Ultimately, the success of your video marketing efforts should be measured by the return on investment (ROI). To calculate ROI, you'll need to track the costs associated with producing and promoting your videos, as well as the revenue generated from leads and conversions.
Calculating ROI metrics allows you to assess the profitability and effectiveness of your video marketing investments:
To calculate the Cost Per Lead (CPL) for your video marketing efforts, use the following formula:
CPL = Total Video Marketing Cost / Number of Leads Generated from Videos
Total Video Marketing Cost: This includes all the expenses associated with creating and promoting your videos. Here are some potential cost factors to consider:
- Production Costs: Scriptwriting, filming, editing, animation (if applicable), talent fees, music licensing, etc.
Example:
Let's say your law firm spent a total of $5,000 on video production and promotion for a specific video campaign. Additionally, you spent $1,000 on content marketing to create a blog post and landing page promoting the video.
As a result of the video campaign, you captured 20 new leads through your website.
Total Video Marketing Cost = $5,000 (production & promotion) + $1,000 (content marketing) = $6,000
Number of Leads Generated from Videos = 20
Cost per Lead (CPL) = $6,000 / 20 leads = $300 per lead
CPL can vary depending on the complexity of your video productions, your target audience, and the competitiveness of your legal field.
To get the most accurate CPL:
By regularly calculating and monitoring your CPL, you can assess the efficiency of your video marketing efforts and make data-driven decisions to optimize your strategies and budget allocation.
Determine the total cost of acquiring a new client through video marketing:
CAC = Total Video Marketing Cost / Number of New Clients Acquired from Videos
Total Video Marketing Cost: This includes all the expenses associated with creating and promoting your videos, similar to what we discussed for CPL. Consider production costs (scriptwriting, filming, editing), promotion costs (advertising, influencer marketing), and any content marketing expenses that support the video campaign. Number of New Clients Acquired from Videos: This is the number of clients who convert from leads generated through your video marketing efforts. Tracking this metric might require some additional legwork compared to leads.
You can use a combination of methods like:
CRM Tracking: If your law firm uses a Customer Relationship Management (CRM) system, you can track which clients originated from video marketing campaigns.
Client Surveys: During the onboarding process, you can ask new clients how they discovered your firm and see if videos played a role.
Example:
Building on the previous CPL example, let's say that 5 out of the 20 leads generated from your video campaign converted into paying clients for your law firm.
Total Video Marketing Cost = $6,000 (from CPL example)
Number of New Clients Acquired from Videos = 5
Client Acquisition Cost (CAC) = $6,000 / 5 clients = $1,200 per client
Important Considerations:
By analyzing both CPL and CAC, you can gain valuable insights into the efficiency of your video marketing funnel. You can identify areas for improvement, such as optimizing your video content to convert more leads into clients or refining your lead nurturing process.
Revenue from Video Leads goes beyond simply multiplying the number of leads by your average client fee. It analyzes the actual revenue generated from those leads converted into paying clients through your video marketing efforts.
Calculation Method
There isn't a one-size-fits-all formula for this metric, as law firms often have different fee structures (hourly billing, retainers, project-based fees). Here are two common approaches to consider:
This method works well if your firm has a predictable average client value.
Formula:
Revenue from Video Leads = Number of New Clients Acquired from Videos * Average Client Value (ACV)
This method is ideal if your firm has a wider range of services with varying fees. Process:
Example (ACV Approach):
Let's revisit the scenario where your video campaign resulted in 5 new clients for your firm, which typically has an Average Client Value (ACV) of $10,000.
Revenue from Video Leads = 5 clients * $10,000/client = $50,000
Example (Project-Specific Tracking):
Imagine your video campaign focused on personal injury cases, and 3 out of the 5 new clients acquired from videos used your personal injury services, generating a total of $25,000 in revenue.
Revenue from Video Leads (Personal Injury) = $25,000
By calculating Revenue from Video Leads alongside other metrics like CPL and CAC, you can gain a comprehensive picture of your video marketing ROI.
For instance, you can see:
Remember, these are just starting points. You can refine your calculations based on your specific law firm's structure and fee arrangements.
By tracking these KPIs, law firms can gain valuable insights into the performance of their video content, audience engagement, lead generation effectiveness, and ultimately, the return on investment from their video marketing strategies.
Embrace a data-driven approach, continuously refine your video marketing strategy and create content that truly connects with your target audience, driving growth for your law firm.
Read Lawyer Video Power: The Step-By-Step Guide to Build Your Law Firm's Video Marketing Strategy
This guide will equip you with the knowledge and tools to navigate the exciting world of video marketing for lawyers. From crafting a strategic plan to creating captivating content and measuring success, you have everything you need to use the power of video and grow your legal practice.