By analyzing five key metrics, law firms will be empowered to make smarter and more decisive spending decisions.
#1 — Where are the leads coming
In the legal industry, a marketing
“lead” is the initiation of potential client interest or inquiry into a firm’s
Most law firms use a variety of tactics to gain leads. Potential clients may
be reached through a variety of channels, including online ads, print ads, or
It’s important to capture the source
of each lead. The first step in better
understanding and managing marketing is keeping track of where each lead
came from and crediting the appropriate advertising medium.
#2 — How are they converting?
A conversion occurs when an interested person takes a first step towards
becoming a paying client.
A conversion could be the number
of people who signed up for a newsletter, clicked on a link within an email,
or even better, picked up the phone
and called. The final step in the conversion process – which should also
be measured – is when the interested
person becomes a client.
Learning how leads are converted is
essential to determining what is work-
ing and what isn’t. What messages were
used, how they were conveyed and
where the ads were placed (e.g. online
banner ad, magazine ad, etc.) can be
described as the marketing tactics.
#3 — How much revenue are they
This is a meaningful measurement
that is key to tying a firm’s marketing
efforts back to tangible results.
Once the source of a lead has been
determined, and the marketing tactics
that have converted interested parties
to paying clients have been recorded,
the next step is to link total revenue
generated by these clients back to the
Without this step there is no accurate way to measure the success of an
advertising campaign. For example, a
firm takes out an ad in the Weekly Post
newspaper which generates five paying clients. These paying clients create $50,000 in total billable revenue
over the next year.
Now let’s assume this same firm is
also running an ad online that generates 10 paying clients. The firm decides
to cancel the Weekly Post newspaper
ad because it generated a lower number of paying clients compared to its
online ad. However, this may have
been a bad decision because of the
high revenue associated with the clients from the Weekly Post ad, which
has not yet been taken into account.
By analyzing the billed revenue
generated from both sources over the
same period of time, the firm would
have been able to accurately decide
which ad to cancel. Without this crucial
step, there is no way to know which
advertising media are paying the high-
#4 — How much was spent?
This is one of the easiest measurements to keep track of; simply tally
the total expenses for each tactic.
This includes hard costs associated
with running an ad, such as the cost to
place a magazine ad or the potential
cost of having it created. This step allows firms to link back hard costs with
Some marketing tactics are more
costly than others, and as good business people know, double-down on
the cost effective channels – compared
to the return – and let go of the costly
#5 — What’s the ROI?
Marketing return on investment (ROI)
measures the gains versus losses associated with marketing and advertising initiatives.
This key metric ties it all together.
By analyzing where leads are coming
from, how they are converting, the
revenue they generate, and the total
cost of acquisition, firms will be able
to better measure the effectiveness of
marketing dollars spent.
It also allows for the continued optimization of campaigns ensuring firms
aren’t wasting their spend on ineffective ads. Investing in a robust ROI evaluation process today will allow for
more effective marketing and additional clients in the future.
With a limited budget, it’s hard to know how to invest in
marketing for new business development.
It is possible to effectively allocate marketing dollars if key
marketing metrics are measured and understood.
Recently launched ‘Campaign Tracker’ by Clio is a marketing and analysis tool that
helps law firms see exactly how their advertising efforts are paying off. To learn more,
go to clio.com/campaign-tracker.
Are you looking for a practice management solution for your firm? Read more about
practice management technology at www.goclio.com/resources.
Get started with Clio now for free at https://landing.goclio.com/azbar.html.
5 Key Marketing Metrics Every
Law Firm Should Be Tracking