How Philips develops an online shopping strategy using social analytics


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5 October 2011, SAS Forum, Bussum

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How Philips develops an online shopping strategy using social analytics

  1. 1. How Philips develops an online shoppingstrategy with SAS Social Media AnalyticsBussum, 5 October 2011SAS Forum Nederland 2011
  2. 2. A well-respected, blue-chip company for 120 years Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales over EUR 25.4 billion in 2010 (USD 33.8 billion) 33% of sales generated in emerging markets Globally recognized brand (world top 50) Our brand value doubled to $8.7bln since 2004 119,000 employees Sales and service outlets in over 100 countries €1.6 billion investment in R&D, 6% of sales 50,000 patent rights – 36,000 registered trademarks – 63,000 design rightsSource: Koninklijke Philips Electronics N.V., 2010 2
  3. 3. “…a global company of leading businesses creatingvalue with meaningful innovations that improve people’shealth and well-being.” Leveraging critical global trends 3
  4. 4. Let’s show some hands!Some questions aboutSocial Media?• Does your company use Social Media?• Is your company in dialogue with consumers through Social Media?• Does your company use Social Media for strategy development? 4
  5. 5. Consumers are moving outside the purchasing funnel:Changing the way they research and buy your products.Change in approach is a necessity.The consumer decision journey 4 3 2 1 After purchasing a The consumer product or service, Consumers add or considers an the Ultimately, initialthe consumer buildsset of brands, based consumer selects a subtract brands as expectations basedon brand the momentbrand evaluate what they at perceptions on experience to of purchase. they want. and exposure to inform the next recent touch points. decision journey Source: McKinsey, The consumer decision journey, June 2009
  6. 6. Clear roles to reinforce the brands with everyconsumer interaction Making promises Communicate image Deliver value by by Marketing Consumer Care Keeping promises TV Radio Print Paper Email Web Store Kiosk IVR Call Product ad ad ad mail site center Social Media Channels Source: Forrester
  7. 7. Using Social Media channels to engagewith consumers in conversations 7
  8. 8. First Listen, then engage on Talking with andSupporting of our consumers HOW? WHAT? LISTEN Not real time Real time Look back and screen Screen specific “hot” topics comments on particular topics TALK Inform & learn Participate Learn and understand Generate a topic and discuss consumers’ opinions e.g. it with consumers e.g. Philips community Streamium cafe SUPPORT Receive Reach out Respond relevant information Update social channels, e.g. to comments or questions external weblogs to inform posted on social channels, e.g. or engage consumers with Facebook, Twitter up-to-date information 8
  9. 9. Through social listening heavy negative detraction can be converted into positive sentiment OHC ‐ US & UK NPS Oral Health Care (3 months rolling)>600 relevant social comments  and consumer feedback  0% comments  from >1500 websites/domains and from >6000 call logs/NPS free texts converted into 25 new  Content updates categorized FAQs 9
  10. 10. But through social listening more can be done:In 2015, 80% of Dutch consumers will buy onlineVery high internet penetration in the  Online retail market will grow to  Netherlands (2010) over €6 billion in 2015 85% of population active online Major categories: 70% of online users shopped online • Consumer Electronics • Clothing Average spend €386 per person • Event Tickets How now to benefit and keep up  with this online growth? source: European Online Retail Forecast, 2010 To 2015, Andrea Carini, Forrester
  11. 11. A growing online shopping audience thatincreasingly shares experiences and expectations 11
  12. 12. Social media analytics give additional consumer research insights for strategy development This time not a typical ‘branded’ approach, but a thematic one: ‘Online Shopping’• Service • 12.000+ docs• Reliability • 1.300+ sites• Ease of use • 24 months Natural Sentiment• Comparing • Incl Twitter Language Analysis• Design • 2 months Processing Execution Define SAS Social Rules Rules Media concepts Crawl data Analytics definition Validation and queries Portal • Additional analytics performed to validate data • Tight deadlines delivering preliminary results • Continuous learning strategy 12
  13. 13. An example to demonstrate what’s on their minds andhearts during their online shopping experience• Where are they talking?• What are they saying?• Which topics keep them busy?• How relevant are they?• What is the sentiment that they express? Ease of use Comparing Service Reliability Design 13
  14. 14. Reliability is crucial, however consistency inperformance is king• Compared to online clothing retailers, reliability is even more important for consumer electronic webshops – In particular, wrong stock information is a big dissatisfier – When perceived as reliable, ease of use is rated less important• Ease of use and service are more receptive to sentiments• Overall sentiment is heavily impacted by a negative experience  only a consistent positive performance leads to a positive rated shopping experience 14
  15. 15. Insights in emerging initiatives and upcoming trendsthat may enhance the shopping experience 15
  16. 16. Our answers to the questions• Does your company use Social Media?• Is your company in dialogue with consumers via Social Media?• Does your company use Social Media for strategy development? Consumer Care, March 24, 2011 16
  17. 17. Thanks for your attention 17