Business in Ukraine was on the upswing before the 2008 global economic crisis, so much so that many law firms were busy turning down less attractive clients in favor of more lucrative ones. But in a 180-degree reversal, foreign and domestic law firms now find themselves in a recession-punished economy where they are fighting like never before for clients who are counting every hryvnia.
To survive and excel, once cash-flush law firms now see themselves going the extra mile to bring clients in. That sometimes involves cutting fees, getting paid by results and not per hour, working harder in general and – if any cash can be spared – putting more emphasis on promotion through marketing and public relations strategies.
“The legal environment has become much more competitive,” said Margarita Karpenko, managing partner in Kyiv for DLA Piper. “Price dumping has become a widespread practice. Clients who had easily paid hourly rates before the crisis have started to bargain and have requested fixed rates more often. Although we have approximately the same number of active clients as before, the volume and scale of work undertaken for them have decreased.”
Some law firms – Ukrainian-owned ones more than international groups – are advertising more. They see the crisis as an opportunity to cut into the business of larger international practices, often offering the same quality services at a lower price. Others are stepping up participation in investment conferences where opportunities exist to bring in new clients. Others are turning to the Internet to boost awareness for their law firm by writing columns.
DLA Piper, for example, is one of the international firms that cut its marketing budget after the crisis. As a result, the firm’s advertising department has been asked to work harder on getting the firm noticed, quoted in media, organizing seminars and presentations, as well as in setting up direct meetings with potential clients. “This is much more work than we used to have before,” said Nataliya Tkachenko, DLA Piper’s marketing manager in Kyiv.
Last year, Ukrainian law firm Spenser & Kaufmann hired a strong business development manager. Grischenko & Partners established its first ever PR department, as did Paritet law firm after 10 years on the market.
“Some mid-size and niche law firms have revised their strategies to actively develop a full practice,” said Svitlana Novikova, partner for Legal Marketing Solutions, a consultancy which specializes in advising law firms. “Arzinger, AstapovLawyers, Spenser & Kauffmann, and Lavrynovych & Partners are all more active and creative in their business and client development tools, practice lateral hires, investing in marketing and visibility, and becoming much more flexible in billing policies.”
“Thus, they are picking up some clients from top Ukrainian law firms,” added Novikova.
According to Legal Marketing Solutions, the crisis has also given birth to about a dozen new law firms that seek to service top clients in Ukraine’s capital. They were built up by partners either released by top tier firms, or often by those who quit their jobs as associates to land a partner position in a start-up. And it’s these newborns, as well as existing small- to mid-sized firms, that are often demonstrating the most aggressive hunt for clients and expansion.
Take for example Jurimex, a client of Legal Marketing Solutions, and Arzinger. Both mid-sized law firms are dynamically growing. AstapovLawyers, a firm established in 2002 that grew substantially during the crisis by picking up strong lawyers, has recently expanded by establishing a presence in Moscow and London.
Meanwhile, Magisters, the largest of Ukraine’s domestic law firms with offices in London, Moscow and in other former Soviet states, has recently launched a so-called German Desk to provide tailored service for clients from German-speaking countries.
Last year, Magisters placed an entry on Wikipedia. While it is a common practice for international law firms to be present at such online encyclopedias, Magisters became the first Ukrainian law firm to appear on it.
Ukrainian firm Jurimex launched blogs (http://jurblog.com.ua) by its lawyers where potential clients and literally any interested reader can see their thoughts on issues. Other lawyers have set up blogs on the http://blog.liga.net portal. Even Facebook, LinkedIn and Twitter are becoming more active tools for law firms in Ukraine.
Legal Marketing Solutions said these and other strategies are all a sign that lawyers are trying in this increasingly competitive market to get noticed, be more effective and overall “closer to the clients.”
Last year also marked the first time when a law firm, Integrities, covered Ukraine’s capital city with billboards, about 20 in total.
“It is not traditional for a law firm to use outdoor advertisement. But we do not follow traditional ways, we try to experiment,” said Tetyana Antonenko, the company’s public relations specialist.
The campaign was successful, she said, adding: “We evaluated the effect of these ads among our clients and rivals. It showed that we increased our brand awareness.”
In a slick advertising gimmick, the Ukrainskiy Yuryst (Ukrainian Lawyer) monthly magazine started offering lawyers a new way to get noticed: for a fee, they can get on the cover and the editions will be advertised through light boxes scattered across Kyiv. Such practices are common with other general topic publications, but are only now catching on with lawyers and publications specializing on legal services.
Valentyn Zagariya, managing partner for Spenser & Kauffmann, said he has also noticed law firms abroad embracing non-traditional means to boost awareness and land clients.
“In the past, law firms were seen by many as conservative and traditionalists. But with the crisis and fierce competition at play, this tendency is now changing,” Zagariya added.
Kyiv Post staff writer Oksana Faryna can be reached at [email protected]
