How to Prosper in a Recession

By Chris Lutz, President of LawClick, Inc.

We're currently experiencing difficult economic times. Attorneys have faced recessions before and will again. Generally speaking, a recession is two consecutive quarters of negative GNP growth. In the US, we have experienced 11 recessions since the end of World War II.

An average recession lasts 10 months. Open markets expand and contract. Each scenario provides unique opportunity. Attorneys must bring their A-Game during economic downturns.

Consistently Executing a Marketing Plan

The prerequisite to business success is a sound strategic marketing plan. The confidence to efficiently execute that plan, under financial uncertainly or stress, is key to long-term prosperity. However, firms often respond to a slowdown by unwisely reducing their advertising budget. Research shows firms are better served by streamlining and prioritizing their marketing spend, not reducing their commitment. Don't take the wind out of your marketing sails. You might evaluate your marketing overhead or branding initiatives but don't reduce the activities directly associated with generating new business.

Professor John Quelsh, of Harvard Business School, and author of "Marketing Your Way through a Recession" says, "Successful companies do not abandon their marketing strategies in a recession; they adapt them. It is well documented that brands who increase marketing during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost during good economic times."

Adjusting and Streamlining Priorities

Your marketing mix may require adjustment during a recession. Your strategy should maximize return on investment during these times. There are a few critical things to consider in doing so. What's the risk? What's the reward? The optimum marketing formula seeks to reduce risk, cost-per-prospect, while raising the associated rewards, i.e. number of paying clients in the door.

Many firms are making such adjustments right now as they transition from phonebook advertising to online advertising. The cost-per-prospect can be significantly lower for firms pursing such a course. Most importantly, attorneys need to treat their web site as a virtual storefront where prospects determine your value, right or wrong.

Modifying Pricing Tactics

In discussing pricing strategies during a recession, Professor Quelsh shares the following," Customers will be shopping around for the best deals. You do not necessarily have to cut list prices, but you may need to offer more temporary price promotions, reduce thresholds for quantity discounts and extend credit to long-standing customers. In tough times, price cuts attract more consumer support than promotions…"

Tracking Key Performance Indicators (KPIs)

Tracking key performance indicators and evaluating prospect behaviors and trends, is critical to your success. It is even more essential during an economic downturn. You need to know:

• What are your target prospects thinking?
• What do they value?
• How do they plan to utilize services like yours?
• What will motivate them to learn more about you?
• How will you best convert general prospect interest into action, i.e. a scheduled consult?
• How are you going to get prospects to call you?

Are you promoting your firm's competitive strengths? Are you effectively reaching your target audience? Are you sharing the right message? Remember, the key here is to learn what's working and to execute those activities rigorously, consistently and without delay.