Monthly Archives: November 2018

Legal IT

An introduction to smart contracts

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In a previous article, we have written about Artificial Intelligence (AI) and contracts. AI is having an impact in three areas when it comes to contracts: 1. contract review, 2. contract management and automation, and 3. smart contracts. While smart contracts are automated contracts, what sets them apart from other automated contracts is the usage of Blockchain technology.

What are smart contracts? We’ll combine elements from the definitions Tech Republic and the Investopedia to explain: A smart contract is a software-based contract between a buyer and a seller. The software automates the business processes and the conditions of fulfilment contained within the contract. The code programmed into the contract actually makes the contract self-executing so that it takes action whenever a specific condition is triggered within the contract. The code and the agreements contained therein exist across a distributed, decentralized Blockchain network. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible. Because the smart contract is software capable of automating business processes and contract fulfilment automatically, it eliminates the need for managers and middlemen supervision.

Let’s give an example: A is a supplier of products for B. Every month, B places an order with A. It makes sense to automate this process. The smart contract is a piece of software that, e.g., would contain the code that says if an order is received by A from B, and B is not in arrears, then that order must be executed. Now, with smart contracts these transactions are typically registered in a distributed, decentralized Blockchain network of ledgers. In a previous article we explained that Blockchain is a technology that registers transactions in a ledger, where everybody in the network has a copy of that ledger. Transactions are secured by using a verification code that is calculated based on all previous transactions in the ledger. In essence, to forge a transaction, one would therefore have to forge all registrations of all transactions in all ledgers.

The benefits of smart contracts are clear: the whole process of transactions between parties can be automated, and by using Blockchain technology one has virtually irrefutable proof of the transactions. Add to that that programming code tends to be less ambiguous than the generic legalese of traditional contracts, so the chances of disputes about the interpretation of smart contracts are smaller.

The usage of smart contracts is expected to grow fast. A survey published in Forbes Magazine predicts that by 2022, 25% of all companies will be using them. Basically in any market where Blockchain technology is useful, one can expect smart contracts to be useful, too.  Smart contracts can also be the perfect complement to E.D.I. At present, smart contract applications are already being used in – or developed for – supply chains and logistics, in finance and securities, real estate, management and operations, healthcare, insurance, etc.

Still, one has to be aware of the limitations of smart contracts, as there are a number of legal issues to take into account. The name ‘smart contracts’ is misleading in that they aren’t really contracts but software. As such, there are legal concerns with regard to:

  • Offer and acceptance: is there even a binding contract, if there is no human interaction or supervision, and the transaction is completely executed automatically?
  • The evidentiary value: smart contracts are not written evidence of agreed rights and obligations because they encapsulate only a portion of any rights and obligations that is related to contractual performance
  • Jurisdiction: is the area of jurisdiction clearly defined in case of a conflict or dispute?
  • Dispute Resolution: are there any dispute resolution mechanisms in place?

When considering working with smart contracts, it is therefore a good idea to first come to a framework agreement in which these issues are addressed. And those will preferably still be written by lawyers.

 

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Legal IT

Email Marketing for Lawyers

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Email marketing is a valuable tool for lawyers, with many benefits. It is still seen as the top medium for return on investment by 70% of digital marketers. It is pretty straightforward to get started, and with limited resources you can reach a global audience, have an instant impact, maintain customer loyalty, etc. Add to that that emails are easy to share, and that their impact is easy to measure. You can deliver targeted messages, drive revenue, etc. One of the most obvious advantages of email marketing is its lower cost compared to mainstream marketing channels. As a lawyer, however, you must keep in mind that there are not only legal (GDPR compliance, e.g.) but also ethical considerations.

What types of emails can or should you send? Joleena Louis mentions six different types:

  1. The Welcome Email, e.g. when you get a new client, but also when somebody signs up to your blog.
  2. The Tools or Resources Email, where you share helpful information with clients: URLs, seminars/webinars, eBooks, etc.
  3. The Asking Email, where you ask your clients for feedback or assistance.
  4. The Content Email, where, e.g., you share a new blog post you’ve written.
  5. The Curated Email, where you share interesting content by other authors.
  6. The Newsletter Email.

The list is not exhaustive. You can also send out different types of reminders, birthday and holiday wishes, etc.

So, how does one go about organizing an email campaign? In essence, there are four major aspects to keep in mind: your target audience(s); the message you want to deliver to that target audience; the presentation of the message; and how it will be delivered. Let’s have a look at those.

Your Target Audience: who do you send your email campaign to? The most obvious targets are your clients, as well as people who signed up to your blog. It is not a good idea to send the exact same content to all of your readers. It is recommended to use segmentation of your email list, e.g., by interest, by activity, by date, by type of reader (e.g. client vs. blog subscriber). But don’t make segmentation too complicated or time consuming.

Your Message: you have to define what the message for each target audience is. Remember to personalize your message: start with their name or, if applicable, the company name. Keep your emails concise and focused. When it comes to the actual content, it is important to not just pay attention to yourself and/or your services/products. The content has to be about and for the readers. Make sure to provide value. If in doubt or uninspired, you can ask your readers what information they want. It’s often also a good idea to include some fun facts and statistics.

The Presentation: how you present your message is important. Research has shown that it’s good to include images in your message. Using 1 to 3 images typically has the greatest impact. Make sure, however, that those images are not too large: They have to load fast. It is also recommended to not send out a mail that consists only of an image. (Those typically get marked as spam by spam filters). Use short plain texts from one or more real persons on your team.

Sometimes, it can be a good idea, too, to use video: don’t embed a video, but instead include a link to the video you’d like your readers to have a look at. This works best for first mails, e.g., for a welcome email. Using either static image with a play button, or an animated gif typically results in more people watching the video.

Also keep in mind that by now a majority of people read their mail on their mobile device. Make sure your message is mobile responsive.

The Delivery Method: how are you going to deliver your message to your audiences? If you are using Office Management software, chances are that it comes with a module for email campaigns.  If your law firm management software does not offer the option, you can use the services of service providers like Mailchimp, Litmus, Reachmail,  Cakemail, etc.

Some additional observations: it is recommended to automate the sending of emails where possible. That is the case, e.g., for welcome mails, reminders, holiday or birthday wishes, etc. When you start planning your email campaigns, it is recommended to start with a clear goal in mind. The biggest mistake people tend to make with email marketing is not having a strategic plan. Another important aspects of emails campaigns is to keep track of your results: how many mails were opened, and read? What topics are successful, and what works best for which target audience, etc.?

 

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