KPI: The Marketing Number You Should Know Before You Spend Money

I’ve talked about these in the past but today we’re going to talk about cost per client, why is this so important.

When I first started my law practice and I was sharing an office space subletting from my mentor, I had my own little office in a suite of offices and I was getting overflow clients from her and getting clients from lawyer referral service.

Then I started dabbling in marketing but I didn’t know how much to spend what was a good amount to spend, therefore I struggled in the beginning, so I hope this video is going to help alleviate some of your doubts because I don’t want you to struggle like I did when I first started out, because it was extremely stressful.

I had trips going to the hospital my first year much of that was stress induced. I want to help you get out of the stress that I faced when I first started so let’s dive into it.
What I want to talk about is cost per client how much are you spending on to acquire a client let’s say that your marketing budget is $10,000 you’re getting 20 clients if you divide 10,000 by 20 that means you’d be spending $500 to acquire a client – this number is very important to know.

If you can spend more on marketing to acquire a client or less so out of that $500: if your actual case value is $5000, $500 acquisition is actually a pretty good number as I also mentioned earlier in another video, a good baseline or good measurement of how much in percentage of your revenue your marketing budget should be is anywhere from 10 to 20 percent. If you want to get more aggressive you can spend more than that but 10 percent is a good starting point. If you’re not spending at least 10 percent there’s a lot of opportunity for you to get more clients by spending more on marketing.

Once you do the analysis about how much and how effective your marketing is by looking at your cost per client, then you can take it one step farther to see how much are you spending on Google Ads (also known as pay-per-click). There you can calculate what your cost per client actually is. Same goes With SEO (Search Engine Optimization), as well as radio advertising: you compare all of them and you see which ones have the least amount of cost per client. There you can spend more there because there is more of an opportunity for you in than marketing channel, and you know you are getting the highest return on investment.

I hope this video served you I want you to kick butt rock it. You can do it, don’t give up.

I’m here to support you – we are gonna crush it together! I struggled in the beginning, you don’t have to, I’m here to share what I went through so just continue to tune in you can email me at kaushik@ranchodlaw.com tune in next week and have an awesome day!