Law and Accounting are competitive industries when it comes to estimating the cost of a marketing campaign. For that reason, you want to make sure your investment is well calculated and spent. We will, therefore, walk you through some simple steps that will help you calculate the ROI of your Digital Marketing Strategies.
We can start with how to return investment looks for other industries. It is expected that for each 1000EUR of investment the return is around 2-3 times higher than that. In legal and accounting markets the return is expected to be slightly higher, around 3-4 times or even more. We encourage our clients to audit every 2-3 weeks the results of their digital marketing campaigns to make adjustments in a timely manner.But before starting to estimate ROI, we must consider which are the goals of the firm, the structure of it, what budget is available for marketing investment and which is the target market of the firm.Let’s begin with few simple estimations:
- Total Revenue last Year
- Total Advertisement Expense
- Total Referral Fees (this number is usually quite low in law or accounting firms)
The formula would be TotalRevenue /(Total Advertisement + Total Referral Fees) . For instance, if we take company XYZ that has a revenue of 100.000EUR, an advertisement expense of 1000EUR and a total referral fees paid of 2.000EUR.
100.000EUR/(10.000EUR + 20.000EUR)= 3.33EUR
The result means that for each 3.33EUR generated your company has to spend 1EUR in marketing and advertisement.
This is a very simple example to start estimating how much you should be spending in marketing, nonetheless, you need the support of a marketing professional to manage your marketing, define KPI’s (Key Performance Indicators) and track the results. If we were to go a bit more in-depth about estimating your Marketing ROI, we would estimate from each acquisition channel what it cost to acquire a new project, business or referral.
- New Business
- Existing Clients
- Professional Referrals
From the mentioned three channels we estimate the following aspects:
- Billing amount coming from each channel
- Which marketing channels have been used to nurture, attract and maintain each acquisition channel, i.e. Advertising, Events, Existing Client, Referral – Client, Referral – Professional, Website.
- How the budget is allocated for each one of the three categories
- Analyze which is the most profitable and effective acquisition channel
- Optimize marketing budget to obtain a better ROI
This is an example to get more in-depth variables that are analyzed for each marketing acquisition channel. As the goals and results to achieve are defined the formula gets more complex and is what makes imperative to consult an expert in this topic to obtain better guidelines. Do you want an audit of your current Digital Marketing Situation? Drop us a message and we will reply as soon as possible.
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