

Google ads can be powerful lead magnets. Because 90% of consumers base their buying decisions off of reviews online after performing a Google search, the first place they'll click is the lawyer who ranks the highest in their search results.

2Friends and family

Legal clients don't just rely on the internet to find their lawyers, they rely on their social circle by asking for recommendations from a friend or family member, either on social media or by word of mouth. Personal recommendations serve as social proof, and are the ultimate stamp of approval. Whether they're looking for a plumber or a lawyer, most consumers turn to someone they know personally for a referral before turning to the internet. So, as a lawyer, it's important that you remember the importance of personal referrals. Give people a reason to recommend you to their friends and family!

3Referrals from other lawyers

Over 70% of business comes from referrals. If you can manage to create high-quality relationships with former clients and other lawyers, you'll find considerable success with building your practice. Oftentimes that requires going the extra mile to deliver a remarkable client experience. Lawyers with high referral rates from other lawyers often have a quid pro quo agreement. Send clients their way, and show them that you value the gesture when they do the same!

4Lawyer directories

Legal directories are still a powerful tool for increasing your visibility and getting more clients. Since their entire purpose is for helping leads find clients, it's a vital place to show up. Make sure that you are familiar with all the latest legal directories, and confirm that you've been added. Having a presence on all the major legal directories increases your chances of someone picking up the phone and calling you when they need a lawyer. Some legal directories are specialized towards only one practice area. For that reason, it's important to know the difference to ensure that you show up in all the right places.There are many different legal directories for you to choose from, however, the most reputable ones include:

• Avvo
• Find Law
• Nolo
• Super Lawyers
• Justia

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How you can attract more clients

Great communication

Communication errors make up for almost half of all Lawpro claims in almost all practice areas. Being proactive and clear with your communication is crucial to your law firm's success. That's where client intake software like Lawmatics can't help. Client intake software keeps a consistent tempo of communication with your clients, by making them feel connected to you and making you seemingly available to them at any moment.Client intake software engages clients from day one by sending out automated messages based on triggers of your choice. Whether they schedule a free consultation or it's their birthday, automated yet personalized messaging makes them feel valued and attended to. Since lawyers don’t always have time to manually keep their clients informed about the status of their case or provide constant legal advice, law firm automation can make your clients feel like they’re in contact with you at every step.

Smooth client experience

In the absence of a systematic client intake process, leads (prospective clients) often get lost and forgotten.If there's one thing legal consumers appreciate, it's a smooth and low-effort experience. The less that you ask of them, and the more attentive you are, the happier they are with the experience. From the first point of contact, client intake software makes it easy to collect a lead’s information using a digital client intake form, which automatically creates a record of that person in your database.Once a potential client exists in your database, client intake software tracks their progress and interactions with you, ensuring that they’ll never be left hanging waiting for news on their case. Automated messages keep them informed of any developing information regarding their case, and prompts them to take action when needed.Client intake software also makes it easy to schedule appointments — whether it be for a consultation, case update, or anything that necessitates a face-to-face. No longer do your clients have to call you or engage in a drawn-out email exchange to find the right time that works for you and them. Offering a simple way to schedule appointments using automated appointment scheduling eliminates the friction that is often associated with scheduling consultations and improves business development as a whole. Once an appointment is booked, client intake software will send out automated appointment reminders to all parties, reducing the likelihood of no-shows.

Less tedious administrative work

It can be difficult for busy attorneys to give each client the attention they deserve when there's so much administrative work piling up. However, managing your leads and clients becomes significantly more manageable when you turn to client intake software. For one thing, all the time previously lost on monotonous and time-draining manual entry, can instead be reappropriated to billable activities. As a major bonus, you’ll decrease the risk of lawyer burnout, a compounding affliction that can reduce quality of life.Client intake software does all of the busy work for you so that you can turn your attention towards delivering empathetic, attentive, and high-quality legal services, making each client feel like they're your only client.

Better organization

Making the switch to client intake software paves the way to a much more systematic workflow overall. In lieu of digging through multiple piles of papers, or flipping through various emails to find the right information for your client matter, client intake software makes it easy to access whatever you need at any time-be it past client interactions, case documents, and more. When you're disorganized, your clients can sense it. Introducing client intake software to your practice helps you deliver a more professional and polished client experience overall.

Better measurement of your marketing success

Client intake software like Lawmatics comes with data tracking and analytics to help you track your marketing effectiveness. By harnessing the power of data, you can identify where your best leads are coming from, and how many of them are actually converting into clients, helping you make better-informed decisions that ultimately attract more clients to your practice.Instead of wasting your resources on legal marketing sources that aren't producing results, reporting software helps you make data-driven changes where it matters the most.

Puts your marketing on auto-pilot

Drip email marketing automation for law firms keeps you top of mind with your leads and clients, delivering personalized and valuable emails to the right person at the right time. Automation tools like audience segmentation software help you target specific audience segments within your contact list so that your communications are relevant to each recipient. Rather than an all-in-one marketing approach, audience segmentation increases your chances of the message getting opened since they're more likely to relate to the content. More open messages equals more opportunities for acquiring more clients.

Best practices for client intake

1Make a great first impression

First impressions matter, particularly when it comes to convincing someone to entrust you with their personal matters, or even their freedom. With the legal landscape as fiercely competitive as ever, all firms who wish to succeed must differentiate themselves as a top choice for potential clients. Automating your client intake process puts you ahead of the pack as it can help you deliver white-glove service from the very first interaction. Fast and tailored responses leave a lasting impression at every stage of the client journey.

2Pre-screen your client

Pre-screening your clients before the initial consultation can save everyone time. Not every lead that walks through your door is going to be a perfect fit for your practice. Pre-screening can help save you the trouble of scheduling a consultation with someone who isn't a match. If you're a smaller firm that doesn't have the luxury of a front desk staff, you can send a custom template with any pre-screening questions you need answered to to qualify your potential client. This way you can avoid losing billable time that you could have otherwise spent on what matters most at your law firm.

3Give your clients direct access to you

Giving your clients permission to send you a message at any time can set you apart from the competition. But whereas giving each client your personal phone number isn't realistic, offering access to a client portal is. Client portal software for law firms allows clients to send you direct messages, access any important documents, and even self-schedule appointments. Text messaging software for law firms is another great way to allow instant communication with clients. Since your clients no longer have to sit around and wait for a response from you to schedule an appointment or get updates on their case, they'll have the unique privilege of consistently communicating with you, without disturbing you all hours of the day.

4Talk about fees upfront

One of the most common stereotypes about lawyers is that they're devious and lack transparency when it comes to their pricing. It can't be stressed enough how important it is to go over your legal billing structure plus all potential fees from the first consultation. Pre-empt the possibility of negative online reviews bashing you for surprise fees by discussing by explaining what types of payment you accept, and how much your services will cost up front.

5Offer e-signature

The more frictionless the onboarding experience, the better service you'll provide overall. Offering E-signature is one of the best ways to streamline the client journey, and make it easy for your clients to get important documents signed and back to you. Rather than making your clients bother with printers and scanners, they can simply sign on the go from anywhere with an internet connection. Many firms have reduced the time it takes to get a retainer agreement signed from days to mere hours by offering a digital signature option.

How to get started using client intake software

Choose your software

While there are many different client intake platforms available to lawyers, Lawmatics is considered the number one client relationship management solution. Its intuitive and robust legal CRM and automation tools make it the best all-in-one solution for not only client intake but also marketing automation and client management.

Get your team on board

To harness the full power of your client intake software, you'll need to ensure that your entire staff is on the same page. Confirm that everyone is committed to training and willing to put in the time that it takes to learn a new system.Using client intake software like Lawmatics ensures that you have a thorough onboarding program with full assistance every step of the way. A dedicated specialist will help answer any of your team's questions and concerns and provide full assistance with data migration. At the end of the onboarding program, you will have ongoing access to a support team that ensures you get maximum value out of your client intake software.

Measure your progress

The only way to ensure that you’re delivering an exceptional client intake process is by measuring your progress. While initially the idea of tracking data in your law firm may seem intimidating, the truth is that data can be one of your best tools for bringing in new clients. A data-driven approach is the only way to improve and better manage your performance by tracking how well you're delivering an exceptional client intake process.By determining metrics like your clients' behavior, and your productivity, you can pinpoint any holes in your client intake process that need addressing. Data can tell you how much time you're losing, and what's leading to more client conversions. Lawmatics comes with built-in reporting software that helps you effectively manage your law firm while making it easy to understand the data in an easy-to-read format that anyone in your office can understand. By regularly repeating your reporting cycle, you'll ensure that you're getting the most out of your client intake software.

Stop missing opportunities and start converting clients with Lawmatics

The latest trends report shows that law firms who use client intake software saw 40% more revenue per lawyer compared to firms not using the same technology. By embracing key technology like Lawmatics that increases your efficiency and enhances client satisfaction, you won’t just find yourself with more clients, but with significantly more revenue.Are you ready to see how Lawmatics can help you attract, delight and retain more clients than you ever thought was possible? Sign up for a free product demo today!Sources CitedConrad Saam, ABA Benchmark Study on Law Firm Intake Process: Part , February 1, 2016 https://www.lawtechnologytoday.org/2016/02/benchmark-law-firm-intake/Clio, The 2021 Legal Trends Report https://f.hubspotusercontent30.net/hubfs/470182/Clio%20Content%20Syndication%20(11.10%20-%2012.31.21)/2021-Legal-Trends-Report-Oct-26.pdfJamie Pitman, Local Consumer Review Survey 2021, brightlocal.com, January 26, 2022. https://www.brightlocal.com/research/local-consumer-review-survey/