It’s nearly unanimous: 95 percent of law firms say that because marketing is a non-billable expense, the spending risk is greater, according to a CallRail survey.
But despite this inherent risk, many law firms take a somewhat scattershot approach. Some might chase the next big thing, and others may stay with what’s worked in the past, but neither are analyzing results beyond the anecdotal level — or taking corrective action.
To wit: In the same CallRail survey, respondents ranked social media as the No. 1 most valuable channel for lead generation…and they also ranked social media the No. 1 worst performer. “Almost every channel was considered underperforming by almost 20 percent or more of law firms,” CallRail noted.
With the average law firm marketing budget clocking in at 7 percent of revenue, it’s worth taking the time to make sure your marketing activity is getting the right results. Just as financial audits ensure accuracy and detect problems within your firm’s books, a marketing audit can shine a light on what’s working well, what’s not, and how you can adjust for better ROI.
What is a marketing audit?
No two firms are alike; a family law practice will have a different marketing mix than a corporate firm. While the tactics may be different, a law firm marketing audit should examine activity, spend and results in three main categories: attracting business, winning business, and retaining business.
Attracting business
Within its particular ecosystem, how effectively does the firm get itself in front of potential clients and referrals? What is the strength of its brand and marketing materials? Is the website attractive, user-friendly and search-optimized? What is its share of voice in key publications? How well does the firm and its lawyers use social media? How competitive is the firm in credible industry rankings?
Winning business
When the firm has a specific opportunity to serve a specific prospect, how well does it close? How does it present capabilities in pitches and proposals? What are the patterns for business won and business lost? What messages are particularly effective? Who does the firm lose business to, and why?
Retaining business
How well does the firm keep and grow its current clients? What kind of outreach does the firm maintain between matters (and invoices)? How does the firm reach out to former or inactive clients? How does the firm obtain and act upon client feedback? What is the state of the firm’s current online reviews?
A helpful marketing audit will not only dive into topics like these, it will synthesize findings into recommended actions, sorted by priority and timeline. We like to start each audit with a color-coded overview — similar to what you get at a car tune-up — that shows at a glance what’s working well (green), what could use some adjustment (yellow), and what needs attention now (red).
When do I need one?
While in a perfect world, law firms could take time every year to do a deep dive into their marketing, perfect need not be the enemy of the good; there’s significant value in sporadic reviews.
It’s a great time to do a marketing audit if:
- You’re not sure how to get started: Maybe you just launched your firm, or maybe you’re looking to grow business beyond your immediate network. A modified marketing audit can help you prioritize your time and spend.
- Your firm has changed: Maybe you merged with another firm, opened a new location or added a large new practice area. When your service offering shifts, your marketing mix should too.
- Your phone isn’t ringing: If you’ve experienced a dropoff in the quantity or quality of client queries, diagnose the actual problem before pivoting (or continuing to throw good money after bad leads).
- You’re in the midst of succession planning: If some of your most high-profile rainmakers are preparing to retire, a marketing audit can help you understand where that might leave you vulnerable – and what kind of messaging and outreach can position you for a smooth transition.
- You don’t know what’s working: If you are spending 7 percent of your revenue (or more!) on marketing but aren’t sure what it’s doing for you, a marketing audit can help you establish benchmarks with peers, set metrics for your firm moving forward, and ensure your spend is productive.
Note that audits need not be firmwide, either; specialty practice or industry teams can audit their group’s marketing activity separate from the macro firm.
Think about planning your marketing like you do your healthcare. Before you spend money on a treatment plan, you’d want to make sure you were accurately diagnosed to begin with (and no, the marketing equivalent of WebMD does not count). This means reviewing your history, asking some detailed questions and running a few tests.
Again, 95 percent of lawyers view marketing spend as inherently risky. Marketing audits will help you lower your risk and increase your ROI through a thorough diagnostic process and a proper prescription.