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Is Your Law Firm’s Marketing Working? Free Law Firm ROI Calculator

Law Firm Marketing Guide
FirmPilot Overview
  • Table of Contents

Intro to the Marketing Playbook for Law Firms

Is Your Law Firm’s Marketing Working? Free Law Firm ROI Calculator

Measuring Results Of Your Firm’s Marketing Efforts

Every time a person clicks on one of yours ads, every social media post, and every billboard your firm is charged. We invest, not spend, on marketing for our law firms to grow them. Marketing gets us seen in a crowded and competitive landscape of firms offering similar services because you cannot sign a client who never learns of your existence.

The goal is simple, your revenue from new clients and cases must be greater than your marketing and operating expenses. This equates to an ROI (return on investment) of your marketing spend.

Sometimes you breakeven, meaning your spend = the increase in revenue brought in from marketing. Lastly, there is one other very scary outcome: “the net negative.” Spending money on marketing and getting little-to-return is a very possible and realistic nightmare. Focusing on the wrong things (hype, overly pretty videos, and marketing base don guess or gut-feelings) often leads to this.

Unfortunately, everyone has to take that risk. We have built FirmPilot’s AI Legal Marketing Engine to both (1) avoid that risk of a loss and (2) significantly increase the ROI (more clients) FirmPilots customers get from their marketing investment. None of this even becomes possible without being able to measure the ROI as a hard number, so I want to breakdown and share how to easily calculate your firm’s ROI from marketing in this chapter of our free lawyer marketing playbook.

The Metrics You Need To Start Calculating ROI

You don’t need to be a marketing expert or data wiz to know the return from your firm’s marketing spend. This is easy math.

You’ll want to know (at the very least) these two performance indicators, or you risk not being able to answer, “Is my marketing working or not?”

The Traffic Metrics

Do people actually find and go to your site, and people that don’t already know you. Some of the most beautiful websites never get seen, they get stuck in purgatory on the 5th, 6th, or 7th page of google.

Tough news: There are 10,000+ firms who can and have built a really really nice website. You need to show the world (google) why yours should rank higher when someone searches for a service you offer in your part of town.

But back to the metrics, traffic. How many people actually find and got your site. This is the high-level metric we should start with, and it’s easily accessible through many tools, such as Google Analytics which is free.

Analytics dashboard displaying data on user acquisition and session sources. New users are largely from Organic Search, while Direct sessions are the highest among top campaigns.

The Conversion Tracking Magic

Next, you want to measure your law firm site’s SEO results. Meaning what percent (%) of your website traffic turns into a leads. Then what % of your leads turns into clients.

For example, if you get 1,000 website visitors every month and 10% call, email, or contact you in some form.. you end up with 1,000 x 10% = 100 leads.

Then let’s say you convert 10% of your leads, you end up with 100 x 10% = 10 new clients every month.

So how do you grow your firm’s revenue:

  1. More website traffic at the top
  2. Better conversion ate of traffic to leads in the middle
  3. Improve the conversion ate of leads to clients at the bottom
 
Lastly, 10 new clients per month x $(your average revenue per client, example $10,000) = $100,000 worth of client incoming monthly. This is the number you need to compare with your cost, as shown below:
Image showing a formula for calculating content marketing ROI: (Return - Investment) / Investment × 100.

Tracking Returns from All Sources: A Comprehensive Approach

In the realm of digital marketing, it is crucial to recognize that the success of a campaign is not solely determined by the keywords utilized, the number of backlinks acquired, or the on-site practices implemented. The true measure of a campaign’s effectiveness lies in the meticulous tracking of SEO efforts. Without a robust system for monitoring metrics, it becomes nearly impossible to ascertain which tactics are driving conversions and contributing to the overall success of the campaign.

For law firms, the implications of this reality are significant. To optimize the performance of their websites, it is imperative to track conversions from all sources, including phone calls and other channels. While tools such as Google Analytics 4 (GA4) provide valuable insights into goal tracking, a comprehensive approach to measuring results is necessary.

 

Phone Call Conversions: A Vital Metric

In the legal industry, potential clients often seek to schedule a free consultation with a law firm, presenting a prime opportunity for the website to captivate and convert prospects. To effectively track the origin and behavior of this traffic, it is recommended to implement two distinct call-tracking systems: static and dynamic.

Static call tracking allows law firms to monitor conversions stemming from a single phone number, while dynamic call tracking assigns multiple numbers to individual referral sources. By employing these systems, law firms can eliminate the confusion that arises from mismanaged data and accurately identify the sources of referrals and repeat clients, ultimately leading to a clearer understanding of the firm’s return on investment (ROI).

 

Harnessing the Power of Live Chats

Live chat functionality serves as another valuable, yet frequently overlooked, tool for engaging and converting potential clients. To effectively track conversions from live chats, law firms should ensure that their live chat providers (such as Ngage and Apex) are integrated with Google Analytics.

Once the live chat system is linked to GA4, the next step is to establish clear, measurable goals and refine the overall strategy. By leveraging the powerful analytics capabilities of these tools, law firms can gain valuable insights into the performance of their live chat initiatives and make data-driven decisions to optimize their effectiveness.

In conclusion, a comprehensive approach to tracking returns from all sources is essential for law firms seeking to maximize the impact of their digital marketing efforts. By implementing robust call tracking systems and harnessing the power of live chat analytics, firms can gain a clearer understanding of the factors driving conversions and make informed decisions to enhance their ROI. Through a commitment to data-driven strategies and continuous optimization, law firms can position themselves for long-term success in the highly competitive digital landscape.

 

How to Calculate the ROI of Your Law Firm’s Marketing: FAQs

1. What is ROI, and why is it important for law firms?

ROI, or Return on Investment, is a performance measure used to evaluate the efficiency and profitability of an investment. For law firms, calculating the ROI of marketing efforts is crucial to understanding which strategies are most effective in attracting clients and generating revenue.

2. What data do I need to calculate my law firm’s marketing ROI?

To calculate your law firm’s marketing ROI, you’ll need the following data:

– Marketing expenses: The total cost of your marketing campaigns, including advertising, content creation, and any other related expenses.
– Number of leads generated: The total number of potential clients who have contacted your firm as a result of your marketing efforts.
– Conversion rate: The percentage of leads that become paying clients.
– Average case value: The average revenue generated per client.

3. How do I calculate my law firm’s marketing ROI?

To calculate your law firm’s marketing ROI, use the following formula:
ROI = (Revenue generated from marketing – Marketing expenses) / Marketing expenses * 100

4. What is a good ROI for law firm marketing?

A good ROI for law firm marketing varies depending on factors such as practice area, location, and competition. However, a general rule of thumb is that an ROI of 5:1 or higher is considered strong, meaning that for every dollar spent on marketing, the firm generates five dollars in revenue.

5. How often should I calculate my law firm’s marketing ROI?

It’s recommended to calculate your law firm’s marketing ROI on a monthly or quarterly basis. This allows you to identify trends, make timely adjustments to your strategies, and allocate your marketing budget more effectively.

6. What if my law firm’s marketing ROI is low or negative?

If your law firm’s marketing ROI is low or negative, it’s essential to analyze your marketing strategies and identify areas for improvement. This may involve:
– Reevaluating your target audience and messaging
– Adjusting your marketing channels and tactics
– Improving your lead nurturing and client conversion processes
– Reducing marketing expenses where appropriate

7. How can I improve my law firm’s marketing ROI?

To improve your law firm’s marketing ROI, consider the following strategies:
– Focus on high-quality leads: Attract leads that are more likely to convert into paying clients.
– Optimize your website: Ensure your website is user-friendly, informative, and optimized for search engines.
– Leverage content marketing: Create valuable content that demonstrates your expertise and attracts potential clients.
– Invest in targeted advertising: Use platforms like Google Ads and social media advertising to reach your ideal audience.
– Monitor and adjust your strategies: Regularly review your marketing performance and make data-driven decisions to optimize your ROI.

By understanding and consistently calculating your law firm’s marketing ROI, you can make informed decisions that drive growth and profitability for your practice.

FAQ

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Why Is Local SEO Important for Law Firms?

Local SEO is crucial because clients often search for attorneys in their immediate area, making local search highly competitive. Optimizing a Google Business Profile is essential for ranking in local search results and maps, vital for law firms serving specific local or regional communities.

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