Why are you in business?
If you’re anything like us, that genuine thrill when a customer puts their faith in you is hard to beat. Capitalising on that initial feeling is vital.
Our clients know this well. For a Personal Injury law firm to grow, you need to bring in more new matters than you are settling – and to maintain cash flow you need to settle as many as you can. But how can you maintain your edge?
One way is to always give more than asked. Granted, that’s not always easy. But by being physically present in a digital age – not to mention a global pandemic – you truly stand out. A personal connection will never lose value. Best of all, those clients will always refer to you and if things go wrong, give you a fair second chance.
Here are just two tips our clients have found useful:
Know your costs
It’s no secret that the proliferation of new firms entering the Personal Injury space over the last decade has resulted in fierce competition. Subsequently the acquisition cost to win a client has skyrocketed too and can often range anywhere from $2k to $6k per file. The professional fees recoverable, after overheads are removed, will determine the viability of each claim for your firm. Whilst every firm will have different competencies, it’s the costs and overheads which will determine the profitability of a claim and it does raise the importance of knowing:
- What does it cost to win a claim?
- What does it cost to process that claim after overheads are paid?
- What can you reasonably expect to recover in professional fees?
In fact, are you working just for the sake of working? Is your work generating profit or just covering the costs? Bring in a substantial claim that nets professional fees of $18k and the acquisition cost seems reasonable. This also raises the question of quality vs quantity. Are you generating enough profit to fund growth? Whilst the larger claims will generally be more profitable, the competition for them is exponentially tougher. Running smaller claims can be worthwhile but it requires very efficient processing methods to maintain an acceptable profit margin.
What systems do you have in place to find, assess and win new cases ahead of your competition?
Advertise strategically
Did you know Google adwords terms such as “No Win No Fee” can cost $150 per click? Ouch!
Importantly, that doesn’t even guarantee a phone call from a prospective client. With hot competition for work, it’s vital to direct your advertising dollars wisely and adjust quickly. To compete with the larger, established firms and their equally large advertising budgets consider ‘zigging’ when everyone else is ‘zagging’.
The most important thing to know is what makes a good claim and to build an ideal client profile from that. From there, target your ad spend to reach that ideal. What is your client demographic? What are their likes and dislikes? Answer these questions and work your marketing strategy to reach those people. Of course, this is always easier said than done but it is worth persevering.
Target, measure, review, adjust and repeat!
Good luck on your journey.
