Social media amsterdam april philips final compressed

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Social media amsterdam april philips final compressed

  1. 1. Building the leading company inhealth and well-beingAn introduction to PhilipsAmsterdam, 14th-15th April 2011Marcus Evans Conference
  2. 2. A well-respected, blue-chipcompany for 120 yearsFounded in 1891Headquartered in Amsterdam, the NetherlandsSales over EUR 25.4 billion in 2010 (USD 33.8 billion)33% of sales generated in emerging marketsGlobally recognized brand (world top 50)Our brand value doubled to $8.7bln since 2004119,000 employeesSales and service outlets in over 100 countries€1.6 billion investment in R&D, 6% of sales50,000 patent rights – 36,000 registered trademarks –63,000 design rights 2
  3. 3. Philips defined: we are…“…a global company of leading businessescreating value with meaningful innovations thatimprove people’s health and well-being.”Health and well-being Meaningful innovationsA commitment to healthy, fulfilled lives Improving people’s livesin our communities and societies Going beyond technologyour world Introduced at the right time 3
  4. 4. Our focus on Health and Well-beingOur portfolio leverages critical global trends Aging population Increased consumer empowerment and sustainable lifestyles Climate change and sustainable development Rise of emerging 4 markets 4
  5. 5. Our Health and Well-being offeris powered by 3 businesses 2010 Healthcare Lighting Consumer Lifestyle 5
  6. 6. HealthcareGlobal trends• Ageing population leading to an increase in chronic conditions• Urbanization and rise of emerging markets leading to lifestyle changes, fueling cardiovascular illnesses and respiratory and sleeping disordersBusiness priorities• Move towards leadership position in Imaging Systems: • At annual RSNA meeting, Philips unveiled “Imaging 2.0”, a concept fueled by 8 breakthrough innovations • Construction of healthcare R&D facility for Cardiovascular X-ray equipment India• Grow our Home Healthcare business: • Increase awareness and treatment of Obstructive Sleep Apnea (OSA) focused on emerging markets • Strengthen leadership in Home Healthcare with the acquisition of medSage Technologies LLC, a leading provider of patient interaction and management applications for home care providers 6
  7. 7. Healthcare Philips Healthcare Businesses1 Sales & services geographies1 Imaging Home Patient Care Customer North America International Emerging Systems Healthcare and Clinical Services Markets Solutions Informatics 39% 14% 21% 26% 45% 35% 20%€8.6 35,000+ 8% 450+Billion sales People employed of sales invested in R&D Products & servicesin 2010 worldwide in 100 countries in 2010 offered in over 100 countries1 2010 split
  8. 8. Consumer LifestyleGlobal trends• Consumers are increasingly focused on their Health and Well-being• The already substantial middle and upper income segments of Emerging Markets are growing fast• Back to basics: consumers want simple propositions from trusted brandsBusiness priorities• Accelerate growth in four defined value spaces: Healthy Life; Personal Care; Home Living; Interactive Living• Maximize Health & Wellness opportunity• Invest and prioritize Asia-first innovations for local and global markets• Improve market shares in BRIC and key markets• Take decisive action to bring TV to profitability 8
  9. 9. Consumer Lifestyle Philips Consumer Lifestyle Businesses1 2 Geographies1 Personal Health & Domestic Television Audio Accessories Mature Emerging Care Wellness Appliances Video Markets Markets Multimedia 13% 7% 17% 36% 13% 10% 60% 40%€8.9 17,000+ 4% €0.3Billion sales People employed of sales invested Billion negative NOCin 2010 worldwide in R&D in 2010 for TV end 20101 2010 split2 Other category (4%) is mainly license income and is omitted from this overview
  10. 10. LightingGlobal trends• Ongoing urbanization and globalization• Increasing need for energy efficient solutions• Fast growing global illumination market, partly driven by expanding renovation market• Rapid adoption of LED-based lighting solutions worldwideBusiness priorities• Launch new professional solutions with specific emphasis on being a leader in professional outdoor lighting solutions• Substantially grow home lighting solutions business for consumers• Develop and market new forms of versatile and energy efficient LED innovations• Maximize the profitability of our conventional lighting business 10
  11. 11. Lighting Philips Lighting Customer Segments1 Homes Offices Outdoor Industry Retail Hospitality Entertainment Healthcare Automotive 24% 17% 17% 11% 13% 5% 2% 3% 8%€7.6 53,000+ 5% 80,000+Billion sales People employed of sales invested Products & servicesin 2010 worldwide in 60 countries in R&D in 2010 offered in 20101 Indicative split
  12. 12. Our global reach Focused portfolio through strategic acquisitions* Interactive Medical Developments (2008) Genlyte (2008) Tomcat (2008) Traxtal (2009) MedSage (2011) Street Controls(2010) Burton (2010) Raytel (2007) Somnolyzer (2010) Saeco (2009) CDP Medical Ltd. (2010) Teletrol (2009) Shenzhen Goldway (2008)Lighting Technologies (2007) Optimum (2011) Discus (2010) NSW (2010) Ilti Luce (2009) Luceplan (2010) InnerCool Therapies (2009) Medel (2008) Apex (2010) Visicu (2008) Alpha X-Ray (2008) Respironics (2008) Meditronics (2008) Dynalite (2009) Wheb Sistemas (2010) Preethi (2011) Emergin (2007) VMI-Sistemas Medico (2007) Selecon (2009) Tecso Informatica (2010) Dixtal Biomedica e Technologia (2008) Healthcare Lighting Consumer lifestyle Emerging Markets * Strategic acquisitions since mid-September 2007 until January 2011
  13. 13. Unique leadership positions in many markets Current NPS leadership positions1 Healthcare Regional Global Regional Regional Global Regional Cardio Patient Cardiac Radiation Ultrasound Home vascular Monitoring resuscitation Oncology Systems Healthcare Consumer Lifestyle Regional Global Regional Global Global Regional Global Male electric Mother and Child Power Female Steam irons Blenders Juicers shaving & grooming Care Toothbrushes depilation Lighting Regional Global Global Regional Global Global Consumer Professional Lamps Automotive High Power Lighting Luminaires Luminaires 1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally Lighting LEDs Electronics1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally 13
  14. 14. Vision 2015Our ambition Philips wants to be a global leader in health and well-being, becoming the preferred brand in the majority of our chosen markets. We believe Philips is uniquely positioned for growth through its ability to simply make a difference to people’s lives with meaningful, sustainable innovations.
  15. 15. Looking forward• Building on our legacy: Philips in its 120th year• Targeting growth with Vision 2015 strategic plan• Responding to fast-changing market conditions• Continuing people-focus: • Highly engaged Philips people • Seamless transition to new management • Strong relationships with customers • Continued creation of meaningful innovations 15
  16. 16. Leveraging Digital Marketingand Social MediaSession:The Measurement TalkAmsterdam, 14th-15th April 2011Marcus Evans Conference
  17. 17. 17
  18. 18. Survey, let’s have a show of handsKey Questions in Social Media?• Is your company ready for Social Media?• Is your Consumer Care department ready for Social Media?• Is your Consumer Care Social Media Operation effective? 18
  19. 19. Social Media actively used to create brand preference for PhilipsWaking up an arctic town 19
  20. 20. Promotional material of campaign in The Netherlands Radio Print OOH Special OOH In StoreOnline Advertorials Online Banners Facebook Blogs Websites YouTube 20
  21. 21. In the Netherlands, only small increase inconsideration, but significant increase in brandpreference. 94 94 Pre-wave 82 70 75 Post -wave 66 41 45 21 25 26 15 15 18Awareness Familiarity Consideration Preference Purchase Ownership Retention Intent (unpriced) Sig Diff @ 95% or aboveBase: Pre-wave (150); Post-wave (650) 21
  22. 22. A traditional purchase funnel no longer accuratelyrepresents the way consumers interact withbrands. Source: http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_consumer_decision_journey_2373 22
  23. 23. 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 2 1 4 3 Ratings Facebook WoM & Syndi- Reviews cated .com Content Mobile search 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 and exposure to of purchase. they want. inform the next recent touch points. Ongoing Registrat ion decision journey CRM Commun Ratings & ities Reviews Care 23
  24. 24. Consumer Care is dealing in a complex environment dealing with high volumes of consumer interactions Global Consumer Care Consumer Care Online 7 Different Case 13 Different  >50 countries Mgt / CRM Standardized 13 Different Reporting KPIs/SLIs Systems Feedback Process  >30 languages  >30 million web visitors Over 130Local Contact 7 Philips Online Shops  >150 million page views Numbers  >15 million software downloads Ad Hoc CRM/Loyalty  >250 thousand surveysDirect Link Programs betweenWeb and CC  60.000 products supported online Global Service Network worldwide Standardized Multiple  7 business product groups Training consumer databases  >30 product categories Multiple 3 Service 10 Call Center Insourced Call Center Ops. Networks used for Call Center Vendors  Millions of interactions via repairs & exchanges 24
  25. 25. A change to our traditional strategy was needed to adopt to new channels Social Social Web OwnedConsumers approaching Philips with a request or problem Guidance in CC funnel Share knowledge Consumer Care, March 24, 2011 25
  26. 26. Become organised to support our social mediastrategy CENTRAL SETUP Social Media Consumer Digital Care Taskforce Marketing PR Manager Social Media Manager Manager MBRM Flagship in planning Community Manager DEDICATED LOCAL X-FUNCTIONAL TEAMS Country Consumer Internet PR agent Experience 7 BUSINESS Manager Manager PRODUCT GROUPS In-house Local WebCare resource & Community Team Manager Agencies In-house resource & vendors 26
  27. 27. Social Media objectives as extensionon Consumer Care directives Aim is to have a sense and simple plan on global and local Social Media levels to execute on NPS & Cost of non-quality by • Fast product quality feedback Objectives • Web content enhancements (outside-in) • Interaction & escalation management Consumer Care, March 24, 2011 27
  28. 28. Guidance to our contact channels–Integration of chat on 3rd party platformshttp://www.prisjakt.nu/produkt.php?p=599262 Consumer Care, March 24, 2011 28
  29. 29. 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 Consumer Care, March 24, 2011 29
  30. 30. Guidance to our contact channels –Facebook Consumer Care, March 24, 2011 30
  31. 31. First Listen, then engage on Talking with andSupporting of our consumers Consumer Care, March 24, 2011 31
  32. 32. Driving NPS & GCR by improving webcontent from consumer feedback Social Media Topics & Comments Issues Create Consumer Analyse & FitGap data Improve Data Content Availability Successfulness  NPS Feedback & Call logs Web content NPS  Manually GCR  Consumer Care, March 24, 2011 32
  33. 33. Converting heavy negative detractioninto 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 Contentfree texts converted into 25 new updates categorized FAQs Consumer Care, March 24, 2011 33
  34. 34. Assisting our consumers through oursupport forum by talking and supporting Consumer Care, March 24, 2011 34
  35. 35. >50% of questions solved by consumers 2 Net TV server outages cause peak visitsObjective: Some Facts & Figures:Drive peer to peer resolution to • Language = English;support our contact strategy and • Net TV & Blu-Rayenable fast feedback on software • Rolled out to WE & RU; • >150.000 visits since July 2010;and services • > 900 visitors per day; • 3.5 minute per visitor, visiting 4 pages; • > 1200 registered users; • 15% of Net TV connected users in NL have been on the forum! • NPS Measurement in place Consumer Care, March 24, 2011 35
  36. 36. ... lead by strong brand promoters Super promoter “Toengel” supported 100+ members Consumer Care, March 24, 2011 36
  37. 37. Global guidance and enablement 37 Local empowerment and execution Consumer Care, March 24, 2011
  38. 38. Example: QQLQ #1 in best handlingconsumer complaints - The NetherlandsIn the period January to November 2010Best complaint handling 1. Philips (3,4) 2. Tele2 (3,0) 3. Wehkamp (2,8)Fastest (within 24 hrs) 1. Tele2 2. TNT Post 3. WehkampMost complaints: 1. Ziggo (1.691) 2. TNT Post (1.528) 3. UPC (1.245)Worst complaint handling 1. Oxxio (1,5) 2. Nederlandse Energie Maatschappij (NEM) (1,6) 3. Neckermann Reizen (1,7) Consumer Care, March 24, 2011 38
  39. 39. Many other local initiatives, supportedthrough global guidance and global enablers Using globally deployed tools • Google Alerts • Sysomos and • Oxyme many more • Scup • Tipyo • Siebel • Etc. Consumer Care, March 24, 2011 39
  40. 40. Simple KPIs to measure effectiveness of local Social Media OperationsKPI Explanation of KPI Example ImprovementDigital Sentiment Monitor the digital sentiment, using the number of positive, neutral and negative Currently being set up, data not yet sharableIndicator (DSI) comments.Avg FQF Turnaround Monitor the performance of the Fast Global Improved from weeks to hours Improved from weeks to hoursTime Quality Feedback via social media Escalations Escalations% of Solved Questions Monitor the power of the community on Support Forum Forum >50% of questions answered questions answeredby Community Social Owned and Social Web The successful completion ofNPS on interactions conversations/interactions with Currently being set up, data not yet sharable consumers in NPS per transaction The successful completion ofWebcare Sentiment >70% negative sentiments >50% of negative sentiments conversations/interactions with Brazil converted into positive or into neutralIndicator consumers in sentiment score (per positive sentiment sentiment channel) Monitor the impact of social media >35x more traffic from traffic from platforms that increase web traffic FacebookWeb Traffic Volume volume in specific channels (i.e., pages Facebook after improved after improved integration integration Support, Online Sales) Consumer Care, March 24, 2011 40
  41. 41. Our answers to the questions• Is your company ready for Social Media? • Is your Consumer Care department ready for Social Media? • Is your Consumer Care Social Media Operation effective? Consumer Care, March 24, 2011  41
  42. 42. Specialtrainingtoolkit foreveryoneinvolved withconsumerinteractions Consumer Care, March 24, 2011
  43. 43. Thanks for your attention 43

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