Numbers are hard.
Whether you’re totally green or are looking for ways to optimize your current digital marketing strategy, defining what marketing metrics matter to you the most will lay the foundation for your next steps. Think about it: how can you create a tailor-fit marketing strategy without knowing what your ultimate goals are? Successful marketing strategies are based on data, not feelings; this means you have to constantly track numbers, run A/B tests, and measure results.
Most marketing teams rely on shallow metrics, such as web traffic and lead volume, that only give them a glimpse of the big picture. It’s obviously important to cover these essential metrics, but failing to dig deeper into the numbers leads to missed opportunities for improvement.
With these six marketing metrics, you can greatly improve your firm’s overall digital marketing strategy and increase the ROI of your team’s efforts at scale.
Let’s dive in!
You Know What Marketing Metrics Are, Right?
We’ll keep this part brief: marketing metrics are used to monitor, record, and measure progress over time. These metrics change from platform to platform, as well as from firm to firm. It’s crucial for marketing teams to focus on their quarterly (and annual) goals and to identify the metrics that will help them track their progress toward said goals.
There are dozens of marketing metrics to track, and an equal amount of acronyms to keep up with. So, which ones should you be paying close attention to?
Cost Per Acquisition (CPA)
Essentially, CPA measures how much you spend to get one new client. This metric isn’t static, as it can vary based on the platform or campaign you’re measuring for as well as the time of year.
This is oftentimes considered one of the most important marketing metrics to track. While you can measure your overall CPA as an indicator of the overall success of a marketing campaign, channel-level CPA can determine weak points in your budget allocations to various marketing channels.
How to measure CPA: The basic formula is campaign cost/number of conversions.
As far as determining what CPA to aim for, it varies from case to case. Instead, focus on lowering your own business’s CPA over time in a sustainable way.
Cost Per Lead (CPL)
Obviously, leads evolve into clients (if all goes well). So, CPL is a preliminary metric to be measured before CPA.
Cost per lead measures the amount spent on acquiring each new lead per campaign, channel, or overall. This metric helps law firms create better marketing goals, track ROI, and adjust their budgets accordingly. People typically build their CPL budgets by taking paid ad placements and social media monitoring platforms into account.
How to measure CPL: CPL can be calculated by the total dollar amount spent on marketing campaigns divided by the total number of new leads acquired within a given time period.
Also, it’s important to have a system in place that allows you to view and record where each individual lead came from. Otherwise, your data might include unrelated sales pipelines that your team didn’t work on.
Customer Lifetime Value (CLV)
This metric measures the total monetary gain a client is projected to spend on your legal services from their very first purchase to their last.
It’s base on your pricing model, any additional services you can provide, and historical data based on past client’s behavior. CLV aims to prove that quality is better than quantity; this points to the fact that on top of lead-generating campaigns, you should also be focusing on marketing strategies that target existing clients and how to retain them.
How to measure CLV: CLV = Average Customer Value x Average Customer Lifespan.
Lead-to-Customer Conversion Rate
Okay, so you’ve generated a bunch of web traffic and none of it is converting – that’s not very impressive.
How many of your leads are actually converting to clients?
Analyzing this metric will tell you whether or not your marketing team needs to focus on generating more qualified leads or additional content that fleshes out the funnel.
How to measure Lead-to-Customer Conversion Rate: The benchmark data vary based on industry, but the standard for law firms is about 5-15%.
Social Media Engagement
The Hispanic population uses social media platforms (such as Facebook, Instagram, and Snapchat) to connect to brands and find trusted services. These sites are oftentimes considered the top of the sales funnel because they’re used for primary research to review products and services.
Having thousands of followers on these platforms isn’t enough. You need to ensure that your community is actually engaging with your posts in order to amplify your digital marketing efforts. Hone in on how many people are interacting with your posts, as well as who these people are. Respond to comments and strike up conversations with people who are inquiring about your services. Boosting engagement will make your posts more visible to a greater audience.
How to measure social media engagement: This varies based on the social platform. For Facebook, you can easily measure clicks, likes, shares, and comments. On Instagram, you can measure likes, comments, and saved posts. On Twitter, monitor retweets, replies, and favorites.
Website Conversion Rate
You spend a lot of time and effort trying to drive traffic to your site. But are people actually completing the actions you want them to take?
Whether that be to sign up for a consultation or provide their email address, it’s important to measure whether or not your website is actually converting. These analyses can show you areas of improvement on your site or opportunities to A/B landing pages to see which is most effective.
How to measure Website Conversion Rate: You first have to qualify what a conversion means to you (email addresses, consultations, etc.). Once you figure that out, set up a landing page visitors will only fall on after they’ve converted. The trick is to ensure that no other traffic can infiltrate these pages and skew your data.
In essence, you can measure anything and everything that matters to your firm. But before you get deep into the numbers, it’s important to understand what you’re measuring and why.
Don’t get too wrapped up in trivial data entry, either. Save time by automating as many processes as possible and setting up routine reports.
We hope these key metrics are helpful to you and strengthen your digital marketing strategy!