Measuring Your Marketing ROI
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Transcript of 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 [email protected] Manager, Snell & Wilmer L.L.P.
Julie P. Meyers [email protected] Marketing Officer, Burns, White & Hickton LLC
Ellen R. Musante [email protected] of Client Services, Steptoe & Johnson LLP