Looking for More Revenue From Clients & Referrals?

Consider E-newsletters.

While they may not be for generating quick hits or fast leads, does that mean they’re not for generating revenue?

Hardly.

E-newsletters have very specific purposes -- namely keeping the firm name top-of-mind among clients, referral sources and prospects, highlighting very specific areas of expertise and cross-selling firm services. And while, as stated, they may not be for generating an immediate slew of new business leads (particularly if they’re being sent to the firm’s own database), they are for steadily increasing interest in the firm. And of course, more interest means more business – from both current as well as new clients.

Armed with an understanding of what e-newsletters can do, legal marketers are wise to implement such programs based upon some very basic concepts.  First, keep each issue short – preferably to one topic. Almost anyone you meet will tell you they’re “very busy,” (even if that term has different thresholds for different people). We are besieged by hundreds of communications each day, so make yours short, sweet and standout.

Second, keep the content to that which affects your target recipients. Again, as with all good marketing endeavors, the message is not about you.  It’s about the individual reading it.

For this reason, a third imperative is to use your database wisely. Segment your target lists as deemed necessary, perhaps by practice area, perhaps by B2B vs. B2C, or perhaps even by current versus potential clients.

Fourth, if yours is a firm with multiple practice areas, be sure to explore ways in which clients from one practice area can be made aware of services they might utilize in another practice area.

Fifth, and this may almost sound heretical – you should fret a lot more about the subject line under which you will send the e-newsletter than about the content of the e-newsletter itself. That is not to say you don’t want your e-newsletter to be of the highest quality possible, just that you need to recognize that the majority of recipients will either never even open the email or if they do, they may never bother to read the material. Hence, that subject line is the only opportunity you may have to convey your message. Make it count. Let the recipient see the knowledge you have about a very specific subject, about a service that may be applicable to them or a warning about the impact a new legislation may have.

Finally, be consistent in creating and disseminating firm e-newsletters. We all get very busy at times (hmmm, seems I’ve said that before) and the temptation is there to let such initiatives go for a while. Resist that temptation, because it’s the consistency and continuity that gives merit to e-newsletters. You’re staying in your clients’ and prospects’ faces – but doing so in a very nice way.

Different marketing tools serve very distinct purposes and this is true for e-newsletters as well. But one advantage e-newsletters hold over many other marketing options is that are darn inexpensive to create and disseminate. 

SEO or Pay-Per-Click. Which Route Should I Take?

In initiating their online marketing programs, clients often ask us whether they should focus on optimizing their web site (SEO) or engage in paid advertising (PPC).

The answer is simple.

It depends.

It depends on any of a number of factors, the four most important being the nature of the target market, what it is you’re promoting, the level of competition and the short vs. long-term goals of the firm. Notice I didn’t say money, because how much you spend on an SEO or PPC effort is really a function of the other three variables. Pay-per-click may require out-of-pocket dollars while an SEO effort may not.  But the amount of time required to develop an effective SEO campaign may be unfeasible for the firm to implement, in which case it is either hiring an in-house professional or an outside provider. And of course, this then becomes an out-of-pocket expense as well.

So I repeat, in determining whether to go down the SEO or PPC paths, it really depends.

In that it can be launched immediately, if you are looking for quick hits, then PPC is a much better way to proceed. Set your budget, determine your key words, write your ads and off you go. On the other hand, SEO takes time. It will take lots of man-hours to develop content rich web site pages hyperlinked to hundreds of other sites, and it will take even longer for the major search engines to recognize this and reward you with high directory rankings. In fact, in developing web sites, we often suggest that our clients begin with a PPC effort until that time when the full effect of an SEO campaign is beginning to be realized.

PPC may be a better way to proceed if you are looking for fast clicks-throughs. But if you’re looking for quality leads, then you might wish to skew your efforts towards SEO.  This is because high placement on the organic listing of the directories are generally thought to have more credibility than the paid-for ads that usually appear at the uppermost and right side of the directory pages.  Think of it as being akin to the difference between traditional advertising and public relations.  In public relations, when you get an article placed in a newspaper or magazine, you are in effect being vetted by an objective third party entity such as an editor or producer. But you have no control over when or where your article will appear (or if it even will).  In contrast, with a print or broadcast ad, while you’re guaranteed of being seen, your target market understands that the communication is being paid for by you and thus carries less credibility.

The nature of the practice and its target market are also key variables to consider.  For practice areas that target the general public, PPC may make more sense as the prospect is often an unsophisticated shopper who may or may not understand specific questions or ask or credentials to review. A carefully crafted ad may entice this individual drawn to being hit over the head with visions of successful outcomes (think your typical personal injury commercials). Law practices targeting the business community on the other hand, may be dealing with more sophisticated prospects looking for very specific types of law firm features.  Here, an SEO effort may be preferable, unless of course the firm has challenging competitors more solidly entrenched among the higher rankings, in which case, an alternative PPC initiative may be considered.

The fact that there is no clear-cut answer to the question of SEO vs. PPC, underscores that even in the online world, marketing is as much art as it is science.

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 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 link) 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 winds up generating 100 total clicks with a total expense of $1,000. Then compare that to a second firm that is paying $5 per click to be ranked lower. This effort generates 30 clicks costing the second firm $150. Compared to the first firm, the efficiency this firm has achieved will allow it to either invest more dollars into the campaign 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 (i.e., left side) of the search engine directories. The cost of obtaining that service must be weighed against the potential revenue lost by not having that service. Perhaps that individual or SEO provider achieved the goal of a top listing…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.

What Goes into a Law Firm Marketing Plan?

We are often asked by clients and prospects to develop a legal marketing plan on their behalf. This is always an intriguing proposition because what some view as perhaps a two-page outline of the promotional activities to be pursued, a true marketing plan offers something far greater. Such plans provide a more detailed picture of where the firm stands, its goals, and how it plans to achieve them.

A full-fledged marketing document should address the following areas:

Background 

• Firm History 
• The Services it Provides 
• The Geography it Serves 
• The Types of Clients it Serves
• Businesses vs. General Public vs. Government Entities
• Age, Income and Gender Demographics
• Psychographic Profiles
• Attorney Billing Rates 
• Firm Reputation
• Firm Strengths
• Firm Weaknesses
• Results of Marketing efforts to Date 

Industry Overview

• General Trends
• Seasonality
• Client Development Cycle (from awareness through initial consult and retainment)
• Attorney Billing Rates
• Competitive Framework 
• Competitor Descriptions (e.g., size, number of attorneys, strengths, weaknesses, etc.)
• Competitor Reputations and Positionings
• Analysis of Competitive Communications (e.g., ads, web site, brochures, etc.) 

Objectives & Strategies

• Vision/Mission Statement
• Long-Term Goals & Rationale (e.g., increase revenue to $XXX to support partner payouts of $XXX)
• Long-Term Strategies (e.g., generate greater awareness of the firm among a particular business or consumer segment)
• Short-Term Goals (e.g., Obtain $XXX in revenue in the upcoming fiscal year)
• Short-Term Strategies (e.g., Implement social media campaign, broaden geographical target, add new practice area, etc. 

2013 Strategic Plan

• Improvements to Firm Services
• Billing Rates
• Promotional Program
• Objectives
• Budget & Rationale
• Target Market
• Target Audience(s)
• Marketing Mix/Budget Allocation 
• Activity A (e.g., development of new web site)
• Activity B (e.g., PR campaign) 
• Activity C (e.g., social media effort)
• Creative Development 
• Positioning of the Firm 
• Benefits the firm provides (particularly vs. competitors) 
• Substantiation for Benefits
• Communications Hurdles 

Opportunities & Red Flags

• Indicators of Success (i.e., milestone to be achieved/interim metrics)
• Plan Assumptions 
• Firm Strengths as Related to the Marketing Plan
• Firm Weaknesses and Red Flags as Related to the Marketing Plan (i.e., firm may or may not be able to effectively implement activity A for such and such a reason)

Implementation

• Plan Flowchart & Timetable 

While a full-fledged marketing document such as this may not be realistic or feasible to implement on an annual basis, we have seen it be an extremely worthwhile exercise for law firms undergoing a transition, requiring a new direction or seeking to tap into new growth areas.

Budgeting for Legal Marketing in the New Year

Most of us begin 2013 with hopes and plans for a big year in terms of generating new business, more revenue and greater profit. With that however, comes the unavoidable task of determining how much should be allocated for the law firm’s marketing function.

There are several ways to answer this, the most common being the standard 2-5% of the firm’s anticipated revenue. However, much more effective is to take a task approach in which the firm’s marketing budget becomes a function of its objectives.

In taking such an approach, it is important that several difficult questions be addressed:

1. Are the marketing activities designed to generate new clients over the short term only or should some of the funds be more long-term focused? This will dictate the types of activities utilized and the relative costs involved.  For example, a new firm brochure or web site may not get the phones to ring immediately, but can set the stage for significant success down the road.
2. How are resources being defined? If it only includes dollar outlays, then certan marketing vehicles such as search engine optimization and social media may make good sense. If the term “resources” is broadened to include “time,” then the drain on manpower may make such activities prohibitive. (Of course, an outside service can be handled to manage these efforts, thus again skewing the allocation of resources to being more dollar-focused).
3. Is the concept of frequency being taken into account? Generating awareness and new business requires that prospects be continuously exposed to the firm, and often through a multiplicity of channels. To do anything less is money wasted.
4. Will a better year only be a function of obtaining new clients or will it also be a function of higher rates and/or the cross-promotion of firm services? Both initiatives may require investments of time and/or money.

Ultimately, once the determination is made as to a) the firm’s objectives and b) the strategies it will employ to reach these goals, only then can the specific dollar amount (and or internal costs) required to achieving them be determined. The budget allocation of 2-5% of firm revenue is really only a guideline. Actual budgets must look at a wide range of variables, including the current image of the firm and the level of its awareness it enjoys among its target group.  

Welcome to 2013!

It’s at this time of year that we all make our new year’s resolutions. Last year, mine was to eat better, exercise more and stress less. I failed miserably at all three.

This year, my resolution is to do something I’m always advising our clients to do – consistently generate new content for their legal blogs and e-newsletters. Have I been good about doing it myself? Absolutely not. But I know that adding quality content to my blog and disseminating it through e-newsletters is the best way to attract new visitors and hopefully ongoing followers as well.  So, net, net,…Do as I say and not necessarily as I have done.

But what I have promised myself is to generate one posting each week for 52 weeks on topics pertaining to legal marketing. There’ll be articles on marketing in general, branding, pay-per-click and SEO, business development, measuring return on investment, implementing seminars, niche marketing., client satisfaction, social media and much more.

With the new year upon us, we’ll start off next week with a discussion on how lawyers and law firms should go about the task of budgeting for marketing.

I certainly look forward to your comments and questions during what I hope (and think) will be a great year.

How to Select a Marketing Firm: Some Tips From the “Other Side”

The decision to work with a marketing firm or consultant is not an easy one. Lawyers are not necessarily marketers by nature and they don’t teach practice building in most law schools. Hiring a marketing vendor requires an investment and that doesn’t even include the expenses involved in the actual purchasing of ad space, pay-per-click services, broadcast time, printing services, etc. It also does not include the significant investment of time that will be required as well.

But once the decision to move forward has been made, how do and how should law firms go about the actual selection process?

Part of the answer lies in determining what it is that the practice hopes the marketing vendor will help the firm accomplish.  Generic goals such as greater exposure, more clients, more revenue, etc. are not nearly as helpful as tight, specific objectives, such as seeking a 10% increase in new client revenue over a 1-year period, raising the profile of the family law department among the rest of the legal community, or raising the image of the firm so as to justify higher rates. These are more action-oriented directives. One might even call them strategies vs. objectives. And if a firm cannot, on its own, reach a consensus as to these types of guiding directives, then it is probably best served by seeking an experienced marketing vendor or professional who can look at the practice from a holistic perspective. 

An objectives-driven approach is infinitely better than one that simply suggests that the firm needs a new ad campaign, or a revitalized web site, or better signage for a trade show booth. This is because it is often a blending of several marketing tools that gets a firm to where it needs to be. A new ad campaign suggests perhaps a new image altogether, which in turn may affect not just the campaign itself, but the web site as well. A revitalized site is enhanced with a more concerted search engine optimization (SEO) program. And that new signage may be deemed necessary to attract more visitors to a trade booth, though an ad in the show guide, or a press release promoting a giveaway may do likewise.

The point is things work together in different ways and it is incumbent upon the law firm to select a vendor well-versed in the art of developing the best marketing mix…and doing so within dollar and time constraints. For example, too often we have seen a law practice suddenly cut its advertising efforts or its PR campaign in favor of some service offering quick results via SEO or pay-per-click. The truth of the matter is that each of these types of marketing tools serve different purposes and have different strengths and weaknesses. The SEO vendor, the newspaper, the direct mail house, etc., are all there to provide specific services – regardless of the unique challenges of the firm. They may well be part of the solution to a specific challenge, but each is offering that service to the firm regardless of the firm’s unique needs.

Net net, in choosing marketing vendors, it is better to select those that either a) offer a truly holistic approach or b) clearly address how their services can be a vital part of the firm’s overall marketing initiative. 

Once the firm has decided upon the type of vendor it is seeking to hire, the next step is determining the criteria on which it will base its decision. Marketing vendors come in many shapes and sizes.  As stated, some offer very specific services. Others are more broad-based. But the same holds true in other areas as well.  Some may focus exclusively on the legal industry, others, any industry. Some will be situated close by the firm, while others may be in remote locations. Some may be large, others small. Knowing what it is that the firm considers important will make the entire process go more smoothly.

Next, it’s critical that the firm outline very clearly to its potential vendors those pre-determined objectives and qualities which it is seeking.  This is vital as it serves to move the process along more efficiently.

Then the ball moves towards the potential vendors. The firm’s decision makers must ask themselves whether the firm needs all of the bells and whistles the vendor is offering. How do the vendor’s services align with the stated requirements? How well did the vendor “listen” to the firm’s statement as to its needs.  Does the solution offered and/or the marketing tools being suggested make sense in terms of achieving stated objectives?  Is the firm’s budget for the marketing endeavor being taken into consideration? Answers to these should go a long way towards ascertaining whether the vendor represents a good fit.

Obviously, cost is also always a consideration. Suppliers that are either much higher or much lower than their competitors should always be viewed at with suspicion.  But even more important is the existence or lack of chemistry between the firm’s decision makers and the vendor. It is an intangible that is difficult to quantify. Firms must ask themselves whether the vendor matches them in terms of its personal style. A law practice that is by its nature more formal may do well to hire vendors that are similar minded. The same holds true for the practice that has a more casual atmosphere. Flexibility is another key variable…Will the vendor work within the parameters the firm has set and is it able to adjust on the fly when situations change? And last, the least costly, flashiest, most experienced suppliers are worth nothing if they are not serious about simply working hard on the firm’s behalf.

Ultimately, in order to get the most out of a marketing firm or consultant, there has to be a true partnership.  From a business perspective, the relationship between a law firm and its marketing provider is an intimate one. Hence, it’s important that that relationship be one of honesty and true benefit. And, if everyone actually likes each other and can also have a little fun along the way…so much the better!