Learn how ROI is calculated in Lawmatics and how to use the ROI tracker
The Lawmatics ROI Tracker makes it super simple to quickly see your ROI broken down by marketing source and campaign. This data is critical to knowing what marketing efforts are working for your firm.
It is important to know how ROI is calculated: by looking at how much money was spent to acquire a lead (i.e. marketing spend) and then comparing it to how much revenue that lead generated for your firm.
Spend is entered on the marketing settings page, and it can be entered on a monthly, weekly, or daily level. Whenever possible, we recommend tracking Spend on a daily basis. Sources like Google PPC or Facebook Ads make it very easy to see how much money you spend each day.
Follow these steps to enter spend:
1. Navigate to Settings > Marketing Settings
2. Locate the source and campaign that you are entering Spend for. Click on the dollar sign icon in order to bring up the Spend form.
3. Select the date or date range (week or month) and enter the amount of Spend for that period.
The other critical number that is needed to calculate ROI is the Total Revenue generated from a matter. In order to track Revenue, you must use the ACTUAL REVENUE field on the matter. This is a field we provide you, so no need to create anything new.
It is important to make sure this number reflects the TOTAL amount of revenue you received from a matter. You can update this field as often as you want — you can record revenue on a matter as it comes in. This is a manual field you need to fill in.
Here is an example of how ROI would be calculated in Lawmatics. For this example we have the following data:
- Source "Google PPC" with spend for March of $2,000.
- Our firm received 10 leads in March.
- 2 of those leads from March hired our firm.
- In June we closed the cases and had a total revenue of $10,000
If we use the ROI tracker to review the ROI for March, we will see an ROI of 500%. When the person hires the firm is irrelevant to the ROI calculation. We care about when the lead came in and how much money was spent on marketing to acquire that lead compared to the revenue generated from any leads that came in during the same period and hired the firm.