Most lawyers we speak with do not know their recent marketing numbers, let alone how they compare to prior periods.
If you fall into this category, you are making a costly omission. You are likely mis-spending precious marketing dollars and don’t realize it.
Even more important, you are missing a growth opportunity. What is measured tends to improve, and improvements in marketing results generate increased revenue.
Tracking Basic Marketing Numbers
We will assume that you know number of leads received, appointments kept, and number of new clients signed each month.
Hopefully you are recording those three numbers on a tracking spreadsheet so you can compare months, quarters, and years. If not, start now.
Next, you should begin computing and tracking the following two numbers:
- Average client acquisition cost. This is simply your monthly marketing spend divided by your number of clients signed monthly. Because of the time lag between your spend and your signings, this number is best tracked on a rolling quarterly basis.
- Conversion percentages. If no-cost appointments are part of your signup process, two numbers should be tracked: (a) How many leads (forms and calls) set appointments? (b) How many appointments become clients?
For simplicity, we disregard missed appointments, meaning that a no-show is not counted as an appointment made.
Some lawyers tell us they keep these numbers in their head and so don’t need to write them down.
Would you trust the final score reported by a golfer who doesn’t use a scorecard? Neither would we, and we don’t rely on the acquisition cost and conversion percentages quoted us by lawyers who don’t use tracking sheets.
How can you compare time periods if you don’t record your numbers? How do you know if you are improving or backsliding if you don’t compare results received each month, quarter, and year?
If you want our help determining these critically-important marketing numbers, we have a basic tracking template for small law firms. Once the primary data is entered, the spreadsheet automatically makes and compares the calculations described above.