Measuring Your Marketing ROI

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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?
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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?!?!
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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
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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?
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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
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Revenue and profitability ($)
Penetration (services client buys)
Retention (over time)
Loyalty (attitude)
Referrals/Recommendations
Share of legal spend (% of total)
Survey participation
Client Team Metrics
CLIENT TEAMS BY BILLING ATTORNEY PG
Collections Legend
< 1%
Total
Rank
($1,000s)
All Clients
$400,000
Antitrust &
Comp
1% - 5%
Int'l Trade
Securities
Litigation
> 5%
Corp, Sec
& Finance
Tax
Environ
Property
Electric
Gov't
Contracts
Telecom
IP Group
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
Client Billings
(Responsible Atty / Billing Atty)
Working Attorney Billings
Not part
of
Lateral
Team
Clients
of Other
Partners
Legacy
Clients
Who is Working for His Clients?*
$260k
$175k
$925k
$1.25m
New
Clients
Brought
by
Lateral
$780k
$2.0m
Lateral
Clients
Lateral
Team
* Only if lateral came as part
of team
Profitability Analysis
$812,659.61
$418,361.38
$2,394,150.77
New & Renewed
$2,731,061.39
Thriving
Growing
$1,576,949.13
Stable
Declining
At Risk
$7,696,586.82
ROI Tracking Tools
CRM/ERM
Time & billing system
Intranet
Proposal generation/management
Web analytics
Elite/CMS Reporting Software
IBM Cognos
Benchmarking: 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 [email protected]
Communications Manager, Snell & Wilmer L.L.P.
Julie P. Meyers [email protected]
Chief Marketing Officer, Burns, White & Hickton LLC
Ellen R. Musante [email protected]
Director of Client Services, Steptoe & Johnson LLP
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