Customer Service Is it on your agenda?

1. Customer Service Is it on your agenda?

2. Agenda • Why are we talking about customer service? • What is the outlook from a customers perspective? • What are our opportunities? • Can we learn from other industries? • Do I want to do Conveyancing anymore?

3. Why are we talking about customer service? • Customer service is at the heart of what we do and how much money we will make. • Stark reality is that the mystery shop on front end sales for tonight’s awards was described as “disappointing” by the judges. • Conveyancing remains a service rather than a manufacturing industry and will therefore be judged on its service provision. • How can a client experience your service if it is not sold? • How much do our businesses depend on our sales skills? Do we talk the right language and do we encourage our staff to do the same? • Customer service needs to be linked to commercial reality but should we accept in 2013 that moving home is still rated as one of the three most stressful events in our lives?

4. But what does that all mean? • Customer service is at the heart of what we do and how much money we will make. • We have a real opportunity to shape how Conveyancing will evolve and how Conveyancers will be viewed in the future. • How do we translate our service into sales? • On our websites the promotional language we use is “professional” and “trustworthy”. But this is assumed. How will you be different and what words do you want your clients to use to describe you? • We are transaction orientated but for the client moving home is an experience. • It is easy to forget that our clients are out of their comfort zone and are emotional about a life changing event. How empathetic are we? • How does language make a difference? Can we start saying “move day” instead of Completion.

5. The power of words....http: //www.youtube.com/watch?v=OqOzxZss5WA.

6. The world is changing...... There are 44 million UK internet users 2000 it was 15.4 million 76% of British Homes are connected to the Internet 2000 it was 25% Around 50% of people now own a Smartphone 2000 it was <1% 27 million Facebook users in the UK (Jan 2013) In 2000 it didn’t exist!

7. And fast now (1991 to now)

8. What are our clients doing? Mobile FACT 1 in 3 now do their property search on the go FACT Nearly half of adults in the UK now have a Smartphone FACTBusinesses with mobile sites are typically 26% more profitable FACT2/3 of Smartphone users want a site to load in < 4 seconds

9. What is the outlook from a customers perspective?

10. How do they choose?

12. The process challenge

13. Can we change the way we communicate? • http://www.youtube.com/watch?v=COvrf6NoCog

14. Can we make communication more effective? • Do we treat all parties as customers? • Do our staff want to make a good impression every single time the phone rings? • Do we see lenders as clients? • How do we interact with our counterpart “on the other side!” • Do we engage appropriately with the agent who will be ; - • Motivated to help • In touch with the client • Maintaining a relationship with a client • Aware of brand association (if they were the recommender)

15. Capacity • Confidence in the housing market soars to highest level in three years

16. The challenge and Opportunity of Social Media Behaviours & Service SOCIAL MEDIA

17. Regulation • The various FS reviews culminating in today’s FCA have impacted the Conveyancing industry and those encouraging a tightening of standards include the lender community, the Law Society and PI Insurers. Effects have been felt in measures such as panel application forms, increased kite mark sponsorship and the creation of compulsory compliance roles within Law Firms such as COLPs and COFAs.(Compliance Officers for Legal Practice and Compliance Officers for Finance and Administration). • Panel membership and the CQS have associated costs in terms of “subscription” fees and administration • FCA – their mantra is good/fair customer outcomes. Their end test = does it lead to a good customer outcome? • Conduct risk culture – does a bonus lead to a conduct risk of misselling so there are now quality based bonuses and special measures i.e. super bonuses might require 100% file check • SRA – Outcome Focussed Regulation • How many of us use this as a sales tool? Talk about your independent auditors such as Legal Eye.

18. Can we learn from other examples? Sainsbury’s Sainsbury’s, must have been pretty amused when they received a letter from a three-year-old girl named Lily. “Why is tiger bread called tiger bread?” she asked, referring to one of their bakery items. “It should be called giraffe bread.” Lily was just being observant – the pattern on the bread does resemble a giraffe more than a tiger. To everyone’s surprise, Chris King, a customer service manager at the chain, responded. “I think renaming tiger bread giraffe bread is a brilliant idea – it looks much more like the blotches on a giraffe than the stripes on a tiger, doesn’t it? It is called tiger bread because the first baker who made it a looong time ago thought it looked stripey like a tiger. Maybe they were a bit silly.” He enclosed a gift card, and the bread was renamed earlier this year.

19. Other examples Amazon • If you order a PlayStation online and it gets snatched from your doorstep instead of being delivered safely to your living room, that’s your problem, right? Or maybe it’s the delivery service’s problem. Or it’s the problem of the neighbor who signed for your expensive gaming system but didn’t bother to bring it inside to protect it from sticky fingers. Wherever the blame lands, it’s definitely not the problem of the company who fulfilled their end of the bargain by shipping the system using a secure method. However, when this scenario happened to an Amazon customer a few years ago, he called them to beg – plead – to see if there was anything that could be done because his son was expecting a PlayStation from Santa. Much to the customer’s shock, they not only sent another, but they didn’t even charge him for shipping. It even made it there on time for Christmas.

20. The Outlook Today • Consolidation is evident but the industry still has an extremely long tail with 4000 active firms. • 150 firms doing 33% of the work would indicate that one third of the industry are geared up for volume. They have embraced technology and many of these firms have innovative process enhancements varying from off shore solutions to the application of “robots” to automate certain stages of the transaction. • Two thirds are carrying out low volumes of cases which carries a risk that their case handlers are not specialists and the firms are less likely to have case management systems in place. These firms can delay chains and derail the efforts of those who have made efficiencies. However, it would seem they have a part to play as they are being selected and instructed by consumers. • The lenders approach to panel criteria is still evolving and this together with the cost and availability of PI cover will play a significant role in the future. • We are living in a technology revolution. Add that to the unprecedented conditions in our wider economy and the Conveyancing industry is not alone in re-shaping it’s future and the cycle is not yet complete.

21. Your time is now..... • You’ve been through the pain • Commercial understanding • Compliance – be brave and link to customer service • Be salesy – shout about your skills – too many use words like professional • Building blocks – post comp and new business • Pre recession allowed dabblers and volume players • Post recession need to tick all boxes and be streamlined efficient • MI and net profit • Loss leader – Conveyancing Now for the fun bit; - Be the client and see how you feel. Have happy clients and happy staff. Make more money. (Do I want to do Conveyancing anymore?!)

22. Summary • There are risks to transactions in a market with an upturn in volume and the greatest remains those firms who do not manage their capacity. However ; - • Those who remain in the conveyancing industry have demonstrated an ability to adjust to new volumes and many use technology to drive margin and cope with regulation. • The lenders have reduced panel membership meaning that those who remain active have expressly made a decision to commit to conveyancing. • Introducers are working more intelligently with their law firm partners. • There is evidence in the market of firms turning away work which they cannot deal with effectively whether that is attributable to low margins or insufficient resource. Previously they may have accepted this work and handled it poorly. • There are many firms making a profit from conveyancing and whilst this is still possible there will be existing and new entrants prepared to compete which will drive standards. • There is a huge opportunity for those doing Conveyancing to do more and do it better and retain those customers who will become your best adverts.