Ask most law firms how they’re doing, and you’ll hear vague answers: “We’re busy.” “Things are steady.” “We just closed a big deal.”
But busyness isn’t growth. And revenue isn’t the only measure of success.
High-performing firms track Key Performance Indicators (KPIs) that show how the business is really doing—today, and in the future.
Here are the overlooked KPIs that every growth-focused law firm should be tracking.
1. Client Acquisition Cost (CAC)
How much does it cost you to acquire one new client?
Include:
- Marketing spend
- BD hours (converted to cost)
- Event sponsorships
- Tools and subscriptions
If you don’t know your CAC, you can’t measure ROI—or scale your marketing budget wisely.
2. Client Lifetime Value (CLV)
How much is each client worth over the course of your relationship?
Example:
- A startup pays $1,000 for incorporation, but later retains you for $2,000/month over 2 years.
- That’s a $49,000 client—not a $1,000 one.
When you understand CLV, you can invest more confidently in client acquisition and retention.
3. Lead-to-Client Conversion Rate
How many leads actually become paying clients?
Track:
- Website inquiries
- Referral calls
- LinkedIn messages
- Event leads
If your conversion rate is low, you don’t need more leads—you need a better intake system.
4. Billable vs. Non-Billable Hours (Firm-Wide)
Are your lawyers doing lawyer work?
Track the ratio of billable to non-billable hours per lawyer—and firm-wide. If your team spends too much time on admin or follow-up, it’s time to invest in automation or support staff.
5. Client Satisfaction Score (CSAT or NPS)
Don’t assume your clients are happy—measure it.
Send short surveys after matter completion. Ask:
- How satisfied were you with our service?
- Would you refer us to others?
- What could we do better?
Happy clients come back—and refer others. Unhappy clients quietly disappear.
6. Employee Utilization and Engagement
Are your people productive—and motivated?
Track:
- % of time spent on client work
- Team satisfaction or burnout risk
- Training and growth participation
People performance is firm performance. Don’t overlook it.
Conclusion: What Gets Measured, Gets Improved
If you want to grow your law firm like a business, you have to think—and measure—like a business.
Start tracking these KPIs monthly. Use dashboards. Review them in partner meetings. Over time, you’ll stop guessing about growth—and start engineering it.
