Law Metrics

Content

• 0.0 Executive Summary
• 1.0 Introduction
  • Research rationale
  • The study offers a detailed and timely update to a range of issues in the legal services market in advance of the deregulation of the market scheduled to occur in 2007
  • Research sample
  • Consumer questionnaire
  • Small business questionnaire
  • Strengths and weaknesses
  • The Internet research methodology is characterised by several advantages and drawbacks
  • Finaccord
  • Other consumer and small business research studies
  • UK consumer research publications
  • UK small business research publications
  • IPT / IMRS
  • Errors, omissions and limit of liability
• 2.0 Consumer Behaviour
  • Introduction
  • Use of legal services generally during the last five years
  • Propensity to use legal services is relatively uniform above the 16-24 age group
  • Specific legal services paid for by consumers during the last five years
  • Conveyancing of residential property is the legal service most commonly used by consumers
  • Average annual expenditure on legal services
  • Among consumers buying legal services, average annual expenditure approaches 2,400
  • Current penetration rates among consumers for wills
  • A very significant percentage of consumers lack a will but are thinking of making one
  • Satisfaction with aspects of service offered by legal services providers
  • Over 25% of consumers using legal services are dissatisfied by the value for money received although this figure rises to over one third among those who are able to express an opinion
  • Means of finding out about legal services providers
  • Recommendation from friend or family is the most common method of identifying legal firms
  • Motivation for using legal services provider although it is less important than geographical proximity when actually selecting a legal firm
  • Willingness to switch to a new provider following deregulation
  • A high number of consumers are open to new providers of legal svs. following deregulation with apparent willingness to switch rising in line with actual use of legal services
  • Willingness to use specific types of new provider following deregulation
  • A significant array of organisations could potentially begin to offer legal services to consumers
  • Banks, insurers and other financial providers are viewed as the most viable new entrants
  • Many members of non-universal affinity groups would use their affinity for legal services including over 75% of members of professional associations and trade unions
  • Willingness to use new provs. for specific legal services following dereg.
  • Consumers would be most likely to consider new providers for residential conveyancing
  • Attitudes to using new provs. for spec. legal documents following dereg.
  • Consumers are confident that many types of legal doc. could be prepared by new providers
  • Factors causing use of new providers in the wake of deregulation
  • Ten factors are viewed as very or quite important by over 50% of the sample
  • Willingness to interact with new providers through remote interfaces
  • The lack of an initial face-to-face option would not be a problem for most consumers especially for those aged between 25 and 54 and with a higher annual household income
  • Almost 50% of the sample express a preference for at least some on-going face-to-face contact
  • Views related to charging structure of traditional solicitors and law firms
  • Opinion is divided with respect to whether traditional legal firms offer value for money
  • Many consumers have little idea of what constitutes a reasonable charge for legal services
  • Expectations related to charges currently payable for legal services
  • Few consumers anticipate paying 750 or more for residential property conveyancing
  • Consumers are prone to under-estimating the current fees charged for drawing up a wil with many also in the dark with respect to the hourly charges payable for other legal services
  • Expectations related to charges payable for legal servs. following dereg.
  • Most consumers anticipate falling fees for legal services in the wake of deregulation
  • Willingness to use specific potential new providers following dereg.
  • Which specific organisations do consumers view as obvious providers of legal services?
  • Financial institutions would benefit from a number of factors in the context of legal services
  • However, certain primarily non-financial entities are also viable providers of legal services although the transformation that would be required by others might well prevent their entry
  • The correlation between customer numbers and likelihood of use for legal services is weak
  • A similar analysis for current customers produces a somewhat different picture
• 3.0 Small Business And Self-Employed Individual Behaviour
  • Introduction
  • Use of legal services generally during the last five years
  • Almost 40% of small businesses have used legal services during the period since 2001
  • Average annual expenditure on legal services
  • The results suggest that average annual expenditure is modest among small businesses although the market for company and commercial law is believed to be worth over 6 billion
  • Specific legal services paid for by sbs. / s-eis. during the last five years
  • Legal services related to business contracts have been utilised with greatest frequency
  • Satisfaction with aspects of service offered by legal services providers
  • Small businesses and the self-employed are most likely to find fault in transparency of pricing
  • On the other hand, accuracy and travel time / proximity are least likely to cause concern
  • Means of finding out about legal services providers
  • Knowledge of legal services providers is most frequently attributable to prior usage
  • Motivation for using legal services provider although it ranks quite evenly with other factors when the final choice of legal firm is made
  • Willingness to switch to a new provider following deregulation
  • The opinions of small businesses and self-employed individuals are quite evenly split
  • Willingness to use specific types of new provider following deregulation
  • A large proportion of small business and self-employed resps. will stick to traditional firms
  • Accountancy firms represent an obvious alternative source of legal svs. for small businesses
  • Professional and trade associations appear to be effective channels for selling legal services although only around three in ten small businesses belong to such an association
  • Willingness to use new provs. for specific legal services following dereg.
  • Propensity to use new providers varies according to the type of legal service in question
  • Attitudes to using new provs. for spec. legal documents following dereg.
  • Certain types of legal document are straightforward enough to be automated or templated
  • Factors causing use of new providers in the wake of deregulation
  • Known expertise and better value for money are the most important considerations
  • Willingness to interact with new providers through remote interfaces
  • Remote channels hold no fears for most small businesses and self-employed individuals
  • Nearly two thirds of the sample appears able to manage without face-to-face interaction
  • Views related to charging structure of traditional solicitors and law firms
  • Over 40% of respondents disagree with the notion that trad. law firms offer value for money
  • Many respondents have little idea of what constitutes a reasonable charge for legal services
  • Expectations related to charges currently payable for legal services
  • Few small businesses have a clear idea of typical hourly charges for legal work
  • Expectations related to charges payable for legal servs. following dereg.
  • Over 40% of respondents anticipate a decrease in legal fees of 10% or more
  • Preferred charging structures for legal services
  • Hourly charging rates are at odds with the preferred charging structures of small businesses
• Graphics / Tables
  • Sample of consumers broken down by age group, household income band and geographical location
  • Sample of sb. and s-eI. broken down by annual turnover, number of employees and business sector
  • Sample of small businesses and self-employed ind. broken down by geography and longevity of business
  • Breakdown of UK enterprises by legal status, number of employees and business sector
  • Use of legal services generally by consumers, 2001-6
  • Use of legal services generally by cons., split by age group, annual house. inc. and geography, 2001-6 (data)
  • Specific legal services paid for by consumers, 2001-6
  • Average annual expenditure by consumers on legal services
  • Current penetration rates among consumers for wills, 2006
  • Current pen. rates among cons. for wills, split by age group, annual house. inc. and geography, 2001-6 (data)
  • Consumer satisfaction with the service provided the last time that legal services have been paid for, 2006
  • Cons. satisfaction with the service provided the last time that legal services have been paid for, 2006 (data)
  • Means of finding out about the provider used the last time that legal services have been paid for, 2006
  • Motivation for choosing the provider used the last time that legal services have been paid for, 2006
  • Cons. willingness to switch to a new provider in the wake of deregulation of the legal services market, 2006
  • Cons. willingness to switch to a new provider split by age group, annual household inc. and geography, 2006
  • Cons. willingness to use specific types of new provider in the wake of dereg. of the legal services market, 2006
  • Cons. willingness to use spec. types of new provider in the wake of dereg. of the legal svs. market, 2006 (data)
  • Willingness to use non-universal affinity groups, 2006 (among consumers belonging to affinity group)
  • Consumer willingness to use new providers for specific types of legal service, 2006
  • Consumer willingness to use new providers for specific types of legal service, 2006 (data)
  • Consumer attitudes towards using new providers for specific types of legal document, 2006
  • Consumer attitudes towards using new providers for specific types of legal document, 2006 (data)
  • Importance of factors causing cons. to use new providers in the wake of dereg. of the legal svs. market, 2006
  • Imp. of factors causing cons. to use new providers in the wake of dereg. of the legal svs. market, 2006 (data)
  • Consumer willingness to interact with new provs. through remote interfaces at the initial point of contact, 2006
  • Cons. willing. to int. with new provs. through remote ints., split by age, ann. house. inc. and geog., 2001-6 (data)
  • Consumer willingness to interact with new providers through remote interfaces on an on-going basis, 2006
  • Cons. views with reg. to whether the charging structure of trad. sols. and law firms rep. value for money, 2006
  • Cons. views with reg. to the ext. to which they have been over-charged the last time legal svs. paid for, 2006
  • Cons. exps. with regards to the charges that they would ant. paying currently for convey. of res. property, 2006
  • Cons. exps. with regards to the charges that they would anticipate paying currently for drawing up a will, 2006
  • Cons. exps. with reg. to hourly charges that they would ant. paying for other advice from a sol. or law firm, 2006
  • Cons. exps. with reg. to change in charges that they would ant. paying after dereg. of the legal svs. mkt., 2006
  • Willingness of all consumers to use specific potential new providers, 2006 (data) (1)
  • Willingness of all consumers to use specific potential new providers, 2006 (data) (2)
  • Existing relationships of consumers with specific potential new providers of legal services, 2006 (data) (1)
  • Existing relationships of consumers with specific potential new providers of the legal services, 2006 (data) (2)
  • Correlation between likelihood to use and existing rels. of cons. with spec. potential new provs. of legal svs.
  • Willingness of current customers to use specific potential new providers, 2006 (data) (1)
  • Willingness of current customers to use specific potential new providers, 2006 (data) (2)
  • Use of legal services generally by small businesses and self-employed individuals, 2001-6
  • Average annual expenditure by small businesses and self-employed individuals on legal services
  • Specific legal services paid for by small businesses and self-employed individuals, 2001-6
  • Sb. and s-eI. satisfaction with the service provided the last time that legal services have been paid for, 2006
  • Sb. and s-eI. satisfaction with the service provided the last time that legal svs. have been paid for, 2006 (data)
  • Means of finding out about the provider used the last time that legal services have been paid for, 2006
  • Motivation for choosing the provider used the last time that legal services have been paid for, 2006
  • Sb. / s-eI. willingness to switch to a new provider in the wake of deregulation of the legal svs.market, 2006
  • Sb. / s-eI. willingness to use specific types of new proV. in the wake of dereg. of the legal svs. market, 2006
  • Sb. / s-eI. willingness to use spec.types of new proV. in the wake of dereg. of the legal svs. market, 2006 (data)
  • Willingness to use non-universal affinity groups, 2006 (among sbs. and s-eis. belonging to affinity group)
  • Willingness to use non-universal affinity groups, 2006 (among sbs. and s-eis. Belong. to affinity group) (data)
  • Sb. / s-eI. willingness to use new providers for specific types of legal service, 2006
  • Sb. / s-eI. willingness to use new providers for specific types of legal service, 2006 (data)
  • Sb. / s-eI. attitudes towards using new providers for specific types of legal document, 2006
  • Sb. / s-eI. attitudes towards using new providers for specific types of legal document, 2006 (data)
  • Imp. of factors causing sbs. and s-eis. to use new provs. in the wake of dereg. of the legal svs. market, 2006
  • Imp. of facts.causing sbs. and s-eis. to use new provs. in the wake of dereg. of the legal svs. mkt., 2006 (data)
  • Sb. and s-eI. willingness to interact with new providers through remote ints. at the initial point of contact, 2006
  • Sb. and s-eI. willingness to interact with new providers through remote interfaces on an on-going basis, 2006
  • Sb. and s-eI. views with reg. to wh. the charging struct. of trad. sols. and law firms rep. value for money, 2006
  • Sb. and s-eI. vs. with reg. to the ext. to which they have been over-chgd. the last time leg. svs. paid for, 2006
  • Sb. and s-eI. exps. with reg. to hour. chgs. that they ant. pay. currently for legal ad. from a sol. or law firm, 2006
  • Sb. and s-eI. expectations with regards to the change in the charges that they would anticipate paying, 2006
  • Small business and self-em. views with regards to their preferred charging structure for legal services, 2006