Marketing analytics are business metrics that evaluate the performance and success of your law firm marketing plan. They provide you with the necessary data to undertake critical analysis, answer important questions, and make strategic changes where appropriate. This post will explore the importance of law firm marketing analytics and the data you need to prepare your marketing strategy for 2023.
The Value of Law Firm Marketing Analytics
Your legal practice puts a lot of time, money, and effort into crafting and following its marketing plan. So why wouldn’t you make an effort to ensure that those resources are resulting in a positive return on investment (ROI)? Through the provision of specified data, marketing analytics benefits your law firm in the following ways:
- Streamlined Data Tracking – Tracking and analyzing information can feel arduous for a busy law firm leader. But the right tools can make data tracking much easier to handle. For example, Law Ruler’s legal marketing software includes an analytics dashboard with customizable reporting features for marketing & ROI optimization. You can build a variety of reports in seconds, making it quick and easy to analyze critical marketing data.
- Predictability – Without the valuable data offered by marketing analytics, your firm is forced to guess and speculate when making marketing plans for 2023 because you have no idea which actions are working, and which are not. As a result, you lack enough information to make informed decisions or properly strategize a plan of action. Marketing analytics provides the specifics you need to predict which tactics will most benefit the firm next year and plan accordingly.
- Performance Indicators – Marketing analytics is not solely about collecting data. It is also about analyzing that data to determine your law firm’s marketing performance. Information collected around specific performance indicators can help you better assess whether your firm is meeting its goals. One common legal performance indicator leads to conversion. With the right data analysis, you can quickly see how many conversions were made during the past year, the past month, and even the past few days.
- Identifying Roadblocks – Once you identify the wins and losses of your marketing plan, analytics also helps you identify the reasons behind them. Let’s imagine that your firm’s data reveals inadequate conversion rates, and further review of the data shows that a lack of consistent communication may be at fault. Armed with that information, you can craft solutions that specifically address the communication roadblock.
The Marketing Data Your Firm Needs
With so much information available to your law firm, it can be difficult to determine which analytics will best meet your needs. Here is a list of useful marketing data to help you prepare for the year ahead:
- Marketing Budget Ratio – This information compares the total money spent on firm marketing to the total fees billed to clients. This data provides a detailed look at the percentage of billed revenue being dedicated to your firm’s marketing efforts.
- Marketing Cost Per Client – This information is determined through the ratio of total marketing dollars spent to the number of clients your firm billed. You can let this data guide your marketing budget for the year ahead by determining how much you want to spend on attracting and converting each paying client.
- Firm Website Traffic – The host of your law firm website should offer analytics about the number of visitors to your site. This data can be used to determine whether more advertising effort is needed to draw attention to your website within the marketplace.
- Website Activities – By reviewing data about the activity of website visitors, you can determine which pages perform well and which ones do not. Perhaps one of your practice area pages has an unreasonably high bounce rate. That could indicate the need for updated content on that subject.
- Conversion rates – This data shows how many leads have completed the sales funnel for a successful conversion into paying clients. Low rates could indicate a problem with lead nurturing.
- Sources of new clients – By reviewing where your new clients are coming from, you can better plan your future advertising dollars. For example, if more leads come to your firm through one social media account over another, you may choose to focus your resources on that more effective social media tool.
- Lead communications – This information shows how many and what types of communications occur between your law firm and its leads. Inadequate numbers indicate that more effort is needed in 2023.
- Return on investment – This is one of the most important law firm marketing analytics. It examines whether the investment your firm is putting into its marketing plan is paying off in the form of revenues and profits. A low ROI could mean too much money is being spent on marketing or that your marketing strategy needs to be tweaked for better performance.
Maximize your Marketing Analytics to Prepare for 2023
If your law firm’s current marketing analytics practices are inadequate for success in the coming year, there are opportunities for improvement. Identify what gaps exist between the data you have and the data you need. Then, acquire a marketing platform option that helps you fill those gaps. To learn more about the data analytics features available through Law Ruler, schedule a free demo with a Law Ruler expert today!