Digital Marketing, Metrics

By Postali

laptop with a pile of money and a mobile phone

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.

What is 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.

Cost Per Client Acquisition equals marketing costs divided by the number of new cliients

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:

$1000 equals $100,000 divided by 100

So what does that mean for my law firm?

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
Twitter Posts $0 0 $0
Boosted Facebook Posts $6,250 5 $1,250
PPC $15,000 10 $1,500
Direct Mail $20,000 40 $500
SEO / Content Marketing $8,750 35 $250
Tradeshows $25,000 5 $5,000
Email Marketing $25,000 5 $5,000
$100,000 100 $1,000

Armed with these calculations, you can see if a tactic is giving you the results you want and redistribute resources if they’re not.

Now what?

  • Download our free Cost Per Client Acquisition worksheet
  • Enter your own marketing channels, costs, and clients to find your own Cost Per Client Acquisition ratios.
  • Send us an email at hello@postali.com if you need help sorting through the numbers and creating a marketing strategy that will bring your Cost Per Client Acquisition metrics right where you want them.

Note: This is the 1st article in a 4-part series. Want to read the rest?