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 Metrics

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 $1.25m $925k 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 $ 2,394, $7,696, $1,576, $ 2,731, $ 418, $ 812,659.61

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 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