What marketing metrics do you use in your law firm to measure success or failure?
If you have problems trying to measure the success of your marketing efforts, it is worth considering whether it is because you either spend too much time on activitities that are not useful or you simply don’t know what activities are best to move prospects through your sales funnel.
There are some really poor metrics being used which do not help lawyers compete effectively today. For example, simply aiming to be on page 1 of Google is pointless if all people then see is a website that simply lists your services. Or getting a huge number of followers on Facebook is a waste of time if you don’t then find out whether they are key decision-makers looking for specific information to help them buy legal services and can’t channel them to have meetings with you.
Part of the problem is defining the right metrics in the first place that allow law firms to analyse what they are doing and make the necessary improvements.
They also need to focus their metrics on value added to relationships with prospects, something that tends to be overlooked .
So, here are some marketing metrics law firms should consider…
- Number of enquiries per marketing channel (i.e. via normal mail, SEO, LinkedIn, Facebook, industry events, etc);
- Number of enquiries that convert into initial meetings;
- Number of proposals submitted as a percentage of enquiries;
- Number of new customers acquired per marketing channel;
- Sales conversion (i.e. sales divided by enquiries);
- Number of transactions per customer;
- Revenue per customer;
- Total revenue per marketing channel;
- Gross profit per marketing channel;
- Marketing spend per channel;
- Marketing spend as a percentage of gross profit;
- Cost per enquiry (i.e. marketing spend divided by number of enquiries)
- Cost per customer acquisition (i.e. marketing spend divided by number of new customers);
You then need to think about your sales funnel and the specific steps you want prospects to take as you give them something of value and develop trusted relationships with them. This includes…
- Number of prospects that answer specific calls to action within given time frame;
- Number of contacts you plan to have with each prospect following a meeting (much easier to do if mapped out and /or automated);
- Number of contacts before prospects sign up as clients;
- Number of communications you have with NEW clients and the information you share with them after they sign up (this can all be automated and could, for example, be a series of ‘How To’ guides that get them feeling positive about becoming your clients).
These are the kind of metrics law firms need to consider if they want proper marketing and sales conversion performance indicators in place. Suffice to say, many firms don’t go into this much detail and are happy to have a vague idea about how much they spend on some activity if they happen to get some new clients as a result.
With increased competition, and the need to think about new ways of running law firms (e.g. in the UK with the impact of the Legal Services Act), law firms have to know their numbers even more as they look for new ways of winning new clients.
Whatever marketing channel used – traditional, social media or a hybrid – metrics are important as they can help law firms channel their efforts towards activities that are more likely to generate leads and push prospects through sales funnels until they ask to become clients.