Originally Published in:

Merry Neitlich is a partner of Extreme Marketing, law firm consultants, Irvine, California and Chicago, IL. Phone: (949) 260-0936. Email: merry@extrememarketing.org

Market penetration research is the process of discovering the specific needs, wants and desires of a (potential) client. It is the often overlooked but obvious solution for delineating and creating the exact requirements needed to service the legal needs of a (future) client. As Jeffrey Horn, principal of the Business Development Group said, "After years of drawing back their bows and shooting blindfolded, suddenly lawyers have the opportunity to see the target and aim for dead center."

"I think this process is an excellent idea. The results produce a more meaningful dialogue and practical exchange," said Fredric J. Friedberg, Senior Vice President and General Counsel for Toshiba America Medical Systems, Inc. Friedberg, who agreed to a research interview we conducted for a large national firm added, "This survey technique provides the opportunity for general counsel to specifically discuss likes, dislikes and needs. An open dialogue is a much better forum for understanding needs in the business community."

This process is readily applicable to non-clients, minimal clients, or even "lost" clients. The idea is to identify a group of companies a law firm would like to penetrate or expand their relationship with. An outside consulting firm, such as JM Associates, sets up a 35 to 40 minute interview with the in-house counsel to gather the sought after research. The questions asked are individually crafted by the law firm to meet their desired outcomes. Surprising to some is the fact that most in-house lawyers respond quite favorably to the interview process. Rarely do they have the opportunity to reflect in such a global way on their preference in the delivery of legal services. Many commented that they actually found the interviews enlightening.

Gerald Flannery, Assistant General Counsel and Director of Product Liability for Hyundai felt that the interview process gave him significant pause for thought. During our interview he not only articulated the specific criteria he uses in selecting individual lawyers from outside firms, i.e. trial experience, technical abilities, and aggressiveness, but he also pulled his thoughts together on the "passion about cars" that he looks for in lawyers. He feels this genuine interest in the automotive and engineering fields produces an extra spark in Hyundai's outside litigators that causes them to go the extra mile, so to speak.

Art Moore, Vice President for Intellectual Property of Avery Dennison commented that, "The firm that requested this interview was probably pretty surprised to find out that we were unaware of their litigation capabilities. They also found out that we were open to engaging them in a direct electronic connection."

While interviewing Chet Martine, Deputy Director of Intellectual Property at Litton Industries, we reviewed the direction the company plans to grow in, where they will require outside legal services within the next 12 months, how they require their bills to be submitted, and even the specific criteria they use in selecting outside counsel.

The process also yields data on how individual companies respond to various law firm marketing techniques. One general counsel reported that on the first of every month he sweeps all of the unsolicited firm brochures on his credenza into the trash. On the other end of the spectrum, we are able to find out what particular marketing strategies in-house counsel actually do respond to and what will help law firms get on their "radar screen" for consideration. We also ask for apiece of advice they would give the managing partner that would increase business in the client's industry.

Additional information that tends to surface during the interview process includes predictions in company and industry trends that may require outside legal assistance, who the leading law firms are, their strength sand weaknesses, and what the company's impression is of our client, e.g. the law firm we are conducting the research for. It is not unusual for the interview process to generate new client matters.

Karen Sullivan, Legal Coordinator for Samsung told us she responds favorably to seminars put on by law firms that are “content rich and provide real take-home value." She actually recalled not only the title of such a seminar but also the law firm and individual attorneys that put it on eighteen months earlier.

Michael Brown, currently a partner with Dickson, Carlson & Campillo, and former Vice President of Legal Affairs and Director of Litigation with Thrifty Corporation feels that, "This type of research process absolutely dispenses with the honeymoon period for outside firms. You are no longer basing your hiring choice on the fact that you've heard of a lawyer or firm.

You're using sound information to structure fees with full and fair disclosure on the front end. You will know exactly what work will be performed and what the cost will be. Alternative fees do not necessarily mean asking for a lower hourly rate but rather partnering with outside firms to create fee arrangements with no surprises in the final analysis. Corporate counsel do not want to take money out of the lawyer's hands, they simply want to anticipate with some accuracy the money that will be going out."

Jimmy Holland, Executive Vice President and General Counsel of American Savings Bank commented on the market penetration process. “At first blush I was quite surprised that I would agree to this type of interview. But upon reflection, I realized that it helped me clarify my own thinking on our recent outsourcing project. The questions raised helped me focus on our overall strategy and accomplishments thus far."

Co-leader of the immigration practice group at Bryan Cave, Angelo Paparelli states, "The whole concept, if carefully guided and monitored, offers real promise to serve client needs, and that's what we're all about in the 90's. It's very hard to anticipate client needs if you don't know what they are. I am very optimistic that market penetration research is a valid and useful approach to educating lawyers and law firms about the needs and preferences of clients."

The trend for law firms to target informational interviews with clients and non-clients continues to grow. The process yields specific data designed to increase service strategy options meeting the needs of in-house counsel. It provides a platform for outside attorneys to develop clear and specific partnering relationships with their in-house (potential) clients. Corporate counsel have reported they find the process productive and even enjoyable. Market penetration research seems to be a win-win strategy merging the needs of and increasing the communication between in-house and outside lawyers.