Tuesday, August 23, 2016

Marrying IT with the Legal Marketing Function

Businesses of all kinds have historically had a difficult time reconciling the respective roles of those in the marketing and in the accounting/financial departments. It has always been understood that marketing should "pay out." Yet those who performed that function had difficulty articulating how each element of their program contributed (for better or worse) to the company's bottom line. 
Now however, that “fuzziness” of respective roles has carried over into the IT department as well. Marketers of all kinds (and legal marketers in particular) might well ask where marketing begins and ends. More often than not, in today’s information driven society, it begins and ends at the desk of the firm’s technical guru. 
For proof, one need look no further than the importance CRM software plays in the business development process. If attorneys (particularly at larger firms) had to procure, understand, implement, train and then utilize such applications on their own, it is doubtful this technological advance would be as widespread as it is today. Same holds true for the marketing guys who may well understand how to develop a message, place an ad, disseminate a press release or even create a pay-per-click campaign, but who at the same time, would have difficulty recognizing the compatibility of one legal application with another.
So much of legal marketing today revolves around online activities. Yet it is the IT folks who understand the benefits (and limitations) of the various social media outlets, the changing algorithms involved in search engine optimization, the capabilities of online dissemination services, and the potential of the firm’s web site to convey everything the firm wishes to convey.
The law firm that places too great a distinction between marketing and information technologies runs the very real risk of inefficiency, but even more important, is almost certain to miss out on opportunity. A much wiser approach is to promote the full integration of the IT folks into the marketing decision making process.
By doing so, law firms are almost certain to discover ways in which to efficiently stand out from competitors through both substance and style. And even in the information age, “standing out” is still what marketing is all about. 

Wednesday, August 17, 2016

Word-of-Mouth Revenue and the Value of a Client

Toothpaste marketers have it easy.
It’s not hard for them to figure out the value of a client… or in their case, of a customer. They know the margin they make on the product, how many tubes that customer will buy and how often that customer will come back to buy it. Moreover, the word-of-mouth phenomenon is not prevalent. After all, how often do you give or receive referrals on which toothpaste to buy?
But what about the marketer of legal services?
For most practice areas, there is no “typical” client. And there is absolutely no way of knowing or even estimating how many times that client will come back for more services. But most important, the value of a client is determined not just by the revenue that client brings in, but also by the revenue that client generates through word-of-mouth and referrals. Unfortunately, most law firms fail to track that information and thus fail to get a full understanding of what each client represents to the firm.
This lack of information can have a direct impact on the firm’s fortunes. For example, a client that brings in greater revenue may be “appreciated” more than the smaller client whose contribution to overall firm revenue is significantly less. Yet, that smaller client may be of greater value to the firm simply through its connections to other potential sources (i.e. prospects) of new revenue.
When data regardingfrom where referrals are coming is not collected, law firms miss the opportunity to not only understand the value of each client, but also the opportunity to nurture those sources of “down the road” revenue. They may not see that that client who used to send lots of business their way is no longer doing so, and thus they may not recognize that his or her perception as to the quality of their services is no longer what it was. They may not see that Mrs. Smith merits a lunch invitation, Mr. Jones has earned a larger gift basket come the holidays, or that the XYZ Company is in danger of becoming an ex-client.
To be able to act on this information, law firms must first be able to capture it. Yet this need not be a daunting task, By simply asking the question (as one would regarding through what medium a client heard about the firm), and tracking the revenue generated through these sources, a great deal of actionable data is obtained.
You can find more information regarding the tracking of word-of-mouth revenue and the value of a client at etiometrix.com.

In the meantime, I look forward to the day your firm’s success in business development can be quantifiably tracked to perceptions of its work quality. 

Tuesday, August 2, 2016

Why You Should Not Focus on Search Engine Rankings

Let me start by saying something sacrilegious. Search engine rankings do not matter. Well actually, they do matter somewhat, but not as much as many think. That is because many legal marketers tend to look at where their site is listed in a Google search as the end result of a search engine optimization (SEO) or even a pay-per-click (PPC) effort rather than as just another interim metric.

“Wow. We’re listed in the top three!” we’ve heard many a client attest, undoubtedly feeling as though they’ve discovered the holy grail. Similarly, we’ve known some clients where anything short of such placement is cause for excessive hand-wringing.

The truth is that the only reason why it’s good to have a top listing is to generate greater number of impressions (exposures to the web site listing) so that more people both visit the site and then contact the firm in some manner.

The variable that many miss is the expense involved. For example, consider a situation in which one firm is paying $10 per click to achieve a number one ranking and generates 100 total clicks with a total expense of $1,000. Then consider a second firm that is ranked further down the page. This firm spends $400 and generates 60 clicks. Compared to the first firm, the efficiency this firm has achieved at $6.67 per click will allow it to either invest more dollars into the campaign (additional keywords, etc.), invest in other marketing vehicles or recoup the savings.

The same can be said for an SEO program in which a staff member or outside vendor is paid to ensure that the firm is listed high on the organic section of the search engine directories. The cost of obtaining that top listing must be weighed against the potential revenue lost by being listed lower. What was the cost of that effort versus the additional revenue earned by being listed first?

The point is not that search engine placement is irrelevant, or that being first is not often the preferred position. Rather, such a position is a means to an end, as is the monthly budget applied and the dollar amount of the click bid itself. If the goal of your firm’s PPC or SEO initiative is to generate more revenue for the firm, then the leads (or actual clients) generated per dollar is a much more significant metric. As important, it is also a better metric for directing you as to how your on-line dollars should be allocated.