ClioCon 2024: 4 Key Takeaways from the Legal Trends Report
The VXT team recently attended the Clio Cloud Conference 2024 — better known as ClioCon — in Austin, Texas. Hosted by Clio, the largest case management system in North America, the conference brought together the best minds in law and technology to explore the future of legal practice.
This year’s event also saw the release of Clio’s 2024 Legal Trends Report, which highlighted several major shifts that law firms of all sizes should take note of. Will, Luke, and Chelsea from VXT were there connecting with new and existing clients and gaining key insights into the latest legal trends and innovations. Let’s dive into the most important takeaways from ClioCon and what they mean for your law firm.
The Legal Trends Report: What you need to know
Clio’s 2024 Legal Trends Report is a must read for legal professionals. This year’s report explores how law firms can improve client experience, the impact of automation on workflow efficiency, and the growing trend of moving away from the billable hour.
The report gathered anonymised data from tens of thousands of Clio users, 1,000 legal professionals, 1,000 people from the general U.S. population, while also testing the responsiveness of 500 law firms through a secret shopper experiment. These findings provide a clear picture of the current challenges and opportunities facing law firms. Let’s break down the highlights.
Client communication is more important than ever
One of the most eye-opening findings is just how much firms are missing out on potential business due to poor communication. Only 33% of firms responded to emails, and just 40% answered phone calls promptly. Nearly half of the law firms tested in a secret shopper experiment didn’t answer their phones at all. That’s a lot of potential clients falling through the cracks.
Only 33% of firms responded to emails, and just 40% answered phone calls promptly.
Better communication isn’t just a nice-to-have—it’s a necessity. Clients who had their calls answered felt 72% more satisfied with their service compared to those who only communicated via email (22%) or intake form (26%). Additionally, 39% of clients who had their calls answered said they’d promote the law firm, compared to just 12% for other methods like chatbots.
The report also shows when firms fail to answer phone calls, 73% of clients become detractors. However, when calls are answered, this drops to just 38%. Clearly, being responsive via phone not only improves client satisfaction but also reduces the risk of negative reviews and lost clients.
VXT’s cloud-based phone system is essential for improving client experience. By integrating with case management systems like Clio, VXT syncs your contacts so you always know who’s calling, meaning you can always prioritize clients over other callers.
Listen to our podcast episode, "The one mistake that's costing law firms new clients" for more insights on how VXT can improve the way you communicate.
Automation and AI: The future for law firms?
Automation is transforming law firms. According to the 2024 Legal Trends Report, up to 74% of a law firm’s billable tasks can be automated. While complex legal tasks like negotiating settlements still require human intuition, automation is perfect for routine work. For example, attorneys using VXT’s legal phone system can make and receive calls that are automatically transcribed, summarised, and saved directly to a case in Clio.
By automating manual paperwork such as time recording and file notes, VXT can save attorneys five to ten minutes per call. In an industry where billing is often measured in six-minute increments (more on this in a minute!), these time savings can significantly impact profitability.
In addition, AI adoption is skyrocketing, with 79% of law firms now using AI to some extent — up from just 19% last year. While the question “Will AI replace lawyers?” lingers, the truth is that AI is enhancing legal practice management software rather than replacing attorneys. It’s helping firms become more efficient and competitive, in turn delivering better outcomes for clients.
The end of the billable hour?
As more tasks become automated and time tracking becomes less necessary, law firms are switching to flat-fee billing, allowing them to retain the value of their services without being limited by time. The report shows a 34% rise in flat-fee billing since 2016, with firms charging 20% more for these cases. As automation cuts down task times, firms that bill by the hour might see less revenue. But by using flat or fixed rates, firms can handle more cases and stay profitable by being more efficient.
Clients also prefer the predictability and transparency of flat fees, with 71% preferring to pay a flat rate for their entire case and 51% choosing it for individual activities. Firms that switch to flat-fee billing are benefiting from quicker billing cycles and faster payments. They’re billing five times faster than those firms relying on hourly billing. Even better? They’re nearly twice as likely to get paid immediately after closing the case too. It’s clear that this change is improving efficiency, with matters billed on an hourly basis taking 2.6 times longer to close compared to flat fee matters.
At VXT, we support firms that are still tracking billable hours by automatically recording time spent on phone calls in legal practice management systems like Clio. Even if you no longer bill by the hour, tracking the time you spend on the phone with clients is crucial so that you can understand your costs.
The Tech Advantage: Why investing in Legal Tech matters
Adoption of AI in law is happening fast, and firms that embrace technology are reaping the rewards. Practices with higher-than-average productivity — billing more than the industry standard of three hours per day — spend 41% more on marketing and 12% more on software, leading to a 21% increase in profitability. This demonstrates a clear connection between tech adoption and financial success.
Today, 50% of clients prefer law firms that use AI-powered software, an increase from 46% just a year ago. Tech-savvy firms, like those using VXT and Clio, are experiencing greater operational efficiency and higher client satisfaction. Automation of repetitive tasks and better communication tools are helping firms deliver faster, more accurate legal services, which clients are actively seeking.
We see firsthand how integrating with Clio helps firms automate repetitive tasks, improve communication, and manage cases more effectively. If you’re still unsure about the value of tech, take a look at our recap of ALPMA 2024 for more on how tech-savvy firms are pulling ahead.
What’s next for your firm?
ClioCon 2024 and the 2024 Legal Trends Report make it clear: the future of legal practice will be tech-driven. From improving client communication, to embracing automation, or rethinking your billing model, staying competitive means embracing these changes.
At VXT, we’re all about helping law firms adapt, providing a legal phone system that integrates with case management systems like Clio to automate routine tasks, keep track of client interactions, and deliver better service.
With ClioCon heading to Boston in 2025, we’re looking forward to connecting with even more firms who are ready to embrace change. Want to hear more? Check out our podcast below, where we breakdown this year’s Legal Trends Report and share our experiences from the event!
