Marketing KPIs for Lawyers & Law Firms
KPIs for Lawyers
The world is digital. At this point, you can’t deny it. In order to survive as a business, you must have a digital presence and footprint to educate buyers and guide them to seek out your product or service. Given that all, or at least most of your potential customers begin their self-nurturing (“education”) online, you need to have an online marketing strategy and tactics to carry it out. Having a digital strategy isn’t enough, however. You need to measure performance and make sure that it’s actually working. To measure performance, you need key performance indicators (KPIs).
KPIs will give you insight into what’s working and what’s not. But before picking your KPIs and collecting the data, you must decide what your marketing goals are for the week, or month, or year. Let’s start talk about some examples of marketing goals and their respective KPIs. At the end of the article, I’ll guide you to an educational resource on KPIs and how to build out your dashboard.
Organic traffic refers to users that find and visit your website through a search engine. In order to get the best results through organic traffic, you must invest in Search engine optimization (SEO) strategies to target people who are already searching for services that you provide. Google analytics, a free tool, allows you to measure your organic traffic volume to get a sense of your website’s performance for key words in the search engine. Essentially, Google Analytics allows you to see and track how people found their way to your site. For example: do they come from search engines? Where do they land? How long do they stay for? Etc.
Pro Tip: Improve your content and you’ll improve your standing on the search engine results pages.
Leads are the people who visit your site. They obviously have a need and an interest, or else they wouldn’t be there. Getting them to your site is only one step. The next step is to encourage them to contact your law firm for a consultation. On average, conversion rates sit at about 2%. You want to make sure that you capture the data needed to pursue these leads and to convert them. For example, you want to capture their names, phone numbers, and email addresses via gated web-content or through some other tactics such as a free online webinar (check online, there’s plenty).
Not all leads are created equal, however. You want to clearly define what a high quality marketing lead looks like based on your ideal customer profile or online engagement metrics. In today’s noisy world and high bounce rates, volume of leads is less a metric of good performance than
Conversion rates are where the money is at. Conversion rates are the percentage of leads or in-bound traffic to your site that you convert into paid and profitable customers. Calculating this rate is important because it gives you a sense of whether the traffic you’re generating through SEO or paid ads are providing you with good quality leads that convert at the average (2%) or above average rate. If you’re seeing lower conversion rates, then you’re getting a signal that something has to change. That can either be your website, the content on your website, your website’s navigation, or the keywords you’re competing for and the copy on your digital ads.
Without sales, there can never be a business. This is obvious. Tracking your sales revenue and pegging it against your KPIs can help you understand what drives business for your firm. In other words, which marketing efforts are increasing your sales? This will prepare you to invest more into campaigns that have a direct impact on your revenue. You should also pinpoint the marketing campaigns that need improvement and eliminate the ones that don’t perform at all.
At the end of this KPI funnel, you still have one crucial KPI to measure: acquisition cost per customer. To calculate acquisition costs per customer, you add up all your marketing costs and divide it by the number of customers you acquired during a specified period of time (a year?). At the beginning, it is a best practice to aim for a 3:1 value-to-cost ratio. The three dollars you want to generate for every dollar invested should be based on the total lifetime value that you expect to generate from this one, new client.
It’s important to remember that the universe of KPIs you can track is nearly limitless. Don’t lose yourself in the data. Connect your KPIs to your actual business. and figure out what activities drive it.