No longer is it acceptable to base your legal marketing strategies “on a hunch” and hope for the best. These days, it’s all about using quantifiable data.
With that being said, here are some of the most important legal marketing metrics your law firm should pay attention to in 2019.
Customer Acquisition Cost
TechTarget defines this as “the cost associated with convincing a consumer to buy your product or service, including research, marketing and advertising costs.” Calculating your customer acquisition cost can be very telling and offers insight into the overall effectiveness of your legal marketing campaign.
It tells you how far your investment is taking you and exactly how much it costs you on average to bring a new client on board. To figure it out, add up your total costs for research, marketing and advertising for a particular period (e.g. one month) and divide it by the number of new clients you obtained during that time.
Customer Lifetime Value
This metric tells you how much revenue you can expect to generate over the course of a client relationship. It’s a critical one to calculate if you value repeat business and strive to have clients seek you out for legal guidance beyond their initial case.
Customer lifetime value is a bit more complex, so I suggest checking out this resource from HubSpot to learn the details.
Net Promoter Score
As an attorney, your reputation is everything. What your clients say about you impacts your ability to generate new business, as well as your long-term sustainability. That’s where net promoter score comes in.
It’s a simple way to determine what percentage of previous clients will recommend your law firm to others.To calculate your net promoter score, you need to ask the following question on a survey.
On a 1 – 10 scale, how likely is it that you would recommend your law firm to a friend or colleague?
You then place respondents into one of three groups:
- Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
- Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
- Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
Average Time Spent on Site
Lastly, it’s nice to know how long visitors are spending on your law firm’s website. The longer they spend, the more likely they are to explore and engage with your content, learn about your services and ultimately seek out your legal guidance.
According to Spinutech, you’ll want visitors to hang around for at least two minutes. Of course, the longer, the better.
To determine the average time on site from Google Analytics, go to “Behavior” > “Overview,” and look at “Avg. Time on Page.”
It’s vital to keep your legal marketing campaign on the right track, especially as we roll into the New Year. Analyzing the legal marketing metrics listed here should give you a nice snapshot of how successful your campaign is. And if there are any problem areas, you’ll know what to address.