About customer centric marketing in practice and how to create a superior client experience in B2B. A B2B Philips-story.

1. Arne van de Wijdeven, Director CustomerExperience Global Marketing and Communications March 2011 HOW THE PROMOTER PERSPECTIVE CAN IMPROVE YOUR BUSINESS RESULTS

2. Philips International Overview We are… Founded in 1891 Headquartered in Amsterdam, The Netherlands One of the largest global diversified industrial company with sales in 2010 of EUR 25.4 billion A multinational workforce of 119,000 employees (January 2011) Globally present with manufacturing sites in 28 countries and sales outlets in 150 countries An R&D force with expenditures of EUR 1,631 million (2009)

3. The challenge

4. Don’t you love satisfied customers!

5. Your customer Your competition You Your problem

6. Outstanding customer and consumer loyalty is critical to achieving growth. Source: Annual report 2010

7. Based on your experience with Philips, how likely are you to recommend Philips to a friend or colleague?

8. Expected vs. Desired Experience

9. Customer touch points

10. Absolute scores and relative

11. Beyond the score NPS, The Metric NPS, The program

12. Closed Loop Process and Toolkits Understand feedback Interview customers Feedback to customer Execute and track Decide actions Understand feedback Interview customers Feedback to customer

13. From one of our businesses

14. How would you respond? 10 9 9 3

15. 93% of B2B buyers trust peer reviews and 70%trust online reviews Source: attensity source media group

16. only 15% of B2B buyers trust traditional advertising Source: attensity source media group

17. Knowing our promoters: what’s to gain Opportunities are limited and customers are more likely to solidify existing investments Critical to use positive promoter noise as a viral tool across customer base Add to marketing arsenal Important to drive Sales enablement – assist with delivering brand promise

18. Notable trends in the B2B Market around reference needs Video is now the 2nd most influential type of reference collateral for today’s buyers (behind live references) There was a 75% worldwide increase in the use of video by prospective buyers from 2008 to 2009 80% of reference materials live on prospect/ buyers' desktops (including digital, video, audio) Source: http://www.roinnovation.com/roenablement/benefits 18

19. We are doing something different at Philips

20. Potential impact of leveraging promoters Impact sales cycles Shortened cycles Increase likelihood to close deals by including reference accounts by three to five percent, merely by listing promoter accounts in tenders Dramatically impact close rates when promoters speak on your behalf Drive brand preference Cascade best practices through passives and detractors

21. Rolling out via our heroes: the NPS Change Agents Europe, Middle East Americas Asia Pacific

22. 22 A respiration therapist says… “A patient who struggled for 8 years, called me after the first night with EasyLife and said he slept like a baby for the first time in years. He is so relived. Thanks for making my job easier and helping people get the rest some of us take for granted”

23. Arne van de Wijdeven +31 40 2792928 Arne.van.de.wijdeven@philips.com www.philips.com Thank you