Lawyers missing out on millions

A recent study has revealed that lawyers who hesitate to refer clients to their colleagues, fearing they may come across as pushy, are missing out on millions in potential revenue for their firms. The research, conducted by Passle, indicates that cross-selling represents the largest untapped opportunity for profit enhancement in the legal sector. Three-quarters of senior law firm marketers identified this area as critical, and nearly half of those surveyed, 49%, expressed that lawyers refrain from cross-selling due to concerns about appearing too forward.

A lack of motivation or incentives was cited by a third of respondents, while 28% of fee-earners preferred referring work to outside contacts rather than their own firm. Other factors contributing to this reluctance include a disinclination to share clients, uncertainty in approaching them, lack of time, and insufficient knowledge about the range of services their firm offers.

The study, which involved interviews with marketing and business development heads from 150 law firms split evenly between the UK and the US, found that effective cross-selling could potentially elevate a firm's bottom line by an average of 12%. Based on the most recent revenue figures for the top 100 law firms, this translates to an estimated average gain of £44 million per UK firm and $190 million per US firm.

Passle, an AI-powered thought leadership platform for professional services, has launched Crosspitch AI, a new tool aimed at aiding lawyers in sourcing and sharing insights about complementary services within their firms. The research highlighted that 80% of firms acknowledged the presence of missed opportunities for cross-selling. Connor Kinnear, Chief Marketing Officer at Passle, stated that “in today’s competitive legal market, firms must demonstrate their full value. Failing to cross-sell means losing revenue to competitors. Rather than seeming pushy, cross-selling highlights a firm’s broad capabilities and strengthens client relationships. New data shows firms are missing out on millions—an avoidable loss. To stay ahead, marketers must get lawyers on board."

In response to increased client demand for thought leadership generation assistance, Passle developed Crosspitch AI, allowing lawyers to quickly access their firm’s overall expertise. The tool cross-references content with lawyer profiles and provides insights relevant to client needs. Additionally, it enhances website lawyer search functions, utilising AI and Passle’s proprietary data to yield more accurate results for users seeking legal services. Early trials with several large law firms have already shown promising results, with the deployment of Crosspitch AI taking as little as two weeks. For further details on Passle, visit www.passle.net.