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Philips: Automatic Loyalty Measurement and Retention Marketing
The document outlines strategies for building customer loyalty through effective e-commerce practices, emphasizing the importance of customer feedback and the Net Promoter Score (NPS). It highlights efforts by Philips to enhance online sales and retention by segmenting customers, actively seeking feedback, and automating processes with tools like customergauge. Key recommendations include rewarding loyal customers and continuously monitoring satisfaction to improve the overall customer experience.
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Philips: Automatic Loyalty Measurement and Retention Marketing
- 1. Building the CustomerLoyalty Robot
- 2. Who the hellare we? Serge Acker Adam Dorrell Sr Director & GM Philips Online St ctness ore CEO CustomerGauge/Dire serge.acker@philips.com Adam.dorrell@directness.net A combined 25 years of eCommerce experience from leading companies such as Apple, Dell and Sony, facing similar issues and trying to find robust, scalable yet cost-effective solutions to improve Online Sales.
- 3. Demystifying Loyalty or...Loyalty for Dummies • What is the Philips Online Shop • Sense and Simplicity in Online Sales • Automatic Customer Feedback to support NPS concept • Now you can go and do it yourself
- 4. Sense & Simplicitythrough Online Sales
- 5. How did weget there? Extensive research...
- 6. How did weget there? ... and listening to the voice of the customer
- 7. Paving the pathfor our eCommerce vision aka “What we want to be famous for”
- 8. Sense & Simplicity,an enabler of success ADVANCED EASY TO EXPERIENCE DESIGNED AROUND YOU Immersive Experience Need-based tools Personalization
- 9. Philips is nowin 10 countries, operating 20 stores
- 10. How do wekeep improving on the promise? How was it for YOU?
- 11. By investing inLoyalty! • You should care about Customer experience – It HAS an impact on the top & bottom line • It’s the Voice of the Customer! – Direct Feedback (no noise from channel) • Measurable, it becomes a KPI! – You can track improvements – Direct link to profits – Use if for Incentive • Net Promoter Score – An Industry standard KPI since 2003
- 12. Lesson in Inequalities…andwhere to focus Source: Malcolm McDonald, CIM
- 13. “De la passoire...a l’entonnoir” Customers Pre-sale: Acquisition Traffic Costs $$$ ! • 50 cts/KW • 1% CR ➡ Up to $50/Cust eCommerce $ Engine Transaction Philips Online Shop Conversion etc Fulfillment, Customer Services etc Post-Sale: Retention The need to focus on retaining customers is clear! ... but how can you do it effectively?
- 14. Finding the Valueof Repeating Customers Customers v. Revenue • Take a sales report (last 6m or 12m), open in 100% spreadsheet • Group customers together by email address (or customer number) 75% 50% • Sum up the order values by customer • Sort “total order value” from high to low 93% • Divide customers into sensible segments: 50% LOW/HIGH or 5/10/85% 25% 50% 7% 0% Number of customers Revenue Repeating Customers New Customers Data Fact: B es of its custom t Buy found that 7% ers accounte of its sales. d for 43%
- 15. Segment your Customersby Value High spending customers •7% of total, •50% of revenue, $$$ •1,500 customers •Avg Value: €1150 Value (spend, profit) Low spending customers $ •93% of total, •50% of revenue, •20,300 customers •Avg Value: €163 Your mileage may vary!
- 16. Customer Feedback Management- 1st steps Order Confirmation Invoice Delivery Information Invite by email Web Survey Plot the results Act on the comments All customers to rate you on Ask Net Promoter question & Ask every order for Comment Lots of Spreadhseet work! DISTRIBUTE COMMENTS Graph, segment etc. to those who can use Usually NO permission needed, but You can ask other questions about them. explain up Front AND add specific issues and ask if further action Goal is to improve over time “unsubscribe” option needed, but keep it short. Expect 20 – 30% response
- 17. Segment your Customersby Loyalty 20,000 surveyed 25% response Detractors Promoters • 20% TOTAL • 45% of total, • 1012 customers, • 2250 customers • 19 gave “0” score • 1643 gave “10” score ☹ ☺ 459 comments 833 comments Detractors Promoters LOYALTY (Net promoter score)
- 18. Value & LoyaltyMatrix Customer Segmentation Take actions to Rescue Key customers IN DANGER OF defecting Value RESCUE REWARD & (spend, profit) LOWER PRIORITY Reward Key customers who can help grow sale Detractors Promoters LOYALTY (Net promoter score) CustomerGauge Rescue-Reward Retention model © 2010
- 19. Building your Loyaltyprocesses... Set up processes to continually monitor customer scores and feedback Survey customers automatically Data in from e-commerce system “we’d like you to trial our new Prioritise customers product”… Find urgent customers to be rewarded to be rescued You said you would recommend us – thanks! We’d like to offer your REWARD friends a £20 voucher to try us! Call center feedback Measure referred sales Regularly report NPS results, Publish testimonials to returning customers etc Learn from customer the web feedback
- 20. ...and turn theminto a Loyalty Robot Automate where possible your processes to continually monitor customer scores and feedback Survey customers automatically Data in from e-commerce system “we’d like you to trial our new Prioritise customers product”… Find urgent customers to be rewarded to be rescued You said you would recommend us – thanks! We’d like to offer your REWARD friends a £20 voucher to try us! Call center feedback Measure referred sales Regularly report NPS results, Publish testimonials to returning customers etc Learn from customer the web feedback
- 21. A real LoyaltyRobot: CustomerGauge • CustomerGauge is a system that – Plugs into your ecommerce system to automatically survey customers about their experience, every day – Brings voice of customer feedback into your organisation – Measures customer loyalty with industry standard Net Promoter Score® – Realtime dashboard to help improve customer experience and retention sales – Simple to use, quick to implement – No hardware or software needed • Optional extras: – Workflow module to guide feedback to appropriate department – “Marketing Robot” to help you segment and automatically target offers to most engaged customers Survey every transaction, automatically
- 22. Acting on Comments • Best practices: • Get regular feedback so you can manage it: Daily/weekly is best! • Classify comments to help prioritise issues • GET COMMENts to the right people • Act on customer feedback – within 24 hours Problems! Suggestions Praise Service issues Service Improvements Testimonials Logistics Logistics Returns etc FINANCE WEB
- 23. Automatically segmenting returningcustomers Built in rules to help rescue and reward customers Analyze the response history CustomerGauge from your most helps you measure prolific customers and understand your VIP customers - J. Smith@directness.net Look at individual customer spending patterns, and past comments/scores
- 24. Strategic change managementusing CustomerGauge SURVEY: Customer gives multi-choice feedback on likes/dislikes Understand root causes SURVEY: Comments (Voice Of Customer) Assign to project managers • To help make strategic change: – Identify root causes of issues – Put a value on impact of each Track NPS improvements issue – Set up projects to “Close the loop” – Track NPS improvement as a result Understand value / NPS impact
- 25. Root Cause Analysis Waterfall chart: Company A: NPS 41 • What is going wrong (and right?) – Understand drivers of promoters and detractors • “Drill-down” • Multiple filter options Waterfall chart: Company B: NPS -3
- 26. Examples... real ones! Senseo Chocopad NPS input: • price issue • availability issue (online only) • shipping costs Close the loop outcome: • bundle product Result: • NPS increase • Sales volume decreased
- 27. The solution: anew landing page + bundle offer
- 28. Accessory compatibility Your product identification for The compatibility section is matching suitable replacement hard to follow. "all above 6900 tooth brush heads is confusing. except 6900", but there are The time that the compact models with numerically larger head has been out of stock is The shop is way better than numbers which have a unacceptable. before :) The only problem separate compatibility. was finding the correct If you are discontinuing a line, heads for my shaver. I had Explicitly listing unsupported please simply say so to find the normal on-line models would help too. shop to look up the compatibility chart. Could you put the link in to the staff shop for it?
- 29. Consumer reviews (BazaarVoice) Hosted: CustomerGauge Hosted: BazaarVoice (last page of survey) • Using CustomerGauge drove up BazaarVoice reviews 500% – Info and image from DR feed into CG – CG forms correct URL and security sign-in to BV
- 30.
- 31. Marketing Robot: Rewardingloyal customers • Promoters scoring 9 or 10 said they would “recommend” the store • Encourage them to bring other friends in • Use an introductory coupon to offer to sweeten the deal
- 32. Loyalty Marketing In a nutshell Testimonials, referrals, Reward customers “Fire-Prevention” Strategic Improvements “Firefighting” Continuous Surveying Rescue customers Top tips! one by one • Identify your most valuable returning customers Net Promoter Score and • Continually ask for feedback using Net Promoter Voice of Customer Score methodology • Rescue & Reward the most important customers • Automate the process wherever possible: build a Loyalty Robot • Make it part of your company’s DNA – use the best tools out there! Thank you How did we do? recy.me/bt6f http://