The Legal Market
Background
Legal services are “needs based” purchases, not normally luxury or casual purchases.
Customers use legal services when they have a significant issue in their lives or
business that needs assistance to resolve.
The legal market in the UK is worth over £20 billion per annum but is highly fragmented
with around 9,000 firms.
Currently there is no recognised national legal brand targeting consumers or SMEs.
It is widely acknowledged that most people cannot name a firm of solicitors and
those who can generally do not know or understand what that firm does or can do
for them.
Lawyers are perceived to be:
- lacking in transparency
- expensive
- intimidating
- mysterious and shrouded in tradition
- lacking in customer focus
- difficult to understand
Yet overall satisfaction ratings for lawyers are relatively high. The two biggest
areas of dissatisfaction are cost clarity and delay.
Colin Ives, Partner, BDO Stoy Hayward
Change
The Legal Services Act 2007 is likely to see a flood of new entrants into the legal
market and they could target your clients.
Major trusted, national brands such as the AA, RAC, Capita and the Co-op are already
considering entering the legal market. By 2012 they may be marketing their services
directly to your clients.
Research shows that two thirds of the population would happily access legal services
from common high street brands.
Charles Darwin
New entrants believe they will succeed because they have established brands, expertise
in marketing, and access to capital. They will focus on demystifying the market,
making legal services more accessible through commoditisation, including fixed pricing
and systems to clarify and simplify the customer experience.
This change is already starting with a host of new legal “matching” services springing
up.
However, one factor, often missed, is that research shows 80% of consumers prefer
to use local lawyers and have face to face meetings, even if it costs slightly more.
Helping your firm evolve
Our principal objective is to help our member firms adapt to survive and prosper
in the challenging times ahead.
We believe fundamentally in a quality legal solution to a customer's need, delivered
in the way the customer wants it. We believe in the qualities of independence, integrity
and professionalism.
Tony Williams, Jomati Consultants
We recognise the weaknesses in the current market that give rise to the opportunities
for the new entrants. We believe that by working together we can address many of
these weaknesses and perceptions and assist with the successful evolution of our
members.
Acting now will ensure your firm is at the forefront of the changes taking place
in the legal market.