The U.S. legal industry has more than 100,000 firms, with in- dustry revenue growing at ap- proximately 1% per year. The majority of firms have fewer
than five attorneys.
For these smaller firms, it’s tough to
stand out in this competitive field.
New client leads are extremely important, and client acquisition is difficult.
New Client Leads – Lost
Call data indicates that approximately
20% of phone calls and potential
leads come in outside of business
hours for law firms working in the
criminal, personal injury, and family
Potential clients calling during business hours on some days have more
than a 50% chance of reaching voice-mail, if an attorney is responsible for
answering her/his own calls.
The recent economic recession brought
about massive disruption in the market
through rising unemployment and unprecedented price competition. Though
the legal industry is stabilizing after
the recession, more firms are looking
to operate leaner and cut down one
of the largest expenses that law firms
face – wages.
In addition, a threat exists from the
continued trend of consumers cutting
costs by utilizing user-friendly online
legal tools such as LegalZoom, legal
document templates and other ‘
bud-get-saving’ legal resources.
How to Grow Your Firm
There are dozens of ways that any
business can cut costs or improve efficiency, but the legal industry has three
key factors that contribute predominantly to a firm’s success.
uMaximize Billing Hours and Minimize the Time Spent on Everything Else
You get paid for practicing law and
helping clients through a difficult time
in their lives. It’s obvious, but the
more time you spend practicing law,
the more revenue your firm will make.
Perhaps not as obvious, is that the
more law you practice, the more satisfied you will be with your career. It’s
rare to find an attorney who enjoys
the non-legal components of the job.
The key is to build a trusted team of
vendors who are experts in their fields
to support your practice in the administrative areas.
vMaximize Marketing Spend and Drive Down the Cost of Client Acquisition
Competition in the market is fierce,
and money spent on marketing can be
a significant portion of a law firm’s
non-payroll costs. A few pointers:
n;Minimize Cost Per Lead (“CPL”):
Analyze your firm’s marketing
channels, find the lowest cost per
lead, and allocate additional funds
to that channel. For example, if you
spend $1,000 per month on radio
ads and receive four leads, and
$1,000 per month on digital
marketing and receive two leads,
the conclusion most likely is to
allocate more money to radio. The
CPL is $250 ($1,000/4) for radio,
and $500 for digital marketing
n;Increase Client Acquisition Conversion
Rates: As you know, leads are not
clients; leads must be converted
into clients. Be aware that the
average ‘cost per click’ for legal
keywords is $500 in most areas,
and after spending that $500, the
probability of selling your services
to a new client from your website
is typically only 5% – 20%.
n;According to consumers, customer
service agents/receptionists failed
to answer their question 50% of
the time. And, in the last year, 67%
of customers have hung up the
phone out of frustration when they
could not talk to a real person. It is
vital to ensure that a knowledgeable and personable individual is
answering your incoming phone
n;Providing personal and prompt service to incoming prospective clients
can be a competitive advantage.
Make sure every person who interacts with your live call-in leads is
trained and knows how to best present your law firm. Other tactics to
maximize capturing leads into clients
include taking a sales seminar with
your staff, improving your marketing
materials, and implementing a CRM
software application to track leads.
wDifferentiate Your Brand
Clearly, clients want attorneys with experience in the area of law that they
are seeking help. Leverage your focus
and experience your specific area(s) of
law in your marketing materials and
website. Describe your experience,
feature client testimonials when possible, and detail your credentials.
In addition, define one or two
unique characteristics about you and
your firm that will resonate with potential clients. This is your firm’s competitive advantage, also known as its
point of difference.
How to Maximize Client Acquisition
for Small Law Firms
PARKER DAVIS, CEO
ANSWER 1, LLC
With packages starting at just $239 per month, find out what Answer 1
can do for your law firm’s efficiency. Take advantage of the innovative
cost-cutting and time-saving solutions that Answer 1 provides such as
24/7 phone support, lead qualification, and appointment scheduling.
Contact one of our Legal Account Specialists at 602.234.0111
3820 N. 3rd Street, Phoenix, Arizona 85012
Creating your brand, marketing your firm, managing cases, and
keeping up with administrative functions all require time and
What is the most effective way to turn new leads into clients while
you are running your practice?