Greetings!
You may have heard about Thomson Reuters (Westlaw) ill-fated decision to reduce the available hours of their Reference Attorney services in January. If not, the breakdown is that the company informed customers that it would no longer provide 24/7/365 access to Reference Attorneys and would instead shift to core business hours. The decision was met with such an enormous backlash that the company chose to backpedal within the same month of the announcement.
Whatever fallout Thomson Reuters may experience as a result of the debacle remains to be seen. However, the decision signals changes to come for firms that rely on legal library services.
The Negative Impact on Law Firms
The decision by Thomson Reuters to cut 24/7 Reference Attorney service is a sign that the company is trying to increase profitability. Unfortunately, it made the decision to do so at the expense of customer needs. Instead of adding new services or creating new, valuable products, the company cut the expense of labor and benefits by reducing one of its most valued services. Attorneys are not afforded the luxury of a 9-5 schedule. Neither is their research staff. Cutting accessibility to important advice reduces the usefulness of the overall product and there’s little doubt as to why customers were so upset.
What Does this Event Signal for the Future of Legal Research Services?
This event signals that legal research providers are making new, and sometimes desperate, attempts to increase profitability circumventing the traditional course of releasing new products through research and development. Thomson Reuters may have made the most recent and public error, but it is far from the only company trying new methods.
What does this mean for you? You should be wary of what changes may be in store for your legal research services. With the internal attempt to cut expenses effectively quashed, the next step for research providers will be to possibly increase the burden on clients by raising costs.
Sales Tactics to Watch For
- Contracts: Stricter enforcement of existing contracts. Reps may become sticklers about monitoring how services are utilized to close up any revenue loopholes.
- Early renewal: Representatives may increase pressure on firms to renew early. One of the most common tactics is to create urgency by telling customers that prices are set to increase soon or that a given price is a limited time offer.
- “Accidental” access: Is your firm suddenly receiving access to a service not listed in the contract? It may not be an accident. Some representatives will unlock the service so they have an opportunity to upsell you on it later.
- Negotiating Price: Future negotiations are going to be met with resistance. I imagine reps will be trained to say “no” more often.
Questions to Consider
If you’re feeling the pressure to renew a contract, pay more or purchase additional services, here are some important questions to consider:
- What new products or services has the company added to justify their price increase?
- Has your service been reduced or altered in any way throughout the duration of your contract?
- What benefit is there to renewing early for you?
- Could you gain a better deal by taking time to review the decision or seeking the assistance of a consultant in the renewal process?
Thomson Reuters displayed a fundamental misunderstanding of its customer base when it made the choice to cut service hours. In doing so, however, it also did all legal research customers a favor by alerting them to the trouble that lies ahead. Keep this information in mind the next time you see your rep’s number appear on the caller ID. It could save you time, trouble and money.
Oh, by the way, I read that Lexis Reference Attorneys are offering to fill the void until the Westlaw Reference Attorneys are back up on January 18th. You can call 800.543.6862 to get help with your legal research needs. Additional after-hours and weekend staffing have been added by Lexis to handle the increased calls.
Legal Counsel Consulting has the resources to evaluate contracts to assure competitive pricing.
If there is any way I can help or if you would like to schedule a brief conversation, please feel free to contact me.
Best regards,
George
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