Consumer Engagement in the Digital Age

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Consumer Engagement in the Digital Age

  1. 1. Consumer  Engagement  in  the  DIGITAL  AGE  Insights  on  Philips  Family  Rewards   1  
  2. 2. 2  
  3. 3. Exercise  1:    WRITE  A  MESSAGE  SEND  IT  TO  ME  
  4. 4. Exercise  2:  OPEN  ENVELOPE  FOLLOW  INSTRUCTIONS  
  5. 5. 5  
  6. 6. Exercise  3:  WITH  THE  TECHNOLOGY  &  THE  INSTRUCTIONS  
  7. 7. CHANGES   7  
  8. 8. 8  
  9. 9. 1    INTERNET   9  
  10. 10. 10  
  11. 11. 11  
  12. 12. ✗   TRADITIONAL   MARKETING   APPROACH       12  
  13. 13. 2    DATA   13  
  14. 14. 14  
  15. 15.   1 5  
  16. 16. ✗   16  
  17. 17.  3    SOCIAL   17  
  18. 18. Consumers  do  not  believe  us   anymore   18  
  19. 19. They  believe  their  friends   19  
  20. 20. ✗   20  
  21. 21. FACEBOOK  –  TWITTER  -­‐  YOUTUBE  DO  NOT  SOLVE  YOUR  PROBLEM   21  
  22. 22. I  have  no  Sme  I  have  access  to  all  informaSon   I  am  connected   NOT  loyal   I  am   22  
  23. 23. YOU  have    less  ?me  than  before  to    convince  me  IF  I  Do  not  see  the  immediate  value,  I  will  switch   23  
  24. 24. DIGITAL  CRM   Consumer  engagement   24  
  25. 25. ✗   ✗   ✗  Data   Rewards  Points   Systems   25  
  26. 26. ✗   ✗   ✗  Design   Emails   Products   26  
  27. 27.  Is  about   Engaged  over   Through  Consumers   Time   MulSple     Touch  points   27  
  28. 28. 1   CONSUMER  NEEDS  THROUGH  DATA  2   1-­‐1  APPROACH  3   MULTICHANNEL  4   ACTION  -­‐  REACTION  5   EFFECTIVENESS   28  
  29. 29. Proven  results  leading  to  expansion   Members   target   Products  registered   2009  comp  CP  48,000   +50%   61,000   X2.3   Re  purchase   Redeemed   Site  visits   2010  growth  2.5M€   61K€   215k   66%  +   higher   25%  SG  traffic   30  
  30. 30. 31  
  31. 31. Iceberg  concept  approach   TRADITIONAL  CRM  APPROACH   CreaSve,  Points,  Rewards…..   WHERE  THE  DIFFERENCE  IS   All  the  invisible  parts   32
  32. 32. Do  not  compromise  your  chances  of  success   33  
  33. 33. 2F5DIGITAL  CRM  METHODOLOGY   F5DIGITAL CRM Methodology Analysis Recommendation : Cookbook Deployment Ongoing Evaluation of what Implementation of the Maintenance once F5DIGITAL recommendation based on results needs to be done recommendation implemented CRM Strategic Implementation Toolkit Engagement 1 2 3 4 6 Hologram Direction Blueprint Set program!  Consumer insights !  Engagement !  Actual chosen !  Resources !  Activities!  Trade structures program core concept !  Planning !  Editorial calendar!  Benchmark element !  Measurement !  Templates !  Tactics preparation !  Approach !  KPI set up !  Briefing!  CRM Status and !  Strategic direction !  Contact Strategy !  Checklists workflows!  CRM hologram Actual 5 7 Maintenance Production !  Creative direction !  Technical !  Wireframe !  Content !  Protosite !  Discussions !  Consumer journey !  Measurement !  Coding !  Programming !  Design Platform LIVE 34   !"#$%&(#) Consulting methodology approach V2.1 1
  34. 34. CONTROLLED  PROCESS   35  
  35. 35. Detailed  contact  strategies   Update Contents and push customized contents Reminder if voucher is not Cross Sell and Up-Sell redeemed within a Membership  Phase   Member DB Week  1   certain period of time. Ongoing   1st  Month   Each  Months   Contents  TargeSng   High  Traffic  Sites   Initiate Philips Purchase Generate Flagship Member  Status   Online  Banners  on  high   consideration redemption Contents  TargeSng   Store Traffic  sites   Customized through point voucher Interests   personal interface redemption Member  Status   Purchase  Probability   !  News Search   Interests   Personal  Events   !  Offers Philips Online Key  Word  Search   !  Highlights Store Purchase  Probability   !  Point Status Customer  Value   PFR Product !  etc. Personal  Events   Website Drive Sales Registration Point  Status   Initiate and PointExperience Purchase Accumulation Customer  Value   Philips  Website   consideration Journey General member Point  Status   Mul?ple  banner   through contents member placement  across  the   Customize  and  Assemble   promotions Offline Member !  Products Website   Contents   !  Offers Sales Channels DB TransacSonal  E-­‐Mail   !  Events Corporate  Program   !  Promotions Initiate Customize  and  Assemble   Program  News   Purchase Follow-­‐up  of  member   Contents   Access  of  larger   !  etc. consideration online  ac?vi?es  and/or   Sales  Offers   Consumer  Pools   through Online Sales Channels update  members  about   Member Program  News   Point  Status   general promotions new  points  being   through Drive Point generated.   product Sales  Offers   Redemption and  Products   Brand   Define and Retail   registration customize next New  Member   ConfirmaSon  eDM     Point  Status   Personal  Events   eDM contact and Informa?on  and   Customer  DB   Up-Sell Cross Sell and Mail  leads  instantly  to   Brand  and  Products   contents Reminder  of  Family   Confirma?on  and   Single etc.   website  visit.   Member Drive Rewards   Welcome  contact  Social that   Personal  Events   Thank you online Point Media leads  to  the  Program  Site.   Redemption Philips  Databases   eDM to etc.   registrants Use  of  the  full  poten?al   Adding within  Philips   Family Members Drive Register offline POS Monthly  eDM   Customer  Care  Center   Purchase Monthly  eDM  that  builds   Analyze Personal  Engagement  and   a  strong  rela?onship  with   Results, PFR Monthly  eDM   Member Acquisi?on   Program   Philips Website Member the  brand  and  drives   channel Member interaction Website   Website Experience DB Monthly  eDM  that  builds   eDM program  engagement.   DB performance Journey a  strong  rela?onship  with   and member Experience  Showroom   behavior the  brand  and  drives   Drive Website re- Informa?on  and   program  engagement.   visitation – push Register Reminder  of  Family   contents Adding Rewards   Family Members Reminder Offline eDM to non- Drive Social POS registrants Media Single Experience Mul?ple  Touch   Immediate   Member Define and Points   Engagement   Simple member Drive Engagement customize next eDM contact and contents registration Actions
  36. 36. Share  Come  back   Convert   WHY  ?   Join     Buy     ©  F5DIGITAL  Consul?ng  2010  –  Why  syndrome   37  
  37. 37. Understand  consumer  triggers   38  
  38. 38. Active And  long  ?me  reten?on  Members 100% Objected Lifecycle with targeted interventions 75% 1 50% 2 25% 12% Assumed Lifecycle without interventions 3 6% Membership X weeks 2x weeks 3x weeks 4x weeks 5x weeks Time 2.5 Membership Years © F5DIGITAL Consulting, 2010 long time retention 39  
  39. 39. I  ONLY  NEED   GIVE  ME  A   1  TV   REASON  TO   1  SHAVER   1  CAR   COME  BACK   40  
  40. 40. Non  members   Members   InvitaSon  e-­‐mail   TransacSonal   Booster   Monthly  • Drive  new   • Automa?cally   • Automa?cally   • Ac?vi?es   registra?ons   generated   generated   • Offers  based  on  • Increase   • Interac?on  with   • Reminder   profile   awareness   the  site   • Rela?onships   • Personalized   • Personalized   41  
  41. 41. It  is  not  just  about  product,    it’s  about  usage   Cooking   High  Value   Customers   Baby  Care   TV   Home  Audio   42  
  42. 42. 2010  –  Key  ac?ons  Roadmap   Feb   March   Apr   May   June   July   Aug   Sept   Oct   Nov   Dec   Jan   Monthly  eDMs   Go  Live  Online   Invita?on  email   Social  media  quick  wins   InvitaSon  email   Online  RedempSon   Blast  to  100k  consumers   Na?onal  Day  campaign   GO  LIVE   Website  live   Facebook  Connect   Reminder  to  join   Teaser  to  Philips  employees   Share  /  Like   1to1  MulSchannel   Voucher  reminder  Test   POS  set  up   Carnival  Sale   Carnival  Sale  Offline   Showroom     Special  treats  for   Materials  in  retail   Special  treats  for   set  up   Promoters  brief   members   members   System  implementa?on   Staff  brief  and  support  Engagement  acSviSes   Breaseeeding  talk   Carnival  Sale+   Carnival  Sale   Meet  F1   Breaseeeding  talk   Cooking  Class   Cooking  class   Special  treats  for  members   driver   Cooking  class   Special  treats  for   members   Test  Drive  Program   Test  Drive  Program   Test  Drive  Program   Test  Drive  Program   Test  a  product  home  for  free   Test  a  product  home  for  free   Test  a  product  home  for  free   Test  a  product  home  for  free   43  
  43. 43. TARGET   Time  Engagement  level   interac?on   interac?on   interac?on   interac?on   interac?on   44  
  44. 44. YOU  KNOW  ME   PROVE  IT   45  
  45. 45. ✗   Dear VVIP customer! 46  
  46. 46. Dear  valued  golfer   Not  yet  the   opportunity   Friendly  reminder   6  steps  47  
  47. 47. ✗   ✓   NOMINATIVE   REAL  1-­‐1   48  
  48. 48. 49  
  49. 49. August  eDM  example  Main  offer  •  Na?onal  Day  offer  •  Birthday  Product  offers  •  BluRay  Player  •  Vacuum  Cleaner  Points  status  –  Personal  Cash  Points  and  Family  Cash  Points  Products  –  3  products   Member  status  •  Baby  Care   •  Complete  your  •  Culinary   Registra?on  •  Grooming   •  Share  on  Facebook  •  Lifestyle    •  Sound  And  Vision  •  Home  and  living  •  Healthy  Living  News    •  Baby  Care  •  Culinary  •  Grooming  •  Lifestyle  •  Sound  And  Vision  •  Home  and  living  •  Healthy  Living  •   Generic   50  
  50. 50. Monthly  1-­‐1  eDM   Fully customized 9 modules 5000++ combinations 51
  51. 51. ✗   ✓   PRODUCT   USAGE   BENEFITS   RELEVANCE   53  
  52. 52. Select  the  offer  that   suits  me  best   54  
  53. 53. Tradi?onal  approach  starts  from  products   Companies  usually  talk  at  a  Product  or  Business  Unit  level  to  Consumers   Product  life  cycle  differs  from  each  others   One  company   Sectors   Sectors   Sectors   Sectors   BU   BU   BU   BU   BU   BU   BU   BU   BU   BU   BU   BU   BU   BU   PRODUCTS  §  Confused  Consumers   ?   §  Non  relevant  offers   ?   ?  §  Overloaded  by  offer   ?   ?   §  Not  aligned  with  consumer  needs  §  One  ?me  rela?on   §  Focused  on  new  product  intro   55  
  54. 54. Our  approach   CONSUMER   PROFILE   PRODUCTS   NEEDS   56  
  55. 55. It  is  not  just  about  product,    it’s  about  relevance  
  56. 56. 58  
  57. 57. Integrate  Offline  &  Online     www.1to1.com.sg/grace.lee     59  
  58. 58. LET  ME  VOICE   IT  OUT   61  
  59. 59. En?re  plalorm  is  opened   §  Product  reviews  and   ra?ngs  and  provide   Test  Drive  Feedback   §  Product  ra?ng   §  Ac?vi?es  review  and   feedback   §  Facebook  Integra?on   for  easier  registra?on,   login  and  content   sharing   62  
  60. 60. MEASURE  LISTEN  MODIFY  ADAPT   63  
  61. 61. REACTION  ACTION   64  
  62. 62. Long  term  rela?onship  crea?on   Any  kind  of  acSon  PROFILE   PROFILE  UPDATE   UPDATE   Improved   CommunicaSon   CommunicaSon   65  
  63. 63. New  eSHOP  launched  Nov  2010   66  
  64. 64. ✗   ✓   MULTIPLE   CHANNELS   MULTI   CHANNELS   67  
  65. 65. Voucher  reminder  email  customiza?on  examples   Customized  page   First  name   Product   Price   Alterna?ve  offer   Link   with  Map  and   direc?ons   Dear  Candace,   $104   Dear     Link  for  direc?ons  to  Philips  Shop   John,   $799   Dear     Natalia,   $169   Dear  Evelyn,   $98   Dear   Vincent,   $111  68  
  66. 66. Example  :  Personalized  QR  code   69  
  67. 67. EFFECTIVENESS   70  
  68. 68. Communication relevance Member acquisition Referrals Program sustainability The average click through rate of members of At least 36,000 members have been For every acquired member, 4.2 xxx in its current stage has proven to be 54% clearly indicates that xxx has been naturally acquired through referrals, additional consumers are a strong platform that initiates product relevant throughout their entire membership at POS and through organic site introduced to the program. consideration and drives purchase. period. traffic without further investments. One member Even though re-purchase values,Acquisition Existing Members recommends xxx to caused by xxx, can only be assumed, it 88% of all 4.2 other consumers can be clearly said, that a substantial portion of these repurchases are members triggered and caused by the Open rate Open rate are naturally engagement activities of the xxx grown. 88% program. The following facts, support this statement: 65.0% 35% 39% + 11% Value per re-purchased product !  93% of all members are looking for a special sales offer. Click Click The redemption of vouchers is only used for smaller products. In general we !  At least 66% of all members consider through through can assume that members continue to accumulate points until the point the program as relevant and are status grows to a more substantial amount. visiting the site frequently without the need of being reminded. + 31% 54% Voucher redemption SGD 112.58 / per voucher 74% !  Being engaged, in average a Online store redemption SGD 142.60 / per redemption consumer recommends the program to 4.2 other people.Content relevance Repurchase SGD 241.40 Finally, the fact, that xxx has already66% of members re-visit the site simply because achieved an ROI of 256.6% in its basic form, it is clear, that with a slightthey are looking for new sales offers. The high clickrate on products clearly indicate that theses Return on invest (ROI) increase of member acquisitionmembers are likely to consider a purchase. This xxx has achieved in its first year an ROI of 256.6%, which can be considered as initiatives and program deliverables, theconsideration has, to a large degree, been an outstanding result. Given the current status of the program and its added ROI of 2011 will definitely exceed thetriggered by the xxx program. values for the consumer, this result is very likely to be increased within 2011. 300% mark. 66% of Incremental IVM – Voucher redemption 90,361 Recommendation members visit xxx Incremental IVM – Online redemptions 17,608 The xxx consumer engagement naturally platform has proven its value regarding 66% without an e-mail Incremental IVM – Repurchase 923,365 driving sales but also regarding its power to inspire consumers and to drive reminder product consideration. Total incremental IVM 1,031,335 This ultimately translates in the full Total costs – F5Digital, Production, xxx 659,000 achievement of acquiring consumers and to engage them with the xxx brand 93% search Total net return 372,335 and its products. for special Given the high ROI in the first year, we sales offers 93% ROI - 2010 56,50 % strongly recommend to continue the xxx program in 2011 with an 71   program deliverables. increase of 1
  69. 69. We  checked  if  results  were  really  good  ?   •  Maybe  consumers  already  promote  the  brand  ?   •  Maybe  consumers  are  already  ac?ve  ?   •  Maybe  brand  recall  is  already  high  ?   •  Maybe  Philips  customers  are  already  recep?ve  ?  We  want  to  know  if  the  PROGRAM  itself  has   a  posi?ve  impact  on  consumer  and  Philips   consumer   72  
  70. 70. 1)  Test  the  recommenda?on  increase   +83.43%  On  a  scale  of  0  to  10,  how  likely  would  you   like  to  recommend   +24.59%   Philips  to  your   friend  ?   Passive  members  Ac?ve  Members   Survey  made  in  April  on  626  consumers.    Based  on  your  experience  with  the  brand,     how  likely  will  you  recommend  Philips  to  your  friends  
  71. 71. 2)  Test  the  involvement  Same  offer  sent  to  2  groups  
  72. 72. 2)  Test  the  involvement   Specific  Carnival  eDM   53%  §  Family  members  §  One  to  One  offer   42%§  Personalized  message   30% YTD  Delivered   11,025   14%Open   53%  CTR   30%  #  purchased   370   CTR   Open  Rate  Value   $95k   Normal  eDM   Family  Rewards   Comparison  made  between  Family  Rewards  members  and  none  Family  members  
  73. 73. 3)  Test  the  brand  impact   TOP  OF  MIND  RECALL   +150%  GENERIC   20%   PFR   48%   76  
  74. 74. 4)  Compare  to  tradi?onal  Philips   Philips   eDM  results  PFR   Open  rate   CTR  avg  =   Open  rate   Unique  CTR   avg  =  39.1%   12.3%   60%   50%   40%   30%   20%  Open  Rate  =  18%   10%  CTR  =  4%   0%   Invita?on   April   May  eDM  Carnival   June  eDM  July  edM   Aug  eDM   Aug   Sep  eDM   Oct  eDM   Carnival   Nov  eDM   Xmas   Xmas   Jan  eDM   eDM   Invite   Reminder   77  
  75. 75. ✓   •  •  •  Increased  sales   Increased  brand  awareness   Increased  brand  loyalty   •  Increased  registra?on   78  
  76. 76. Do  we  know  how  to  fly  ?   Old  CRM   •  YES  it  is  a  plane   BUT   •  Different   technology   •  Different  speed   •  Different  pilots  New  CRM   •  Different  teaching   •  Different  training  
  77. 77. 80  
  78. 78. Thank  you   Visit  us  at  :     hmp://bit.ly/dentsubali  hmp://www.f5digital.com   81  
  79. 79. Companyintroduction ! "# $ % Dentsu Summit April 2011 ! "# $% F5DIGITAL Group introduction March 2011
  80. 80. WE ARE F5DIGITAL GROUP! "# $% F5DIGITAL Group introduction March 2011 83
  81. 81. © F5DIGITAL "# $% ! Group 2010 – All rights F5DIGITAL Group introduction reserved March 2011
  82. 82. Our solution : F5DIGITAL GROUP MARKETING & DIGITAL INNOVATION STRATEGY AUDIT CONSUMER MARKETING ENGAGEMENT EFFECTIVENESS, ROI ONE STOP FOR DIGITAL OPERATIONS and MAINTENANCE ! "# $% F5DIGITAL Group introduction March 2011 85
  83. 83. F5DIGITAL Group §  ONE stop Holistic Approach §  3 dedicated companies §  DIGITAL INNOVATION MARKETING HUB §  Focus on - MARKETING EFFECTIVENESS §  Handle any DIGITAL activities as your partner §  HOW and WHY, not the what §  BUSINESS NEEDS Knowledge §  International MNCs expertise ! "# $% F5DIGITAL Group introduction March 2011 86
  84. 84. We are consumer focused2010 engagement paradigm consumer is the center of strategy consumer strategy is the center of the tactics strategy tactics innovation tactics is the center of the innovation © F5DIGITAL Consulting, 2010 Consumer Paradigm ! "# $% F5DIGITAL Group introduction March 2011
  85. 85. DIGITAL INNOVATION MARKETING & STRATEGY AUDIT INSIDE OUTSIDE TRAINING / COACHING MARKETING CONSULTANTS CAMPAIGN GOVERNANCE CONCEPTS / BLUEPRINT§  Team of senior consultants§  F5DIGITAL concepts§  F5DIGITAL approach§  Deliverables based on men hour or brain time ! "# $% F5DIGITAL Group introduction March 2011 88
  86. 86. Ways of workingF5DIGITAL Methodologies Deliverables§  Integration global to local needs §  Digital Strategy (Social Media,§  Digital organization setup mobile, eShop, CRM, web, SEO, etc)§  Process on digital assets §  Digital Asset evaluation§  Methodologies for CRM §  Contact Strategy§  Coaching and training §  Consumer Relationship Management§  … Blueprint §  Social Media CookbookF5DIGITAL Concepts §  Digital Relationship Management§  Facebook fans and Kids§  Impossible trilogy§  8DD§  Consumer engagement paradigm§  … ! "# $% F5DIGITAL Group introduction March 2011
  87. 87. Concept examples Objective §  Explain the behavior of Social Media users, ie Facebook Concept : §  Treat them like kids Impact : §  Agency planning §  Brand engagement §  Calendar activities ! "# $% F5DIGITAL Group introduction March 2011 90
  88. 88. Consulting deliverables extracts Personal Life relevant themesIntegration of products profile page Projectin all contents §  Touch point Invited friends competitive mapping Various subjectComprehensive related forumslifestyle information hub Extract: Registration isLink to online sales sites mandatory §  Visual one page summary Consumer feedbackIntegrated point system and ratings Complete branding of the program Positioning of products Free product within themes trials ! "# $% F5DIGITAL Group introduction March 2011 91
  89. 89. Public appearance and recognition ! "# $% F5DIGITAL Group introduction March 2011

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