How Law Firms Can Use Data Analytics to Build a More Successful Business
The field of data analytics has become integral to business success in literally every industry. The legal field is no different and if you are looking at how data analytics can benefit your law firm, you might be surprised at just how many ways big data can be the impetus for growth. If this is an area you’ve yet to explore, you will find the following information quite useful.
Marketing and Customer Acquisition
The very first area of your business that needs to be analyzed is marketing and how each of your strategies have been effective in customer acquisition. You would want to look at each of the ways in which you have invested in advertising. Did you run television ads? What about newspaper and magazine advertisements?
Then there is marketing in the digital realm which includes everything from email marketing to content with backlinks as well as establishing a presence in social media. Determine which of those brought the highest ROI and the reasons why. There is an immense amount of data to capture and analyze which is why the field of data analytics requires what is known as a Deep Learning Workstation.
In laymen’s terms, this would be called a supercomputer that has a tremendous amount of speed and the capacity for data storage. Not only will a deep learning workstation have a large amount of RAM, but it will also have an ultra-fast CPU (processor) and an equally fast GPU (graphics processor). You will need an enormous amount of power to process all that data necessary to advance your marketing to the next level.
An In-Depth Look at Key Performance Indicators
The next data sets you will want to analyze would be Client KPIs. This would involve everything related to the areas of law in which you represent your clients. You can accurately assess which legal services are in greatest demand at your law firm, your win/lose track record, return business and so much more. In other words, data analytics is going to tell you which end of the law brought in the greatest ROI and which end of the law is most in demand. You can look at your law firm’s strengths and weaknesses and how addressing them could lead to a higher success ratio. That is, after all, one of the things potential clients look at when seeking legal representation.
Another way in which data analytics can help to increase the success of your law firm would be to gather data and analyze KPIs within the team. Determining which attorneys have a winning track record and which attorneys have a lower success rate will help you discover ways in which you can advance the performance of those who have fallen behind. Is there something that can be learned, or do you need to release them from their contract that binds them to your firm? As a law firm, you have probably written into your standard contracts ways to legally release attorneys if the relationship doesn’t work out well.
Your key takeaway is that data analytics is a process that can give you the foundation you need to add layers of success to your firm. In other words, it shows you what works and what doesn’t so that you can alter your path going forward to achieve that success you are after.