Gross profit margin, operating cash flow ratio, and return on sales all have one thing in common, and it’s that they’re KPI’s frequently monitored by companies. If you work in the legal field, there is a set of law firm KPI Dashboard that you need to monitor to ensure the changes you’re making within the firm are the best changes to make.
Not sure which KPIs to monitor to become the best law firm? We’re here to help; all you’ve got to do is continue reading.
What Are KPIs?
KPIs are also called key performance indicators, and they are metrics used to track how well a company is doing in several areas of its business. Without these data metrics, it’s challenging to understand where changes need to get made and which direction the company should move in.
The KPIs need to be in place to help companies achieve the goals they’ve set for themselves. Here are some of the most commonly measured family law marketing KPIs.
- Client Acquisition
Without clients, your law firm will not thrive or make the money you have projected it to make. However, if you don’t monitor specific data, it can be hard to continue getting the clientele you need.
For instance, data you might collect includes:
- Number of consultations booked
- Percentage of clients that attend their consultation
- Consultations turned into actual clients
- How do you get new clients?
All of these things will ensure you’ve gathered the data needed to market in ways that more people will be receptive to. When people are receptive to your company’s marketing, it increases the percentage of new clients you have.
- Client’s Satisfaction
Another KPI you need to monitor is client satisfaction. If your clients aren’t satisfied, word will travel fast, leading to a negative outcome for your company.
Some specific indicators will let you know if your customers are satisfied with the service you’ve provided them, including client referrals.
If someone’s satisfied with your business, it increases their chances of referring your law firm to others who need help.
- Partner’s Performance
Something that’s even more important than the other KPIs mentioned on this list is the performance level of each person working within your law firm. The best lawyer will have a series of metrics that can be tracked, like:
- The average number of hours they work
- Overall billable hours
- Number of tasks individuals complete throughout the week
Understanding these metrics will give you better insight into helping individuals working for your law firm become more productive. The more productive people are, the more efficient your firm becomes.
- Financial Aspects
Your legal firm’s finances are an essential part of whether your firm will fail or succeed. There are bills your firm has that need to get paid each month to continue running effectively.
What’s your collection rate per invoice billed to clients? What is the projected revenue of your company?
How much revenue was brought in within the last month? All of these metrics and more should be monitored.
Law Firm KPIs: Metrics to be Analyzed
There are tons of law firm KPIs that your company should observe and measure to ensure you’re working towards being the best law firm possible. You should measure your finances as well as the individual performance of everyone working for your firm.
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