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Legal technology and alternative legal service providers (ALSPs) are largely missing the mark in explaining how their products and services solves problems, according to a new report by  Baretz+Brunelle who offers communication and PR services to legal technology companies. 

Released last week, "Feel Their Pain: The 2019 Selling Legal Tech Report," which surveyed 100 corporate legal department senior executives and Am Law 100 and 200 law firms, found that only 34% of respondents agree that legal tech or ALSPs understand their business challenges.  

What's more, 46% of respondents also said that "uncertainty about whether the product would solve our problems" was the first or second largest reason why they didn't buy a product.

Still, around 90% indicated they are interested in knowing how tech products can solve their problems and said they are more likely to buy from a legal tech or alternative legal service provider that understands their business.

Baretz+Brunelle partner Kenneth Gary said the results weren't surprising, and they reflect how many legal tech companies are going to market without a clear understanding of the customer's needs. (Disclaimer: Gary previously worked at ALM Media.) 

"It confirmed there is market confusion," Gary said. "A lot of it is legal tech companies aren't facing the pain of their customers."

Although 30% of respondents said they resent frequent legal tech and ALSP sales contact and hold it against sellers, Gary cautioned that it's the quality and not quantity of the pitches that greatly sour interactions. 

"They need to tell a compelling story," he said. "They need to be able to articulate how and why their solutions can instantly help and empathize with their clients they are selling to." These pitches should include how the product makes the business more efficient and "align themselves as a partner and not as a full-on service," Gary added.

However, customers say legal tech and ALSPs' sales communications focus primarily on product features, according to the survey. Buyers do see solving their challenges as the second most-common message in legal tech and ALSP marketing, the survey found.

As legal tech companies and service providers continue to struggle to create and convey business solutions, a new era of legal operations managers is emerging in the legal industry. Instead of siting idly by, legal tech and ALSPs can partner with legal operation managers to improve efficiency and cost-savings, Gary said. But first, legal tech and service providers will need to have a product that addresses those problems.

"Successful legal service providers tell compelling stories," he explained. "They understand the problems their customers are facing. I think there needs to be adjustments: Some are doing a great job, but by and large many are not."