The legal profession is undergoing a significant transformation, with law firms facing unprecedented financial challenges. BigHand’s 2025 Annual Law Firm Finance Report, based on a comprehensive survey of 813 senior legal finance professionals, CEOs, and Managing Partners from firms with 100+ lawyers across the UK and North America, reveals a concerning trend in the industry’s financial practices.
Key Findings
Rising Write-offs and Discounts
Despite achieving double-digit growth, law firms are grappling with increasing write-offs and discounts, which are eroding profitability.
A staggering 72 percent of firms experienced increased write-offs last year, with 75percent predicting further growth in the coming year.
Client Demands for Transparency
The report highlights a significant increase in client demand for financial transparency, rising from 76 percent last year to 85 percent this year.
Additionally, 48 percent of firms note rising client demand for proof of value, including expertise, responsiveness, resource allocation, budget management, and DEI performance.
Strategic Responses
Law firms are adopting various strategies to address these challenges:
Lawyer Compensation: 91 percent of firms have implemented or plan to implement changes to lawyer compensation to increase profitability margins.
Commercial Awareness Training: 64 percent of firms plan to train lawyers for greater commercial awareness, although only 52 percent plan to deliver this training in the next 12 months.
Business Development Focus: 64 percent of law firms confirm an increased focus on business development and client management.
Business Intelligence: 44 percent of firms now use Business Intelligence tools, with an additional 20% planning to implement them over the next 12 months.
The DICE Framework
To combat these challenges, BigHand emphasizes the need for firms to adopt robust cash flow processes built on the DICE framework:
Data access
Insights from business analytics
Control over financials
Empowerment of lawyers
This framework is crucial for embedding agility and flexibility while safeguarding profit.
Expert Insights
Eric Wangler, President of Global Legal Market at BigHand, stresses the importance of rethinking financial and business strategies in 2025 to ensure strong cash-flow processes, regardless of the economic outlook.
Briana McCrory, Chief Marketing Officer at BigHand, emphasizes the need for law firms to invest in dedicated Business Intelligence technology to remain competitive and win more of the right work.
Law firms that adapt their strategies and embrace new technologies will be better positioned to thrive in an increasingly competitive market.
Guy Alvarez is Executive Vice President of strategy at Good2bSocial.com
As a law firm, you may face unique challenges within the competitive legal landscape. To succeed, connecting the dots between marketing and business development isn’t just important—it’s essential. When these two functions operate in harmony, you can effectively build your brand, attract clients, and increase revenue.
But how exactly can your law firm align these critical components? In this blog, I’ll dive into the difference between marketing and business development, why alignment drives better results for law firms, and key steps to achieve alignment in your firm.
Marketing vs. Business Development for Law Firms – What’s the Difference?
Marketing and business development are complementary but distinct functions. Misunderstanding the difference is often where alignment issues begin.
Marketing Defined
Marketing focuses on building awareness and shaping how your law firm is perceived. Common marketing activities in law firms include:
Business Development Defined
Business development, on the other hand, is about cultivating relationships and driving new business opportunities. It emphasizes:
Identifying referral opportunities or strategic partnerships
Creating tailored pitches for potential clients
Here’s my key takeaway: Marketing sets the stage by attracting prospects, while business development closes the deal by nurturing and converting those leads.
Why Alignment Matters for Law Firms
Law firms that align marketing and business development efforts achieve better outcomes. Here’s why:
Consistent Messaging: By working together, your marketing and business development teams ensure your brand story resonates from top-of-funnel awareness to the final pitch.
Better Resource Allocation: Instead of duplicating efforts, aligned teams identify strategies with the biggest impact.
Improved Client Relationships: Marketing insights provide data about what resonates with prospects, which can inform business development’s approach.
Revenue Growth: Firms with synchronized teams are better poised to convert leads into loyal clients, ultimately boosting profitability.
Data backs this up. According to a study by LinkedIn, companies with tightly aligned marketing and sales (or biz dev) functions saw 208% more revenue from their efforts.
6 Steps to Align Marketing and Business Development in Your Law Firm
To bridge the gap between marketing and business development, I suggest adopting the following steps:
1. Establish Clear Communication Channels
A lack of communication between departments is one of the biggest barriers to alignment. Create regular touchpoints, such as:
Weekly meetings to discuss goals, campaigns, and client feedback
Shared project management tools like Trello or Monday.com
Slack channels or email groups to maintain open conversations
Open communication ensures both teams are on the same page on priorities and progress.
2. Define Shared Objectives
Alignment begins with a unified vision. Discuss and set measurable goals that require collaboration. Some examples include:
Increasing website traffic by 25% and converting 15% of leads into consultations
Hosting industry-relevant webinars to generate a defined number of qualified leads
Closing X number of client accounts based on marketing campaigns
Shared goals encourage both teams to work together toward a singular purpose.
3. Build Client Profiles Collaboratively
Developing detailed client personas is critical for effective marketing and business development efforts. This process should involve both teams and include insights like:
Client industries and pain points
Preferred communication or networking channels
Common legal challenges
For example, if your firm provides intellectual property law services, both marketing and business development should agree on whether to target tech startups or large corporations.
4. Leverage Data to Track Performance
Marketing generates valuable data that can directly benefit business development efforts. Use it! Invest in tools like:
CRMs (e.g., HubSpot, Salesforce) to track leads and client engagement
Analytics platforms to monitor performance metrics (e.g., site visitors, webinar attendees)
Email marketing software to measure click-through rates and open rates
For example, if a majority of attendees in a webinar on tax law are CFOs from small businesses, your business development team can prioritize similar prospects for follow-up.
Ensure your marketing campaigns align with specific business development priorities. Here’s how:
Our business development team followed up with those who downloaded the guide, offering personalized consultations.
By incorporating both functions into campaign planning, you can maximize conversion opportunities.
6. Encourage Cross-Department Training
Finally, don’t operate in silos. Encourage employees in marketing and biz dev to get a deeper understanding of each other’s roles.
Have business development leaders attend marketing strategy sessions.
Allow marketing staff to participate in client onboarding or prospecting events.
Cross-training fosters collaboration and ensures alignment in how both teams approach their work.
Key Takeaways:
Aligning marketing and business development for your law firm won’t happen overnight. It requires a focused, consistent effort from leadership and team members alike—but the results are worth it.
By improving communication, sharing goals, and leveraging data, your law firm will have a better chance of attracting high-quality leads and converting them into long-term clients. Are you ready to align your teams and elevate your practice? Take the first step by assessing your current processes.
Guy Alvarez, Founder and Executive Vice President of Strategy at Good2bSocial, brings a wealth of experience to digital marketing in the legal industry. With a background as a law firm associate and roles at ALM Media and KPMG, Guy has honed his expertise in technology and marketing. An early adopter of social media, he co-founded the Business Development Institute and organized pioneering conferences in the field. He has advised Fortune 100 companies and AmLaw 100 law firms on various aspects of digital marketing.
Guy Alvarez, Founder and Executive Vice President of Strategy at Good2bSocial, brings a wealth of experience to digital marketing in the legal industry. With a background as a law firm associate and roles at ALM Media and KPMG, Guy has honed his expertise in technology and marketing. An early adopter of social media, he co-founded the Business Development Institute and organized pioneering conferences in the field. Guy has advised Fortune 100 companies and AmLaw 100 law firms on various aspects of digital marketing.