It seems like marketers speak one language, marketing jargon, and law firms are just trying to decipher what’s working, what isn’t and how efficiently their budget is being spent. Often, the metrics get diluted and it’s difficult to tell what’s important and what isn’t. Here are the 5 metrics you should care most about when you review your data.
- Cost per conversion: This metric lays out how much you spent to get one lead from your paid search ads. Pay attention to this one! How much is a lead worth to you? For paid search, your leads should be in the $100-$150 ballpark.
- Conversion rate: This metric correlates to how effective your ads are to your landing page. Basically, it tells the story of how relevant your ads are to what people want. It shows how often, on average, your ad leads to a conversion. This is important because if you’re paying for clicks, you want to increase your odds as much as possible that the cost of a click will lead to a conversion. This metric is always a percentage and is most often seen in the 4-5% range for law firms.
- View thru conversion: This is an underrated metric that should carry more weight than it does. This occurs when your ad is seen but isn’t clicked on, however, within a 30-day window, that same person comes to your site and converts. It shows your ad resonated with them, was effective and brought in a lead. However, the lead wouldn’t show up under the conversions metric so it’s an additional piece of data to look out for.
- Bounce rate: So your clicks are high but your bounce rate is high too? Not a good sign. The goal is for clicks to be high and bounce rate to be low. If someone is only viewing one page of your site and immediately leaving, it shows your content wasn’t relevant enough to their search and essentially, you spent money on a click with no return. This is where the content on your site and the content in your ads need to be cohesive.
- Return on Ad Spend (ROAS): This one is a little trickier for law firms and takes some metrics from Google combined with a little manual work. Google AdWords can tell you your advertising cost but law firms will have to figure out what their revenue was. The formula is simply revenue/advertising cost. So it’s not difficult but involves an extra step. Let’s say last month you spent $5000 on Google AdWords (PPC) which brought in three conversions/leads. From those three conversions, you signed 2 cases with a case value of $3500 each. You have more than a 100% ROAS. Awesome! It was worth the investment and likely you’d want to continue at that budget pace or slightly above.