For years, many law firms have positioned themselves as being able to act for anyone, across any industry. The reasons are plain. Surely it is better to appeal to anyone who could be a client? Well, it’s definitely safer but increasingly it works against firms in what is a more and more crowded and competitive legal market serving more and more sophisticated and discerning clients.
Clients today are not looking for generalists. They want lawyers who understand them their business and – most of all the sector they’re in not to mention the environment in which they operate and the pressures they’re under.
When a potential client encounters a law firm – regardless of whether that introduction’s come through a recommendation, a pitch or a plain old fashioned Google search – they will make a quick judgement based on “do these lawyers understand me?” Generic statements about being “full service”, “pragmatic” or “commercially focused” won’t answer this question. Sector-specific insight does.
This knowledge now matters more than ever. Firstly, geography has lost much of its relevance. Remote working, virtual meetings and digital collaboration mean clients can choose a firm based anywhere. Loyalty to a local provider is no longer guaranteed which means firms must compete on relevance and understanding, not proximity. Sector expertise is arguably the clearest sign this relevance.
Similarly, legal advice does not exist in a vacuum. The same legal issue can have very different implications depending on the industry involved. Regulation, risk tolerance, deal timelines, operational constraints and commercial priorities all vary by sector. As such, the firm that can demonstrate fully formed understanding of these dynamics will be seen as the firm that can give advice that is more practical, more timely and more valuable. And this isn’t window dressing! Clients can’t be fooled! They recognise authenticity (and they recognise cosmetic fakery) immediately but get it right and authenticity plays a very persuasive part in a prospective client’s purchasing decision.
However, a sector-focused approach does not require firms to abandon being ‘full service’. It just changes how full service capability is presented. Rather than leading with practice areas alone, firms lead with the industries they know best and show how their legal expertise is applied in a real-world context. This shift from what we do to who we understand is critical.
When it comes to choosing which sectors to focus on, this must be a strategic decision, not an emotional one or, worse, a branding exercise.
Firms should start by looking at where they already have the most experience. However, a handful of relevant clients can easily be enough to build a credible sector narrative if the firm genuinely understands the issues those clients face. This is crucial. Depth of understanding always matters far more than the length of a client list.
Equally important is having genuine interest. This might sound a bit glib but a sector-based approach only works if lawyers are engaged with the industries they want to win work from – and engaged with what’s happening across the industry, not just the legal considerations. Again, clients can’t be fooled. They really can tell when a firm is simply adopting sector language without understanding the commercial reality behind it. Real insight comes from curiosity and involvement.
Finally, there must be a clear commercial rationale. The most effective sector strategies focus on industries that are growing as well as those most likely to have ongoing legal demands. Choices also need to be aligned to the firm’s long-term goals. Where does the firm want to be? What does it want to be known for? And what types of clients will underpin a successful future? When you look at a sector focus in these terms, it’s easier to see why a sector strategy is not about narrowing ambition but about concentrating effort (and budget) where it will have the greatest impact.
From a marketing perspective, the benefits are significant.
A sector focus brings clarity. This makes it easier to decide which events to attend, which publications to target, what content to produce and which conversations to prioritise. Thought leadership becomes a more powerful tool too. Everything from articles, blogs and interviews to panel positions and speaking slots are great ways to share your thoughts with a highly defined audience rather than adopting the generalist’s approach of just touting high-level commentary designed to appeal to everyone.
Finally and perhaps most importantly, sector credentials will strengthen your client relationships. This is hugely commercially important because your existing clients are by far your fastest and easiest route to new work.
This new work can come from your clients. A deep understanding of a client’s industry immediately puts you in a better place to anticipate potential issues, identify opportunities and add value beyond individual instructions instead of waiting for instructions. Or, the new work can come from new introductions generated by your clients. These introductions will naturally increase as people recognise the value you bring to their sector.
In a market where so many firms still describe themselves in similar ways, sector expertise is one of the most effective ways to stand out. It shows clients that you understand their world, not just the law. And in an increasingly sophisticated and selective market, it is this understanding clients want to buy.
Douglas McPherson is Head of Business Development at Potter Clarkson, one of Europe’s leading IP law firms, and a director at Simdure, a marketing, digital and design agency that specialises in the legal and accountancy sectors.