measuring your marketing roi

Measuring Your Marketing ROI

Presenters

David McCann, Communications Manager, Snell & Wilmer L.L.P.

Julie P. Meyers, Chief Marketing Officer, Burns, White & Hickton, LLC

Ellen R. Musante, Director of Client Services, Steptoe & Johnson LLP

Agenda Measuring ROI: What is it? So What? Who Cares? Measurement Obstacles – Good, Bad and Ugly The Measurement Process Firm Culture vs. ROI Initiatives Metrics. Metrics. Metrics. Benchmarking, Tracking and Evaluating Profitability Analysis Technology: The ROI Secret Weapon Q & A

What is Measurement?

The process of analyzing and improving the efficiency and effectiveness of marketing

Accomplished by focusing on the alignment of marketing activities and strategies with business goals

Involves creating a metrics framework to monitor marketing performance

What is Return on Investment?

ROI = PROFIT – INVESTMENT INVESTMENT

Profit = Gross Revenue – Cost of Goods Sold

What is Return on Activity?

ROA = REVENUES - INVESTMENT INVESTMENT

Why is Measurement Important? Bottom-Line Results

Individual / Team Accountability

Resource Allocation

Accuracy of Decisions

Establish Value of Marketing Organization

Measurement Obstacles Why is it so difficult?!?!

The Black Box Time and Timing Source of Message / Incentive Activity Focused Lack of Resources Firm Culture Intervening Variables

The Measurement Process Establish Realistic and Measurable Objectives

Set Key Benchmarks

Track and Measure Results

Creating an ROI Culture in the Firm

A law firm is a business, too Management wants to see return on its marketing

dollars Firm management and marketing convey the ROI

message together Create partnership between attorneys and Marketing

Department Broadcast successes throughout firm

Benchmarking, Tracking and Evaluating marketing activities

What are the goals for tracking activities?

To demonstrate activities?

To show value?

Evaluating activities

Tracking Results/Successes

Clearly define goals Maximize the opportunity Define meaning of “success”/“results”, up front Define roles Conduct prep and follow up activities Create event spreadsheet Have ongoing follow up meetings Tracking PR activities

Metrics Conduct Metrics Assessment

Usage Satisfaction Performance

Link to Business Practices Include Firm Leadership Align with Peers

Finance BD Managers New Business Intake

What can/should I measure? Market perception Client behavior Client satisfaction Profitability Market/Wallet share RFP requests/Conversion rates Media hits Website visits Seminar/Webinar attendance Newsletter subscriptions

Client Team Metrics Revenue and profitability ($) Penetration (services client buys) Retention (over time) Loyalty (attitude) Referrals/Recommendations Share of legal spend (% of total) Survey participation

Client Team MetricsCLIENT TEAMS BY BILLING ATTORNEY PGCollections Legend < 1% 1% - 5% > 5%

Total ($1,000s)

Rank Antitrust & Comp

Int'l Trade Securities Litigation

Corp, Sec & Finance

Tax Environ Property Electric Gov't Contracts

Telecom IP Group

All Clients $400,000 2.5% 4.1% 15.3% 9.4% 7.2% 3.3% 9.8% 2.7% 1.6% 29.9% 14.1%

DUTCH PIE COMPANY $14,000 1 1.9% 1.9% 7.6% 0.1% 0.1% 0.3% 4.3% 0.0% 0.0% 83.4% 0.4%

PANDORA'S SOCKS $11,800 2 0.0% 4.8% 1.3% 0.1% 0.0% 0.0% 0.3% 0.0% 0.0% 93.5% 0.0%

BLACK LAB INDUSTRIES $7,200 3 0.0% 4.9% 22.5% 0.6% 0.5% 0.1% 9.1% 0.0% 0.0% 62.0% 0.2%

CARPETS R' US $7,100 4 0.3% 1.6% 4.2% 0.0% 0.1% 0.1% 1.3% 3.7% 0.0% 88.6% 0.1%

JAMES BOND $6,400 5 0.0% 83.6% 2.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 13.9% 0.0%

SPITZ MOUTHWASH $5,400 6 1.0% 15.3% 33.0% 2.2% 0.0% 3.1% 19.8% 7.1% 0.0% 18.5% 0.0%

CARPETS R' THEM $5,400 7 2.6% 0.1% 67.5% 5.7% 0.0% 0.1% 0.9% 0.0% 2.3% 19.4% 1.3%

VENTOR RAILROAD $5,100 8 21.2% 46.9% 6.6% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 25.2% 0.0%

ELLEN FINANCIAL SERVICES $5,000 9 5.0% 15.7% 41.4% 0.2% 1.5% 0.0% 12.1% 0.0% 0.0% 23.2% 1.0%

JOHN'S BARGAIN BASEMENT $4,700 10 0.0% 1.4% 57.6% 0.0% 0.0% 0.0% 17.2% 0.0% 0.1% 23.3% 0.4%

ESPERANZA SHORES $4,500 11 0.0% 19.3% 19.6% 25.7% 0.9% 0.0% 0.3% 0.0% 0.3% 33.4% 0.5%

ARCHER MEDICAL LLP $4,300 12 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.4% 98.4%

CANDY CANE $4,200 13 0.0% 5.2% 4.4% 1.1% 0.0% 0.0% 1.8% 0.0% 0.0% 87.6% 0.0%

LARAMIE CIGARETTES $3,900 14 81.7% 0.0% 1.2% 0.4% 0.4% 0.3% 9.9% 0.2% 0.0% 4.4% 1.5%

ITCHY & SCRATCHY INC $3,700 15 0.0% 0.0% 3.2% 5.9% 0.0% 0.0% 75.3% 0.0% 0.0% 8.4% 7.1%

BERT'S ANTS $3,700 16 0.0% 15.5% 10.8% 0.0% 49.1% 0.1% 0.0% 0.0% 0.0% 24.5% 0.0%

STRAWBERRY TECH $3,600 17 0.0% 0.0% 4.0% 0.6% 0.1% 0.0% 0.0% 0.0% 0.0% 95.4% 0.0%

CHESA PEAK LTD $3,600 18 0.2% 65.8% 0.0% 26.3% 2.7% 0.0% 0.0% 0.0% 0.0% 4.9% 0.0%

SINGAPORE SLINGERS $3,500 19 0.0% 0.0% 9.6% 3.2% 0.0% 0.1% 0.1% 0.0% 0.1% 86.9% 0.0%

ELEMENTARY MONKEYS $3,400 20 0.0% 0.0% 78.1% 0.3% 0.0% 0.0% 6.9% 3.9% 3.7% 10.8% -3.7%

Lateral Integration Metrics Candidate retention (# of months)

Profitability (individually; practice)

Exporting work (to others in firm)

Importing work (from legacy lawyers)

Utilization of professional staff

Lateral Integration Metrics

Not part of

Lateral Team

LateralTeam

New Clients Brought

by Lateral

Legacy Clients

$1.25m$925k

Clients of Other Partners

Lateral Clients

Working Attorney Billings

$780k

$260k

Who is Working for His Clients?*

$2.0m

$175k

* Only if lateral came as part of team

Client Billings(Responsible Atty / Billing Atty)

Profitability Analysis

New & Renewed

Thriving

Growing

Stable

Declining

At Risk

$2,394,150.77

$7,696,586.82

$1,576,949.13

$2,731,061.39

$418,361.38 $812,659.61

ROI Tracking ToolsCRM/ERMTime & billing systemIntranetProposal generation/managementWeb analyticsElite/CMS Reporting SoftwareIBM CognosBenchmarking: Citi, Peer Monitor, BTI

Sample Dashboard

Dashboards deliver a range of diagnostic information at a glance. This one shows:

•Client Satisfaction

•Market Awareness

•Recruiting

March 2005, Law Practice, Mark T. Greene, PhD

Questions

Measuring Your Marketing ROI

David McCann dmccann@swlaw.comCommunications Manager, Snell & Wilmer L.L.P.

Julie P. Meyers jpmeyers@bwhllc.comChief Marketing Officer, Burns, White & Hickton LLC

Ellen R. Musante emusante@Steptoe.comDirector of Client Services, Steptoe & Johnson LLP