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Data Analytics in the Legal Sector

The end of September marks some exciting events for Ecovis Wingrave Yeats’ Data Analytics team. On Monday 24 September, we arrived to exhibit at the Alternative Legal Management Summit, for which we were also a partner sponsor. This event brings together law firm leaders with the vision to innovate, collaborate, and transform their business.

At the summit, we hosted a round-table discussion entitled; 'A practical discussion of Data Analytics case studies, delivering a competitive advantage to Law Firms' in collaboration with Stephens Scown, one of our clients. This session offered two perspectives of implementing data analytics projects in practice:

  • one from that of the firm and the impact that these projects have had on the business;
  • and one from that of the practitioner in how the outcomes can be achieved, the necessary skillsets, and the challenges to overcome.

Case study: Client performance analysis

Background

Our client was keen to understand the profitability of their clients and eradicate working practices that resulted in low value work.

How did we help?

We determined the firm’s reliance on their top clients and identified a significant number of unprofitable clients. We analysed the firm’s billing records to segment their clients into meaningful groups based on fees and profitability. By comparing these groups, we quickly identified important clients and targeted actions across groups, such as cross-selling opportunities and team structure improvements practices throughout the business and helped recognise opportunities for behavioural improvements and a significant potential for increased profitability.

The result

With our approach, the firm was better equipped to...

  • Identify their reliance on their key clients
  • Identify problem clients at every level of value
  • Target problem clients with focused actions, providing a better service at a profitable level
  • Improve recovery rates to directly impact the bottom line
  • Eradicate low-return work
  • Identify bad billing practices in the firm
  • Have a clear overview and understanding of their customer base

The analysis performed by the Ecovis data analytics team delivered some results that were surprising and worrying to us. Along with shining a new light on our most important clients, the client segmentation framework they presented uncovered a significant subset of unprofitable clients and quantified the striking overall effect of marginal gains to be realised from improved working practices. We were presented with a potential opportunity to improve net profit by up to 8%. Our management team has been set on a course of enhanced decision making, supported by the data analysis that Ecovis provide. Data analytics is now an inherent part of our strategy.” Robert Camp, Managing Partner, Stephens Scown.

Read more about our Data Analytics service here.

Before embarking on any new projects, we recommend that you seek guidance from a Professional Advisor.