Scar legal industry_insights_may14

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Scar legal industry_insights_may14

  1. 1. Insights into the Legal Industry and how SCA listeners use the services of this industry
  2. 2. Whether it’s purchasing property or dealing with divorce, there will always be a need for personal legal services to ensure we are all on the right side of the law. But, how do people choose which lawyer to seek advice from? What influences their decisions? And, most importantly, how do legal practices effectively talk to consumers in an industry that people can be wary of? Where we will take you… We will look at… KEY INSIGHTS, FAST FACTS & INDUSTRY SNAPSHOT PREVIOUS EXPERIENCE WITH LAW FIRMS SELECTING A FIRM
  3. 3. Key Insights For an experience to be a positive one, firms need to do more than ‘get the job done’. Many people feel taking legal action isn’t worth the hassle, or the support won’t be there It will be important to talk to men and women differently Opportunity Many firms seem to be thought of as places where you’re merely a number in the queue. This may be why people prefer smaller firms and rely on WOM – to find firms that will really care. People were more likely have had positive experiences with law firms when they felt they were being understood, not just firms that ‘got the job done’. Almost 1 in 3 people say they have been in a situation in the past where they should have taken legal action, but didn’t. While cost was a barrier – 1 in 3 women felt it wasn’t worth the hassle, while 1 in 6 felt they no-one would be on their side – both could be avoidable barriers to getting these women’s business. Men and women differ in their approach to choosing law firms, the matters they seek legal advice for, and also the barriers to them taking action. Women appear more emotionally driven, while men are more task and fact driven. People want a firm that will go above and beyond - lawyers who will care and not just ‘get the job done’. When people’s expectations are exceeded, they are much more likely to spread positive word of mouth about a firm – which is one of the keys to success, as getting recommendations from family/friends is the 1st step for most people when choosing a firm to use.
  4. 4. Fast Facts MALES HAVE BEEN IN A WORKPLACE ACCIDENT PEOPLE HAVE BEEN SIGNIFICANTLY WRONGED BY A PERSON PEOPLE HAVE BEEN SIGNIFICANTLY WRONGED BY A BUSINESS Source: Southern Cross Austereo Legal Services Study 2013 And overall - which of the below has ever happened to you? N= 1292
  5. 5. Industry Snapshot Advice Litigation Alternative dispute resolution 5.8% 22.1% 72%OF INDUSTRY REVENUE COMES FROM LEGAL ADVICE PRODUCTS CONTRIBUTING TO REVENUE With the bulk of industry revenue coming from providing advice to clients, building solid relationships should be of focus for legal businesses. The Personal Legal Services industry is worth in revenue each year… But, in order for firms to capitalise on this growth they need to look at new ways of doing business as primary revenue sectors are on the decline. And over the next 5 years, is expected to achieve an annual growth rate of Source: IBISWorld. Personal Legal Services. Dec 2012
  6. 6. Industry Snapshot: Determinants The legal industry largely relies on the trends occurring in society. For example, workplace relations, motor vehicle accidents and family law are largely determined by whether these elements are on the decline or increase. More often than not, the need for legal advice is reactive, not proactive. Below demonstrates what is occurring with key markets and how firms can manage this. As the number of personal injuries related to workplace incidents fall, firms are looking to diversify and bulk up their portfolio in other areas such as class actions and family law. Work accident Divorce Divorce is on the rise in Australia with 1 in 3 marriages ending in divorce. The average length of a marriage is now 9 years. 1 in 3 marriages will end in divorce The number of vehicle accident deaths is expected to decline which means cases associated to this will also fall Car accident Property Property conveyancing and other property-related work is estimated to account for 17.0% of industry revenue in the larger legal services sector. This segment is affected by the strength of the property market, which is affected by the general performance of the economy, the level of interest rates and general housing affordability. April to May 2013, capital city property sales were 19.3% higher than over the same period a year ago. Source: IBISWorld. Personal Legal Services. Dec 2012 Source: ABS Marriages and Divorces, 3310.0 2010. Source: McCrindle Research Australia at 23 million 2012 Source: RP Data Capital Markets Report- Spring 2013
  7. 7. Over half of SCA listeners have used legal services in the past with residential conveyancing the most popular. Whilst most experiences were positive, it gives some insights into what people are looking for in an experience with a law firm beyond price and wins. P RE VIOUS E XP E RIE NC E WIT H L AW FIRMS
  8. 8. Legal service 51%of people have used legal services in the past In fact, almost 1 in 3 say their last dealings were over 2 years ago. Males are 28% MORE LIKELY to have used legal 59% 46% services in the past SEEKING LEGAL ADVICE IS LARGELY Reactive Proactive AND NOT… but 6%Only 6% are currently using the legal services of a law firm. Source: Southern Cross Austereo Legal Services Study 2013. When was the last time (if any) you used the services of a law firm/lawyer? N= 1292
  9. 9. Residential conveyancing services are most common 1% 1% 5% 6% 6% 7% 7% 8% 9% 9% 18% 18% 40% Class actions Public liability claims Other property law Dispute resolution I would rather not say Workers compensation claims Personal injury claims Other - please specify Criminal law Motor vehicle accident claims Personal estate planning (ie Will prepartion/Powers of Attorney) Family law/divorce law Residential conveyancing Not surprisingly, people are most likely to have previously used lawyers for residential conveyancing. What is interesting to note is that the same amount of people have used a lawyer for motor vehicle accident claims as criminal law. This could suggest that many people avoid users lawyers for motor vehicle accidents as they believe it’s not worth the hassle, or these disputes are sorted out between the parties amicably. So, how does this differ between males and females? Other responses: business and contract Q: “You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for?” Source: Southern Cross Austereo Legal Services Study 2013 You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for? N= 665
  10. 10. Q: “You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for?” Males are 13% more likely than females Females are 40% more likely than males Males are 180% more likely than females Females are 69% more likely than males Males are 100% more likely than females Given the differences in how men and women are using legal services and law firms, there may be a need to target these groups differently with advertising messages. Source: Southern Cross Austereo Legal Services Study 2013 You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for? N= 665 The needs of men and women differ for legal services
  11. 11. Dealings were positive if they were resolved, but service also seems to be key 68% of people had a positive experience with their lawyer But, why was it positive? The primary reason people had a positive experience was that the issue was resolved, which is always going to affect the experience. However, the difference between that customer becoming loyal or not to the business may be in the service they received. Other key areas shining through are – service, professional, helpful, friendly and easy. It seems if firms can go above and beyond to make the process as easy and stress-free as possible, while being friendly and professional, they will ensure their customer has a positive experience they talk about and recommend. Source: Southern Cross Austereo Legal Services Study 2013 And what was your experience like with the law firm you used? N= 665
  12. 12. Simply ‘getting the job done’ doesn’t to translate to a positive experience for many customers 32% 21% of people had a neutral experience with their lawyer and 11% had a negative experience. But, why was it neutral/negative? When it comes down to neutral/negative experiences with lawyers, it largely comes down to a price issue. Whilst people are willing to pay for legal services, if it gets to the point where the service is seen as unnecessarily ‘expensive’ they are likely to walk away with a bad taste in their mouth. Interesting to note is the amount of people who mentioned it was a neutral/negative experience due to firms just ‘getting the job done’. It seems that to turn an experience into a positive one, firms need to go above and beyond, and do a lot more than just ‘get the job done’. Source: Southern Cross Austereo Legal Services Study 2013 And what was your experience like with the law firm you used? N= 665
  13. 13. Almost 1 in 3 should have taken legal action 16% 16% 16% 15% 13% 13% 10% 9% 8% 8% 3% 23% 14% 8% 7% 13% 12% 13% 13% 10% 5% 5% Other - please specify Dispute resolution matters Workplace accident matters Motor vehicle accident matters Personal injury matters Property matters Family matters Relationship matters I would rather not say Criminal matters Personal estate planning mattersMales Females 31% of people say they have been in a situation where they should have taken legal action or gathered advice but didn’t. Once again, it can be seen that men and women may need to be talked to differently about the matters they may need to seek advice for. As can be seen, men are more likely to say they should have taken action over workplace accidents or motor vehicle matters, whereas women are more likely to say family or relationship matters. Other responses: workplace bullying, unfair dismissal and employment Source: Southern Cross Austereo Legal Services Study 2013 Have you ever been in a situation where you think you should have taken legal action or gotten legal advice - but didn't? N= 1292 Source: Southern Cross Austereo Legal Services Study 2013 And if it isn't too personal, which of the below describes the type of situation you were in? N= 406
  14. 14. Expense and hassle seem to be the barriers 9% 16% 16% 22% 33% 38% 6% 10% 12% 25% 28% 39% The situation was resolved between the relevant parties by itself I didn't feel like anyone would take my side I didn't think I had a strong enough case It didnt seem significant enough to require legal action It wasn't worth the hassle It was too expensive to take legal action Males Females Whilst it is not surprising that cost is the main reason behind people not taking legal action, it’s important to note the other barriers which may be overcome. 1 in 3 women mentioned it ‘wasn’t worth the hassle’, 1 in 6 said they didn’t have a strong enough case, or they didn’t feel like anyone would take their side. If firms can overcome these barriers by changing the perception that they won’t care, or it will be a hassle, they may have an advantage over competitors. Source: Southern Cross Austereo Legal Services Study 2013 Which of the below reasons best describes why you did not get legal advice or take legal action in this case? N= 406
  15. 15. As will be seen, people prefer to deal with smaller firms as opposed to large firms. But what factors influence their choice of firm? From reputation to WOM, the next few slides explore the path to purchase when it comes to choosing a law firm. SE L E C T ING A FIRM
  16. 16. People prefer to use a small private firm 60% 40% There lies no difference between males and females but it is interesting to note that those who are divorced/separated were even more likely to choose small private firms (74%). With 9,604 personal legal services firms operating in Australia, businesses need to determine how to stand out from the crowd. It’s a changing world and gone are the times where your bank and lawyer were people you built solid relationships with. Many people now feel as though they are just a number in the queue. This may be why people prefer smaller firms and have a reliance on WOM. There is that perceived notion that smaller firms will better understand their needs on a personal level. Source: Southern Cross Austereo Legal Services Study 2013 When choosing a law firm to use, would you prefer to use a larger law firm or a smaller private practice? N= 1292 Q: “When choosing a law firm to use, would you prefer to use a larger law firm or a smaller private practice?“
  17. 17. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Ask friends/ family for recommendations Head online to research firms Contact a firm you have an existing relationship with Call a range of firms Contact the first firm/s that come to mind Males Females Word of mouth is key to choosing a law firm Q: “Thinking about choosing a law firm, what would be the FIRST STEP you would take in deciding which firm to use? “ People are turning to their personal connections for advice. WOM is key, making it even more important firms go above and beyond and do more than just ‘get the job done’. Recommendations are far more influential for women, whereas males are more likely to do the research themselves and call range of firms. Online is a key connection point for both men and women, possibly looking at websites and also customer experiences. But, what factors influence the decision? Source: Southern Cross Austereo Legal Services Study 2013 Thinking about choosing a law firm, what would be the FIRST STEP you would take in deciding which firm to use? N= 1292
  18. 18. Reputation plays a large role in the selection process 97% 96% 88% 80% 68% 63% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Reputation Costs for representation Recommendation from family/friend No win/no fee Well-known Close to home Associated with famous person REPUTATION AND COSTS ARE KEY CONSIDERATIONS WHEN CHOOSING A LAW FIRM Q: “If you decided to seek the services of a law firm, how important to you are the following issues or factors in determining which firm to represent you? “ Source: Southern Cross Austereo Legal Services Study 2013 N= 1292
  19. 19. To some degree, it seems people have lost faith in the businesses that are supposed to care – such as legal firms. As a result, people are relying heavily on WOM and a firm’s reputation in the marketplace to choose a firm that will look after them. However, it is beyond just “wins” that people are looking for in legal representation. There is a checklist of price, customer service, fee structure, timing and knowledge. They don’t just want their law firm to ‘get the job done’, they want them to go above and beyond in their service. Almost 1 in 3 SCA listeners have found themselves in a situation in which they feel they should have taken legal action in the past. However, with the perceived hassle and a question mark over whether anyone will be on their side, many have not taken the next step. There is huge opportunity here to show people that someone cares, is on their side and will take the hassle out of the issue. With growth industries being divorce and family law, the need for an emotional connection is paramount for law firms to succeed.
  20. 20. The results of this survey are “INDICATIVE” ONLY. The survey was conducted by Southern Cross Austereo using its online panel nationally. The panel is obtained from our radio networks database under the labels of ‘VIP’ on the TODAY Network and ‘Music Jury’ on the MMM Network. All members of these databases would be considered listeners to these stations. The database contains about 246,000 members. The is split between the Today VIP database and the Triple M database. Members of the Today VIP Database were asked to take part in the study. Overall – 1292 people aged 18-54 completed the survey. Additional filters have been placed over the data at different stages of the research. Certain questions asked for an ‘essay’ or ‘verbatim’ type of response OR brands/words that first came to mind. For more information, please contact scaresearchdepartment@sca.com.au A keyword search was used to sort and rank the responses to these questions. The results are an un-weighted sample, but are reflective of the Southern Cross Austereo audience. SCA brands reach approximately 40% of the 10+ population and approximately 46% of the 25-54 population in the five metropolitan markets in Australia, suggesting it would be reasonable to consider these results to be a fair if not fully balanced representation of the opinions in these marketplaces. Furthermore, as it is an online survey, the respondents would also be skewed towards being ‘early adopters’ for technology, ‘trend setters’ in general and likely to be a good early indication of brand leaders, trend setters and early adopters in general. These research surveys conducted by Austereo are done so to provide a general understanding of the opinions, interests and attitudes of the metropolitan marketplaces only.

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