As negative economic news pervades the media, 95% of businesses around the globe are concerned about a potential recession, according to a report from Sapio Research. In response, half of the respondents anticipate cuts to discretionary marketing spend. This response is understood to be misguided by those who have weathered previous recessions.
In fact, a HubSpot survey of 1,000 marketers at leading companies reports that 47% expect their marketing budgets to increase, with an expanded focus on social and new media platforms. These experienced companies know that marketing is not expendable.
Trend projections in the legal tech space further support these marketing budget increases. Gartner projects that technology investments from legal budgets will triple between 2020 and 2025. Additionally, legal departments will have automated 50% of legal work by 2024. The companies that invest in capturing this market share will see generous rewards in the coming years.
Past recessions have shown us that economic downturns create opportunity, and not just from cheap advertising. The values of legal tech buyers change with the economic landscape; the companies that shift their messaging and value propositions to suit their buyers can earn significant market share as businesses change their strategies in response to the economy.
So what can you do to prepare for an economic downturn? Here are three top value propositions we expect to be in demand:
Help your customers be more efficient and save money.
When economic downturns occur, companies often seek to mitigate losses in terms of time, money, materials, and effort. This is expected when budgets are tighter, but important to highlight nonetheless. Reevaluate how your business saves your customers money or helps them do more with less. Are you replacing low-value tasks or automating workflows so their team can streamline workflows and collaboration? Does your solution help customers complete tasks in a fraction of the time or with fewer errors? Make these benefits clear to your audience.
How can your customers get more from their top performers?
Retaining top talent at law firms has been a concern for a few years and will only worsen with the pandemic. Increasingly, these firms are turning to legal tech to support top performers in maximizing their productivity. To position your solution effectively, consider how it helps users focus on high-ROI work. Does it automate or mitigate non-billable tasks? Does your solution allow top performers to securely access the information they need wherever they are, thereby increasing opportunities for billable work? These features are invaluable to customers relying on consistently high output.
What core functions can customers outsource to you?
Legal process outsourcing has become a valuable cost-saving measure for many firms. They save time, money, and resources when they transfer discrete legal services such as e-discovery, document review, and scanning to outside help. This allows them to focus on what truly matters: gaining new business opportunities for their firm while offering unparalleled service to existing clients.
Legal tech is crucial to outsourcing, whether by performing the work through AI and machine learning or by enabling secure access and management of sensitive work. Positioning your solution as an option to assist firms looking to outsource work can gain valuable market share for your company.
If you would like to discuss how we can help you evaluate your strategic marketing plan, schedule a call with Cathy here
