Law Firm Profitability Metrics Law Firms Should Know

Key Law Firm Profitability Metrics Every Lawyer Should Know

Whether you plan to start a new law firm or restructure an already existing one, profitability analysis can be a huge challenge. For example, it may be difficult to decide between billing per hour and charging a flat fee. Also, there’s always the question of whether you’re charging too much or too little for your services.

The good news is that you don’t have to be a financial wizard to figure out your firm’s profitability metrics. These tips will help you make the right decision for your law firm’s profitability by calculating and converting your time and productivity into the money you deserve.

Difference Of Profitability And Revenue Law Firms Make    

Before going too deep into the topic, it is important to have a clear idea of the topic you’re working on. For most business, they’re already quite familiar with revenue. For law firms to become successful, it is vital for them to gain quite a number of revenue. Even so, some people do not know that revenue and profitability are two different things.

Revenue helps a lot when it comes to having the law firm boosted, however, if we are to focus on future, long-term profits, then success would depend on the increase of your firm’s net profits. If you’re increasing revenue without increasing profitability, you’re leaving money on the table.

If you’re looking forward to maximizing the law firm profitability, then firms would need to first balance maximizing revenues with minimizing costs.

How To Improve Law Firm And Stay Profitable 

Such as with any other business, you need to make sure that you look carefully at whether the law firm has a healthy return on investment (ROI) in order to turn or remain profitable. If there are any issues, then be sure to adjust depending what is profitable for you. 

With all that said, you can make sure that you’re following best practices, methods and techniques when it comes to the law firm’s processes as well as tracking those efforts. Additionally, these firm processes include your firm’s operational, billing, and collection rate efficiency. In addition, take a look at your law firm’s goals and stay focused on them.

5 Steps to Pricing Your Legal Services

Pricing your legal services is crucial to your law firm’s profitability. Typically, it communicates a lot about the quality of your services to your clients and determines whether they’ll hire you. Unfortunately, many law firms still struggle to find the most appropriate price tag for services they offer and are never sure whether their prices attract or repel potential client partners.

Here’s what to consider when coming up with prices for your legal services:

Thinking About the Product You Are Offering

You need to start thinking of your services as a product. For example, consultation for legal advice and client representation are two different products. Additionally, you’ll need to identify your niche for clients to understand the kind of services to expect from you. Eventually, you can decide to group the services differently and attach the fees for each package.

Determining Your Law Firm Success Revenue Model

The revenue model is determined by the firm’s operational requirements and market demands. These two factors play an important role in choosing the firm’s business model and cash flow structure.

For instance, if the firm is often busy and incurs huge operational costs daily, it’ll require a steady cash flow to sustain its operations. With that in mind, it’s easier to determine whether to bill per hour, have a flat fee, or charge contingency fees.

Additionally, it’s important to note that client cases vary, and a single revenue model may not suit all cases. Clients may also have their own preferences that may determine if they should hire a firm’s services. However you choose to bill, it’s important to use a proper legal case management solution (such as Rocket Matter) that can support these different billing options.

Considering Your Customer Acquisition Costs

The growth of a business depends on the conversion fee of its marketing strategies. Similarly, a law firm makes profits from the number of customers served. This means that the firm has to adopt a marketing strategy and assess how well the strategy sends valuable traffic back to the firm. Therefore, the Customer Acquisition Costs shouldn’t exceed the profits generated by the client partner acquired.

Identifying Your Case Value and Customer Lifetime Value

The Customer Lifetime Value (LTV) is the business value a customer brings to the firm over their lifetime as a client. This metric is important because it helps identify cost-effective strategies for maintaining existing customers and acquiring new ones.

Calculating a client’s LTV also helps assess whether the revenue model used to bill the client is profitable over the lifetime. For example, a flat fee per case may not fetch the same revenue as hourly billing over a client’s lifetime. However, the two revenue models may not be interchangeable between different products a firm offers, but their LTV will help the firm decide on which product and market to focus on.

Having An Understanding Of The Fixed Costs

The firm’s expenses also impact the general profitability metrics. These expenses are often described as operational costs and may include office rent, technology costs, and support staff salaries. After all, the net law firm profits of a business is the difference between its revenues and expenses.

A business that masters how to reduce operational costs without straining or compromising the quality of its services will always record higher profits. The same case applies to a law firm.

For more information on reducing operational costs, see: How to Reduce Your Law Firm’s Overhead Costs and Still Be Productive

Cracking The Numbers

The real number cracking begins after outlining all the factors mentioned in the guide above. The first metric to calculate to help learn with your law firm profitability is the Customer Acquisition Costs (CAC) which determines the total cost of serving client partners, including advertising and marketing costs. Most importantly, customer acquisition costs should convert to clients who ultimately bring in money into the firm.

The Customer Acquisition Cost then converts into the Lifetime Value of each customer acquired. Basically, you can find out if the CAC converts into the intended profitability of the firm in both long-term and short-term projections.

Client LVT is determined by the difference between the revenue and labor cost to determine the profit law firm success margin. Depending on the number of transactions between the customer and the firm, the profit margin projects how much profit the firm will make from one client.

Finally, the firm keeps the net profits it attains after deducting all its operating expenses.

Interpreting The Number Metrics

Each of the metrics calculated has an impact on the profitability of the firm. The based figures help strategize work the business activities and point out the key performance indicators to increase law firm watch profits.

Here’s how to interpret these numbers.

CAC Recouping Rate

The CAC recouping rate determines how fast the attorney company regains the customer acquisition costs while serving the accounting client. This rate derives from the CAC and profits per transaction (per case or service).

The most desirable recouping rate is characterized by a shorter recovery period. If the firm takes too long to recover its costs, it may need to restrategize work its target market.

Return on Investment

Every business would like to have a strong ROI (return on investment), especially over the long-term period. For example, the ROI in a law firm derives from dividing the Client Lifetime Value and the Customer Acquisition Cost.

A strong ROI means that the business excels in acquiring more clients. It’s also possible to rank the type of clients that convert into the strongest ROIs. As a result, future CAC investments would target such clients to improve on the firm’s ROI.

Scalable Business Model

In general, these law firm profitability metrics provide a clearer picture of the firm’s variables such as profit margins, income before tax, annual revenue, direct costs, number of clients or cases per year, and so forth. Thus, such figures are essential for proper company planning, reporting, and even abiding with tax compliance and certification requirements.

Things To Keep In Mind

Stay Focused To Your Time Goals

When it comes to any businesses, not just law firms, it is always a great idea to have a  set of general intention, or some sort of goal of “increasing law firm profits,” however, do remember that making vague goals are more likely to bring vague results and may not be all that effective. If you’re thinking of being completely serious when it comes to your law firm profitability, then you can proceed to creating a SMART strategic goal.

SMART is an acronym based on specific, measurable, achievable, relevant, and time-bound. Be sure to research more and choose a fitting effective goal for your law firm. Defined, SMART goals do more than just give you and your team focus and accountability. With all things considered, a good goal provides a target to successful measure your law firm billing progress.

Utilizing Legal Technology

When it comes to boosting and increasing profitability, it would be a nice and more efficient idea to deal with tools and legal technology in order to assist your law firm. In fact, many businesses uses multiple tech and tools in order to maintain a low cost as well as save some of your time.

Apart from increasing profitability, you can also improve your revenue by using legal technology. They can help law firms by allowing them to run more efficiently, streamlining processes, and making it easier to bill and collect on invoices. Legal technologies are already convenient by itself, however, it works more effectively and more valuable when there are times of crisis.

With that said, you should remember that the amount of efficiency and profits the legal tech work offers will depend on your due diligence. You should also remember that there are many technology alternatives where you can choose from. Be mindful as you may be enticed to choose all that home page english you come across from.

Even so, you want to be strategic and choose tech that is as secure as possible and addresses the specific issues your law firm deals with if you want to use the technology to it’s full potential. Choose one that fits entirely to your company’s needs.

Maintain A Healthy Cash Flow

As for your firm’s financial survival and profitability, it is vital that a healthy cash flow is obtained. If your firm’s billing cash flow needs a boost, there are numerous options to consider. For example, you can look for ways to reduce expenses, follow up on unpaid invoices, or make it easier for clients to pay you with online and alternative billing payment options.

System Automation

If you’re spending a good portion of your day on non-billable tasks, then you’re missing out on potential revenue and undercutting your law firm’s profit potential. There was even a report that pretty much says lawyers dedicate an average of just 2.5 hours per day on billable work. Apart from that, it also ensures that most lawyers’ work are indeed missing out on potential profits each day.

Using technology to automate essential. But non-bill-able administrative tasks like client intake, practice management, time and billing expense tracking, legal billing, and more saves you time and effort.

Law Firm Profitability- The Bottom Line

For the bottom line, a law firm’s profitability depends on Customer Acquisition Costs and Customer Lifetime Value. These two metrics determine how well the law firm survives the industry’s different challenges to obtain a longer-lasting market presence. Without them, the business may not be able to sustain itself long enough over a few years.

Looking to run a more profitable law firm? Take the first step with our best-of-breed legal practice management system. Schedule a personalized demo today to see it in action!

Law Firms SEO: First Step in SEO for Law Firms

SEO for Law Firms- What Every Lawyer Should Know

In today’s digital world, so many people go online to find information and compare their options. If it’s difficult for people to find you online, you’re probably losing a lot of potential customers. But first, because this guide focuses on SEO for lawyers who are just getting started with developing an online lead generation strategy, let’s start with definitions so you can get started attracting potential clients. 

It can be difficult to get a law firm to rank at the top of Google Search. Legal practitioners might find it difficult to stand out in one of the most competitive fields for digital marketing. Some lawyers are aware that SEO is essential for achieving top Google rankings, but others are not educated in SEO. How do you know where to begin? And how do you know if you are taking the right first step?

What is Search Engine Optimization(SEO)?

The big challenge that persists when doing SEO for law firms is to try to figure out how to get your law firm to the top of the organic search results. Although there are plenty of vendors offering law firm SEO, there are no foolproof plans or guarantees that you’ll be able to rank in the number one position in the organic search results. Fortunately, there are a variety of ways to improve your chances of ranking on the first page of the search results. If you’re able to understand the basic factors search engines evaluate when deciding which websites hold the most value to online users, it’s easy to cut through the noise in the market and catch the eye of prospects.

The biggest challenge when doing SEO for law firms is figuring out how to get your law firm to the top of the organic search results. Although there are numerous vendors offering law firm SEO, there are no foolproof plans or guarantees that you will rank at the top of the organic search results. Fortunately, there are several methods for increasing your chances of ranking on the first page of search results. It’s simple to cut through the market noise and catch the attention of prospects if you understand the basic factors search engines consider when deciding which websites have the most value to online users.

Law Firm SEO or Attorney SEO

Law Firm Search Engine Optimization (SEO) is the process of increasing website traffic by obtaining first-page ranking positions on search engines such as Google search results and Bing. When people need a lawyer or legal services, they usually look for one of the following options:

  • Engines of discovery
  •  The power of word-of-mouth
  • Social networking sites

Search engines are not only the most popular but also the most easily measured return on investment (ROI). The ability to reach a large number of people organically (i.e. without advertising) on social media has declined significantly in recent years, particularly on platforms like Facebook. As a result, many businesses have resorted to paid advertising on them (as Facebook desired). It’s already clear that most people rely on search engines to find legal services. While social media and word of mouth are important, online search almost always dominates the research phase. When we examine the digital marketing channels used by Morgan and Morgan to drive website traffic, we see that organic search outperforms social media and paid advertising.

Why is SEO for Law Firms Important?

The legal marketing industry is a cutthroat one. If you own a law firm and want to generate new clients as part of your marketing strategy, whether or not your website can be found in Google search is critical. Organic search traffic is a significant marketing channel that is frequently overlooked by law firms looking to grow their business. However, research suggests that more attention should be paid to improving law firm SEO. Most legal consumers looked for a lawyer through an online search, which was tied for the second-most of any method. SEO may appear difficult to grasp, particularly if your law firm has never invested in this type of marketing, but it is an essential component of a basic marketing strategy for law firms.

Law Firm SEO First Step

 The following is a guide to help law firms understand the basics of search engine optimization (SEO). Its purpose is not to be a complete how-to manual or answer every question you may have but rather to present the top five most asked questions about law firm SEO in a simple, easy-to-read format. If after reading these tips you have any additional questions or want more information please contact us at any time.

Become Acquainted with SEO

What Is SEO And Why Is It Important

The first step in SEO for lawyers is to become acquainted with the topic. This may appear backward because you don’t know where to start with your SEO strategy, but that is precisely the point. Education is the key to developing an effective, data-driven strategy. Understanding SEO principles will allow you to hold your internal team or external partners accountable for delivering the results you want. You’ll be better prepared to set reasonable expectations for your internal or external SEO staff.

You can learn about SEO by watching YouTube videos, joining Facebook groups, attending conferences and masterminds, or reading online publications. Other publications on the subject (such as Law Firm SEO) can assist attorneys in learning how to improve the visibility of their website, use SEO, and increase Google ranks, online traffic, leads, and signed cases. Some of the most skilled SEO professionals are self-taught. When search engine optimization first became a field of study, there were no college courses, books, or videos on the subject. Many of the best new SEO specialists learn by doing: they build a website, optimize it, track its rankings, and analyze the results. As a result, many of today’s top SEO experts are self-taught, and self-education is still an option for learning SEO. Nowadays, anyone can study SEO, and there are more resources than ever for doing so for free!

SEO Law Fundamentals

Every SEO strategy begins with the fundamentals. Even the best “SEO strategy” will fail if you do not understand the fundamentals of SEO. Later on, you’ll build on these foundations by experimenting with different approaches and determining which ones work best for your website. Here are the SEO fundamentals you should be aware of:

Researching Keywords

The ultimate guide to choosing keywords for ROI Search Engine Watch

Consider going to trial without knowing the facts of the case. The result would be disastrous. The same is true when you add new pages and articles to your website. After technical SEO, keyword research is the foundation of good SEO. If you create content without first conducting keyword research, you will waste time and money trying to get people to your site for search terms that no one searches for.

Keyword research entails determining the search terms (“keywords”) that people use to find businesses, products, services, and information via search engines. SEO strategy revolves around optimizing the website and platforms for keywords related to services that your target audience is searching for. Search phrases are largely connected with two audience personas when it comes to law firm keyword research:

Legal information searchers and lawyers seek.

People are looking for information regarding a legal issue or problem, as well as those looking for a lawyer or law business in particular. Identify search terms for both groups when conducting keyword research for your legal practice. For example, if you’re a family lawyer, terms like “how to file for divorce” or “how to settle a custody issue” for information seekers and “family lawyer Kirkland” or “Kirkland divorce lawyer” for lawyer seekers can come up.

Website Compliance

Accessibility and ADA Compliance

When it comes to online marketing, law firms must follow a number of regulatory and accessibility guidelines. The Americans with Disabilities Act (ADA) now includes, among other things, business websites, physical offices, and businesses with websites. That means your website must be usable by people with hearing, vision, or physical disabilities. In terms of SEO, this could entail changing image alt text for e-readers or adding subtitles to your YouTube videos.

Law Firm Marketing Content

Content marketing, especially attorney SEO marketing is one of the most cost-effective ways to drive qualified traffic from your target audience to your website. Understanding the key differences between practice area pages and blog post articles, as well as how to properly group them throughout your site’s hierarchy, can mean the difference between ranking and not ranking. Certain advertising rules apply to lawyers that may not apply to other businesses. Consider the following scenario:

  • If you aren’t certified or accredited, don’t pretend to be an “expert.”
  • Don’t make deceptive or fraudulent statements, such as claiming to be the “best” law company. The guidelines on advertising set forth by the State Bar prohibit legal firms to avoid solicitations that are “untrue, confusing, deceptive, or misleading” to users.
  • Before using a trading name, check your state’s legislation. Practicing under a trading name, for example, is prohibited unless certain conditions are met.

 SEO Off-Page Optimization

Off Page SEO Techniques to Drive Traffic in 2019 Infographic

“Off-page” Off-site optimization, such as Google Business Profile optimization, link building, and directory listings, is referred to as SEO. Off-site SEO is an important way for law firms to drive backlinks, referral traffic, reviews, and leads via online listings. Positive reviews can help build trust with potential clients and even help your Google My Business profile rank higher than other lawyer profiles. However, keep in mind that the American Bar Association Rule 7.2 (b) specifies that lawyers cannot compensate anyone for a testimonial or recommendation, so make sure your testimonials adhere to this.

Local SEO

Local search optimization

Local SEO involves optimizing your website and online platforms for geo-specific search terms. It takes advantage of proximity signals to help you rank for the localized terms users are searching for – and target users in a specific location. You can improve your law firm’s local SEO by using keywords that specify your law firm’s location or service area – for example, “LA Personal Injury Attorney” or “Denver Family Law.” You can also include your address, directions, and a map of your law firm’s location on your website.

Technical SEO

SEO 501 Technical SEO

Technical SEO involves addressing your website’s site structure, security, indexation, and speed. To ensure your website is fast, accessible, and crawlable by search engines, you’ll need to address technical SEO. The basics of technical SEO for all types of businesses include:

  • Optimizing page speed/website load time by reducing image sizes and improving content rendering on your website.
  • Fixing broken links/404 pages with redirects.
  • Avoid duplicate title tags, meta descriptions, page content, and H1 headings.
  • Ensuring your website has a secure SSL certificate (HTTPS) set up.
  • Make sure your website design is optimized for mobile and desktop.
  • Finding and fixing crawl errors and sitemap issues.

We saved the best for last when it comes to law firm SEO: technical SEO. Like no other factor, technical SEO can make or break your law firm’s SEO performance, making it a major contributor to your SEO success. It’s also the most difficult to get right, especially if you’re not an SEO expert. Technical SEO is a measurement of how “Google-friendly” your law firm’s website is. Technical SEO, like user-friendliness, includes aspects such as security and sitemaps. However, because it can be difficult to implement, many law firms choose to hire an SEO consultant who specializes in law firm SEO. It lowers the risk of having to handle everything yourself.

Content

Content marketing 1

“Content” can refer to any visual or textual content on your website but most often refers to the words on the page – such as on your web pages and blog articles. Your content tells users and search engines what your business is about. Law firms can attract users organically through both web page/service page and blog article content. For example, you may have several service pages (optimized for service- and geo-specific keywords) and blog posts (optimized for informative, “long-tail” keywords). Think back to the two audience personas – information seekers and lawyer seekers. Try to create content for the two audiences by providing informative blog articles and pages and more descriptive service and sales pages.

The content on your law firm’s website should be able to provide preliminary answers to potential clients’ questions. Search engines want to send users to the best possible place to find answers to their questions. So, if Google believes your site is likely to satisfy the user’s intent, it is more likely to feature it higher up on its search engine results pages. In this case, Google may play an active role in generating leads for your law firm. Consider how your law firm can best respond to a website visitor’s questions. This could include detailed descriptions of your services, clear pricing, or customer testimonials. Also, make sure your website’s content and answers are up to date.

Link Building

Link Building Outreach

Link building is an important activity in SEO and involves actively, passively, or organically attracting links to your website from other websites. “Backlinks,” as they are called, add authority to your website. We talk more about link building for law firms below.

Tracking and Analytics

Tracking and Analytics

Platforms like Google Analytics and Google Search Console tell you how much traffic you’re getting, where it’s coming from, and more important metrics to your business. Tracking and analytics are important for determining if your SEO strategies are working. For a law firm’s marketing purpose, you’ll want to pay attention to a few key metrics:

  • Impressions – The number of users who see your page URL in the search results (can be found via Google Search Console).
  • Clicks – The number of users who click on the URL to your web page or post (can be found via Google Search Console).
  • Users – The number of users who have visited a particular page or within a particular period (can be found via Google Analytics).
  • Goals – Conversion tracking on your website; how many users complete a specified action (can be found via Google Analytics).
  • Bounce rate – The percentage of times users visit a single page on your website and then immediately leave the page or your website overall (can be found via Google Analytics).

The above metrics can tell you how many people are visiting your website, from which channels, and how many users are taking action (like completing a contact form) on your website. This way, you can measure the effectiveness of your SEO and marketing campaigns.

SEO Strategies Going Forward

SEO Strategy Search Engine Optimization Strategy

The first step of SEO is to learn the fundamentals to build a more advanced strategy off of the basics. Not only will education make you more well-versed in SEO, but it will also help you see through any shady tactics other SEO salespeople may present. Whether you choose to DIY your SEO or hire an agency, here are some other steps to take in your law firm’s search strategy.

Develop A Content Marketing Strategy

The Ultimate Guide to Content Marketing Strategy

The content on your website serves a valuable purpose in telling Google and users what your site is about. Further, optimized content can work to attract new users to your site via keywords. Developing a content strategy is one of the best early steps for setting your site up for success. This means publishing descriptive and engaging web page content, posting blog articles, and experimenting with media like images and videos.

Build Authority with Article Marketing

The content on your website plays an important role in SEO, but creating content off-site can be valuable as well. Article marketing presents many ways to generate great results from your content. You can publish content on your blog, post on other blogs, write articles on LinkedIn, become a contributor to other publications, and so much more. You can generate organic traffic to your site, referral traffic from other sites, and grow your authority with expert-level content.

Earn High-Quality Backlinks

Once you have great content on your site, you can start driving links to it. Sometimes, this will happen organically, such as when other websites find you and choose to link to you; other times, you will take a more active role, such as through outreach or content marketing. There are a few ways to earn backlinks naturally. These methods can include publishing “link-worthy” content, sharing valuable tools, creating a resource guide, showcasing an infographic, and other creative ideas. Link building is an activity you should always keep in mind to improve your website’s authority.

If you are looking for an experienced Law Firm SEO company that understands the dynamics of the legal search engine industry, then we are the right choice for you. Our team at Mach1Design will help you with a free strategy session to increase and optimize your law firm’s digital presence. If you would like a free Law Firm SEO strategy session, contact [email protected] or call 318-349-4998.

Legal Marketing: Law Firm Marketing Plan

Lawyers and Law Firms Benefit From Digital Marketing

Do you have a digital marketing strategy? 78% of consumers go online to find a lawyer.

Most marketing managers of law firms we talk to operate on a tactical level and usually give us a blank stare when we ask them about their planning. And, as Sun Tzu said in The Art of War, “Strategy without tactics is the slowest route to victory, tactics without strategy is the noise before defeat.”

The right firm marketing plan strategy is critical in generating new clients and, therefore, increasing revenue for any law practice.

You always make a plan before you go into a courtroom to fight for a client, don’t you? So why overlook marketing planning?

How to Create a Law Firm Marketing Agency Plan?

  • Define your business goals.
  • Choose a target audience for your law firm.
  • Which digital marketing tool you need to find your ideal client.
  • What is your investment in digital marketing?
  • How are you going to check your progress?

Why Does Your Law Firms Need a Sound Digital Law Firm Marketing Strategy

One of the common and most expensive mistakes lawyers make is treating their firm as a law practice and not some business or company. A practice usually amounts to a job for the owner with a few support staff people. A practice is not worth much without a lawyer, and it can’t be sold for much when he/she decides to retire. A high-caliber law firm’s marketing plan is the key to increasing attorney income.

If we try and look at it with some analysis, the answer lies from way before. This is when some of the law schools already began to churn out more bar exam passers than ever before. Because of these events, there was a larger influx of new lawyers. Along with it, the competition for the best clients has become particularly fierce, even ten years down the line. All the while the demand for legal services has decreased, the number of lawyers employed by law firms has increased.

You can also see that there was also more legal work than ever was going to in-house legal departments or non-traditional legal service providers. In those cases, there were quite a lot of services law firms provide that were also being downright eliminated or at the very least redefined by advancing technology.

Law-firm-digital-marketing-company

Does Your Law Firm Websites Have A Plan For Growth In 2022?

Let Mach 1 Design help you create a growth plan

Consider this fact: a median income for attorneys in the US is $120,900, that’s after going through really tough law school and working for many years. Yet, the top earners make $500,000+.

What’s the difference? It is certainly not because the former have invested less money in their education or less marketing effort in their careers. It is in having a high-performance firm marketing agency system in place, the foundation of which is a solid plan.

The Must-Have Law Marketing Strategies for Any Attorney

In fact, marketing is the only aspect of your law firm watch business responsible for attracting potential law firm business clients, which makes it the #1 factor shaping your income and the value of your business.

Having said this, we are well aware that writing a marketing plan is a headache, and if you don’t know how to approach it, it could turn into a total waste of time. This is why we’ve created a simple law firm SEO framework to make things a lot easier.

Lawyers and Law Firms Benefit From Digital Marketing

How to Create a Marketing Strategy For Law Firms

Marketing strategies for law firms can be incredibly complex, but it is the simple ones that are usually successfully implemented. So, we created a very easy-to-follow process for creating a  law firm SEO marketing strategy.

Whether you decide to do this in-house or are working with a digital marketing agency, answering the 7 questions below will result in a marketing plan for your law firm.

1. What are Your Business Law Firm Goals?

In most cases, the goals of law firms we talk to relate to growth: they want more law firm clients and higher revenue. But that’s not enough! You should measure this growth goal financially and attach a time frame to it, which would make it a SMART one: Specific, Measurable, Achievable, Relevant, and Time-based.

For example, instead of saying you want more money, say you want your gross revenue to increase by $500,000 within the next 12 months.

A successful law firm marketing plan should always lead to setting and achieving a “SMART” goal.

Setting up your goals with the help of a lawyer marketing agency helps to know the 3 crucial marketing services factors you should ask about. They could help you predict whether you will actually be able to achieve that marketing law firm goal or not.

2. Who Does Your Marketing Plan Want to Serve?

First, think of who, exactly, your type of clients are. Based on that answer, you can then start to hone your law firm’s marketing strategy to target those particular types of people. Even if you think you know who you want to serve and who your ideal lawyer clients are, sit down and put it in writing. Here are some questions to ask yourself to get a better grip on your “buyer’s persona” — which is what we call ideal lawyer clients in marketing:

  • Where are they based?
  • How old are they?
  • What problem(s) do they want you to help them solve?
  • How are they most likely to look for a solution to the problem?
  • What questions or concerns are the most likely to have before hiring you?

Understanding your audience is crucial to reaching the people you want as clients.

3. How Do You Find Your Ideal Clients, and/or How Do You Want Them to Find You?

Ideally, you wouldn’t have to find them: you would make sure they find you when they need you. A marketing strategy for a legal lawyer website should include tools specially tailored to attract your potential clients.

Either way, the answer to this question should be a list of marketing channels to focus on. While traditional marketing for lawyers still works to a limited extent, we recommend investing most of your budget and efforts in online marketing (according to Clio’s 2018 Legal Trends report, a combined 78% of consumers look for lawyers online). It is more effective and makes it easy for you to see the specific results from your investment strategies.

If you practice law where you serve consumers directly, like criminal defense, personal injury, estate law, and others, make sure you put Google and YouTube on that list of marketing channels strategies. This is where most of your clients go to look for every answer to their questions and to choose an attorney to work with.

4. What are You Going to Say to Your Ideal Marketing Clients?

The right marketing strategy for your law firm also depends on your law firm websites’ content and expertise. Now that you know your audience and you defined who you will attract them to, you should focus on crafting your message. The best way to go about it is by answering the questions you get asked most often by prospective clients. You’re probably answering them over the phone, by video, by e-mail, by image, and even at every dinner party.

What kind of on-site information would help your legal marketing strategy?

Don’t overlook questions, the answers to which may seem simple and obvious to you. Your clients don’t have your expertise. List everything you can think of, and you should end up with at least two to three dozen frequently asked questions. Next, think about the process your potential clients go through before they reach out to you. When they visit your website, they want to know that you have solved similar strategies problems to the one they’re having. They may be intimidated by the process of hiring a lawyer (it is expensive, after all). They don’t know how to choose the best lawyer you want (hopefully, they choose you over your competitors).

When you know what information they need, you can make sure to provide it on a high-performance website and through your content law firm marketing strategy. As long as you answer your prospects’ questions and calm their fears, you’ll be able to turn more of them into clients.

5. How Much are You Going to Invest in Law Firm Marketing Strategies?

Budgeting for marketing can be difficult for law firms as there are no clear guidance strategies most of the time. Here is what’s important for you to know before you decide on a marketing budget:

Why will a bad lawyer marketing strategy be more expensive in the long run?

Cheap marketing is always expensive. It may be tempting to hire a cheap marketing agency ($500 -$1,500 per month), but not only will you waste interest money (an agency cannot deliver many referral services for this little money), you’ll lose individual opportunities.

That’s right, your competitors, who have hired proficient marketers, will attract and get the communications clients you wanted. And, considering the compound effect of having this happen month after month, this can be incredibly expensive.

On the other hand, a top digital marketing strategies company for lawyers may seem expensive to you. Still, it usually comes out free because it actually generates a strong return on investment.

So, hire a proficient marketing agency, and invest a reasonable amount to achieve your growth leads goal; typically, 7 to 11% of your gross revenue.

Make sure that a portion of your marketing budget is allocated to marketing client retention. This is what will get you recommendations and repeat areas business from people who have already used your law firm’s services, so it’s like picking the low-hanging marketing goals fruit.

6. What Needs to Be Done for You to Achieve Your Marketing Goals?

Planning is a great thing, but plans must be acted on to achieve marketing results. Go through all the steps we’ve discussed by now and write down what you need to do and in what order you need to do it so that you start seeing law firm’s marketing results.

Business law firm goals are also key in making the right marketing plans.

For example, you probably need to schedule a meeting with your referral partners to decide on your specific goals and a budget. You may also have to do some brainstorming to understand who your ideal clients are, write down what legal marketing problems keep them awake at night, and then answer those legal marketing questions.

Of course, the best thing to do is to retain a mobile experience digital marketing agency, especially if you’re working in a high software marketing digital competition area like Chicago, where the wrong marketing decisions will really cost you. Don’t forget that you never stop doing public audience marketing, its like exercising. You will need to continue to market update the tactics with changing new technologies.

7. How will You Monitor, Report, and Continuously Improve Law Firm Marketing Results?

Marketing is not a set-it-and-forget-it kind of deal. To see the results you want, you need to look at how your law firm marketing strategies campaigns perform and adjust as needed.

If you are working with a digital marketing agency for lawyers, they should explain how they do this. If they can’t, or won’t, it’s best not to hire them or to end your contract with them asap.

Here are just a few reasons why constant monitoring and adjustment of your marketing approach is necessary:

  • Some marketing channels work better than others. A good example of this is the use of online platforms for lawyers to boost visibility. While Avvo is the largest platform for lawyers and gets the most traffic, this doesn’t mean that it is the best platform source for your firm marketing law. Depending on where you are based and your software law practice, something else may work better. This is why we always test various platforms with our legal marketing clients before getting to the one that consistently produces good results with practice areas.
  • The competition never sleeps. Say you’re in the top three organic results (the unpaid results below the ads) on Google for a certain keyword. You may think you’re done with SEO, but a competitor will sooner or later dethrone you if you stop working on it. Getting the top spot on Google is difficult, keeping it — especially for the most competitive keywords and most competitive mobile areas in the country — is even more difficult. Google digital software technology constantly updates the results based on the digital authority need of each digital website, plus they also regularly update their algorithms, meaning that what you’ve done to get a higher ranking sourch yesterday may not even be valid today.
  • Accumulating positive reviews. Online digital reputation is important for any business but is absolutely crucial for lawyers. We live in an age when you can’t escape getting some online reviews, and chances are they will be negative. Why? Because people tend to share their problems more often than they share their positive experiences. Luckily, there is a way for you to get more positive reviews, and you should start working on that as soon as you can. Just like with SEO, your law firm’s competitors are probably already doing as much as they can to get their clients to leave positive online referral sources reviews on the online web, so it’s a constant public battle. Law firm’s thing is that if a client sees a law firm with 50 reviews and a 4.5-star online rating (out of 5), they’re much more likely to choose that firm over another with 3 five-star online reviews. The more, the better.

Marketing Conclusion

So, all you have to do now is to work on web answering the 7 questions above, and, to make your life easier, we have provided a simple Successful Law Firm Marketing Plan template. Need to use to speed up your strategy write-up process.

If you decide to hire a digital marketing agency to work for you, it’s important to know how to choose the right marketing plans and what exactly they would be doing, or you may end up wasting hours of time, money, and opportunities.

Want to speak with a law firm marketing expert?

Mach 1 Design is a Dallas-based digital marketing agency that specializes in website design and marketing for attorneys. Read more about our content marketing service for law firms. Contact [email protected] or call us at 318-349-4998.