One of the least understood metrics in law firm marketing. Client lifetime value can be summed up as the amount of revenue a client has give to your firm during the time your firm has done business with them. It is explained in this law firm marketing video.
There is another factor to take into account when calculating client lifetime value in law firm marketing. This is the amount of referrals a client has given to you during your relationship with them. If you have a way of tracking the referrals, you can and should take into account the referral dollars you receive from clients.
Thinking about client lifetime value is natural for transactional attorneys. Their clients often come to them for many different issues over the life of their relationship. An alternative for the consumer practice areas is tracking the lifetime value of referral sources.
It is important to look at this metric as it helps you identify your most valuable clients and referral sources. This allows you to spend your time and your law firm marketing dollars attracting and retaining the best clients and referral sources.