Ringing within the rules

The Solicitors (Scotland) (Advertising and Promotion) Practice Rules, which cover telephone marketing, were last amended in June 2006. Scottish law firms now have direct marketing opportunities which simulate the activities that their English counterparts have had since 2001. In an increasingly competitive commercial environment it is useful to understand what marketing opportunities exist to expand your client base.

Follow-up work

It is no longer sufficient to rely purely on personal recommendation, or networking, to expand a client base. Most law firms will have business development and marketing personnel to plan the route to market, which may include the following:

• using direct mail to capitalise on impending legislation changes, or highlight the firm’s niche areas, or sectors of expertise;
• inviting prospects to topical seminars demonstrating the firm’s expertise and experience in a subject;
• web and email marketing through feedback and online interaction.

The Advertising and Promotion Rules state that “a solicitor shall be entitled to advertise and promote his services in any way he thinks fit”.

A law firm’s success, however, will depend on its ability to capitalise on these opportunities by following up on any planned activity. The best way of following up is by use of the telephone. It is direct, immediate and allows a relationship to develop through genuine interaction which the written word cannot achieve. It will be crucial to the success of any activity that there is telephone follow-up. Permission-based contact and feedback forms give the reassurance that you will be acting within legal and ethical rules.

A more direct approach

Rule 4 states that “A solicitor shall not make a direct or indirect approach… to any person whom he knows or ought reasonably to know to be the client of another solicitor with the intention to solicit business from that person.”

This is the most crucial element of the rules and the area most open to interpretation and fraught debate.

There will undoubtedly be instances where a lawyer will know who is undertaking what deals for what client, for example through published press reports or information from existing clients, but there remain commercial areas with room for a direct professional telephone marketing approach.

In the owner-managed/small business market it will not be clear to the outside commercial or legal world whether or not the organisation has employed the services of a lawyer, currently or in the past. There would be no reason to use rule 4 to preclude a direct telephone approach to ascertain their professional legal needs and arrange an appointment. For example, there may be a need for regular employment contract reviews, or for access to an employment helpline. These requirements can be ascertained professionally and ethically through a well planned telephone marketing campaign. To comply with rule 4 you will have to screen the data carefully, removing any targets that you could reasonably know use another lawyer.

Similarly, in a larger organisation where many different departments call on the services of many legal firms, the rules would not preclude a telephone marketing campaign targeting specific decision-makers with a specific specialist offering.

Real-life campaigns

Here are some examples where lawyers in England and Wales, ranging in size, have found opportunities for a telephone marketing campaign fitting their areas of expertise. Telephone marketing campaigns have been designed to secure introductory meetings with specific decision-makers. In these real-life examples, and without specific information to the contrary, there would be no contravention of Scottish ethics rules:

• a Top 10 legal firm (400+ partners) launching a data protection training product;
• a 20 partner firm targeting national corporations to market their expertise in employee benefits solutions, closely aligned to their employment law service;
• a large regional firm (40+ partners) using the telephone to follow up on employment law seminars and recipients of their employment law newsletter.

These examples show the extent to which telephone marketing has been used elsewhere in the UK and demonstrate the likely opportunities for Scottish law firms.

Building relationships

Telephone marketing has unfavourable connotations in the consumer market. In the commercial environment, however, what we describe here is a way to build key relationships with potential clients. It will be about establishing empathy with the prospect and making professional introductions on behalf of partners. This process can take several calls over a long period. Building trust and empathy takes time. Technical knowledge is not paramount: telephone marketing is undertaken to establish legal needs and facilitate a meeting whereby a technical expert – a partner – can present a solution to those needs.

What can be said?

Rule 7 states that any promotional activity by or on behalf of a solicitor shall be decent, and shall not:

• contain any inaccurate or misleading statement;
• be of such a nature as may be regarded as bringing the profession into disrepute;
• identify any client without their prior consent; or
• be defamatory or illegal.

If you claim to be a specialist in a particular field of law, by rule 6 the onus of proof that the claim is justified shall be on you. Disparaging statements about competitors are unprofessional and should never be used.

Reduce non-billable partner time

Some lawyers may think they have the time and expertise available to make calls themselves. The reality is that it distracts them from doing what they do best: winning and successfully completing instructions. Non-billable partner time is minimised if you employ a telephone marketing professional to carry out your campaigns. This may be an external agency or an existing employee. The qualities you may be looking for include confidence, a general business understanding, and an excellent telephone manner, someone who is focused on the benefits of the service they are introducing.

Referral campaigns

Referral telephone marketing is another proven method of generating new leads. For example, insolvency practitioners look to form strategic alliances with both accountants and solicitors who do not offer such a service. They can increase the flow of work by simply making and maintaining contact with potential referrers in a formal and organised manner. This greatly enhances the results and effectiveness over ad hoc social events.

Cross-selling

Telephone marketing need not be a cold call scenario. Applying a systematic, focused, well researched campaign to cross-sell to existing clients is an effective way of increasing fee-generating opportunities.

Does telephone marketing work?

Professional telemarketing is a powerful tool that identifies prospects with an interest in specific areas. Simply by showing interest and empathy, telephone marketing can provide that first breakthrough meeting. Firms using professional telemarketing to convey a high-quality first impression will secure the right to make meaningful periodic contact with the prospect which begins the process of building a relationship.

External agencies

There is another important ethical rule for consideration when you are considering employing the services of an external agency. That is in respect of fee-sharing arrangements. Where marketing activities are charged on a per hour basis or fixed fee and do not involve an element of reward based on the securing of instructions, you will be able to work within the fee-sharing rules. Telephone marketing can be treated as the provision of a service similar to that of providing a brochure. The end game is the same – to persuade potential new clients that you have the expertise and experience to deliver the legal service.

An opportunity exists

Scottish law firms are in the unique position where few businesses will have been courted by lawyers. With due care and diligence in the consideration of the relatively new ethical rules it is possible to consider a telephone campaign as a legitimate business development tactic.

Ruth Jones is Director, and Jeremy Damsell is Key Account Manager Legal, of Chartered Developments, which offers a Europe-wide outsourced telephone marketing service to the legal and accountancy professions. t: 01395 280500 w: chartdev.co.uk