In this three-part series discussing the three forces that will help you easily and quickly scale your law firm, we've already covered the first and second forces. The first force, financial alignment, involves getting your financials on track, having profit goals for your firm, making sure you've got enough money to pay your taxes and using KPIs to keep your business in alignment. The second force, operations, dealt with tracking, measuring and adjusting the processes that you use at your law firm to make sure that it's running smoothly, which is an ongoing, daily routine. This third conversation covers the marketing/sales force that is involved in easily and quickly scaling your law firm.
Marketing And Sales
Marketing has radically changed due to the internet. There are a number of ways that you can promote your law firm such as SMM - social media marketing, SEO - search engine optimization, PPC - pay per click ads and video. With so many options, it can be too easy to just throw advertising dollars at each one and not really know if any of them are actually helping you bring in new clients.
This leads to step one of the marketing/sales force used by our law firm CPA team. It's important to analyze your marketing and sales efforts to understand where you're actually getting your conversions from. What's driving your sales? What are the associated costs of your sales? These are questions that you must have the answer to. If you utilize our team of law firm accountants to assist with your law firm bookkeeping, we will account for all of these costs. You can learn a great deal from each line item when you analyze your marketing budget. If you'd like greater insight into this, our law firm CFO advisory service is ideal for helping you analyze the areas of your financials where adjustments can be made.
Analyzing Marketing Efforts
In the past, we have worked with law firms that had a pretty large advertising budget. One particular company was using various advertising platforms and spending a great deal of money. Yet, the CEO felt like they were just swapping dollars and wanted to know what they could do to change that. Our law firm CPA team analyzed their ad spend and found out that they were receiving a 15 to 1 ROI on one of the advertising platforms that they were utilizing. When that was discovered, spending was halted on the other platforms and pushed towards the profitable platform. By using our law firm CFO service, this company was able to understand where they should place their marketing dollars and improve their bottom line.
As we discussed in part two, it's important for your law firm to have processes for every aspect of your company. This includes your law firm marketing efforts. You must analyze your data so that you know where your marketing dollars are best spent. This is an ongoing and consistent process, which will lead to more profits when you know what it costs to convert leads into clients.
Analyzing Other Sales Costs
Another factor that you need to look at if you want to grow your law firm quickly and easily are the other sales costs that you are spending. The goal is to find any unnecessary costs in this area that can be reduced.
A good example of this can be shown by discussing another law firm client that we have helped. We were able to boost the law firm’s profits by $20,000 per month in a 45 day period just by first reviewing their current compensation plan. In this instance, one of the initial employees who was hired for a VP of sales position was given compensation that allowed him to receive 20 percent of the gross revenue figure from the firm, regardless of who actually generated the sales. By utilizing our law firm CFO advisory service, we were able to renegotiate this employee's compensation to a more reasonable level.
You also need to go in-depth with your sales process and examine the pricing that you're currently using. Should it be increased? Are you upselling any other services to clients? How is your process for client retention working? Our law firm accounting team can help you answer these questions if you need assistance refining your sales process. By taking the time to examine, create processes, adjust and monitor your marketing and sales division, it will lead to growth.
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