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Do You Know Your Average Cost Per Case?

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Do you know what it costs to land a new client for your law practice?

A Cost Per Case (CPC) analysis – which calculates how much you spend to acquire one new client – will reveal how much bang you’re getting for your marketing bucks.

Here’s the formula: CPC = Budget Spent on Marketing, Advertising and Promotion ÷ Number of New Clients.

Clearly, CPC is not Advanced Calculus. It will vary from practice to practice, depending on the type of case, size of firm, geographic region, and other factors.

But marketing gurus say a CPC of approximately 15 percent is a good target to shoot for.

“There is no perfect guideline,” according to this source. “Most CPCs will be profitable if you are spending around 15 percent or less of your expected [fee] per client.”

Here’s an example. A Social Security disability attorney earns an average fee of $3,000 per case. The attorney wants to run a pay-per-click ad campaign on Google.  To land one new client, the attorney should spend no more than $450 on the campaign to hit the 15 percent CPC target

Read “What is a Good Cost Per Case?”

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How to Get More Clients Per Marketing Dollars

The following suggestions are from business writer Jan Hill and Lawmatics:

Organic leads. These come when prospects find you through a general Google search rather than clicking on an ad.

Search Engine Optimization (SEO). This strategy optimizes your website content by using  relevant keywords.

Pay-Per-Lead (PPL). With PPL, you pay an advertising company for every qualified lead they generate for you.

Social media leads. “According to an Attorney at Work survey, 96 percent of the 302 lawyers who responded said they use social media like LinkedIn, Facebook, Twitter, and YouTube to bring in new clients,” Hill writes.

Referrals from non-lawyers. From Hill: “Research has shown that more people choose an attorney based on a referral from a friend, family member, or another lawyer than by any other method.”

Referrals from lawyers in other practice areas. Building a referral network with other lawyers is a win-win proposition.

Take care of your existing clients. They’ll sing your praises to their friends and family.

Source: Lawmatics

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In an age of consolidation where increasingly impersonal transactions have made customer service an oxymoron, we bring together independent agents, insurance companies, and other industry specific service providers to develop and deliver insurance products and risk management solutions that benefit our insurance customers.

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