Insights into the Legal Industry and how SCA listeners use the services of this industry

Whether it’s purchasing property or dealing with divorce, there will always be a need for personal legal

services to ensure we are all on the right side of the law.

But, how do people choose which lawyer to seek advice from? What influences their decisions? And, most

importantly, how do legal practices effectively talk to consumers in an industry that people can be wary of?

Where we will take you…

We will look at…

KEY INSIGHTS,

FAST FACTS &

INDUSTRY

SNAPSHOT

PREVIOUS

EXPERIENCE

WITH LAW FIRMS

SELECTING A

FIRM

Key Insights

For an experience to be a

positive one, firms need

to do more than ‘get the

job done’.

Many people feel taking

legal action isn’t worth

the hassle, or the

support won’t be there

It will be important to talk

to men and women

differently

Opportunity

Many firms seem to be thought of as

places where you’re merely a number

in the queue. This may be why people

prefer smaller firms and rely on WOM

– to find firms that will really care.

People were more likely have had positive

experiences with law firms when they felt

they were being understood, not just firms that ‘got the job done’.

Almost 1 in 3 people say they have

been in a situation in the past where

they should have taken legal action,

but didn’t.

While cost was a barrier – 1 in 3 women felt

it wasn’t worth the hassle, while 1 in 6 felt

they no-one would be on their side – both

could be avoidable barriers to getting these

women’s business.

Men and women differ in their

approach to choosing law firms, the

matters they seek legal advice for,

and also the barriers to them taking

action.

Women appear more emotionally driven,

while men are more task and fact driven.

People want a firm that will go above and beyond - lawyers who will care and not just ‘get the job done’. When people’s

expectations are exceeded, they are much more likely to spread positive word of mouth about a firm – which is one of the

keys to success, as getting recommendations from family/friends is the 1st step for most people when choosing a firm to use.

Fast Facts

MALES HAVE BEEN

IN A WORKPLACE

ACCIDENT

PEOPLE HAVE BEEN

SIGNIFICANTLY

WRONGED BY A

PERSON

PEOPLE HAVE BEEN

SIGNIFICANTLY

WRONGED BY A

BUSINESS

Source: Southern Cross Austereo Legal Services Study 2013 And overall - which of the below has ever happened to you? N= 1292

Industry Snapshot

Advice Litigation Alternative dispute resolution

5.8%

22.1%

72% OF INDUSTRY REVENUE COMES FROM

LEGAL ADVICE

PRODUCTS CONTRIBUTING TO REVENUE

With the bulk of industry revenue coming from providing

advice to clients, building solid relationships should be of

focus for legal businesses.

The Personal Legal Services industry is worth

in revenue each year…

But, in order for firms to capitalise on this growth they

need to look at new ways of doing business as primary

revenue sectors are on the decline.

And over the next 5 years, is expected to

achieve an annual growth rate of

Source: IBISWorld. Personal Legal Services. Dec 2012

Industry Snapshot: Determinants

The legal industry largely relies on the trends occurring in society. For example, workplace relations, motor vehicle accidents and family

law are largely determined by whether these elements are on the decline or increase. More often than not, the need for legal advice is

reactive, not proactive. Below demonstrates what is occurring with key markets and how firms can manage this.

As the number of personal injuries

related to workplace incidents fall, firms

are looking to diversify and bulk up their

portfolio in other areas such as class

actions and family law.

Work accident

Divorce Divorce is on the rise in Australia

with 1 in 3 marriages ending in

divorce. The average length of a

marriage is now 9 years.

1 in 3 marriages will end

in divorce

The number of vehicle accident

deaths is expected to decline

which means cases associated to

this will also fall

Car accident

Property Property conveyancing and other property-related work is estimated to

account for 17.0% of industry revenue in the larger legal services sector.

This segment is affected by the strength of the property market, which is

affected by the general performance of the economy, the level of interest

rates and general housing affordability.

April to May 2013, capital city property

sales were 19.3% higher than over the

same period a year ago.

Source: IBISWorld. Personal Legal Services. Dec 2012

Source: ABS Marriages and Divorces, 3310.0 2010.

Source: McCrindle Research Australia at 23 million 2012

Source: RP Data Capital Markets Report- Spring 2013

Over half of SCA listeners have used legal services in the past with residential conveyancing the most popular. Whilst most experiences were positive, it gives some insights into what people are looking for in an experience with a law firm beyond price and wins.

P R E V I O U S E X P E R I E N C E W I T H L A W F I R M S

Legal service

51% of people have used

legal services in the past

In fact, almost 1 in 3 say their last

dealings were over 2 years ago.

Males are 28% MORE LIKELY

to have used legal

59% 46%

services in the past

SEEKING LEGAL ADVICE IS LARGELY

Reactive

Proactive AND NOT…

but

6% Only 6% are currently using the

legal services of a law firm.

Source: Southern Cross Austereo Legal Services Study 2013. When was the last time (if any) you used the services of a law firm/lawyer? N= 1292

Residential conveyancing services are most common

1%

1%

5%

6%

6%

7%

7%

8%

9%

9%

18%

18%

40%

Class actions

Public liability claims

Other property law

Dispute resolution

I would rather not say

Workers compensation claims

Personal injury claims

Other - please specify

Criminal law

Motor vehicle accident claims

Personal estate planning (ie Willprepartion/Powers of Attorney)

Family law/divorce law

Residential conveyancing

Not surprisingly, people are most likely to

have previously used lawyers for residential

conveyancing.

What is interesting to note is that the same

amount of people have used a lawyer for

motor vehicle accident claims as criminal

law. This could suggest that many people

avoid users lawyers for motor vehicle

accidents as they believe it’s not worth the

hassle, or these disputes are sorted out

between the parties amicably.

So, how does this differ

between males and females?

Other responses: business and contract

Q: “You said you had used the services of a law firm/lawyer in the past. Could you please tell us what

you used them for?”

Source: Southern Cross Austereo Legal Services Study 2013 You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for? N= 665

Q: “You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for?”

Males are 13% more likely than females

Females are 40% more likely than males

Males are 180% more likely than females

Females are 69% more likely than males

Males are 100% more likely than females

Given the differences in how men and women are using legal services and law firms, there may be a need to

target these groups differently with advertising messages.

Source: Southern Cross Austereo Legal Services Study 2013 You said you had used the services of a law firm/lawyer in the past. Could you please tell us what you used them for? N= 665

The needs of men and women differ for legal services

Dealings were positive if they were resolved, but service also seems to be key

68% of people had a positive experience with their lawyer

But, why was it positive? The primary reason people had a positive experience was

that the issue was resolved, which is always going to affect

the experience. However, the difference between that

customer becoming loyal or not to the business may be in the

service they received.

Other key areas shining through are – service, professional,

helpful, friendly and easy. It seems if firms can go above and

beyond to make the process as easy and stress-free as

possible, while being friendly and professional, they will

ensure their customer has a positive experience they talk

about and recommend.

Source: Southern Cross Austereo Legal Services Study 2013 And what was your experience like with the law firm you used? N= 665

Simply ‘getting the job done’ doesn’t to translate to a positive experience for many customers

32% 21% of people had a neutral experience with their

lawyer and 11% had a negative experience.

But, why was it neutral/negative? When it comes down to neutral/negative experiences with

lawyers, it largely comes down to a price issue. Whilst people

are willing to pay for legal services, if it gets to the point where

the service is seen as unnecessarily ‘expensive’ they are

likely to walk away with a bad taste in their mouth.

Interesting to note is the amount of people who mentioned it

was a neutral/negative experience due to firms just ‘getting

the job done’. It seems that to turn an experience into a

positive one, firms need to go above and beyond, and do a lot

more than just ‘get the job done’.

Source: Southern Cross Austereo Legal Services Study 2013 And what was your experience like with the law firm you used? N= 665

Almost 1 in 3 should have taken legal action

16% 16% 16% 15%

13% 13%

10% 9%

8% 8%

3%

23%

14%

8% 7%

13% 12%

13% 13%

10%

5% 5%

Other - pleasespecify

Disputeresolutionmatters

Workplaceaccidentmatters

Motor vehicleaccidentmatters

Personal injurymatters

Propertymatters

Family matters Relationshipmatters

I would rathernot say

Criminalmatters

Personalestate

planningmattersMales Females

31% of people say they have been in a situation where they should

have taken legal action or gathered advice but didn’t.

Once again, it can be seen that men and women may need to be talked to

differently about the matters they may need to seek advice for. As can be

seen, men are more likely to say they should have taken action over

workplace accidents or motor vehicle matters, whereas women are more

likely to say family or relationship matters.

Other responses: workplace bullying,

unfair dismissal and employment

Source: Southern Cross Austereo Legal Services Study 2013 Have you ever been in a situation where you think you should have taken legal action or gotten legal advice - but didn't? N= 1292

Source: Southern Cross Austereo Legal Services Study 2013 And if it isn't too personal, which of the below describes the type of situation you were in? N= 406

Expense and hassle seem to be the barriers

9%

16%

16%

22%

33%

38%

6%

10%

12%

25%

28%

39%

The situation was resolved between therelevant parties by itself

I didn't feel like anyone would take my side

I didn't think I had a strong enough case

It didnt seem significant enough to require legalaction

It wasn't worth the hassle

It was too expensive to take legal action

Males Females

Whilst it is not surprising that cost is the

main reason behind people not taking legal

action, it’s important to note the other

barriers which may be overcome.

1 in 3 women mentioned it ‘wasn’t worth the

hassle’, 1 in 6 said they didn’t have a strong

enough case, or they didn’t feel like anyone

would take their side.

If firms can overcome these barriers by

changing the perception that they won’t care,

or it will be a hassle, they may have an

advantage over competitors.

Source: Southern Cross Austereo Legal Services Study 2013 Which of the below reasons best describes why you did not get legal advice or take legal action in this case? N= 406

As will be seen, people prefer to deal with smaller firms as opposed to large firms. But what factors influence their choice of firm? From reputation to WOM, the next few slides explore the path to purchase when it comes to choosing a law firm.

S E L E C T I N G A F I R M

People prefer to use a small private firm

60% 40%

There lies no difference between males and females but it is interesting to note that those who are divorced/separated

were even more likely to choose small private firms (74%). With 9,604 personal legal services firms operating in

Australia, businesses need to determine how to stand out from the crowd.

It’s a changing world and gone are the times where your bank and lawyer were people you built solid relationships

with. Many people now feel as though they are just a number in the queue. This may be why people prefer smaller

firms and have a reliance on WOM. There is that perceived notion that smaller firms will better understand their needs

on a personal level.

Source: Southern Cross Austereo Legal Services Study 2013 When choosing a law firm to use, would you prefer to use a larger law firm or a smaller private practice? N= 1292

Q: “When choosing a law firm to use, would you prefer to use a larger law firm or a smaller private practice?“

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Ask friends/ family forrecommendations

Head online to research firms Contact a firm you have anexisting relationship with

Call a range of firms Contact the first firm/s thatcome to mind

Males Females

Word of mouth is key to choosing a law firm

Q: “Thinking about choosing a law firm, what would be the FIRST STEP you would take in deciding which firm to use? “

People are turning to their personal connections for advice. WOM is key, making it

even more important firms go above and beyond and do more than just ‘get the job

done’. Recommendations are far more influential for women, whereas males are more

likely to do the research themselves and call range of firms. Online is a key connection

point for both men and women, possibly looking at websites and also customer

experiences.

But, what factors influence the decision?

Source: Southern Cross Austereo Legal Services Study 2013 Thinking about choosing a law firm, what would be the FIRST STEP you would take in deciding which firm to use? N= 1292

Reputation plays a large role in the selection process

97% 96%

88%

80%

68%

63%

7% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Reputation Costs forrepresentation

Recommendationfrom family/friend

No win/no fee Well-known Close to home Associated withfamous person

REPUTATION AND COSTS ARE KEY

CONSIDERATIONS WHEN CHOOSING A LAW FIRM

Q: “If you decided to seek the services of a law firm, how important to you are the following issues or factors in determining which firm to represent you? “

Source: Southern Cross Austereo Legal Services Study 2013 N= 1292

To some degree, it seems people have lost faith in the businesses that are supposed to care – such as legal

firms. As a result, people are relying heavily on WOM and a firm’s reputation in the marketplace to choose a

firm that will look after them.

However, it is beyond just “wins” that people are looking for in legal representation. There is a checklist of

price, customer service, fee structure, timing and knowledge. They don’t just want their law firm to ‘get the

job done’, they want them to go above and beyond in their service.

Almost 1 in 3 SCA listeners have found themselves in a situation in which they feel they should have taken

legal action in the past. However, with the perceived hassle and a question mark over whether anyone will be

on their side, many have not taken the next step. There is huge opportunity here to show people that

someone cares, is on their side and will take the hassle out of the issue.

With growth industries being divorce and family law, the need for an emotional connection is paramount for

law firms to succeed.

The results of this survey are “INDICATIVE” ONLY.

The survey was conducted by Southern Cross Austereo using its online

panel nationally.

The panel is obtained from our radio networks database under the labels

of ‘VIP’ on the TODAY Network and ‘Music Jury’ on the MMM Network. All

members of these databases would be considered listeners to these

stations.

The database contains about 246,000 members.

The is split between the Today VIP database and the Triple M database.

Members of the Today VIP Database were asked to take part in the study.

Overall – 1292 people aged 18-54 completed the survey.

Additional filters have been placed over the data at different stages of the

research.

Certain questions asked for an ‘essay’ or ‘verbatim’ type of response OR

brands/words that first came to mind.

For more information, please contact

scaresearchdepartment@sca.com.au

A keyword search was used to sort and rank the responses to these

questions.

The results are an un-weighted sample, but are reflective of the Southern

Cross Austereo audience. SCA brands reach approximately 40% of the

10+ population and approximately 46% of the 25-54 population in the five

metropolitan markets in Australia, suggesting it would be reasonable to

consider these results to be a fair if not fully balanced representation of the

opinions in these marketplaces.

Furthermore, as it is an online survey, the respondents would also be

skewed towards being ‘early adopters’ for technology, ‘trend setters’ in

general and likely to be a good early indication of brand leaders, trend

setters and early adopters in general.

These research surveys conducted by Austereo are done so to provide a

general understanding of the opinions, interests and attitudes of the

metropolitan marketplaces only.