New Communications in a Networked World: The Philips Case Study


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Philips global comms chief Andre Manning explains how his company is integrating PR and marketing, at the Holmes Report's first ThinkTank Live Conference in Prague.

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  • Before we get to Philips online – share with you some findings from recent research among leading US communications directors done by one of my senior advisers (Dave Wickenden). Was presented to an exclusive group of universities and companies recently. 81% of interviewees signalled online communication as (very) significant. Same goes for you, otherwise you would not be here today.Here you see how they classified the key issues they are confronting on the organizational and executional side. Surely you recognize challenges
  • As in today’s environment, trust is an issue at stake, and trust is NOT built through advertising but through dialogue and engagement – which is what we corporate communicators do as a profession….Clearly we have a big responsibility in structuring our company’s outreach online
  • Even more ifyou look at the impact of social media engagement on the financial performance of companies
  • McKinsey did a study into benefits of being online for companies dealing with employees, partners/suppliers and with customers.
  • Now over to Philips – how we are adapting our communications in the new networked worldIt is all about 5 C’s – Channel, Consistency, continuity, creativity and commitment
  • Online is a channel – ever growing in importance but still a channel. Think Audience first and foremost – where are they and what would they be interested to learn about your company?
  • For example – at Philips we have recently revamped our news room online – where we meet the media and engage with them in ongoing dialogue on our company. We have extended the dialogue and interaction possibilities and – true to our brand promised – designed the news room around our target audience, the journalists. We have also tied in a twitter feed and Flickr channel to make sure that the journalist has multiple ways of contacting the communications team as well as access quickly to the materials they might need.
  • We are continuously looking at where we can find our audiences online, using existing social media and cooperate with them. In 2010, Philips established two LinkedIn discussion groups – Innovations in Health & Innovations in Light – to facilitate thought leadership and collaboration for the progression of global healthcare and lighting. The Innovations in Health LinkedIn group is one of the nominations for a Sabre award tonight... This thought-leadership campaign enabled Philips to break into the business-to-business social networking space and establish meaningful and authentic relationships with key audiences.  These groups consisted of two parent groups -Innovations in Health and Innovations in Light - and four healthcare subgroups specifically focused on radiology, oncology, cardiology and women’s health to ensure the diverse target audience could easily find discussions and other members relevant to them. Today, more than 69,300+ members collectively, medical professionals and lighting enthusiasts use the groups to discuss, share and foster peer-to-peer innovation. Since launch, group members have contributed to more than 9,889 discussions, 16,089 comments and 781,843 total page views. Topics vary from advancements in technology to in-field insight and opinion on research.
  • Looking at this picture it is clear how important consistency in online outreach is. Online knows no borders and is multi-faceted. Consistency includes aligning traditional and “new” channels – mostly not so new anymore…
  • We started some time ago with bringing alignment to our online presence across all sectors. Big challenge with 3 sectors moving into OnePhilips. Everybody moving online, starting microsites, blogs, Twitter feeds, etc. At one point there were upwards of 130 Facebook pages, 60 twitter feeds and 40 YouTube channels. While it is easy to start a social media presence, it is harder to keep them going with relevant content for the longer term. We are now looking to share resources, share content and connect the user to the property that is going to best work for them.
  • After the recognitionthat we need to alignour programs notonlyfrom a sector level butalso at country/local level sothat we are relevant across borders. This is ourOnePhilips project which we are looking to alignourpresenceincluding:The themesaroundwhich we alignThe propertiesthatwillbemaintainedHow we willmeasureeffectivenessHow we will listen How we will manage these propertiesfor the long term As part of thisstrategy we willbecreatinganinternal “Help desk” foreveryonewithin Philips whowouldlike to engageanaudience online, butneeds help on the guidelineswhy, when, what, how. Alreadycreatedsocial media guidelines to safeguard brand and reputationbutallowforenthousiastic employee engagement online.
  • Another example where continuity is crucial online is the area of stakeholder engagement. Stakeholder engagement knows many forms, but a great tool to facilitate regular exchanges with your key stakeholders is an online database. Obviously stakeholders have to opt in, but when in – there are great ways to communicate snippets of interesting information to them, invite their views, as an add on to one on one meetings and public events. Such a database is only relevant when kept up to date and continuously engaging. One example where we do this is with the GetInsideHealth Newsletter – we send out a monthly dynamic newsletter, where our audience (senior business influencers and decision makers in the healthcare profession) receive a tailored email, dependent on the preferences they have selected when signing up to GIH. There are five templates which can include anything from 1 – 5 categories, dependent on their interests (Health and well-being, Radiology, Oncology, Cardiology and OBGYN).
  • The Networkedworldalso presents greatopportunitiesforrevampingourinternalcommunications. Instead of top down messaging – whynotenable employees to communicateacross the organization in a waythat is anyway part of theirdailylife (social media, blogging, etc.)
  • Summarizing – it is the people, our audiences taking control over when and how they would like to engage with you. Corporate Communications has a lifetime of experience of dialogue and engagement. We at Philips are taking the new networked world as a given and jump at the opportunities. We are sure that this continuously enlarging field of operation will help us achieve our growth targets and help us build our reputation of a leading company constantly improving people’s lives, everywhere in the world.
  • New Communications in a Networked World: The Philips Case Study

    1. 1. New Communications in a networkedworld – the Philips case<br />Author<br />Divison<br />MMMM dd, yyyy<br />
    3. 3. 3<br />We target attractive growth markets and have a compelling mission<br />“Philips’ strategy is to become the leading company in Health & Well-being.<br />Growing demand for healthcare, a healthy lifestyle and energy-efficient lighting solutions will be driven by an aging population, increased environmental awareness and expanding emerging markets<br />Our ability to create <br />(and deliver)<br />meaningful innovations <br />(to our customers)<br />to improve people’s lives<br />
    4. 4. Survey findings. <br /> 81% : “Significant” or “Very Significant”<br /> Most critical organizational issues<br />Ensuring the right skill sets<br /> Training and educating staff<br /> Educating senior management<br /> Most critical executional issues<br />Understanding best practices<br /> How to prioritize social media<br /> Digital content … Managing corporate reputation in an uncontrolled environment… Integrating online and offline across multiple channels<br />4<br />
    5. 5. Marketing and PR are converging<br />Corp Comms/PR<br />Relationships<br />Reputation<br />Content<br />Marketing<br />Brand<br />Advertising<br />Content<br />Social Media <br />Success <br />Embraces two-way<br />Builds relationships<br />Relevant<br />Integrated<br />Adds value<br />Measured<br />Digital strategies and social media increasingly blur the lines between Corp Comms/PR and Marketing. Natural assets from all disciplines are critical for success.<br />
    6. 6. 14%<br />78%<br />Trust advertisements<br />Trust the recommendationsof peers<br />{Conversation}<br />{One-Way}<br />Source: Forrester<br />
    7. 7. Correlating social media engagement with financial performance. In the last twelve months<br />Revenue Growth %<br />Wallflowers Selectives Butterflies Mavens<br />Source: Altimiter/Wetpaint July 2009<br />Gross Margin Growth %<br />Net Margin Growth %<br />18%<br />15%<br />10%<br />1%<br />4%<br />5%<br />3%<br />-2%<br />-9%<br />-4%<br />-11%<br />-6%<br />7<br />
    8. 8. McKinsey: Companies are measurablybenefiting from Web 2.0.<br />With partners and suppliers.<br />Internally.<br />With customers.<br />Source: McKinsey , September 2009<br />
    9. 9. With customers.<br />Increased effectiveness and customer satisfaction, reduced costs<br />Using a mix of techniques <br />Source: McKinsey Global Survey , September 2009<br />Awareness +25%<br />Consideration +19%<br />Conversion +17%<br />Loyalty +20%<br />Increasing effectiveness of marketing<br />Video sharing<br />Blogs<br />Increasing customer satisfaction<br />+20%<br />RSS<br />-15%<br />Reducing marketing costs<br />Social networking<br />-15%<br />Wikis<br />Reducing support costs<br />Podcasts<br />-20%<br />Reducing travel costs<br />Rating<br />Reducing time to market for products/services <br />-20%<br />Tagging<br />Increasing number of successful innovations for new products or services<br />+20%<br />P2P<br />Microblogging<br />+10%<br />Increasing revenue<br />Mashups<br />No measurable effects/benefits<br />Prediction markets<br />9<br />
    10. 10. Internally. <br />Increased knowledge, reduced costs<br />Using a mix of techniques <br />Source: McKinsey Global Survey , September 2009<br />+30%<br />Increasing speed of access to knowledge<br />Video sharing<br />Blogs<br />-20%<br />Reducing communication costs<br />RSS<br />+35%<br />Increasing speed of access to internal experts<br />Social networking<br />-20%<br />Decreasing travel costs<br />Wikis<br />Increasing employee satisfaction <br />+20%<br />Podcasts<br />-15%<br />Reducing operational costs <br />Rating<br />Tagging<br />Reducing time to market for products/services <br />-20%<br />P2P<br />Increasing number of successful innovations for new products or services<br />+20%<br />Microblogging<br />15%<br />Increasing revenue<br />Mashups<br />No measurable effects/benefits<br />Prediction markets<br />10<br />
    11. 11. With partners and suppliers.<br />Increased knowledge , speed, satisfaction and reduced costs …<br />Using a mix of techniques <br />Source: McKinsey Global Survey , September 2009<br />+25%<br />Increasing speed of access to knowledge<br />Video sharing<br />-20%<br />Reducing communication costs<br />Blogs<br />RSS<br />+30%<br />Increasing speed of access to external experts<br />Social networking<br />-20%<br />Reducing travel costs<br />Wikis<br />+20%<br />Increasing satisfaction of suppliers, partners, external experts<br />Podcasts<br />-20%<br />Reducing time to market for products/services <br />Rating<br />-12%<br />Reducing supply chain costs<br />Tagging<br />Reducing product development costs <br />-20%<br />P2P<br />Increasing number of successful innovations for new products or services<br />+20%<br />Microblogging<br />+15%<br />Increasing revenue<br />Mashups<br />No measurable effects/benefits<br />Prediction markets<br />11<br />
    12. 12. Philips and the online opportunities<br />Channel thinking – Outside / In<br />Consistency – One Philips <br />Continuity – nohopping of and on<br />Creativity<br />Commitmentacross the Board<br />
    13. 13. People don’t care what you say about your company.<br />13<br />
    14. 14. Channel thinking – Outside In – news room<br />
    15. 15. Channel thinking – Outside In - LinkedIn<br />
    16. 16. “It’s not about targeting audiences; it’s about drawing an irresistible bull’s-eye on yourself so audiences will target you.”<br />Dave Senay, CEO, Fleishman-Hillard<br />16<br />
    17. 17. Buzz<br />Web 2.0<br />Wikis<br />Social Media<br />Folksonomy<br />Podcasting<br />RSS<br />Blogs<br />Media relations<br />Tagging<br />Wireless<br />Promotions<br />Grassroots<br />Search engine marketing<br />YouTube<br />Press releases<br />Pitching reporters<br />Factsheets <br />Online editorial outreach<br />Consumer-generated content<br />Reputationmanagement<br />Publicity<br />Public affairs<br />Citizen journalism<br />Viral marketing<br />Special events<br />Employee<br />communications<br />Coalitions<br />Flogs<br />Advergaming<br />PR stunts<br />IR<br />Branding<br />Mobile marketing<br />Tivo<br />Third party outreach<br />Metaverses<br />MySpace<br />Social networking<br />We Media<br />Flickr<br />New<br />Traditional<br />Content optimization<br />Facebook<br />Syndication<br />
    18. 18. Organization <br />A new value equation.<br />From: Message 5,000,000 to possibly reach 500<br />To: Personallyreach500who influence 5,000 who influence 50,000who influence 5,000,000<br />Value Equation: <br />5,000 people who want to hear your message are more valuable than <br />5 millionwho don’t. <br />
    19. 19. Consistency across sectors<br />
    20. 20. Continuity – Strategy is imperative!<br />Digital Content strategy<br />OnePhilips project <br />The themes around which we align <br />The properties that will be maintained<br />How we will measure effectiveness<br />How we will listen <br />How we will manage these properties for the long term<br />Internal “Help desk”: why, when, what, how?<br />
    21. 21. Continuity – Stakeholder Relations Network<br />GetInsideHealth Newsletter<br />A monthly, dynamic newsletter individually tailored to the interests of our audience, alerting them to new, relevant content on<br />Results<br />Average open rate: 26%<br />Average click-through rate: 36%<br />Over 10,000 subscribers <br />
    22. 22. Digital content strategy – Internal Communications<br />Digital Workplace<br />
    23. 23. Used on a creative commons license from Brian Solis and Pr 2.0<br />
    24. 24. Creativity – what makes you stand out? <br />
    25. 25.
    26. 26.
    27. 27. “Now it’s the people who are taking control.”<br />Rupert Murdoch, CEO, News Corp.<br />27<br />
    28. 28.
    29. 29. What are we looking at.<br />Relevance<br />Influencer Rankings<br />Activity, Reach and Links<br />Share of Voice<br />Sentiment <br />Sentiment vs. competitors<br />% of Influencer’s Engaged<br />Top Themes<br />Group Membership Stats<br />Theme-SEO coherence<br />Where are the conversations?<br />Who is most important to me?<br />How many people am I reaching?<br />How am I doing vs. competitors?<br />Are people positive or negative?<br />How I am perceived vs. competitors?<br />Do top influencers talk about me?<br />What are people saying?<br />How many people connect with me?<br />Does my online profile align with the conversation?<br />
    30. 30. How does that fit with our map.<br /><ul><li>Using engagement, you get a more holistic appreciation of your customers' actions, recognizing that value comes not just from transactions but also from actions people take to influence others.
    31. 31. Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.</li></li></ul><li>Here’s how. Qualitative.<br />Meaningful 1:1 relationships <br />Quality of conversations<br />Targeted reach to important niche audiences/advocates <br />Sentiment<br /><ul><li>Positive
    32. 32. Negative</li></ul>Word of Mouth<br />