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Solve Short-Term Cash Flow Challenges and Have More Clients Hire Your Law Firm Without an Additional Dime of Advertising

Building Your Lead Conversion Machine

John Wooden, arguably the greatest college basketball coach of all time, attributed much of his success to his players learning and mastering the fundamentals of the game of basketball. He was so committed to the fundamentals that every year, just before the first practice, he would welcome all the players and proceed to have them take off their sneakers and socks. As you might imagine, this came as a surprise to the incoming freshmen, but they obliged.

Then, the coach showed them step by step, how to properly put their socks on, and, how to properly tie their shoes.

Eventually, an ambitious freshman would ask, “why?” Coach Wooden’s argument was, if you have a wrinkle in your socks, you’re liable to get a blister, and if you get a blister, you’re liable to miss a practice, and on this team, if you miss a practice, you won’t play the next game.

But worse, if you don’t tie your sneakers correctly, a lace might come loose during a game, and you might trip and turn over the ball, which could cause us to lose a game; and in this league, one game is the difference between going to the National Championship and going home. And I’m not going to risk a National Championship because you don’t know how to tie your sneakers. Powerful stuff . . .

For you, as the entrepreneurial attorney, the National Championship is played every day, in acquiring every client. And in order to win those contests, we must get the fundamentals systems right.

If you’re suffering from short-term cash flow issues, or if you’d like to have more clients retain your firm without investing more money in advertising, then the system you must focus on is what I call the Lead Conversion Machine.

This system allows the firm to increase the number of Leads (new potential clients) that turn into retaining clients who create referrals for your firm.

At the core of the Lead Conversion Machine is the Perfect Client Life Cycle (PCLC). The PCLC is the engine that runs the Lead Conversion Machine.

Here’s how it works.  The Perfect Client Life Cycle is made up of 6 parts:

  • New Leads
  • Appointment Sets
  • Shows
  • Hires
  • Paid in Full
  • Referrals

“Today, we solve problems before they manifest themselves into reduced cash.”

Understanding the power in this system is what allowed me to grow a law firm from $0 in sales to $3.5 million in sales in just under two and a half years.

But, before I understood this concept, I would look at my bank account and wonder why in the world there wasn’t more money?

I thought; the phone was ringing, we had new clients, and I heard about referrals coming in, but I couldn’t place the problem.  That was because I didn’t know where to look.

Today, we solve problems before they manifest themselves into reduced cash by turning to our PCLC report each week and asking ourselves: how many leads did we generate this week; how many new appointments did we set; how many prospects showed to their appointment; how many of those who showed became new clients; of those who said, “Yes,” how many paid their bill and how many referrals do we have?

Here’s the best news, you can do this too.  It’s as simple as 1, 2, 3.

  1. Ensure you harvest every piece of data about every single lead, every single time. You can enter the data into a simple Excel spreadsheet. If you’d like a free template, go here:  www.TheRichardJames.com/leadtrackingsheet
  2. Have a team member run a summary report each week from your lead tracking sheet and have those numbers ready for your weekly meeting
  3. Put the summaries on a whiteboard and discuss the actual data as it compares to your goal. Then create ideas to improve each stage.

Make the Data Work for You

Once we made this commitment and began using this system, another secret was revealed to us. If we were to measure each stage as a conversion of the previous stage and compare that to our baseline expectations, we could make magic happen.

So, to make magic in your business, add another column to the whiteboard and show the percentage of conversion between one stage and the next.

If you do that, you’ll eliminate guessing. While your competition will be using a shotgun, you’ll be using a laser beam.

If the appointment set rate is down, you can find out why. Did one lead source change or start providing more or fewer leads? Is the person setting the appointments having a bad month or falling off script?

If the show rate is off, we’ll find out if the reminder sequences are working correctly, or we’ll add new pieces to that sequence, like a shock and awe package.

If the new hire rate is off, did we change something we were doing in the past?

If clients are not paying their bills on time, we’ll focus our efforts on overcoming the collection issues before they arise.

Because we did this, we simply don’t have any surprises. God forbid, if a cash crunch is going to happen, we will know about it long before it occurs. That’s the power of the Perfect Client Life Cycle.

If you want to avoid the cash crunch most small law firms feel around payroll, or if you want to increase the number of new clients who retain your firm without investing more money in advertising, you must get build your Lead Conversion Machine.   Start measuring the PCLC every week, you’ll be happy you did.

Building a better business, one PCLC at a time . . .

LexReception is thrilled to welcome Richard James as the newest member of our blogging team! As Founder and President of Automated Business Results, Richard is an expert at putting the proper system processes in place to achieve measurable results. To find out more about building up your law firm by automating your business, check out his website. Subscribe to the blog to stay up-to-date on his upcoming posts.

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