Competitive Benchmarking for Law Firms
Why is competitive benchmarking important for your law firm?
- you can gain a deeper understanding of your position in today’s market
- you can obtain information about providing better solutions
- make a data-driven decision that can improve your business performance
Not only you can get an organized overview of your company and how it performs on different levels, but you can also keep competitive. Benchmarking means that you can easily spot when a competitor is doing well or beginning to struggle. This gives you time and opportunities to improve and evaluate your own strategy.
How to create a competitive benchmark for your own law firm?
You remember that previously you have defined your KPIs right? Now ask yourself why you want to benchmark in the first place and use your KPIs as a start.
For example, if your share of voice on social media drops and a competitor takes the top spot this means it’s time to investigate. Either something is going wrong on your end or they’re trying something new. You need to find out either way. This shows how only tracking your performance against your past self can miss an important part of the picture.
How do you determine what are you going to measure?
You can start by identifying the KPIs that you can include and you’ve decided to track in your marketing plan. To start, look at where you can improve. If your engagement on social media campaigns recently took a dip compared to your competitors’, that could be something you should focus on.
Here are a few KPIs to consider:
- Web Traffic
- SEO Strategy
- Brand awareness
- Social Reach
- Net Promoter Score
Once you know what you want to measure, you can consider who you want to measure your business against. This is something that should be done carefully. Look at your KPIs and find businesses that somehow manage to perform better in the areas you are striving to improve. Note that you don’t have to restrict your search to only competitors, you can also benchmark your business against:
- Similar-sized businesses in your industry
- Similar-sized businesses in a related industry
- Industry leaders
One last tip is that it is not useful to simply “benchmark against everybody” so pick who you track wisely.
The benefits of competitive benchmarking are clear: By comparing your performance to your competitors, you can catch trends early and adjust your marketing goals accordingly.
Companies shouldn’t focus all of their resources on benchmarking — it’s more of a way to view the complete performance management picture to glean valuable insights. What’s most critical is whether your business has defined key differentiators, clear goals, and a data-packed business strategy.
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