RML Mktng Audit

PREPARED BY ALEXIS MCCOY

2018 MARKETING AUDIT

M

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ROCKY MCELHANEY LAW FIRM

TABLE OF CONTENTS

INTRODUCTION

Executive Summary 04

Business Profile 05

INDUSTRY LANDSCAPE 06
09
Industry Performance 10
Industry Outlook 14
Industry Operations 15
Demand Determinants & Markets
Macro-Environment Snapshot

MICRO-ENVIRONMENT

Publics 16

Clients 20

Competitors 24

INTERNAL ENVIRONMENT

Structure & Operations 28

Marketing 30

Advertising 36

SWOT 42

TABLES & DATA 44

3

INTRODUCTION

ROCKY MCELHANEY LAW FIRM

EXECUTIVE SUMMARY

Rocky McElhaney Law Firm (RML) is an award-winning brand built on a foundation of dedicated public
service, strong leadership, and a flare for innovative marketing campaigns. Rocky McElhaney serves as
a powerful brand icon, and his personality and intelligence combined with his reputation and record
for success in the courtroom continue to be a prime driver of business. RML's marketing assets and
advertising are favorable, and the business is well-positioned, however, the company is suffering
strain from recent growth. RML currently lacks certain components required for a strong internal
organizational structure and solid internal marketing power. These challenges pose a risk to the firm's
ability to maintain its current competitive edge and to successfully adapt to future industry changes.
Over the next five years, Rocky McElhaney Law Firm (RML) and other firms in the Personal Injury Law
industry will face rising competition from increasing numbers of firms and online legal consultancies.
The current volatile political situation and voter redistricting make it difficult to predict the future
political landscape with confidence. However, continued efforts by conservative legislators to pursue
tort reform and other restrictive legislation remain a potential risk.
The unprecedented growth of the 65 and older population over the next five years represents an
opportunity for increased numbers of slip-and-fall and malpractice cases, however, the number of auto
accidents will continue its steady decline.
The growth of the company over the last few years and its continued success have naturally led
to an increase in the complexity of operations and, as a result, a need for increased oversight and
management. Internal, senior-level communication and collaboration shows gaps. Certain roles lack
clearly defined functions and protocols. The senior leader lacks dedicated executive administrative
support. Currently, these challenges may have a relatively minor impact. However, left unresolved, they
pose a significant threat to continued growth.
Claiming and sustaining a competitive edge requires a focused, highly efficient, and data-driven
marketing team. RML's current internal marketing structure and operations lack both the technological
resources and tools and the dedicated marketing oversight and direction necessary to remain
competitive in the longterm.

4

BUSINESS PROFILE

Rocky McElhaney Law firm (RML) is a growing company that specializes in providing legal
services to victims of personal injury,

The company's award-winning brand is solidly linked with the personality and reputation of
the company's founder and COO, attorney Rocky McElhaney. His friendly, down-home manner
and passionate commitment to fight for his clients, along with a winning track record, have
been key brand differentiators and greatly contributed to establishing trust and confidence
in the brand.

Founded in Nashville, TN in 2002, RML began as a small, dedicated firm employing only a few
attorneys and administrative staff. During the ensuing years, RML achieved relatively steady
growth, successfully weathering the impact
of and adapting to tort reforms that felled
many other personal injury firms. MISSION STATEMENT

In order to support the expanded operations "To serve as civil warriors, wielding
required to serve an increasing number of the law as both a weapon and a
clients, RML relocated to newly-constructed shield in the fight to gain justice for
headquarters in Hendersonville, TN. The all victims of personal injury."
company currently employs 8 attorneys,
several paralegals, a marketer, a financial
manager, and front desk staff. Led by Rocky and Penny McElhaney, the law firm's mission is
to serve as civil warriors, wielding the law as both a weapon and a shield in the fight to gain
justice for all victims of personal injury. In their service and culture, the firm strives to act with
respect, compassion, honesty, and fearlessness and seeks to promote collaboration, learning,
and growth.

5

INDUSTRY LANDSCAPE

PERSONAL INJURY LAW

INDUSTRY PERFORMANCE

OVERVIEW Business model innovation. To successfully position
themselves in the evolving industry, traditional law firms are
It’s a consumer's market. Clients are continuing to demand slowly recognizing that they need to make changes to Big Law
more for less, and firms and players that can meet this request are business models, reducing costs, offering greater flexibility and
emerging as winners in this new legal industry environment. transparency, and expanding their offerings to better compete.

Internal challenges. Law firms are facing overcapacity Disruptors. Strategies being undertaken by firms include
of under-performing lawyers and an unfavorable pipeline of collaborations with those that are presenting the greatest threats:
incoming talent as law school enrollment dwindles and graduates their clients, alternative service providers and legal tech startups.
turn to alternative career options outside of the traditional firm In addition, proactive firms are making strategic investments
and partner-track route. and building up their own technologies and alternative provider
options.
Trends are gaining momentum. Although many of the
themes and challenges for the industry remain the same as last
year, their impact is increasing. Firms continue to see a wane in
demand.
Increasing competition. The number of legal establishments is
increasing and technology is giving many any edge.

Over the last five years, the Personal Injury Lawyers and Attorneys Changes to legislation and increasing competition from online
industry grew at an annualized 0.9% to reach $33.5 billion in legal consultancies prevented the industry from growing at a more
revenue. This growth is the result of several key factors. robust rate. Still, the underlying structure of the industry remains
strong in the short to medium term.
From 2012 to 2017, legal firms benefited from an increase in the
average age of the US population; older individuals are more During the next five years, revenue from the Personal Injury Law
likely to have slip-and-fall accidents, which can yield personal industry is forecast to grow an annualized 1.4% to reach $35.9
injury cases. The number of vehicle accidents in the United States billion by 2023.
rose an annualized 2.0% to 6.2 million, bolstering demand for
industry services. Similarly, increased activity in construction and Industry profit growth over the next five years will be restrained
manufacturing sectors resulted in a small increase in the number by internal competition. The number of personal injury businesses
of workplace injuries and deaths. is expected to increase at an annualized rate of 0.5% to 57,997
establishments. Online legal consultancy is expected to grow even
Unlike other industries that experienced revenue fluctuations over the more popular over the period and industry revenue is expected to
past five years, Personal Injury Law has been partially insulated from grow at a slower rate than the overall economy.
macroeconomic shocks given the non-discretionary nature of its
services.

6

STATISTICAL OVERVIEW DATA SOURCE: IBISWORLD.COM

PERSONAL INJURY LAW INDUSTRY

2017 2012-2017 2012-2017 2017 2012-2017
TOTAL ANNUAL PAST ANNUAL FUTURE ANNUAL PROFIT NUMBER
REVENUE GROWTH REVENUE GROWTH OF BUSINESSES
REVENUE $7.0 bn
0.9% 1.4% 53,998
$33.5 bn

% OF CHANGE BY YEAR: CRIME RATE

Revenue vs. Employment 4000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3600 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 ......................................................................... 3200 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
......................................................................... 2800 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2400 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 .........................................................................
.........................................................................

0 .........................................................................
.........................................................................

-2 .........................................................................

.........................................................................
% of Change
Crimes Per 100,000 People

-4 2011 2013 2015 2017 2019 2021 2023 2000 2010 2012 2014 2016 2018 2020 2022
2009 Year Fig. 3 2008 Year

MARKET SHARE Personal Injury Airline SEGMENTATION OF SERVICES
No major national players 2.1%
Automobile Accidents
Top 3 local competitors: Personal Injury Marine
ƒƒ Hughes and Coleman 12.1% 52.8%
ƒƒ Ponce Law
ƒƒ Bart Durham Medical Malpractice SOURCE: IBISWORLD.COM
16.0%
KEY EXTERNAL DRIVERS
Other Personal Injury
Crime Rate 17.0%
.........................................................
Number of Physician Visits
.........................................................
Number of Work-Related Deaths
.........................................................
Number of Adults Age 65+
.........................................................
Number of Vehicle Accidents

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KEY EXTERNAL DRIVERS Similarly, the number of elder abuse cases has risen as more
individuals enter retirement homes. To properly service this
CRIME RATE increase in demand, industry firms are expected to slowly hire
more lawyers after several years of declines in the industry
Crime rates, the increase of which generally result in a workforce. Therefore, over the current period, total industry
boost in industry demand, are expected to decline over employment is expected to increase at an annualized rate of 0.1%
the next five years. to reach 117,447 workers.

NUMBER OF PHYSICIAN VISITS Though these online services cannot represent a plaintiff in court,
they offer less expensive and faster access to legal advice and
The number of physician visits is expected to increase have, thus, cut into industry demand.
an annualized 1.5% to reach 1.0 billion resulting in an
increase in the number of medical malpractice cases. While the Personal Injury Lawyer and Attorneys industry is partially
independent from growth in the greater economy, industry revenue
NUMBER OF WORK-RELATED DEATHS has been bolstered by increased activity in the US construction
and manufacturing sectors in recent years. Both of these sectors
The numbers of work-related deaths and workplace are, on average, more dangerous than their service-sector
accidents contribute to industry demand. These counterparts and, thus, account for a larger share of workplace
numbers are expected to decrease over the next five injuries and deaths. Over the current period, construction and
years. manufacturing activity have both rebounded strongly from their
lows immediately preceding the Great Recession. As a result, the
NUMBER OF ADULTS AGE 65 & OLDER number of work-related deaths has grown somewhat; however,
such growth hasbeen tepid and remains far below its early 1990s
The population of adults aged 65 and older is forecast peak. Consequently, demand for industry services related to
to increase an annualized 3.3% to 55.6 million resulting workplace accidents has increased somewhat, though it is unlikely
in rising numbers of slip-and-fall accident and elder to provide a substantial boost to revenue in the medium to long
abuse cases. run.

NUMBER OF VEHICLE ACCIDENTS Over the past five years, structured settlements have become
more common in Personal Injury Law. The rise in the popularity
The number of vehicle accidents is expected to decline of this type of settlement stems from economic factors occurring
over the next five years, representing a potential threat over the last decade. Slow growth in per capita disposable income,
to the industry. historically high unemployment levels, and reduced social benefits
due to tighter state budgets have led to the diminished financial
TRENDS AIDING CURRENT GROWTH solvency of many defendants, making structured settlements
more attractive than lump sum payments.
Industry growth has been moderated by improvements in
some segments and declines in others over the past five years. While structured settlements will help boost industry profit margins
The number of adults aged 65 and older in the United States is over the next five years, industry profit growth will be restrained
estimated to increase an annualized 3.1% to 47.3 million. Slip-and- by internal competition. In the five years leading up to 2022, the
fall accident cases have increased in line with a rising number of number of personal injury businesses operating in the industry
senior citizens. is expected to increase at an annualized rate of 0.5% to 57,997
establishments. Online legal consultancy is expected to grow even
more popular over the period and industry revenue is expected to
grow at a slower rate than the overall economy.

8

Increased economic activity also indirectly benefits the industry Over the next five years, the number of adults aged 65 and older
through increasing Americans’ propensity to drive, be it either is forecast to increase an annualized 3.3% to 55.6 million. Personal
for work or leisure. Rising per capita disposable income, low Injury Lawyers will benefit from the rising average age of the US
unemployment, and the falling price of crude oil all supported population and an increase in the number of physician visits made
growth in the total number of vehicle miles driven in the current in the United States.
period. With more cars on the road, the number of vehicle accidents
grew at an annualized 2.0% through the current period. In the five years to 2022, the number of physician visits is expected
to increase an annualized 1.5% to reach 1.0 billion. Ultimately, this
Despite revenue growth, IBISWorld estimates that the number growth will likely drive an increase in medical malpractice cases,
of firms operating in the Personal Injury Lawyers and Attorneys boosting demand for associated Personal Injury Law services.
industry declined at a modest annualized rate of 0.1% to reach
56,605 establishments. Nevertheless, industry profit margins have Similarly, the aging of the US population will cause growth in the
been held down by both internal and external competition, as well number of slip-and-fall accidents and elderly abuse cases. These
as by the marketing expenses incurred by Personal Injury Lawyers. factors are expected to contribute to revenue growth of 1.2% in
Although most companies are local and regional operators, the 2018. During the same period, the number of vehicle accidents is
largest firms still rely heavily on expensive television advertising forecast to grow at a more tepid annualized rate of 0.1%. Despite
to market their practices. Consequently, average industry profit this slow growth, Personal Injury Lawyers will benefit from other
margins have increased only slightly, from 20.0% in 2012 to an factors, including low unemployment rate, which increases the
estimated 20.9% in 2017. potential pool of laborers that may experience a workplace injury.

PERSONAL INJURY LAW The number of Personal Injury Law enterprises is expected to
increase an annualized 0.5% to 57,997 companies over the five
INDUSTRY OUTLOOK years to 2022.

Law school graduates have found it harder to find a job at a law
firm than in the past. Many of these students are expected to start
their own personal injury practices over the next five years.

Revenue for the Personal Injury Lawyers and Attorneys industry is Personal Injury Law practices tend to have lower barriers to entry
expected to grow an annualized 1.4% to $35.9 billion over the five than other types of law, including the more lucrative areas of
years to 2022, largely driven by a growing elderly population. corporate law.

An increase in joint liability cases, which are pursued when there The rising number of firms operating in the industry and continued
are two or more liable parties, is also expected to boost industry competition from online legal consultancies is expected to limit
revenue over the next five years. Joint liability cases have become profit margin growth. New entrants will contribute to increasing
more popular over the past five years because they produce larger price competition in the years to come. Consequently, IBISWorld
overall settlements. expects industry profit margins to reach 21.4% in 2022, up
marginally from an estimated 20.9% in 2017.

Ultimately, the continuation of this trend will increase industry
revenue because portions of these larger settlements will end up
going to firms representing plaintiffs.

Over the five years to 2022, industry operators will continue to
reap the benefits of cases that were won in the past five years.

9

PERSONAL INJURY LAW investment decisions, it may face underutilized capacity if demand
suddenly falls. On the other hand, if demand rises dramatically and
INDUSTRY OPERATIONS quickly, the firm may be constrained by its capacity and unable to
take advantage of the rise in opportunities.

CAPITAL INTENSITY: Low

The industry is growing slower than the The industry's level of capital intensity, the comparison of
.o..v..e..r..a..l.l..e..c..o...n..o...m...y............................................................ the amount of money spent on capital (plant, machinery, and
Industry services are segmented and relatively equipment) with that spent on labor, is low. While the use of
.c.o...n..s..t..a..n..t.......................................................................... computer software, legal databases, and the internet has improved
The number of firms operating is employee productivity, it has not overcome service needs, and
increasing slowly. industry adoption of new technological advancements is slow.
........................................................................................
Clients require professional and tailored advice to solve their
LIFE CYCLE STAGE: Mature problems which can only be provided by people. Law firms also
require several support staff for research, filing, documenting, and
Personal Injury Law is a well-established industry providing ad hoc duties. Consequently, this industry is very labor intensive.
services that will remain in demand for the foreseeable future. The
industry also plays a critical societal role in defining and regulating IBISWorld estimates that for every dollar that the industry spends
important aspects of personal conduct. While these factors make on labor in 2017, it will only spend $0.02 on capital. Over the next
the law dynamic and create opportunities for new areas of growth, five years, wages are expected to grow marginally as a proportion
the industry is still considered mature; the universal need for its of revenue while capital expenditures remain unchanged.
services makes the emergence of new markets unlikely.
TECHNOLOGY CHANGE: Medium
REVENUE VOLATILITY: Low
In recent years, law firms have significantly increased their online
presence. Many use the internet as a marketing tool to reach clients
seeking representation. Furthermore, several online legal library
systems have been developed with hotlink and search functionality.
These user-friendly tools have enhanced the resources of smaller
firms at little cost, improving competitiveness in the process.

Revenue volatility refers to the amount and frequency of change Many law firms have upgraded their computer networks to
in the level of demand for a product or service. Accidents happen digitally store legal information and enhance research databases.
regardless of the economic cycle, and since most Personal Injury Most firms are also increasing their reliance on mobile wireless
Lawyers are paid a contingent fee as opposed to direct from the technology and voice over internet protocol (VoIP) technology to
client, demand for industry services has remained relatively steady increase efficiency and cut costs. The benefits from increasing
from year to year. Consequently, the Personal Injury Law industry technology in law firms’ systems include increased productivity,
is not considered volatile. better client service, cost savings and greater innovative potential.

However, as mentioned in the executive summary, the impact of Technology has also extended into the court system. Courts are
climate change adds an unknown variable to these predictions. The introducing online document retrieval and access to information.
potential for increased weather-related injuries is unpredictable. Clients can obtain real-time transcripts of evidence, and audio-
Should climate change or changes in legal regulations or other visual technology has also been upgraded. Most documents are
unforeseen events result in a higher level of revenue volatility, the stored digitally, improving productivity and expediting the transfer
increase can negatively affect long-term strategic decisions, such of documents.
as the time frame for capital investment. When a firm makes poor

10

DATA SOURCE: IBISWORLD.COM

COMPETITION Price also plays an important role in beating out competition. Since
most personal injury attorneys commit to cases on a contingent-
Internal Competition fee basis, those who agree to a lower portion of the settlement fee
Personal Injury Lawyers compete on a regional or local basis may gain clients that are looking for the best deal.
for clients. As a result, reputation and brand are critical to their
business success. Those lawyers and attorneys who are successful External Competition
in court benefit greatly from word of mouth recommendations. Competition from outside of the industry is limited because the
Personal Injury Lawyers also strengthen their reputation through most successful operators are qualified lawyers, and a law degree
community service and pro bono work. Most industry operators takes considerable effort and investment to obtain. Personal Injury
also spend a significant portion of revenue on marketing to bolster Lawyers do, however, compete with other lawyers that do not
local awareness of the services they offer. primarily engage in such litigation.

11

PERSONAL INJURY LAW INDUSTRY CONCENTRATION:

% OF TOTAL ESTABLISHMENTS PER STATE (2017)

Establishment = the smallest accounting unit, a single physical business location
DATA SOURCE: IBISWORLD.COM

2.2 0.4 0.2 0.4
0.3 0.2
1.3 1.4 0.3
0.5 0.5 2.5
0.8 NY 0.4
0.8
1.4 2.2 2.6
IL
TX 2.5 1.3
4.5
1.0 7.6 PA 3.3
1.8
CA 3.4 NJ

12.6 0.8 1.5 2.7
0.5
2.1 2.2
1.2

1.7 0.6 1.4 2.4
0.8
1.4
0.8 1.4
2.0 GA

3.2

AK FL

2.2 9.6

HI
2.2

PERCENT OF TOTAL ESTABLISHMENTS
Less than 3%
3% to 10%
11% to 20%
20% or more

12

MARKET CONCENTRATION: Of the regions in the United States, the Southeast contains the
highest concentration of industry establishments, at an estimated
The Law Firms industry is highly fragmented with the majority 26.9% of the total. This is marginally higher than the region’s share
of operators running their own small practices or partnerships. of the US population, which is an estimated 25.7% of the country’s
The average company in the industry only employs two people. total population. After the Southeast, the West and Mid- Atlantic
IBISWorld estimates that the top four industry participants account regions contain the second and third-highest concentrations of
for less than 5.0% of industry revenue. Operators continue to rely industry establishments, respectively. While the West contains a
on garnering business via word of mouth and local advertising similar percentage of establishments as its population share, the
and spend increasing amounts on digital advertising. Many invest Mid-Atlantic contains a larger proportion of industry establishments
their time in community service activities and pro bono work to in relation to its population. In 2017, IBISWorld expects that 16.8%
establish a positive reputation and gain the trust of potential of industry operators are located in the Mid-Atlantic region, and this
clients. Personal Injury Lawyers operate in regional markets. is expected to be the result of the presence of major metropolitan
People throughout the United States are exposed to injuries that cities, such as New York City and Washington, DC.
may result in litigation, generating demand for personal injury
litigation services. As a result, the industry’s firms are spread out The Plains, Southwest and Great Lakes regions are the only regions
along the lines of the population. in which the concentration of industry establishments is below the
respective share of the total population. This is expected to be a
Industry operators benefit from locating near urban municipalities, result of the fewer number of major metropolitan locales in the
as they are more able to generate elevated client volumes in these regions. These trends are expected to remain relatively consistent
areas. In 2017, IBISWorld expects that California (12.6%), Florida through the five years to 2022, as the advantages of operating in
(9.6%) and New York (7.6%) contain the largest concentration of highly populated cities are expected to persist over the period. %
industry operators, and this is likely due to the great number of
highly populated cities in these states.

13

PERSONAL INJURY LAW 15.0% MAJOR MARKET SEGMENTATION
People Age 65+
DEMAND DETERMINANTS DATA SOURCE: IBISWORLD.COM
& MARKETS
50.6%
People Age 25-64

Since most Personal Injury Lawyers and Attorneys provide services 34.4%
based on a contingent fee agreement, consumer demand for the People Younger than 25
industry is generally independent of personal income and gives
low-income consumers fair access to the judicial system. experience as a result of an accident. As growth in the number
of people aged over 65 continues to out-pace overall population
In auto accident cases, a 33.0% fee is common, while a higher growth, seniors are expected to demand an increasing share of
contingent fee is normal in medical malpractice and more complex personal injury litigation services.
cases. According to the Centers for Disease Control and Prevention
(CDC), an average 31 million people are injured severely enough Although only a small subset of personal injury cases are in the
to require medical treatment each year. The American Association realm of medical malpractice, hospital statistics that track nonfatal
for Justice reports unintentional injuries (accidents) are the fifth- accidents can explain the circumstances of likely personal injury
leading cause of death in the United States. cases. According to data from a 2015 (latest available) study by the
Center for Disease Control and Prevention (CDC), people under the
An increase in accidents and criminal activity, as well as the age of 25 made up 34.4% of patients treated in hospital emergency
number of prosecutions, boosts demand for Personal Injury departments for nonfatal injuries. As a percentage of total injuries,
Lawyers. The number of car accidents is expected to de-accelerate this figure has fallen steadily since 2012, when those under the age
as new technologies to improve safety are installed on roads and in of 25 accounted for roughly 40. 0% of all injuries, according to data
vehicles. Likewise, fatal work injuries are on a path of slow, uneven from the CDC.
decline. Crime is also on a steady downward trend in the United
States as the population ages. As the chance of becoming injured Meanwhile, those aged 25 to 64 accounted for 50.6%, and seniors
due to accidents declines, the market demanding industry services made up 15.0%. – both of these ratios have grown since 2012,
in these areas is also falling. highlighting the impact of an aging population. According to this
study, the leading cause of nonfatal injuries treated in hospital
However, the aging population is expanding the market demand emergency departments was an unintentional fall. This is true for all
for personal injury litigation. The number of negligent and elderly ages except for the 10 to 24 age group, for which an unintentional
abuse cases is growing as the number of seniors increases. fall was the second-highest cause of nonfatal injury. Meanwhile,
The number of adults over the age of 65 is expected to rise an motor vehicle injuries were the fourth-most-common reason for
annualized 3.2% over the ten years to 2022 to reach 55.6 million the nonfatal injuries treated in hospital emergency departments
people. Negligence cases, especially those from improper design among all age groups.
or maintenance, are on the rise because the elderly are at risk for
serious injury in the event of a fall. According to the CDC's research,
of the segment of the population age 65 and older, one-in-four
experience a serious fall every year. This translates to an estimated
annual 2.8 million elderly being treated in the hospital for injuries
sustained in a fall.

The elderly population has the highest risk of developing medical
complications, which boosts the financial strain they may

14

MACRO-ENVIRONMENT: PERSONAL INJURY LAW

The macro-environment is the broader context within MACRO-ENVIRONMENT
which a company conducts its commercial operations;
it's the major external and uncontrollable factors that
impact a businesses. The macro-environment informs
leaders about the conditions in which they are about to
operate and influences decision-making and choice of
strategies.

Environment Current Future
Political
Economic Industry faces ongoing challenges from State of future political landscape is too
Social Republican politicians and lawmakers volatile to predict at the current time;
seeking tort reforms; they support bills continued republican leadership at
designed to make it more difficult to file national level has potential for medium to
and/or collect meaningful amounts of high industry impact.
money from injury lawsuits.
Unlikely to change
Personal income has generally had low
impact on industry revenue since fees are Continued increases in population of
routinely paid as a contingent fee and not adults aged 65 and older; continued
directly by the client. decline in auto accidents and crime rate.

Growing population of elderly has resulted
in increased malpractice, slip and fall cases,
and elder abuse; gradual decreases in crime
rate and auto accidents.

Tort reforms; pressure for further reforms Continued threat of tort reform

Legal

Technological Legal software adoption by firms and courts Firms with higher technology adoption
Environmental has increased productivity of judicial system rates will surpass competitors. Emergence
and empowered smaller firms to compete. of self-driving car likely to result in shift of
Cases related to self-driving cars beginning liability from individual to manufacturer.
to appear.
Climate change predicted to decrease the
Increasingly extreme weather conditions number of auto accidents while increasing
and associated damage and injuries the percent of fatal auto accidents.
resulting from climate change; initial Potential for increased climate-change-
climate change lawsuits being tried in related liability cases.
courts.

15

MICRO-ENVIRONMENT

ROCKY MCELHANEY LAW FIRM

PUBLICS

A public represents a specific group of people (and their associated Generally, most Tennessee counties are conservative when it
activities) that may have an impact on a business's ability to comes to assessing damages in personal injury or death cases.
succeed. Of the three primary, publics that impact Rocky McElhaney Overall, there were 2471 cases tried in Tennessee during the last
Law firm, the legal community and court system; local community five-year period. A total of 931, only 37.7%, resulted in monetary
organizations and businesses; and local government, the first is the damages.
most important and worthy of discussion.
Based on statistics provided in the Tennessee judiciary
Reputation plays an critical part in the Personal Injury Law industry, report covering July 1, 2009 through June 30, 2014, the most
and the legal community plays an important role in how that conservative, the two most liberal jurisdictions (setting aside
reputation is shaped and shared. Serving clients within middle Coffee County which has a very small sample size) are Davidson
Tennessee with a focus on Nashville and the surrounding areas, County and Shelby County, as would be expected. However, even
Rocky McElhaney Law firm (RML) regularly interacts with lawyers, in those counties, it is close to a 50/50 proposition on whether
judges, and law enforcement agents within those environs. damages will be awarded or not. When compared to prior
statistical reports from 2005 to 2012, it is clear most Tennessee
Although Rocky was extremely active in legal professional groups jurisdictions have become more reluctant to award damages in
and meetings early on in the firm's history, his participation has personal injury or death cases.
waned in recent years as the firm's business has grown and
the workload has increased. The firm still maintains a positive The most conservative districts are District 27 (Obion, Weakley,
reputation within the legal community, though it may be less top District 28 (Crockett, Gibson, Haywood), District 29 (Dyer, Lake),
of mind than in previous years. District 25 (Fayette, Hardeman, Lauderdale, McNairy, Tipton),
District 17 (Bedford, Lincoln, Marshall, Moore), and District 23
Another key part of this environment is the Tennessee court (Cheatham, Dickson).
system. According to the Tennessee Administrative Office of
the Courts, the number of filed Tennessee Circuit and Chancery
Court cases continues to decline. The Tennessee legislature is
continuing to reform Tennessee tort law. This will continue to put
pressure on the legal industry as less cases are financially viable.

16

TOP 5 COUNTIES WITH THE MOST AUTO ACCIDENTS
RESULTING IN SERIOUS INJURIES

DATA SOURCE: Tennessee State Government

SHELBY | KNOX | DAVIDSON | MONTGOMERY | HAMILTON

NEW ROCKY MCELHANEY LAW FIRM CLIENTS IN 2018

DATA SOURCE: RML

17

GEOGRAPHY OF NEW CLIENT ACQUISITION (2015-2018)

AVERAGE ANNUAL NUMBER OF CLIENTS BY TENNESSEE COUNTY

DATA SOURCE: RML

0 1000

NUMBER OF CLIENTS 61 - 80
81 - 200
4 OR LESS 201 - 300
5 - 20 900 OR MORE
21 - 40
41 - 60

18

19

ROCKY MCELHANEY LAW FIRM

CLIENTS

DEMOGRAPHICS 35% on connected tv, and 21% on cable tv. They prefer Facebook,
Although all consumers are considered potential clients, there are Twitter, and YouTube to other social media channels and are highly
attributes among the general population that render them more engaged by video posts.
likely to suffer personal injury and demographic and behavioral
characteristics that are common among the majority of Tennessee Surveys conducted in 2016 by the LML show that 64% of Americans
residents, the target market for RML. say that free consultations are a deciding factor when choosing a
law firm. Additionally, the 2017 Clio study found that 62-percent of
According to research conducted by the CDC during the years 2001- people find attorneys through referrals from family or friends, and
2016, an average 71% of individuals hospitalized due to personal 31-percent through referrals from other attorneys.
injuries were White/Non-Hispanic. The remaining individuals were
17% Black, 9% Hispanic, and 3% non-Hispanic. The largest segment A 2017 national survey conducted by iLawyerMarketing revealed
of the total hospitalized population were age 65 or older, and that 81% of respondents ranked years of experience as one of the
within that group, 86% were White and 61% female. The remaining key factors in their choice of legal representation. Nearly 2/3 of
age groups were, on average, between 60% to 66% male and participants (66%) said that past case result history would impact
predominately of White/Caucasian. their decision. Eighty-two percent of respondents said they would
use the internet to research a lawyer and 47% said they would
According to studies by the Legal Marketing Association (LML), likely use their smartphones.
the average litigant seeks representation approximately 25
months after their accident. Fifty-two percent of litigants have not In regard to trusted sources, this and many other studies have
completed high school, while 19% have attended a community shown the importance of online reviews in client decision-making
college or university. Most plaintiffs are married with children. processes. In the iLawyerMarketing survey, over 60% of participants
listed Google reviews as the most important 3rd party reviews,
BEHAVIOR followed by Facebook at 18% and Yelp at 16%. Avvo reviews were
RML primarily serves residents of Tennessee who represent an only listed at 5%--likely because most individuals outside of the
average 35% of all traffic to RockyLawFirm.com. Tennesseans who legal industry are not familiar with it. When asked how far they
fit the demographical profile described above are predominately would travel to see a lawyer, 41% reported they would travel up
conservative in their political views. If married with children, to 30 miles; 34% would travel up to 15 miles, and only 6% would
members of the target market likely attend school and community travel up to 120 miles.
events and games. Nielson's 2018 consumer data regarding this
cohort reveals members regularly attend church and are most likely
of the Christian faith. They earn lower to middle incomes and most
often shop at discount stores and shopping malls. On average,
they spend 41% of their personal screen time on a smartphone,

20

INJURIES BY AGE

45% 11.62% 12.33% 14.45% 11.70% 38.37% PERSONAL INJURIES
40% Age 25-34 Age 35-44 Age 45-54 Age 55-64 Age 65+ RESULTING IN
35%
30% HOSPITAL TIME
25%
20% SOURCE: Centers For Disease Control (CDC)

15% 11.53% CLIENT PERSONA DESCRIPTORS
Race/Ethnicity: White/Caucasian
10% Gender: 60/40 male/female
5% Age: 45 +
0% Family: Likely married with children
Education Level: High school diploma, some college
Age 15-24 Income Level: Lower to middle
Technology: Avid smartphone-user
White INJURIES BY ETHNICITY Religion: Churchgoer, Christian
Non- Social Media: Facebook, Twitter, YouTube
Hispanic Black
71% 17%

Hispanic
9%

Other Non-
Hispanic
3%

Male White Black Female Male White Black
39% 86% 5% 40% 60% 80% 12%

Female Hispanic Hispanic
61% 5% 5%

Other Other Non-
4% Hispanic
3%

AGE 65+ AGE 55 TO 64

Female Male White Black Female White Black
35% 65% 74% 16% 34% Male 71% 16%
66%
Hispanic Hispanic
7% 10%

Other Other Non-
Non- Hispanic
Hispanic… 3%

AGE 45 TO 54 Black AGE 34 TO 44
18%
Female White Female Male White Black
34% Male 70% Hispanic 40% 60% 68% 18%
66% 9%
Hispanic
Other Non- 11%
Hispanic
3% Other Non-
Hispanic
3%

AGE 15 TO 24 21

AGE 25 TO 34

PRIMARY DEMOGRAPHIC PROFILE

DATA SOURCE: Nielson Demographics, RML

Education ............................ Gender

High school Diploma/Some
college

40% 60% ............. Income
Lower to Middle Incomes

Age ........................................
Age 35 to 55

Ethnicity ........................... .............. Family
White/Caucasian Married w/Children

.............. Generation
Primarily Gen X (Age 39-53)
Gen Y.2 (Age 28-38)
Baby Boomers (Age 54-74)

Politics Conservative political beliefs, predominately Republican

Religion Regularly attend church, predominately Christian

Social Attend school and community events (games, fundraisers), use
Facebook, Twitter, & YouTube

Shopping Malls and discount chains (Walmart, Dollar Store)

Technology Use smartphones over desktops, watch connected & cable TV

22

Gen X GENERATIONAL PROFILES

DATA SOURCE: American Marketing Association

Years Born: 1965 to 1979 Current Ages: 39 to 53 Generation Size: 82 Million

Media Consumption: Gen X still reads newspapers, magazines, listens to the radio, and
watches TV. However, they are also digitally savvy and spend roughly 7 hours a week on
Facebook.

Shaping Events: End of the cold war, the rise of personal computing, and feeling lost
between the two huge generations.

Concerns: Gen X is trying to raise a family, pay off student debt, and take care of aging
parents. These demands put a high strain on their resources.

Gen Y.2

Years Born: 1980 to 1994 Current Ages: 24 to 38 Generation Size: 95 Million

Media Consumption: They still watch TV, but Netflix edges out traditional cable as the
provider. Cord-cutting in favor of streaming services is the popular choice. This generation
is extremely comfortable with mobile devices and typically have multiple social media
accounts. They are blog readers and fans of bite-sized content.

Shaping Events: The Great Recession, the technological explosion of the internet and social
media, and 9/11

Concerns: Millennials are entering the workforce with high amounts of student debt.
Because of this financial instability, Millennials prefer access over ownership. They are cause-
oriented and extremely environmentally conscious.

Baby Boomers

Years Born: 1944 to 1964 Current Ages: 54 to 74 Generation Size: 76 Million

Media Consumption: Highest consumers of traditional media like television, radio,
magazines, and newspaper. However, 90% have a Facebook account.

Shaping Events: Post WWII optimism, the cold war, and the hippie movement.

Concerns: Unexpectedly, this generation is experiencing the highest growth in student loan
debt. They have a belief that you should take care of your children enough to set them on
the right course but don't plan on leaving any inheritance.

23

ROCKY MCELHANEY LAW FIRM COMPETITOR SEO

COMPETITORS SOURCE: Rival IQ

Competition in the Personal Injury Law industry is high and there Domain Authority
are numerous local competitors within the landscape, however, External Links
Google search ranking and a Rival IQ analysis identify RML's top
3 competitors in the region as Hughes and Coleman, Ponce Law,
and Bart Durham. These three firms consistently ranked at the
top of the list in regard to their online audience following, and
engagement which, as a rule, are relative indicators of their level of
client engagement and business.

All three competitors are well-known locally and specialize in
handling personal injury cases. Hughes and Coleman, the largest
firm, employing a total of between 28-40 attorneys, is based
in Bowling Green, Kentucky and serves clients in South Central
Kentucky and middle Tennessee.

Ponce Law and Bart Durham are both Tennessee-based firms
serving clients in the middle Tennessee area. Ponce Law employs
6 attorneys and is based in Goodlettsville, TN while Bart Durham
employs 5 and is located in downtown Nashville.

RML measures relatively high in terms of its online presence,
although there is room for improvement and growth.
RockyLawFirm.com is the landscape leader for Tracked Organic
Keywords ranking first above its other three competitors. RML's
website is below average for estimated Organic Search Traffic,
ranking third; Hughes and Coleman leads with an average 6,602
monthly visits.

Rockylawfirm.com was above average both for Domain Authority
and External Links, ranking second behind hughesandcoleman.
com in Domain Authority and second behind Bart Durham in
External Links.

24

COMPETITOR SOCIAL MEDIA

SOURCE: Rival IQ

Social Media Engagement Ranking

COMPANY AGV. # OF POSTS PER MONTH AVG. ENGAGEMENT RATE PER POST The social media totals and rankings
shown below were calculated using
Hughes and Coleman 44 1.07% combined data from the following
social media accounts: Facebook,
Rocky McElhaney Law Firm 42 0.47% Twitter, Instagram, YouTube, and
Google+
Bart Durham 89 0.44%

Ponce Law 39 0.43%

Total Followers Average Likes

Average Comments Average Shares

SOCIAL MEDIA The American Bar Association’s 2017 Legal Technology Survey
Research shows that interacting with clients and community showed the most active lawyers on social media were those in
members online builds trust which often translates into additional labor law at 89%, followed by personal injury at 84%, and litigation
clients and greater revenue. Providing free, useful information,and at 84%. Fifty-six percent of surveyed lawyers reported using social
answering questions someone may feel silly calling about tells media for the purposes of client development, and 27% of those
audiences that the lawyer is there for them and cares. Essentially, had a client retain their legal services directly or via referral as a
social media puts legal service providers in the trenches with their result of their use of social media.
clients and can give them a competitive edge over the less engaged
competitors.

25

PONCE LAW

Appearance on WSMV Nashville Today radio
show, AM station 650.

All three of RML's competitors, Hughes and Coleman, Bart Durham, Ponce Law leads the other three firms on Facebook with the
and Ponce Law, are all active social media users. When compared greatest number of followers and interactions and highest
with these competitors across Facebook, Twitter, Instagram, engagement rate. RML comes in at a solid second place.
Youtube, and Google+ combined, RML's overall social media
ranking remains mid-range to below average. Hughes and Coleman have the highest number of YouTube
subscribers.
Although Ponce Law ranks number one in terms of largest social
audience with 6,719 followers, RML comes in second and retains RML leads Google+ in number of followers, however, Bart Durham
a total number of followers that exceeds the landscape average. is more active and has a higher engagement rate.
However, RML ranks below average in the area of Social Audience
growth, ranking  third behind Bart Durham and Hughes and LinkedIn was not included in the evaluation of RML's social media
Coleman. This suggests their may be a need for a change in strategy activities due to the low level of activity associated with the
and tactics to stimulate acquisition of new followers. account. With the right planning and strategy, LinkedIn can be an
extremely valuable tool for strengthening brand awareness and
Bart Durham's ranks first out of the four firms in terms of sheer increasing referrals.
volume of social activity with an average of 89 posts published per
month. This total is more than double the amount published by the All three competitors advertise regionally via the same media types
other three firms, yet, Durham's posts earn only a 0.44% average and in very similar publications and broadcast areas. Hughes and
engagement rate per post--3 points below RML. Quality is better Coleman, who maintains offices in Kentucky and Tennessee, does
than quantity when it comes to social media. have a larger presence in Kentucky advertising spaces than the
other two firms.
Of the four firms, only Bart Durham and Hughes and Coleman use
Instagram. Durham is the leader on this channel as well as Twitter
with the greatest number of followers and engagement. RML is
ranked third and scores below average in both areas.

26

BART
DURHAM

HUGHES
&
COLEMAN

27

INTERNAL ENVIRONMENT

ROCKY MCELHANEY LAW FIRM

STRUCTURE & OPERATIONS

BUSINESS STRUCTURE As shown above, the current structure shows two individuals
Three things give an organization its “shape” and control how performing the same function, the tasks of a COO. From an
effectively it performs: individual level, this represents redundancy and risks tasks being
repeated unnecessarily.
1) The functions it performs.
2) The location of each function. From a managerial standpoint, the structure results in staff who are
3) The authority of each function within its domain. required to report to and be governed by two separate individuals
who may give differing instructions, have differing expectations,
The functions an organization performs are the core areas or and require work to be conducted at different levels of standards
activities it must engage in to accomplish its strategy (e.g. sales, and in different manners. It also slows down the actual process of
customer service, marketing, accounting, finance, operations, work as these individuals take time to consult and gain approval
CEO, admin, HR, legal, PR, R&D, litigation, etc.). It is better to from each separate person and reduces that workers autonomy.
think in terms of functions rather than titles. Titles can change, The situation can cause strain on both parties as they struggle to
but functions remain the same. Titles can be a distraction when
attempting to assess how an organization operates.

The location of each function is where it is placed in the
organizational structure and how it interacts with other functions.

The authority of a function refers to its ability to make decisions
within its domain and to perform its activities without unnecessary
encumbrance.

A sound organizational structure will make it unarguably clear
what each function (and ultimately each person) is accountable
for. In addition, the design must both support the current business
strategy and allow the organization to adapt to changing market
conditions and customer needs over time.

Although RML's current organizational structure has served the
company well in the past, recent growth over the last few years
render it incapable of continuing to serve the needs of an expanding
business. The current structure creates an environment that risks
confusion, miscommunication, and inefficiency. This represents a
major risk to the future success of the company on many levels.

28

The other major challenge with the current structure above, is the naturally, resulted in the increased complexity of its marketing
lack of a clearly defined senior executive team. When organized activities. The marketing oversight required to maintain its
properly, the functions show clearly through the chart and are, competitive position and current level of operation will continually
thus, included in all relevant decision-making. grow as the firm faces increased competition.

There is also no clearly defined system of development within It is the job of an executive assistant to make sure that everything
each function. Regardless of the industry, giving staff a road map runs smoothly for the CEO. They schedule and coordinate meetings
telling them how and when they can progress in their career while and make sure everything is in place so that the CEO can do their
employed at a business instills trust and confidence and motivates part without being blindsided by some unforeseen difficulty. It is
growth. Without it, the future can appear uncertain, and it can have not a good use of company resources to have the CEO doing a lot
a strongly negative impact on job satisfaction and retention. of the daily operational tasks in the company or to spread those
tasks among staff with other functions.
The current structure is missing senior level marketing direction
and an executive-level assistant. Competition in the Personal As the face of the company, a CEO must be heavily involved in
Injury Law industry is extremely high, and claiming and sustaining meeting top clients key to the success of the business and working
a competitive edge requires a focused, highly efficient, and data- out new avenues for monetizing the business to ensure strong,
driven marketing team. RML’s growth and success have, very consistent revenue streams from one quarter to the next.

29

ROCKY MCELHANEY LAW FIRM

MARKETING

SALES FUNNEL Client Intake. This is the stage at which the group of potential
A sales funnel is the marketing term for the journey potential clients has been refined to include only the most viable prospects.
customers go through on their way to a purchase. To begin with, At this point, the client has an initial consultation and a proposal is
there are a large number of potential clients who may have heard produced.
of a firm. A smaller part of that group may want to learn more, and
a smaller part of that group may actually contact the firm. Conversion occurs when a client has signed an agreement. In order
to retain the client, RML stays in regular communication, provides
As the process goes on, the size of the group of potential clients uniquely branded services, and nurtures the relationship through
becomes smaller and smaller until the remaining few become tactical support.
clients. Chart it out, and it looks like a funnel.
The RML sales funnel is similar to most in the legal industry and
Awareness. The first of RML's sales funnel stages is the “awareness” has proved highly successful in the past. However, the firm's
level. It is the period when people are first exposed to and become growth and success has raised the stakes, resulting in the need
aware of the firm or experience an injury and are looking for a for increased marketing activity and an increase in the challenge
firm. RML utilizes a good array of diverse online and offline tactics to provide superior service at all stages of the funnel. The primary
during this period, including digital ads, social media, paid search, solutions for these changes are 1) the implementation of increased
blogs, and promotional events. The firm does lack an effective oversight and management of complex marketing activities and 2)
email marketing campaign during this stage. the addition of automated marketing software to streamline and
expand the value of current tactics.
Lead Capture. During this stage, the potential client has a definite
need and interest in learning more about RML and expresses this
via a phone call or by submitting a web form. RML offers the form
on all site pages, and the design makes it is easy to fill out and
submit. The form is not integrated with a CRM or automated drip
campaign which may contribute to loss of prospects.

Nurture & Qualification. During this stage, RML has another
opportunity for establishing brand during the initial phone
conversation and client screening. The RML script is guided by a
well-designed intake form. The script could be tailored to more
effectively communicate RML's unique style and to nurture rapport.

30

31

BUDGET 90.0%
One of the most often-used formulas for 80.0%
comparing total marketing costs among 70.0%
individuals in a particular industry is the 60.0%
measure of Customer Acquisition Costs 50.0%
(CAC). By dividing the total marketing 40.0%
budget dollars by the total number of 30.0%
new clients, the CAC for RML is $220 per 20.0%
customer. This is 10% above the national 10.0%
average CAC for the legal industry, but still
within a comfortable range. 0.0%

According to Gartner’s Marketing Spend Staff Martech Adv ert isin g
Survey, the 2018 marketing spend for 2018 RML Spend
business-to-consumer companies (B2C) 2018 Cross-Industry Benchmark
across all industries averaged around DATA SOURCE: Gartner's
11.2% of the total budget. Legal industry
spends were 18% and above. MARKETING SPEND OUTLOOK
According to PwC's Global Entertainment & Media Outlook report, a comprehensive
In 2018, B2C businesses spent an average study that contains projections for online and offline media advertising markets through
24% of their marketing budget on staff 2022, online advertising has not only already overtaken TV advertising in size, it’s surging
salaries, 29% on marketing technology, past it by leaps and bounds. In last year’s PwC report, the digital advertising market was
and 47% on Advertising and External Ad estimated to be about $15 billion larger than the TV advertising market. This year, that
Agency costs. In 2018, RML allocated 79.4% gap has almost doubled, as internet advertising – at almost $100 billion, is close to a $30
of its marketing budget on Advertising, 32% billion larger market than TV advertising ($71 billion).
more than the average. Personal Injury Law
is a highly competitive industry. Law firms With a strong 7.7% compound annual growth rate (CAGR) through 2022, online advertising
spend higher amounts on advertising, will be a $127 billion market by end of the forecast period, per the report. That would
however, the RML gap is significant. make it about 70% larger than the TV advertising market at that point.

There is a significant difference between As expected, mobile’s share of online ad spend is expected to grow throughout the
the average 29% annual marketing spend forecast period. This year, mobile is expected to capture roughly 61% of all internet
on marketing technology and RML’s 0.1%. advertising revenues in the US. Fast forward to 2022, and mobile is forecast to be close to
RML allocated 7.9% of the marketing three-quarters (72%) of online ad revenues.
budget to salaries compared to the 2018
annual average of 24%. Among mobile advertising types, display (including video) is now expected to be larger
than search throughout the forecast period, representing a shift from last year’s forecast,
Marketing collateral including mailings, in which the opposite was true. Search is predicted to grow at a similar rate than display in
production of video and photography the coming years, such that it will only inch down from 43.8% of mobile advertising spend
collateral, and supplies accounted for 10.3% this year to 43% in 2022. (Search tends to be a bigger advertising player on computers
of the total marketing spend. Sponsorships than on mobile devices.)
were allocated 1% of the budget and gifts
to clients and miscellaneous expenses Mobile video will be the fastest-growing segment, though, with a CAGR of 21.5%.
each received 0.6% of the spend.
Overall, mobile advertising is projected to grow by an annual average of 13% through
Of the total advertising spend, the highest 2022.
portion, 43.9% went to TV, followed by
digital at 32.3%, outdoor at 22.3%, and
print at 1.4%.

32

MARKETING 2018
BUDGET RML MARKETING

Marketing BUDGET
Collateral
DATA SOURCE: RML
10.3%
Sponsorships
Salaries 1.0%
7.9%
Miscellaneous Marketing
Advertising 0.6% Software/Services
79.4%
Gifts to Clients 0.1%
0.6%

Memberships
0.1%

Print, 1.4% ADVERTISING
BUDGET

Outdoor,
22.3% TV, 43.9%

Digital,
32.3%

33

Of the “wired” (non-mobile) internet advertising types, paid search TV Advertising
is expected to retain its lead over display throughout the forecast TV advertising spending is projected to grow slowly from $71
period. However, both will see a decline in ad spending, particularly billion this year to $75 billion in 2022. TV’s outlook has been
affected by a sizable drop in non-video display advertising. (Desktop revised downward as revenues declined last year and traditional
video ad spending is forecast to enjoy a 8.7% CAGR through 2022, a TV viewing continues to recede. Moreover, the success of ad-free
more bullish estimate than was released last year.) platforms such as Netflix has put pressure on TV advertising loads,
which are expected to shrink (albeit without evidence that has yet
In a significant shift from last year’s report, PwC now says that video happened).
ad spending on mobile surpassed video ad spending on “wired”
devices in 2017. (That’s in line with the recent revenue report from Overall, TV will grow at a compound annual rate of 1.3% through
the IAB and PwC covering 2017 data.) 2022, a similar forecast to the one issued last year.

Meanwhile, “wired” internet advertising is expected to decline by a The researchers note that: “TV remains a premier advertising
compound annual rate of 1.5% from 2019 through 2022, which is a destination for marketers, who are willing to spend large amounts
rosier 5-year forecast than issued last year (-3.7%). on ad campaigns, and use it as the primary vehicle for new product
launches and for mass audience appeal. But, as audiences continue
This year’s forecast is consistent with last year’s in expecting video to shift to digital and advertisers pursue more multichannel
to take a majority of “wired” display ad spend in 2021. campaigns, there is a need to develop new TV ad formats that are

1.4%

ADVERTISING SPEND Back of Buses

DATA SOURCE: RML Print
Bus Benches
Broadcast $189,066.00

SEO $132,810.00 Broadcast

Billboards $82,308.00 TV

Bus Benches $75,107.76 43.9%

Cable $70,839.00 22.3Ou%tdoor Cable

Live Sports Events $55,998.00 Billboards

Video Pre-Roll $48,000.00

Paid Search $30,000.00

Affiliate Marketing $20,217.35

Print $10,635.11

Slush Fund $7,109.24 Social Media
Affiliate Marketing
Back of Buses $7,064.00
Paid Search
Social Media $6,941.03
Video Pre-Roll
32D.ig3it%al

Live SEpveonrttss

SEO

Slush Fund

34

multichannel campaigns, there is a need to develop new TV ad Cinema advertising is predicted to grow from $920 million this year
formats that are more likely to catch and keep viewers’ attention.” to $1.02 billion in 2022, with a 2017-2022 CAGR of 2.7%. Cinema
advertising revenues will continue to be dwarfed by box office
Meanwhile, within the broadcast advertising segment, cable revenues, which are rising worldwide and forecast to grow at a
networks are predicted to see a higher advertising CAGR (1.5%) 1.8% annual clip through 2022 ($11.25 billion).
than multichannel systems (-0.2%), as the former extends its lead
in ad dollars over the forecast period. Both forecast growth rates Podcast Advertising
have been cut considerably from last year. A new medium included in this year’s report, podcast advertising
remains very small but on the rise due to growing audience
Radio Advertising numbers.
The radio advertising market in the US is expected to remain
relatively flat through 2022 on the back of resilient consumption Indeed, podcast advertising has the fastest growth forecast of any
and wide reach. medium covered in this article (CAGR of 23.1%), which is likely due
to its starting from a very small base. This year PwC estimates that
The radio ad market will increase from $17.7 billion this year to advertisers will spend $369 million advertising to podcast listeners,
$18.4 billion in 2022. with that figure more than doubling by 2022 ($747 million).

Not surprisingly, terrestrial radio online advertising will be the Digital Mobile
fastest-growing segment, with a CAGR of 7.9%. However, as with Advertising Advertising
TV (and unlike print and out-of-home), digital ad revenues will
represent just a small portion of overall radio revenues. Forecast Continued increase Continued increase
to comprise 9.3% share of total radio ad revenues this year, online
radio is projected to grow to close to 12% share of radio revenues Wired TV
by 2022. Advertising
"Non-Mobile"
The dominant form will continue to be terrestrial radio broadcast Slight increase
advertising, although terrestrial radio ad revenues are predicted to Advertising
remain mostly stagnant. Print News
Decline Advertising
Newspaper Advertising
The hardest hit of the media types examined, newspaper Radio Continued decrease
advertising is one of only two markets (with consumer magazine Advertising
advertising the other) expected to see a decline in revenues Podcast
between this year ($15.8 billion) and 2022 ($12.6 billion). Static Advertising

Cinema Advertising Cinema Continued decrease
While it’s one of the smallest media of those identified in this Advertising
article, cinema advertising benefits from having the most positive
receptiveness from consumers of any advertising format in the US. Continued decrease

35

ROCKY MCELHANEY LAW FIRM 2018 RML EVENT LOCATIONS

ADVERTISING

Advertising messaging appears via numerous trackable and houses, but they regularly participate in Christmas parades in
untrackable channels and on various devices. Often the data Gallatin and Clarkesville, TN and in Bowling Green, Kentucky.
used to measure the impact of each cannot be compared across Hughes and Coleman also sponsors a significant number of other
channels. Although it is often possible to track the ad a client is community events in Bowling Green like an Easter egg hunt,
exposed to immediately prior to calling a firm, there is no way to children’s safety day events, and cyber safety seminars.
track or measure the impact of any other prior messaging that
may have contributed to that final conversion. This complexity has Ponce Law's events are restricted to the Nashville area. The firm
ever made calculating the value of individual marketing activities a uses social media to promote its philanthropic activities including
challenge. volunteer work and fundraising campaigns. Most recently, Ponce
Law firm members served dinners at Nashville Rescue Mission, did
PROMOTIONAL EVENTS holiday caroling at local nursing homes, and executed a campaign
Promotional events can be measured in a variety of ways. One of to gather donations for injured veterans.
the most common factors to measure is “the opportunity in the
room.” It is the combined total value of potential client accounts 2018 RML EVENTS
or the combined total number of guests/audience members who
see your brand at an event. Other measures include the number of DATA SOURCE: RML
social media mentions of the event, a target number of attendees,
number of new leads or contacts collected, generated revenue, 5 2645
press coverage, or visits to the event page on your website.
Total Events Attendees
Currently, there is not enough data available from RML's past
events to produce significant insights.

In 2018, RML produced 5 promotional events. Four out of five ........... Business
events occurred in Hendersonville, TN and all 5 targeted Sumner Professionals
County. None of the events targeted Nashville, TN or any of the 20%
surrounding metro areas.

In terms of audience, RML's events were well-targeted with 40% for 40% 40%
police, 40% for families, and 20% for lawyers and other business
professionals. All of these groups are either members of RML's Families Police
target groups or influencers.

According to intelligence gathered via social media and firm
websites, RML's competitors participate in similar activities.

Bart Durham holds an average of 3 to 4 annual open houses,
usually tied to holiday events like Halloween and Christmas. Ponce
Law holds 1 a year.

There was no evidence that Hughes and Coleman held any open

36

ROCKY MCELHANEY LAW FIRM CPA = Cost per action taken
(submitting a form...etc.)
PPC ADVERTISING
CPC = Cost per click on the ad
DATA SOURCE: Digital Law Marketing CVR = %of clicks resulting in user

performing a desired action
CTR = # of ad clicks per impressions

% Above Industry Average

PRINT & RADIO ADVERTISING 50.000 Google Adwords PPC campaigns, categorized according to
Currently, RML does not employ PR monitoring software, platforms industry. RML’s digital advertising performs well and scores within
that regularly measure the share of voice of a businesses and range or above average in comparison to the performance of legal
their primary competitors across radio, tv, print, and digital news industry PPC Ads.
channels.
RML's click through rates (CTR) are 26% above the legal industry
RML does not invest in radio ads and makes only minor investments average. High CTRs lead to high Quality Scores, meaning they are
in print advertising in one publication. RML pays for 9 ads a year, more relevant to users searching the web. High quality scores
published monthly from January through September in the generally allow you to improve or maintain your ad position for
Nashville Scene. lower costs.

The Nashville Scene’s audience closely matches RML’s target Additionally, if you are advertising on relevant queries, achieving
market. The Scene has a print audience of around 50,000, and its a high click-through rate means that you are driving the highest
demographics closely align with RML’s target market. The audience possible number of people to your ad.
is divided almost equally among males and females with 50%
between the ages of 25 to 44. Of this group, 45% make between RML’s average Cost Per Click is 12% above the legal industry
$0k-$50k, 25% have not been to college, and 50% have either a average, but still well within an acceptable range.
degree or some college education. The demographics for their
online audience is relatively the same RML’s PPC ads are performing well and have a good average
conversion rate of 7.66%, a rate 9% higher than the legal industry
Although there is no formal proof, Nashville marketers agree that, average.
whenever possible, local Nashville media outlets have a tendency
to give preferential coverage to businesses who advertise heavily RML's Cost Per Action is $98.29. Although higher than the industry
with them. This is especially true of the Tennessean newspaper. average of $86.02, RML's PPC ads use geo-targetting, a more
effective as well as expensive tactic.
DIGITAL ADVERTISING
The following statistics are based on a 2018 study by Acquisio of over 37

2018 RML WEBSITE ANALYTICS

DATA SOURCE: Google Analytics - BELOW INDUSTRY AVERAGE ABOVE INDUSTRY AVERAGE +

Avg. Bounce Rate, 24.5%

Average Session Duration, -
43.0%

Pages / Session, -26.9%

New Users, -10.1%

% New Sessions, 14.7%

Sessions, -21.6%

-50% -40% -30% -20% -10% 0% 10% 20% 30%

WEBSITE TRAFFIC LOCATION HOTSPOTS / NEW CLIENTS IN 2018

Website
Hotspots

New
Clients

WEBSITE seconds on the site and less than a minute on their landing pages.
According to Google Analytics (GA) benchmarking, the RML website, This suggests a need to assess the site content in terms of topic,
www.RockyLawFirm.com, receives an average 13% more sessions language, amount of text, and other elements that affect visitor
(visitors) per month than the websites of U.S. legal firms of a similar engagement.
size as RML.
The most effective websites adhere to certain guidelines developed
Visitors view fewer pages on RML's website, an average 1.3 per using research and user testing. The RML site rates well in terms of
session, compared to the GA benchmark average of 2.47. The RML the simplicity and hierarchy of its design as well as the consistent
site’s bounce rate is 84.44% which is poor compared to the industry look and feel maintained throughout. The site performs well across
average of 35%. Bounce rate is the percentage of visits (sessions) desktop, tablet, and mobile devices. RML’s website does less well in
in which the visitor views only one page and then leaves without terms of balancing text and visuals.
browsing any further.
People don’t read a web page in the same way as they do a book
If visitors spend an average of 2 minutes or more on landing pages, or a newspaper. People browse the web to find answers. They are
the bounce rate may indicate they found everything they needed looking for a specific piece of information, and they don’t want to
there. However, visitors to the RML site spend an average of 45 read a whole article to find it. They want answers fast. RML's site

38

RML USER FLOW DATA SOURCE: Google Analytics

These are TOP LANDING PAGES
blog pages.
67.7% Land on the homepage first
5.8% start on /verdicts…settlement
7.7% start on a blog page

does not make that easy. impact lacks certain tagging and tracking, like UTM tags. This type
of monitoring provides valuable data that can be used to help
Instead of being broken up into bulleted lists with plenty of create more effective content and messaging, driving more of the
descriptive subheadings, the site’s pages are populated primarily right type of visitors to the site and to the firm.
with paragraphs of texts. Many of the paragraphs contain
unnecessary content and do not give the main idea within the first There is no tracking of traffic from email marketing or regular
sentence. tracking of conversion goals. These activities are generally led by
the internal team, but require unified strategy and management
The site lacks a sufficient amount of informative and engaging and collaboration with external marketing team members to
visuals. Whenever possible, content should be translated into ensure cohesive execution. Implementing these practices would
visuals (images, infographics, graphics, or videos) that are capable require more oversight. However, they would guarantee more
of engaging the user while communicating ideas or answers. accurate and informative measures of impact, clearer attribution,
and more successful campaigns over time.
The total percent of new visitors to the RML site is 15% compared
to the industry average of 25%. Blog-driven sites generally have a The RML website lacks downloadable information resources like
lower average percent of new visitors, but should receive between guides, tip sheets, and white papers. Along with being seen as a
at least 25%-35% new visitors. Non-blog driven sites that simply business that provides helpful guidance to potential clients, offering
target new users should have 70% or more new visitors. these types of assets drives the right kind of traffic to your site and
by collecting email addresses as part of the dowload process, firms
In terms of traffic sources, RML’s level of organic traffic is 12% higher can continue their interaction with users through drip campaigns.
than the industry average. The site’s direct traffic is 8% higher than
average. The analytics do not exclude internal IP addresses which SEO and Social Media were covered in the section of the report on
may help to paint a more accurate picture of this traffic source. competition and will not be repeated here.
Social traffic is 2% lower than the industry average, but still within
range. Paid search traffic is 14% lower than the industry average.

RML’s current approach to measuring digital traffic and campaign

39

DATA SOURCE: Comast Spotlight, Viamedia TVbehavioral

TV ADVERTISING well-placed geographically across the state. Coverage reaches
RML collaborates with Fletcher Ridge Media company to develop the entire middle Tennessee area as well as markets in Memphis,
annual messaging and creative style for their tv advertising spots. Chattanooga, Knoxville, and the tri-city area. These include the
The resulting videos are edited and broadcast as 30-second spots top counties for auto accidents resulting in serious injuries
on broadcast and cable tv and used in online display ads. (Montgomery, Davidson, Hamilton, Knox, and Shelby counties).

TV ads are part of generally branding, helping to generate and The ads themselves are professional and of the highest quality.
strengthen brand awareness and to define brand value. Their value They follow the classic ‘problem-solution’ formula where the client’s
lies in the size of the target audience exposed to a particular tv situation is the ‘problem’ and the law firm’s experienced team is
ad. RML’s tv ads get close to 200 Gross Ratings Points (GRP) each the ‘solution.’ The scripts are well-written, however, they could
month, a good GRP for the number and frequency of spots aired. benefit from a more focused acting direction and a more targeted
approach to constructing the pitch.
Ads are shown via Comcast Spotlight and Viamedia TV and are

40

2018 RML CALL REFERRAL SOURCE STATISTICS

How did you hear about us?

BREAKDOWN BY
ADVERTISING SOURCE

Advertising, Unknown, Digital, Print, 1.3%
60.5% 22.2% 69.6%
Outdoor,
Referral, TV, 2.7%
12.6% 22.4%
Word of
Mouth,

4.0%

Returning
Client, 4.7%

BREAKDOWN BY SOURCE

Google 40.1%

Unk nown 22.2% BREAKDOWN BY
INDIVIDUAL REFERRER
TV Ad
13.5%

Referral: Other 4.8%

Other 78.8%

Returning Client 4.7%

Referral: Family/Former… 4.3% Mrs. Shirley Carr 10.1%

Referral: Attorney 2.9% Ali Toll

Word of Mouth 2.4% 4.5%

Website 1.8% Ms. Jill T. Draughon 4.5%

Drive By 0.7% Mr. Hunter A. Higdon 2.2%

Yellow Pages 0.6%

Rocky 0.6%

Billboard 0.5%

Bus Bench 0.4%

Facebook 0.3%

Nashville Scene 0.2%

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ROCKY MCELHANEY LAW FIRM

SWOT

42

43

2018 RML BUDGET

44

45

% OF AUTO ACCIDENTS RESULTING IN
SERIOUS INJURIES BY COUNTY

46

47

2018 RML EVENTS (PROVIDED BY RML)

48

SOURCE: IBISWORLD

49

2018 TRENDS IN CALL VOLUME

50