Return on Investment (ROI) is a calculation used to determine the viability of a financial venture. For your personal injury law firm, ROI provides a useful measurement for determining whether the revenue generated by your legal marketing strategy justifies the cost, resources, and time put into it.
Your legal marketing efforts are the cornerstone of your law firm’s growth. They must be effective in attracting potential clients, nurturing leads, and driving profitable conversions. Legal marketing ROI evaluates the effectiveness of your legal marketing campaign, and these tips will help you define your personal injury law firm’s marketing ROI.
Calculating Marketing ROI
To run and grow a successful personal injury law firm, you must keep an eye towards profitability. Investments should be made with the intention of benefiting the firm, especially when those investments are in the legal marketing plan. The entire legal client intake process, from advertising to conversion, should be carried out with the expectation of high returns, which is where defining your law firm marketing ROI plays a role. It helps you examine whether the benefit is worth the cost.
The calculation of legal marketing ROI subtracts the actual costs of your law firm marketing plan from the total revenue generated by it. The resulting amount is the actual revenue that your marketing plan has brought into your law firm.
When your marketing ROI yields a positive result, your firm’s marketing strategy generates more revenue than it costs to maintain. That means your firm’s marketing investment is paying off by driving profit and firm growth for the betterment of your personal injury law firm.
A negative ROI indicates that your marketing plan costs more to implement than the revenue it brings in, so it does not drive profitability. Your firm is putting more money into the strategy than it is getting out. A negative ROI should spark a closer look at your legal marketing plan to identify necessary improvements.
Linking Revenue with Investment
To properly calculate legal marketing ROI, you need data relevant to the calculation. This requires preparation. You must ensure that the proper tools are in place to collect the metrics for an accurate and timely evaluation. Consider implementing these data-gathering strategies into your personal injury law firm’s marketing plan:
How to Set KPIs for Your Law Firm
Setting—and tracking—the right KPIs can help you make informed, data-driven decisions for the future and run a more profitable law firm.
- Tracking online traffic: Use web analytics to track the performance of your firm’s online presence. If you are putting valuable time and resources into cultivating your firm’s brand online, these tools help you evaluate whether those efforts are working.
Website tracking tools can provide marketing data related to the number of visitors to your site and the path they took to get there. For example, you can find out how many visitors are clicking on your law firm website link after viewing your social media posts. With this information, you can determine whether specific legal marketing efforts are influencing prospects to reach out.
Web analytics also provides insight into the performance of your personal injury law firm website, which is often a major investment. You can determine which website pages drive the most inquiries and which ones have the highest bounce rates. This valuable information is key for defining your legal marketing ROI.
- Evaluate the client intake process: Every step of the law firm client intake process is vital to the overall strategy of driving profits for the firm. So, it’s important to critically evaluate each stage to identify and address areas ripe for improvement.
One of the most common problems within the law firm client intake process is the lack of adequate follow up. Prospective clients initiate contact with your firm, but they either never receive a response, or the response is so delayed that they seek help for their personal injury case from another firm.
Evaluating your law firm’s client intake process is easy with Client Relationship Management (CRM) software for law firms. Not only can you quickly collect data regarding follow up, but you can also access analytics related to email drip campaigns and other lead nurturing strategies.
With a quality legal CRM platform, your personal injury firm can build custom data reports in seconds or automate recurring reports at scheduled frequencies of time. CRM for law firms makes it easy to collect and analyze the data related to your legal marketing ROI.
Define your legal Marketing ROI for Improved Performance
Law Ruler is a leader in the legal marketing space, providing your personal injury law firm with the technology to easily track your marketing analytics for an in-depth understanding of your ROI. Law Ruler helps you evaluate all aspects of your law firm’s client intake process using real-time data so you can make informed legal marketing decisions that drive firm profitability and growth. To learn more about Law Ruler, click this link to schedule a free demonstration.
Maximize your client intake process and acquire more leads with Law Ruler’s all-in-one legal intake and marketing automation software. Schedule a personalized, one-on-one demonstration of Law Ruler today!