If you want to get more clients per marketing dollar, start keeping closer tabs on Customer Lifetime Value (CLTV).
CLTV is a marketing term that measures the investment and effort required to keep your current client base happy, loyal and profitable.
“Customer lifetime value (CLV or customer LTV) is the monetary worth of a customer to your business for the length of their engagement with your company,” according to this article by Darshil Gandhi for Amplitude. “It is an important figure for businesses, as it helps you optimize customer acquisition and retention costs.”
Here are three ways to measure CLV, according to Amplitude:
- CLV = Average Customer Lifespan × Customer Value
- CLV = (Total Customer Revenue × Customer Margin) ÷ Churn Rate
- CLV = Average Value of Sale × Retention Period × Number of Transactions × Profit Margin
Why choose Lawyers Mutual for your financial protection? One reason is experience. Lawyers Mutual has been in business since 1977 and insures more than 8000 lawyers in North Carolina. We’ve been providing continuous protection from professional liability to NC lawyers longer than any other insurance company. Another reason is stability. The company’s financial strength is absolute. Since 1999, Lawyers Mutual has paid dividends fourteen times, with more than $8 million dollars returned to policyholders since 2011. Want even more reasons? Visit our website, give us a call, or ask a colleague why Lawyers Mutual is the smart choice for liability coverage.
How to Boost Client LTV
Here are some suggestions for turning prospects into lifelong clients, courtesy of The National Law Review and legal writer Jan Hill:
- Make new clients know they are a priority.
- Adjust your client’s expectations.
- Set specific, reasonable and attainable goals.
- Respond promptly to client inquiries and be there when your clients need you.
- Give them personalized service and undivided attention.
- Be prepared for client meetings and show clients you value their time.
- Stay in touch with your client even during slow periods.
- Meet all case deadlines.
- Be a strong advocate – let the client know you are on their side.
- Be honest and encourage the same from your client.
The practice of law is always changing. But for lawyers in North Carolina, one thing has remained constant for nearly 40 years. Lawyers Mutual is here for you at every stage of your law career: from your first day on the job to your last day before retirement. Our Byte of Prevention blog features industry news, tips and valuable links on everything from work-life balance to winding down your practice. Our email newsletter “Practice Reimagined” brings cutting-edge insights straight to your in-box. And our skilled team of underwriters, claims counsel and risk management professionals are by your side when you need us most. Lawyers helping lawyers. It’s who we are, and it’s what we’ve been doing since 1977.