How to Calculate ROI on Personal Injury Leads
A step-by-step framework for measuring the return on investment from personal injury lead generation campaigns.
Measuring ROI on lead generation requires looking beyond cost per lead to understand your full return on investment. Here is a practical framework for calculating and improving your lead generation ROI.
Step 1: Calculate Cost Per Signed Case
Total lead spend ÷ number of signed cases = cost per signed case. This is your baseline metric. Include all costs: lead purchases, intake staff time, technology, and overhead associated with processing leads.
Step 2: Estimate Average Case Value
What is the average fee your firm earns per resolved MVA case? This varies significantly by case type, severity, and jurisdiction. Use your actual historical data — not industry averages or provider claims.
Step 3: Calculate Return Multiple
Average case fee ÷ cost per signed case = return multiple. For example, if your average MVA case generates $10,000 in fees and your cost per signed case is $1,500, your return multiple is 6.7x — meaning every dollar spent on lead generation returns $6.70 in fee revenue.
Step 4: Account for Time Value
Personal injury cases take months or years to resolve. The fees you earn today were generated by leads you purchased months ago. Factor in the time between lead investment and fee collection when evaluating cash flow and budget allocation.
Step 5: Optimize Over Time
Run this calculation for each lead source independently. Shift budget toward sources with the best return multiples. Continuously improve intake conversion to lower your cost per signed case from every source.