3 Metrics Law Firms Need To Monitor

Sure, there are hundreds of options for metrics. And, given unlimited time and resources, well, we can give you that list. But the reality is for solo and small law firms, time is a very precious commodity. The goal is to make the most of your available time. So the focus is always on the firm. Are you growing? Are you as busy as you want to be? And, here's the kicker, how much of your time is spent practicing law? Let's find out.

Contact With Potential Clients 

This is the first metric to monitor. How many potential clients reach out to you on a weekly basis? Super simple to track, right? To get a bit more quality data, and therefore actionable, be sure to track how they contacted you. Was it an email? Phone call? Online chat? Knowing the source helps you understand how potential clients are finding you. And where opportunities may be to expand that awareness. 

The next question to the potential client is how they found your law firm. Did they google it? Was it a referral? Perhaps an attorney directory listing? If they called your firm, they had to get that phone number somewhere. So be sure to ask. And track that too.

Potential Client Conversion

It's always great to be contacted by a potential client. The next step is to convert them to an actual client. Now, not every case is the right case for you. But be sure to track how many convert to clients and why. Track the same thing for potential clients that don't convert - including why.

For those clients that convert, ask them why they chose to engage your expertise. Was it availability? Perhaps it was the interpersonal connection. Maybe it was your track record. Whatever the reason the client gives, be sure to track that. You may be surprised by the most common reason someone chooses your firm.

Perhaps more important is tracking why potential clients don't choose your firm. Again, ask the potential client why they chose someone else. This insight not only helps you understand the interaction with this particular person but also what to potentially adjust going forward. Potential clients choose attorneys for a variety of reasons. It could be billing options, interpersonal connection, location (although that is a decreasingly important metric), or any number of reasons. With this information, you are able to adjust your approach going forward, if you wish. Addressing the reasons why someone does not select your firm helps you grow your firm over the longer term.

Remember, there are outliers in both data sets. Look for consistency. And yes, it takes a while to get enough feedback to drive that insight. 

Time Spent Practicing Law

This is all about practice productivity. Some say you need to track every minute of every day. Well, sure, that's great if you can do that. But the reality is there are days where you practice more and less. Our suggestion, to keep it simple and manageable, is to track one element or the other - time spent practicing law or time spent not practicing law. As the day goes on, whichever metric you are tracking, just jot it down on your phone or a notepad. If you are using case management software, that's even easier. 

Be sure to add some level of detail as you track. Particularly as it affects your time spent not practicing law. Where is that time going? Is it meeting with potential clients? Completing your admin tasks - time tracking, invoicing, payment processing, and the like? How much time do you spend updating your clients on their cases? 

This is another metric that moves by day and week. Track your time over at least a 2 week period. And then, just start addressing your time management by item. Look for solutions you can implement yourself. Or look for technology to help. Yeah, you knew that was coming. But seriously, it does help. So whether you choose SimpleLaw or some other case management software, it will transform your daily schedule and drive efficiency.  After all, it's about efficiency. It's all about balancing your legal practice and your life. Because we can all find reasons to work 12-15 hour days, but why?

There are many other metrics you can follow. Start with these. From there, decide what's most critical to your firm. And look for resources to assist. We guarantee they are available for you. If you have any specific questions or needs, well, contact us! We are happy to help.