Communications and digital marketing firm Baretz+Brunelle conducted a survey to explore the experiences of legal tech firms going to market. The findings , as discussed inThe 2018 Legal Tech Go-To-Market Report,incorporate the perspectives of over 100 senior executives at eDiscovery, artificial intelligence, legal research and legal technology firms. The results? The legal tech sector is hindered by the absence of go-to-market strategies.
Following the financial crisis of 2008 more companies and firms looking to shed costs. Therefore, legal tech firms should be well positioned to enjoy considerable success. In fact, the legal tech sector has experienced a robust level of VC funding, which has picked up over the past three years – with a potential U.S. market valued at $437 billion in 2016.
Broad Agreement on the Shortfall
Most strikingly, the report uncovers that 97 percent of the legal tech industry lacks a strong grasp of go-to-market strategy; i.e., a company’s plan for using its resources to deliver its goods and services to its clients. Three vital components of any go-to-market strategy: what to sell, how to sell it and who to sell it to were especially confusing.
What to Sell
According to the survey, just 44 % of respondents had a clear understanding of how profitable their practice areas or products are. The other 56% said they had no idea, or a small idea but no firm grasp on profitability. Successful companies are those that can prioritize clients that will provide the most value from its products and services.
How to Sell it
The results also showed a lack of agreement within legal tech firms on messaging to the market and allocating business development resources. More than half of respondents reported some level of disconnect between sales and marketing within their organization. In addition, many participants don’t have a strategic approach to budgeting or time management.
Who to Sell it to
In addition, the survey revealed a lack of clarity within legal tech companies regarding the identity of their buyers. What’s worse, there was little differentiation between large firms and small firms, elite firms and non-elite firm, as well as those located in large cities compared to those spread across many locations.
As the industry landscape changes, legal tech firms are poised to take advantage of the growing interest in implementing new technologies among law firms and corporations. However, as the authors of this report conclude, successful firms will need more than just competitive products, they also need a comprehensive strategy for approaching their market.