The future of many high street firms could be in jeopardy unless they adopt a more customer-friendly approach to business, according to a new study.
Some 87% of lawyers in sole practitioner and small firms already fear for their future, the analysis found, with many citing the competitive threat from 2011 of increased competition from alternative business structures (ABSs).
The research was conducted for LexisNexis’s law firm comparison website, LawyerLocator. Some 60% of 150 firms surveyed by YouGov said they expect their business to suffer when ABSs enter the legal market, while 21% said they had already suffered as a result of the Legal Services Act.
According to director of LawyerLocator, Rob Farquharson, small firms fear that the post-ABS market will be dominated by cheaper, commoditised services rather than qualified solicitors. However, he also drew attention to a separate YouGov poll of 2,052 members of the public, which found that 60% said the most important factors when choosing a lawyer are specialist legal knowledge and an ‘approachable’ service – ‘precisely the domain of good high street law firms’.
‘Our research has revealed that people want accessible, trusted advisers who are experts in their field, not simply cheaper services provided by a call centre-based business,’ said Farquharson.
Consumers are looking for firms that offer a transparent, consumer-friendly and cost-effective service using up-to-date technology and delivery methods, Farquharson added. Firms must adopt this model if they want to survive, he suggested.
The survey showed many firms have made progress over the last three years – 85% have invested in IT; 47% have developed an online element to their practice; and 37% have changed their working hours to compete with bigger organisations.
The consumer poll revealed that 70% of the public do not have a lawyer to go to should the need arise. Farquharson said firms needed to a lot more to raise their profile and attract these potential new clients.
He added: ‘Practitioners need to take matters into their own hands. With great change comes great uncertainty and it will be the practices that adapt quickly that will be the practices of the future.’
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