Developing market research that will boost the bottom line.

• Author: Waxberg, Jason

There is a general rule in business: As uncertainty increases, information about your market plays an ever more important role in your firm's growth and, in some cases, existence. As markets continue to change composition and complexion, the benefits of market research can be just as significant to the overall success of a firm as legal research.

Fundamentally, the more information a law firm knows about a market, the more likely it is to present the correct marketing mix--offering the right mix of services at the correct pricing level in the right market to the right audience. At the strategic level, market research can have a significant impact on both the top and bottom line when the program is built into the everyday workings of a firm by providing insights into a market by analyzing the four core market forces: client analysis, market analysis, industry analysis and market competition.

Together, these four insights provide a full spectrum view of the marketplace that can lead to a significant competitive advantage both in retaining clients and in acquiring new clients.

Building Out a Research Program Before undertaking any research project, the firm must believe market research is more than a business expense: It is a capital investment. When a firm decides to commission research, personnel and financial resources must support it accordingly. That raises the immediate question of "make-or-buy." As with everything in business, there are advantages to managing a program in-house, having it outsourced or combining the two.

When market research requires multiple steps, the most efficient allocation of resources may be to outsource certain components. Outsourcing components can leverage the advantages of the in-house staff and outside consultants. A key factor in the "in-house vs. outsource" decision is taking inventory of your marketing team. Having a marketing department does not mean that the department has the ability to perform market research. For in-house research to be beneficial, the firm must have marketers with specific market research experience.

There are several advantages to conducting market research in-house. Your personnel have greater familiarity with your firm and have a better grasp of the relevant background information. Keeping it in-house enables the firm to exert more contact and control while the research is being conducted. And when your staff conducts the research, they gain experience that can be beneficial in...