Alternative fee arrangements have become much less “alternative” for clients seeking to better manage their outside legal spend. The most progressive firms have developed sophisticated tools to help price AFAs, mined their data, invested in legal project management training for lawyers, hired pricing experts, and analyzed the profitability of matters managed outside of the traditional billable hour.
“It’s hard to imagine a more perfect opportunity for legal marketing professionals to earn a seat at the leadership table than the pricing revolution happening today in our industry,” say David R. Bowerman and Matthew J. Prinn in Marketing’s Role in the Legal Industry’s Pricing Revolution in the June issue of Marketing The Law Firm. While most firms take a collaborative approach in their strategic AFA development process by including members of finance, accounting, IT, and practice and office leadership, Bowerman and Prinn remind “let us not forget that price is one of the ‘four P’s of marketing.’” It’s imperative that the marketing department be an integral part of the process at all stages of the cycle. Done right, they say, AFAs can be both highly profitable as well as a powerful competitive differentiator to the legal buyer.