There is no shortage of marketing metrics (also called KPIs) for you to use to measure the success of your law firm’s marketing tactics. While hits, clicks, likes, and pageviews are some of the common ones, you might be overlooking one that gives you valuable insights on the effectiveness of each of your marketing channels – Cost Per Client Acquisition.
It’s time to break out the calculator (or download our free Cost Per Client Acquisition worksheet)! Cost Per Client Acquisition is the ratio between how much you spent on activities aimed at attracting new clients and how many new clients you actually got during that same period.
For example, let’s say that last year you spent $100,000 on marketing and got 100 clients. Your Cost Per Client Acquisition would be:
On its own, your law firm’s Cost Per Client Acquisition ratio gives you an overview of the health of your marketing compared to the value of each client to your firm. Spending $1000 to reach a client who earns your firm $25,000 makes more sense than spending $1000 to reach a client who earns your firm $500.
But combined with some other data, Cost Per Client Acquisition is your time and effort calculator. Let’s take that example above. In it, we looked at overall marketing expenditures and overall new clients. But what if we broke it down by each marketing channel used?
|Annual Cost||Number of Clients Acquired||Cost Per Client Acquisition|
|Boosted Facebook Posts||$6,250||5||$1,250|
|SEO / Content Marketing||$8,750||35||$250|
Armed with these calculations, you can see if a tactic is giving you the results you want and redistribute resources if they’re not.
Note: This is the 1st article in a 4-part series. Want to read the rest?