How Much Are You Willing To Pay For a New Client For Your Law Firm?
If you could write a check that was guaranteed to get you a new client, what would the amount of that check be? To put it another way, how much are you willing to pay for a new client?
This concept might sound strange, but it shouldn’t. If you invest any money or time in any type of marketing efforts now, including networking, you’re already writing those checks to get clients. You probably just don’t know the amount.
It’s important to know the cost you’re willing to pay for each new client.
Start by Looking at the Client Value
Every client brings certain value to your firm. If that client works with your firm on a continuing basis, the value might be higher than for a client who uses your firm for a once-in-a-lifetime event.
There will be a certain amount of variation, of course. Some divorces are much more involved than others, and generate more billable hours for the firm. Some car accident cases may be worth a few thousand while others could bring in ten times more. But it’s a good idea to calculate an average value per client. Better yet, determine the average client value per practice area for your firm.
Is a client in a particular area worth an average of $3,000? $10,000? $50,000? Once you understand the value of a client to your firm, you gain an important insight to help you determine what you may want to spend to gain new clients in the future.
Find the Number You’re Comfortable With
You need to find the cost you’re comfortable with. If your average case value is $5,000, for instance, would you be willing to pay $1,000 to get each new client? Probably not. Would you be willing to spend $100? Certainly. What about $500?
Once you understand the numbers and find your comfort range, you can start to figure out what a profitable marketing campaign looks like for that practice area at your firm. You also have a tool to track marketing campaign performance.
If you have decided, for example, that you are willing to pay $500 to get a new client, and you pay $1,000 for a magazine ad that brings in only one new client, then you’ve exceeded your threshold considerably. You probably shouldn’t run that ad again, at least not without some substantial changes.
Let’s look at the equation from the opposite side. What if you’re willing to pay $500 to get each new client, but you produce a Google Ad campaign that brings in clients for $300 apiece? That tells you that you should consider investing more in Google advertising, because campaigns have the potential to exceed your requirements.
Tracking the Metrics
The numbers will look different for every practice area for every firm, and they will change over time. But it is essential to understand your numbers and how well your marketing campaign is performing. Tracking the metrics is something a good marketing firm should be doing for you on a regular basis.
If you have questions about the performance of your marketing campaigns and gauging the investments that are producing the best returns for you, contact LaGrande Marketing. We’d be happy to help you determine what’s working best and which strategies you might want to let go.