On October 23rd, 2014, we updated our
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About Stephen Fairley CEO of The Rainmaker Institute—the nation’s largest law firm marketing company that specializes in helping small law firms generate more referrals and convert more leads Developed the first automated lead conversion follow-up system for attorneys Coached, trained and spoken to more than 8,000 attorneys Nationally recognized expert on internet marketing, blogging, and social media for attorneys Academically trained as a Clinical Psychologist International best-selling author of 10 books and 8 audio learning programs World traveler: Visited over 32 countries and taken 13 cruises www.TheRainmakerInstitute.com
Overview of Today’s Webinar• 2 necessary components to a successful law firm• Identify 7 Systems every law firm must have• Define Key Performance Indicators (KPIs)• 12 Critical Key Performance Indicators• Using software to track your KPIs• Roles and Responsibilities
Here’s the Bottom Line...The PEOPLE run your SYSTEMS...The SYSTEMS run your LAW FIRM!
7 Systems Every Law Firm Needs 1. Lead Generation System 2. Lead Conversion System 3. Client Retention System 4. Cash Flow System 5. Work Flow System 6. Management Operations System 7. Key Performance Indicators Systems
Lead Generation• 2nd most expensive activity in your law firm• Never ending process• Need to continually produce more & better leads Lead Conversion• Convert more leads into paying clients• Turn more browsers into buyers• Has the most potential for massive revenue increase Client Retention• Get Clients for Life!• Repeat business and repeat referrals• Put systems, processes and procedures in place
Lead Generation System Use both “Online” and “Offline” marketing Don’t put all your eggs in 1 basket! Create a 90 day Marketing Action Plan (MAP) 5 Easy Steps to Create Your Law Firm Marketing Plan Free Resource: www.TheRainmakerReport.com
Lead Conversion System Convert More Prospects Into Paying Clients Turn More Browsers Into Buyers Lead Conversion is Critical! It is much cheaper than Lead Generation and has the ability to Rapidly Increase Your Revenues! When using a Lead Conversion System, many law firms see a significant increase in revenues in 90-120 days
How Good Are You At Conversion?• Most attorneys believe they are “good, very good, or excellent” at conversion...• Most of them are WRONG!• Why?• There are 5 Stages of Conversion and they only focus on the 4th one!
5 Stages of Lead Conversion1. Number of Leads into the top of the funnel2. Number of Leads that turn into Appointments3. Number of Appointments Who Show Up4. Number of Appointments Who Sign Up at the IC5. Number of Appointments who Sign Up Later
Lead Conversion Report Card A = Over 81% B = 71-80% C = 61-70% D = 51-60% F = Under 50%
Typical Law Firm WITHOUT a Lead Conversion System100 Leads = 100% 52 Appointments Set = 52% 23 Appointments Show Up = 44% 12 Sign Ups (New Retentions) = 52% 1 Sign Ups ~ 90 Days Later = 8%Total New Client Sign Ups = 13% Results13 New Clients x $5,000 Per Client = $65,000 Revenues
Law FirmWITH the Rainmaker Lead Conversion System 100 Leads = 100% 70 Appointments Set = 70% 49 Appointments Show Up = 49% 34 Sign Ups (New Retentions) = 34% 3 Sign Ups ~ 90 Days Later = 3% Total New Client Sign Ups = 37% Results 37 New Clients x $5,000 Per Client = $185,000 Revenues
Revenue Results From 100 LeadsWITHOUT a Lead Conversion System Out of 100 Leads the Law Firm converted... 13 New Clients x $5,000 Per Client = $65,000 RevenuesWITH a Lead Conversion System Out of 100 Leads the Law Firm converted... 37 New Clients x $5,000 Per Client = $185,000 Revenues Net Increase of $120,000! 285% Increase! With the SAME amount of Leads!
What kind of conversion problems do they have? Conversion Problems: Report Card1. Major problem with “No A = Over 81% Shows” (29%) B = 71-80%2. Poor Conversion at the IC (32%) C = 61-70%3. No Follow Up after IC D = 51-60%4. No one converts 96% F = Under 50% of Leads into Appts!
Results After Implementing a Lead Conversion System Total Up From 29%! Number ofNew Clients: 77!Up From 17 Up From 7%!
Results from Lead Conversion System Before After Appointments Kept 29% 70% 240% Increase Clients Signed Up Later 7% 28% 400% Increase Total Number of New 450% Clients 17 77 Increase!If this was your law firm…Average Client Value of Contested Divorce: $10,000 to $15,000Potential Revenues… WITHOUT a Lead Conversion System: $170,000 to $255,000 WITH a Lead Conversion System: $770,000 to $1,155,000
Key Performance Indicators! • The key metrics that make your law firm run • Develop a report card that will give the Managing Partner / Owners a comprehensive snapshot of all critical numbers and metrics that can be measured on a weekly, monthly, and quarterly basis
12 Critical Key Performance Indicators1. Number of Leads Per Month & Where the Leads Came From Clearly define what a “Lead” is to your law firm Define the time frame so you can compare Internet For Tracking Use Unique: Social Media • Phone numbers: Client Referral CallMyLawFirmToday.com Professional Referral • Email addresses Client Seminar • Websites MCLE Workshop / Professional Presentation Networking Event Sponsored Firm Event
2. Number of Appointments Per Month How many Appointments were made How many Appointments were kept (show ups)3. Number of New Clients or Retentions Per Month4. Total Amount of New Retainer Agreements What’s the total amount of potential money from all the new retainer agreements the firm signed up that month? Not how much is actually collected5. Total Amount of Cash In the Door Each Month This is a cash flow issue Cash flow is the biggest concern of most Partners!
6. Total Amount of Marketing Costs Per Month Identify how you will define “marketing spend” Do you include Staff and Attorney time? Yes and No Yes = If you have a person dedicated to marketing Yes = If a % of their time is focused on marketing No = If it’s an Attorney or a staff member who occasionally helps with marketing
7. Average Cost Per Lead for that MonthDefine what a “LEAD” is What is and is not counted as a “Lead” Who counts the “Leads”Here’s how we (TRI) define a “Lead”: Someone who has never done business with you before (vs a repeat client) Everyone who contacts the firm via email, phone, social media, personal referral, internet, networking event, seminar, etc They express an interest in your services
Cost Per Lead (CPL) Metric• Avoid arguing about what a “qualified” lead is...• How many “Leads” are produced in a given time frame?• How much money did the firm invest in marketing during the same time frame?• Divide $$$ invested by # of Leads• Compare month vs quarter vs annual• Running average $20,000 spend / 40 New Leads = $500 CPL Is that Good or Bad?
8. Average Cost Per Client for that MonthDefine what a “New Client” is for your law firmHere’s how we at TRI define a “New Client”: Someone who pays the firm money! Anyone who signs a retainer agreement Does not depend on billing the client Does not depend on doing the client work Does not depend on collecting the money (that’s A/Rs job not marketing)
Cost Per Client (CPC) Metric• How many “Clients” are retained/signed up in a given time frame?• How much money did the firm invest in marketing during the same time frame?• Divide $$$ invested by # of New Clients• Compare month vs quarter vs annual• Establish a Running Average$20,000 spend / 40 New Leads and 10 New Clients = $2,000 CPC Is that Good or Bad?
9. Estimated Return On Investment for Marketing Set realistic time frames for ROI How to measure ROI: • Cost of Marketing = How much you invested in marketing • Gross Revenues = Amount of Gross Revenues generated • ROI = Return On Investment
10.Total Amount of Payroll Expenses Each Month11.Total Amount of Non-Payroll Expenses Each Month12.Total Amount of Net Operating Income or Net Profit Per Month
Next Steps1. Go to www.OneSmartAttorney.com OR Call our office and ask to speak with one of our highly trained Rainmaker Advisors.2. They will set up a 45 minute Strategy Session to help you better apply this information to your law firm.3. They will gather some information about your law firm, answer all your questions, and give you some specifics about how to integrate KPIs.4. There is No Charge for this Strategy Session. Call: 888-588-5891 or www.OneSmartAttorney.com or Email: Maria@TheRainmakerInstitute.com