As a law firm, it is critical to know how many leads you're able to acquire. Equally important is knowing how many leads are falling through the cracks.
Ineffective marketing and intake can eliminate already slim margins and prevent you from seeing the desired return on your advertising investment. Ultimately, it can leave you wasting money in all areas.
So, how do you know if you are losing too many leads? It depends on if you are correctly tabulating lost leads and your understanding of how lead loss rates can impact your practice. We go more in depth below.
Measuring Lead Loss Against Year-Over-Year Revenue
Each year you can take a look at the potential value of your lost leads. You'll need to know your average fee per client as well as your average lead loss rate. Also, take a look at the value of your advertisements. How many leads are you able to capture through a standard ad campaign?
There can be problems with this strategy, however. If lead loss issues have been constant over the years, comparing yearly revenue due to leads will not reveal whether your lead loss rate could be lower. This method can only display the changes in your lead loss rates over the years.
Therefore, a lead loss checklist is a handy tool to utilize.
The best way to determine if you're losing too many leads is to check your call-answering protocol against best practices. You want to see that your efforts meet or exceed industry standards. Some best practices to check off include:
Instant Disaster Recovery
In the case of a pandemic or act of God, will your business's ability to perform client intake suffer? If you don't have a plan in place that will allow you to maintain business continuity in the wake of a disaster, you will likely lose leads. This also means you won’t reach the minimum possible lead loss rate.
It’s vital to bring in leads and continue your intake procedures no matter the circumstances - including a time of crisis.
You can't convert all of your leads when some are slipping through the cracks.
Lead tracking can help you keep tabs on where your leads are in the sales funnel. With effective tracking, you're less likely to lose touch and allow quality potential clients to fall through.
In turn, lead tracking will increase your overall retention rate. It will also give you insight on how many leads you're losing along the way and give you a better picture to help you determine an acceptable rate for your firm.
Immediate Answering Around the Clock
Failure to answer the phone within three rings or to respond to web submission forms within approximately 2-5 minutes can result in lost leads. Leads that reach an answering machine are unlikely to stay with your practice; you'll find them choosing a law firm that can respond faster to their needs.
Additionally, leads don't necessarily call during normal business hours. They'll call when it's convenient for them - and that may mean on your lunch break, after work hours or on weekends or holidays. At the end of the day, these potential clients will stick with whatever firm is able to meet their expectations for service.
Setting a numerical lead loss goal is a good start. Ultimately, however, any time a best practice is violated, your lead loss will increase, and each lead loss is a potentially large financial loss for your business.
Law firms that can't provide around-the-clock, quality intake coverage should consider partnering with a legal call center, like Alert Communications. A legal call center team can help you ensure you’re responding to potential clients in a timely manner and providing them with legal advice, guidance and service they can count on.
Want to learn more? Download our eBook, "How Alert Can Help Your Law Practice" today.