This document outlines an agenda for a meeting to discuss strategies for law firms to combat the potential threat of non-traditional legal service providers entering the market under the UK's Legal Services Act 2007. It includes a presentation on the Act itself, how it aims to increase competition by allowing new business structures and external investment. It then discusses the potential threat of large retailers like Tesco providing legal services, as well as strategies law firms can employ to build relationships, demonstrate quality, and make effective use of marketing and social media.

2. Yvette Elkana – Managing Director

3. Neil Ramsorrun – Creative Director

5. Gateway Media Cutting edge digital design agency Working with businesses who are trying to grow but are not getting noticed in their market Providing expertise and skills to improve communication and marketing efforts An impressive track record of intelligent and engaging solutions for a wide range of clients Industry leading quality and value for money A social enterprise supporting City Gateway

6. Sectors

7. Services

9. Combating Tesco Law: The Legal Services Act 2007 Michael Scutt Dale Langley & Co 60 Lombard Street London EC3V 9EA

10. Agenda The Legal Services Act 2007 Why ? What? Tesco Law 10/2/10 (c) Michael Scutt 2010 8

11. WHY? Brief History – OFT, Clementi Report Legal Profession – the last cottage industry? Need for reform 10/2/10 (c) Michael Scutt 2010 9

12. What? Simplify Regulation new regulatory structure Reform Complaints Procedures - Office for Legal Complaints to be created Increase Competition - “Tesco Law” 10/2/10 (c) Michael Scutt 2010 10

13. Pre- LSA Regulatory Structure 10/2/10 (c) Michael Scutt 2010 11 DTI Department for Constitutional Affairs Master of the Rolls CIPA The Law Society Bar Council ILEX CLC Higher Judiciary Legal Services Ombudsman Legal Services Complaints Commissioner Archbishop of Canterbury Faculty Office

14. Regulatory Structure 10/2/10 (c) Michael Scutt 2010 12 Legal Services Board SRA BSB ILEX CLC CIPA Faculty Office

15. Regulatory Structure Eight Regulatory Objectives LSA 2007 s.1(1) Five Professional Principles – s.1(3) Six Reserved Legal Activities – Part 3 s.12 Only authorised persons or exempt persons may carry on reserved legal activities 10/2/10 (c) Michael Scutt 2010 13

16. Regulatory Structure cont’d A person who holds a practising certificate from one regulator will be governed as well by regulator of his employer Non-lawyers managing or working in a regulated entity will be governed by the relevant regulator 10/2/10 (c) Michael Scutt 2010 14

17. Reform of Complaints Procedures 10/2/10 (c) Michael Scutt 2010 15

18. Reform of Complaints Procedures Legal Services Complaints Commissioner – abolished Legal Services Ombudsman – abolished Office for Legal Complaints created – in force by late 2010 – single body for all legal complaints OLC – creates the Legal Ombudsman to deal with complaints NOT misconduct 10/2/10 (c) Michael Scutt 2010 16

19. Increase Competition 10/2/10 (c) Michael Scutt 2010 17

20. New Ways to do Legal Business Legal Disciplinary Partnerships (LDPs) Allows mixed lawyers and non-lawyers to own and manage a law firm But, up to 75% of owners/managers must be qualified lawyers and hold at least 75% of shares and voting rights 10/2/10 (c) Michael Scutt 2010 18

21. More on LDPs SRA has to approve non-lawyer members In existence since 30th March 2009 Will become ABSs from 2011 10/2/10 (c) Michael Scutt 2010 19

22. Alternative Business Structures Allowed from 2011 A “Licensable Body” is one that carries on reserved legal activities and a non-authorised person is a manager of the body or has an interest in it At least one manager must be an authorised person (member, director, partner) Every Body will need a Head of Legal Practice and Head of Finance 10/2/10 (c) Michael Scutt 2010 20

23. Alternative Business Structures (cont’d) The ABS must carry on a licensed activity through a person authorised to carry on those services 10/2/10 (c) Michael Scutt 2010 21

24. Tesco Law 10/2/10 (c) Michael Scutt 2010 22

25. Tesco Law (2) Opportunity or threat? Threat? High Street wipe-out in face of powerful brands that people “know” – faster service, efficiency, response - but see later Opportunity? External investment may be a good thing 10/2/10 (c) Michael Scutt 2010 23

26. Tesco Law (3) Commoditised Services at risk – Wills/Conveyancing/Personal injury/Compromise Agreements in employment law/ET proceedings? Co-Op Legal Services Will Tesco law appeal to client SMEs? cf Peninsula in ET proceedings Will Tesco be interested in potentially costly and lengthy court proceedings, e.g. family proceedings/care/social welfare – where no cost orders likely at the end of the day? The LAG is worried that this area might be completely neglected – suggests partnerships between law firms and CABx. 10/2/10 (c) Michael Scutt 2010 24

27. But ... See the ComRes poll commissioned by the SRA – 1014 respondents, May 2009 69% of people said they would be concerned about the quality of service offered by banks/supermarkets 83% of people had a positive experience of solicitors, up from 65% the previous year. 10/2/10 (c) Michael Scutt 2010 25

28. Perhaps ... Clients buy people - especially where there is any emotional involvement for them – e.g. litigation/family proceedings/employment. Traditional solicitors may struggle where they rely on conveyancing and wills. 10/2/10 (c) Michael Scutt 2010 26

29. How to avoid meltdown Build relationships w. clients and other suppliers Marketing – social media/word of mouth – raising profile – demonstrate excellence Cross selling of services; wills to conveyancing/newly divorced clients 10/2/10 (c) Michael Scutt 2010 27

30. How to avoid meltdown (2) Quality not Quantity How do you demonstrate value? The end of GPs? Do you need a secretary? Effective use of social media 10/2/10 (c) Michael Scutt 2010 28

31. Social Media Web 2.0 – what is it? Not just websites Blogs – www.michaelscutt.co.uk Online Communities – Social Media Strategy Ideal way to get “out there” 29/10/2009 (c) Michael Scutt 2009 29

32. Don’t Panic! 10/2/10 (c) Michael Scutt 2010 30

33. Combating Tesco Law Michael Scutt Dale Langley & Co 60 Lombard Street, London EC3V 9EA michaelscutt@dalelangley.co.uk Blog = michaelscutt.co.uk @michaelscutt 10/2/10 (c) Michael Scutt 2010 31

35. What is marketing? “Marketing is so basic that it cannot be considered a separate function ... It is the whole business seen from the point of view of the final result, that is from the customer’s point of view.” – Peter Drucker All departments should be externally-oriented The ultimate goal is to provide services profitably for your chosen customers

36. Strategic Marketing

37. Vision Where are we going? What difference will we make? How do we want to be remembered? In what ways will we change things for the better? Is this vision relevant and good and desired by the customers and staff and stakeholders? Is it realistic and achievable? Have we involved staff and customers in defining our vision? Is it written down and published and understood? The Vision is the stage of planning when the organisation states its relationship with its market-place, customers, or users. The Vision can also include references to staff, suppliers, 'stakeholders' and all others affected by the organisation. Dependent on values and philosophy

38. Example Vision Statements Linklaters Epoq

39. Mission How do we describe what we aim to do and be and achieve? What is special about what we are and do compared to any other organisation or business unit? Do our employees understand and agree with this? Do our customers agree that it's what they want?

40. Example Mission Statements Linklaters

41. Values Ethics, integrity, care and compassion, quality, standards of behaviour - whatever the values are - are they stated and understood and agreed by the staff? Do the values resonate with the customers and owners or stakeholders? Are they right and good, and things that we feel proud to be associated with? Enabled by and dependent on philosophy and leadership.

42. Example Values Linklaters

43. Philosophy How does the organisation relate to the world? This is deeper than values. What is the organisation's purpose? If it is exclusively to make money for the shareholders, or to make a few million for the management buyout team when the business is floated, perhaps have a little re-think. Customers and staff are not daft. They will not be comfortable buying into an organisation whose deepest foundation is greed and profit. Profit's fine to an extent, but where does it fit in the wider scheme of things? Is it more important than taking care of our people and our customers and the world we live in? Does the organisation have a stated philosophy that might inspire people at a deeper level? Dare we aspire to build organisations of truly great worth and value to the world? Fundamentally defined by the leadership. The stronger our philosophy, the easier it is to build and run a great organisation

44. Example Philosophy Statements

45. Networking Academy Volunteerism community we believe belongs to everyone. Make Every Connection a Green Connection SustainableBusiness Practices

46. Exercise – Mission Statement The subject e.g. company Competitive positioning – leader, best value, a leading, lowest cost, best quality, most desirable, friendliest, etc. Market segments Products and/or services Staff Culture/style/values Adjectives to complete the sentence

47. Clear Mission Statements Northern Rock is a specialised lending and savings bank which aims to deliver superior value to customers and shareholders through excellent products, efficiency and growth. To shape the future of the Internet by creating unprecedented value and opportunity for our customers, employees, investors and ecosystem partners

48. Strategic Marketing

49. Strategic Marketing Planning

50. 4 – SWOT Strengths Weaknesses Exploitation Strategies Improvement Strategies Opportunities Threats Investment Strategies Blocking Strategies

51. Exercise – Do your SWOT Strengths Weaknesses Opportunities Threats

52. Marketing strategy involves research and implementation The Target Market Segmentation Marketing mix (also called the 4 P’s) Research Implementation Marketing is NOT just about leaflets, brochures and websites Infact 70% of marketing is research, asking people and planning 51

53. Marketing strategy involves research and implementation The Target Market Segmentation Marketing mix (also called the 4 P’s) What market are you in? What is the potential market? What is the size of the market? Who are your competitors? What do they offer and at what prices? How do you compare with them? SWOT? 52

54. The target market needs to be segmented The Target Market Segmentation Marketing mix (also called the 4 P’s) A customer segment is a group of buyers who have similar needs and respond to marketing offers in similar ways Study your proposed markets and target the appropriate segments Each segment has its unique market potential, and will need to have price, product, promotion and place targeted for it. 53

55. Segmentations have four main categories in consumer marketing Socio- demographic Transactional Psychographic Lifestyle Age Gender Marital status Neighbourhood Children Education Life stage Occupation What they read? How they travel? Hobbies Sports Fashion How much they spend with you? How often? How recently? Risk takers Safety-first Early adopters 54

56. Segmentations in business to business marketing Market sector Public or private Size of business Turnover Where they trade Expanding or contracting Do they make a profit? 55

57. Teens Young Active Fun Adult Personal User Mature Basic User International Business Traveller Self-Chooser for Work Company Paid An example of segmentation in the mobile telecoms marketplace 56

58. Q: What segmentation can a small business create? Segments? Lunchtime eaters Pre theatre parties Late night diners Families Special occasion customers 57

59. Exercise: Your market segmentation List 4 target segments in your chosen target market Your market: _____________________________ Segment 1: ___________________________________ Segment 2: ___________________________________ Segment 3: ___________________________________ Segment 4: ___________________________________ 58

60. You can use a whole range of sources to research your market Primary research is recommended for local or niche marketing Phone interviews or face to face Written questionnaires. You can do your own online survey free of charge, use www.surveymonkey.com Consumer panels / focus groups/observation 59

61. You can use a whole range of sources to research your market Secondary research i.e. research that others have prepared Trade associations - see www.taforum.org Market Research Firms: research firms, Gallup, Nielsen, Mori Government publications (HMSO) Internet searches Try to avoid paying for market research information. These sources are free: Office of national statistics www.theneighbourhood.statistics.gov.uk British Library: www.bl.uk/bipc/ www.businesslink.gov.uk 60

62. Marketing strategy involves research and implementation The Target Market Segmentation Marketing mix ( the 4 P’s) What shall we sell? – the Product How much should we charge? – the Price Where shall we sell it? – the Place How do we tell the customer? – the Promotion 61

63. The great challenge in marketing is to get the 4 Ps right Different companies will focus on different parts of the mix Promotion Price Product Place 62

64. The 4 P’s in practice Different companies will focus on different parts of the mix (“positioning”) Promotion Price Product Place 63

65. The 4 P’s in practice Different companies can coexist in the same marketplace Promotion Price Product Marks and Spencer BMW Rolex Primark Ford Casio Place 64

66. Different companies focus on different parts of the 4 P’s Promotion Price Product Amazon Tie Rack Place 65

67. Different companies focus on different parts of the 4 P’s Promotion M&S Price Product Place 66

68. Different companies focus on different parts of the 4 P’s Promotion Tesco Price Product Place 67

69. The first P: The Product (or service) Look at the benefits of the product for the customer, not only the features Examine quality, design, technical features, branding, packaging, service levels, processes, training Tailor this to your segments 68

70. Emphasising benefits not features Features? Benefits? Features: Benefits? 69

71. Exercise: Your service/ product List 4 features of your service and for each one list a benefit for the customer. Your Service:_____________________ Feature 1:___________________ Feature 2:___________________ Feature 3: __________________ Feature4:____________________ Benefit 1:_________________ Benefit 2:_________________ Benefit 3:_________________ Benefit 4:_________________ Your core message = the sum of your benefits 70

73. Bundling (or separate pricing)

74. Lump sum or piece rate

75. Rebates/ loyalty scheme

76. Undercutting the competition71

77. The 3rd P: Place How will your product be distributed? Retail Internet/ home shopping Remote or face to face Brokers Can you give a choice? 72

78. The 4th P: Promotion Radio/ TV adverts Exhibitions/shows Cost Sales people Brochures Direct mail Online Emails social media PR Ease 73

79. The Promotion – how do you choose the correct channel? Radio/ TV adverts, Exhibitions/shows Cost Sales people Brochures Direct mail Online Emails social media PR Ease 74

81. An email campaign may reach 5,000 people and generate 10 sales, but costs £100 for campaign = £10 per saleEvaluate your channels on cost per response and conversion: test, and roll out 75

82. Direct Mail 2% response = very successful, less than 1% is the norm. Need to understand your breakeven point You can rent names and addresses for a one off use (£200 per 000 names) Keep track of your customer contacts using a CRM package or use Access database 76

83. Brochures /newsletters Look at other people's materials, the basis of design should be: attention- interest- desire- action. Distribution options Stick to standard sizes Remember Royal Mail pricing Direct Mail Door to Door Inserts High volume with magazines or post office Response lower than Direct Mail 77

84. Email campaigns One subject one email Heading should be eye catching but appropriate Sentences should be shorter than any other document Use simple formatting Always write at the top: “if you cannot read this email click here” and provide a link to a webpage Send out midweek Test before sending and check spelling Must allow opt out Not too often e.g. http://www.dotmailer.co.uk/ - Online service Design and the copy (text) Sending out Capability 78

85. Websites All businesses should have a web presence Don’t use free webhosting as they will add adverts If you have budget use a SEO consultant Look like an authority (see social media section): 79

86. Search Engine Optimisation – making your website more visible organic paid versus Doing things to your own website that makes it more visible Paying an advertiser Search Google for your service in your area and related search terms. Your business should be in the online directories that appear in the listings 80

87. Press releases are a good source of free publicity Get your editorial printed for free Local papers need local community stories Guidelines: Faxes preferred A good photo helps Journalists will alter your text Push your case (newspapers prefer agencies) Surveys are excellent material 81

88. Social media marketing – why is it important? Traditional media: Direct mail Phone calls Leaflets TV and radio Adverts Emails New media: Search engine optimisation Blogging Social media RSS Free tools Viral videos NON-INTERRUPTIVE INTERRUPTIVE 82

89. A few thoughts ... Where has this happened before? The retail banking & finance institutions took the lead in segmenting their market for credit card sales: Identify the 20% of clients that generate 80% of profit Create 3 different versions of the same product differentiated by the level of service provided, cost, value added services, etc. (e.g. silver, gold, platinum) and cross sell Offer platinum product to the preferential high net worth 20% and make it really easy for them to get it Offer Silver to 80% of the market with incentive to get the Gold Manage risk with fast credit checking service

90. Then things got out of hand Reduce processing costs Use off-shore call centres and internet to sell and service Automate processing using technology Mass marketing to grab market share – even overseas Offer interest free transfers to get more market share Forget the risk – lend to those who are already over committed for more market share Crash & Burn .... Total UK credit card debt in December 2009 was £54.5bn.. It was a great marketing strategy when it started. That would never happen in the legal sector ... Would it?

91. Commoditisation at Eversheds Bulk work model 80% of this work will go to South Africa 20% will stay in Cardiff It is being suggested that they rename these products or even this part of the business so they don’t damage brand perception

92. Digital Media Neil Ramsorrun

93. Consumer behaviour online

94. Is it New or Widely Used by Organisations?

95. Digital growth forecast

96. How effective is your website? Does it reflect your brand identity? Does it engage your audiences? Easy to update? Linked in with digital marketing – social media, email campaigns? Well ranked on search engines?

97. landlordlaw.co.uk

98. landlordlaw.co.uk

99. landlordlaw.co.uk Fully integrated digital media campaign Use of newsletters, polls, blog Facebook channel Twitter channel Linkedin channel Excellent Google ranking (1th result when you search for “landlord law london”)

100. Content management system Allows you to update your site whenever you like, change/add new pages and content What You See Is What You Get (WYSIWYG) editor, anyone can use Can build bespoke systems or use open source platforms, depending on your needs Whole site can be built to interact with other software – CRM, ecommerce, blog

101. Content management systems

102. Content management system

103. Content management system

104. CRM Client Relationship Management A database of your contacts used on and off line Helps set up effective processes Gives your organisation a 360 degree view of their many relationships CRM assists, tracks and reports on efforts Sales, marketing, support, service

105. Promotional strategies

106. 1. Email marketing Now used in higher volumes than direct mail Impressive potential return on investment: US Direct Marketing Association estimates $48.56 for every dollar spent What makes a good email marketing campaign? 42% of email companies say targeting, 33% say offers, 25% say creative

107. Email marketing - newsletters Keep your contacts up to date with your news, offers and latest work HTML branded emails with imagery and links to your website Use CRM software to send emails in bulk and then track results Include signup form on website to build up your following

108. 1. Email marketing

109. Email marketing – business development Target specific audience groups Create 12 month campaign calendar emailing each audience every 2 months Promote new case studies, product offerings to that sector etc Tailor email to specific sector, sending them only relevant content

110. Email marketing Reporting Good email marketing solutions give good reports GM newsletters 3,500 sent each month 18% Opened Of opened 30% click through rate Latest Sales campaign – Construction 175 sent, 29 viewed, 22 click through, 5 opted out, 6 leads

111. 2. Social Media “Word cloud” showing some key elements of social media www.wordle.com

112. Social Media - What is it? A global online conversation A marriage of content and community Building your business through grassroots networks Building a community around a conversation Power to the people - Putting the consumer in control of content and broadcasting

113. Social Media Tools Blogging RSS Feeds Social Networks (eg Facebook, Bebo, Myspace) Podcasting/vodcasting Wikis Social Bookmarking (eg Delicious, Digg) Photo/video-sharing (eg Flickr, YouTube) Forums/message boards/groups

114. Social Media Statistics Over 10 million Facebook users in the UK UK social network membership predicted to rise to 27 million by 2012 184 million bloggers worldwide 215 million people downloading podcasts 184 million people uploading videos 36% of online users think more positively about companies who run their own blog successful viral films seen by hundreds of millions of viewers (Star Wars Kid = 900 million views)

115. Social Media Statistics Top 15 most viewed sites in the UK, November 2009 – 9 out of 20 are social media sites

116. A company blog? Gives you chance to show the personality of your organisation and to give expert advice Cheap to set up and maintain, using open source software – WordPress, Blogger Easy to update Allows people to follow what you’re up to and engage with you Helps search engine rankings Linkable between other social media channels

117. Blogging

118. Micro Blogging (Twitter)

119. Gateway Media Twitter New contacts, promotion, show your personality! Follow Gateway Media - http://twitter.com/GatewayMedia

121. Bio - Fill out your bio. Your latest tweets don’t mean much to someone that doesn’t know you. Your bio is the only place you have to tell people who you are.

122. Links - Put links to your Twitter profile everywhere, in presentations, business cards, figure out a way to broadcast or display your twitter account.

123. Stalk - Follow top twitter users, watch what they tweet.

126. The most powerful use of Linkedin is to find new clients and business partners through the search function and Groups.

127. Choose a Lion (adding everyone) or a “Trusted Partner” (adding few) approach

129. How will you sound online?

130. “define” your writing style to ensure consistent approach to posting

132. Find interesting ways to deliver your key messages, try new approaches.

133. The videos we produce are used across many media channels. From social networks to meetings and presentations like this. Video Podcasting is a very low cost way of doing this.

134. Animation

136. 3. Pay per click PAID search results ORGANIC or NATURAL search results

137. Pay per click Organic search can take a long time to get right Paid search gets you straight to the top of the search results Flexible budgets – can start a trial campaign in 5mins with a £1.00 budget Low set up costs and maintenance – initial consultancy to set campaign up then you can run it yourself Fully trackable so you can calculate ROI

138. Summary Who are you talking to?

139. Where are you talking to them?

140. How are you talking to them?

141. What are you saying? Business Speak This is my journey Or Both Are you telling a story?

142. Media Matrix This media matrix will help to focus the strategic objectives and tactical activities of your digital media campaign.

143. Q&A How can digital help you?

144. Contact simon.baker@gateway-media.co.uk yvette.elkana@gateway-media.co.uk neil.ramsorrun@gateway-media.co.uk michaelscutt@dalelangley.co.uk www.gateway-media.co.uk

145. Feedback Thanks for attending, your feedback would be greatly appreciated