Data analysis has always been central to business success, so why wouldn’t you use it to grow and expand your law firm. As a data-driven legal practice, you can capitalize on the analysis of valuable information by using the findings to improve performance, correct problematic issues, and identify opportunities for increased profitability.
The analysis of key data points is essential to the overall sustainability and profitability of your law firm. But it takes planning and the right resources to accurately gather information and access it on demand. Keep reading to learn how you can center data as the driving force in your firm, and more specifically, your law firm marketing strategy.
What is Law Firm Data Analysis?
Law firms use data analysis to assess and review historical and current information towards the goal of identifying viable strategies for future growth. That data can be gathered either externally or internally, and here is the difference:
- External Data – Your law firm is a business at its core. As such, your revenues largely depend on external factors like clients and other stakeholders. External data helps you analyze variables, such as legal client behaviors so that you can create better client relationships and improve your law firm marketing strategies.
Data like website analytics provides analysis related to the number of visitors to your law firm website, including the duration and frequency of visits and highest page views. With this data, you can customize your site accordingly for an improved visitor experience and a greater conversion rates.
- Internal Data – Inefficiencies within your law firm can have a negative effect on growth and profits. Internal data helps you identify the gaps that may be causing problems. For instance, an internal data analysis can assess the circumstances around poor legal client intake practices or low conversion rates. You can then make necessary adjustments and put processes in place to correct the issue.
Internal data analysis also helps you identify cost-saving strategies, forecast growth opportunities, and enhance the efficiency of firm procedures. If your law firm’s leads are not being effectively moved through the sales funnel, you can review your internal data to find out why and how to correct it.
How to Set KPIs for Your Law Firm
Setting and tracking the right KPIs can help you run a more profitable firm, find new avenues for growth, and make more informed decisions for the future
The Connection Between Law Firm Data and Growth
As a data-driven law firm, you can use gathered data to reap a number of financial benefits, including:
- Firm Growth Opportunities
Data can be used to assess the internal performance of your law firm and gauge its current positioning in order to plan for growth. With data analysis, you can forecast future patterns within the legal industry broadly and your legal practice areas specifically. You can make strategic estimations about incoming matters and which areas of your law practice are most likely to drive law firm revenue and profits.
- Allocation of Firm Marketing Resources
Data analysis assists with the proper allocation and usage of your law firm’s valuable time and talent resources. Data sets can help you assess how staff members utilize the firm’s billable and nonbillable hours, so that you can determine which processes require improvement through the use of artificial intelligence (AI) legal technologies.
Take the client intake process for example. Through automated legal marketing technologies, your firm can streamline tasks surrounding every phase of legal client intake and conversion. From automatically posting legal marketing content to virtually gathering signatures and automatically scheduling appointments, you can make the entire process more efficient, accurate, and cost effective.
Collecting Law Firm Data
To be a growing law firm, you need to become a data-driven law firm that embraces the latest technology for data collection and analysis.
For internal data, your firm needs technology that collects information such as:
- Realization rates that measure the number of conversions against the number of viable leads
- Utilization rates that compare the number of daily hours spent completing billable and nonbillable tasks
- The average amount of time between a prospect’s initial outreach to your firm and their receipt of a follow-up communication.
- Accounts receivable that measures the number of overdue invoices at any given time
For external data, your firm will need to utilize a variety of external resources, including:
- Business databases that provide a forecast of consumer spending trends.
- Legal industry resources that analyze practice area trends.
The Legal Data You Need to Drive Law Firm Growth
Client Relationship Management (CRM) software for law firms provides a wide range of data points to keep your legal practice moving in the right direction. With it, your law firm will have the necessary tools to gather and analyze the data that can drive growth and significantly improve revenue.
Law Ruler’s legal CRM software platform offers an analytics dashboard that can be customized for a number of specific reports surrounding the optimization of your legal marketing strategies. Within a few minutes, you can easily create and evaluate a number of valuable legal marketing and client intake data sets. To learn more about Law Ruler, click this link for a no-obligation demonstration.
Transform Your Law Firm
Maximize your client intake process and acquire more leads with Law Ruler’s all-in-one legal intake and marketing automation software. Schedule a personalized, one-on-one demonstration of Law Ruler today!
0 Comments