Keeping your business going can feel like a constant challenge. In today’s online world, you can no longer rely on word of mouth to get your firms’ name out there, competition from non traditional firms is increasing and clients are becoming more and more demanding, always expecting more for less.
Is your firm doing enough to keep up with your client’ rapidly changing needs? Are you growing your client portfolio or do you need to shake things up?
The following metrics can help you keep your finger on the pulse of how well your firm is doing to attract and retain clients.
Metric 1: Client growth rate
The ratio of the number of new clients (i.e. first matter was handled in the past 12 months) to the total number of active clients over a set amount of time (i.e. last 2 years or 5 years).
Metric 2: Top client growth rate
The amount of fees billed to top 10 clients (number of clients can be adjusted depending on your firm) in the past 12 months divided by the amount of fees billed to the top 10 clients in the prior 12 months.
Metric 3: Percentage of dormant client
The number of clients that the firm has not handled a matter for in the past two years (amount of years can be adjusted depending on your firm) to the number of total clients.
Metric 4: Client retention
The ratio of clients billed over a period of time (i.e. last 12 months) to the total clients that had been billed in the past time period (i.e. previous 12 months).
Metric 5: Number of matters per client
The ratio of number of matters billed to the number of clients billed. The number can illustrate cross selling success and indicate that the firm is doing a good job at fostering the relationship.
Tracking and monitoring metrics with Kleos
Do you struggle with finding the time to track metrics and monitor the performance of your firm?Something as simple as using legal practice management software can help you easily report on the metrics that matter most to your firm. With Kleos you can:
- measure profitability and overall financial performance with one click reporting
- evaluate everyone’s contribution to the firm in terms of billable hours worked, revenues generated and the realization rate
- monitor activities and tasks to ensure your organization is leveraging staff in the best way
- stay on top of billing with more accurate invoicing based on time sheets or fixed fees
If you are considering legal practice management software for the first time, or if you think it could be time to move to the cloud, then it's time to consider Kleos!