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                        1
The Social Media Experience: New
Barriers are Fading
Philips Consumer Lifestyle



Floris Regouin
Philips
April 2012
Philips, Floris Regouin, April 2012                                                                              3
                                   source: http://fashionolia.com/how-to-dress-for-a-festival-2/hands/ by Cocochic
Statistics go through the roof!
• World population: ± 7 billion
    In 2013 eCommerce will already
• Online: ± 2.2 billion (Goldman Sachs)
          exceed $1T.
• Facebook: ± 800 million
  Asia and Latin America explosively
• Google+: ±varying from 10% to 18%
   growing, 100 million
• @LadyGaga: > to 2015 (Forrester)
         CAGR 22 million followers

• Justin Bieber on YouTube: > 723 million
   views, owning 2 retweet records!




                              Philips, Floris Regouin, April 2012   4
Consumers are moving outside the purchasing funnel -
changing the way they research and buy their products

The consumer decision journey
                                                                                        Compare




                2
                1
                4
                3
                5
                                                                    Research
                                           Search                                                            Decide


                                                                                                                            Purchase
                              Discover

  After purchasing a
     The consumer
   Adding Forrester
  product or service,
  Consumers add or
  considersthe touch
  enriches an the
      Ultimately, initial
 the consumer builds
 set of brands, based
  consumer selects a
  subtract brands as
        points and                                                               Evangalize
                                                                                                    Friend
  expectations based                                                Trust
on communication
brand evaluate what
  they at the moment
     brand perceptions
   on experience to
    and exposure to
       of purchase.
        they want.
vehicles revealing full
     inform the next
 recent touch points.
consumer experience
   decision journey             Personalize                                                                           Use

                                                                      Share                       Get help


                                Web         Company website             Mobile     Branch/store     Call center   Social


Source: McKinsey, Forrester   Philips, Floris Regouin, April 2012                                                               5
http://youtu.be/Nl9fvn8c_Eo
                              Philips, Floris Regouin, April 2012   6
Change in approach is a necessity!

    From                                                             To


    On/off                                                           On-going


    Interruption                                                     Engagement


    One-way push                                                     Two-way dialogue


    Product/category centric                                         Consumer centric


    Fragmentation                                                    Focus


    Inconsistency                                                    Consistency

                               Philips, Floris Regouin, April 2012                      7
“Orchestration of the digital initiatives is key to success”
                                      Philips, Floris Regouin, April 2012      8
                                                                               8
Source: www.shellmont.com
Here’s our journey.
                                              Social network guides


                   X-Functional team


                                                                                                Webcare toolkit




                   Stage gate system          SM Brand guidelines                SM Guideline




Brand principles   Core platforms             Socialcast                                        B2C Strategy toolkit




2009                                   2010                                             2011                           2012
                                                 Philips, Floris Regouin, April 2012                                          9
We’ve learned that markets & sectors
can be very different:
 • Emerging markets  social media
       (93% of online users use social tools at least monthly)

 • The West consumes rather than create
       (70% of online adults in Western countries are spectators)

 • No single picture of European social media user
       (Huge variations from country to country)

 • Japan follows different pattern than Asia
       (Only 28% visit social networking sites)

  By global guidance Philips enables and
  empowers local markets & sectors to be able to
  execute
Source: Forrester, Global Social Media Adoption In Philips, Floris Regouin, April 2012
                                                   2011, Jan 2012                        10
Capture insights on customer behavior and
experience & build a Consumer Experience Flow




 Experience flows help to visualize insights about
how customers behave, think and how they try to
               achieve their goals
                    Philips, Floris Regouin, April 2012   11
Experience Flow | Kitchen Appliances Germany




                  Philips, Floris Regouin, April 2012   12
We defined clear roles and a simple framework to
reinforce the brand with every consumer interaction
        Stimulating on-going
                                                                                                      Managing the conversation
           communication



                     Making the promise
                                                                                 Keeping the promise




                                                                                                                                OWNED
        OWNED




                                                                                                                                 NON
                    CONTENT                                MODERATION            RESPONDING         (HISTORY)
                               PUBLISHING   LISTENING                                              TRACKING       MONITORING
                    CREATION                                   (PRE/POST)        (REPLY/COMMENT)




                Community Manager                                                                               Web Care Team




                                             Monitoring the results of the
                                                    conversation
Source: Forrester                                Philips, Floris Regouin, April 2012                                                    13
Various tools to support WoW and execution

     Listen               Dashboards,
                             DSI

                           Build ONE
      Talk
                             Philips
   Participate
                           Community

                         Social Media
    Support               Operations
                          (Webcare)


                         Social Media
    Energize
                          Newsroom


                 Facilitate & Moderate
                   Philips, Floris Regouin, April 2012   14
Finding the right KPIs to measure business &
social objectives and define success




Use relevant secondary metrics to understand
how the needles are moving
                            Philips, Floris Regouin, April 2012   15
Then it starts with the real deal:
Doing it, and doing it well!




Some success stories in the different sectors
                               Philips, Floris Regouin, April 2012   16
Company page on Linkedin




Philips has about 120,000 followers of the company
page on LinkedIn with careers section, product &
services tab for recommendations.

Innovations in Health & Light programs delivered NPS
and purchase consideration (MetrixLab, sep 2011)
                                  Philips, Floris Regouin, April 2012   17
Philips, Floris Regouin, April 2012   19
Using Social Media channels to engage
with consumers in conversations




                     Philips, Floris Regouin, April 2012   20
#Sonicare – The Case
                   1.511 websites / domains
EXTERNAL DATA
INTERNAL DATA




                5.718 call logs/NPS free texts
                                        Philips, Floris Regouin, April 2012   21
Turning insights into results: turning negative sentiment
to positive and reducing call center costs by 33%

    Quality                                                                                              Content
                                    Timer function
                                                                                                         updates
    Right product?   Speed
                                        Hygiene
 How to brush?
        Highly positive perceived                                                          COSTS
 Customer Service                     Battery
                How does product work?

Life expectation



                                                                                                   NPS




                                                     Philips, Floris Regouin, April 2012                           22
Random act of Kindness: #Valentijn #koffievoor2




                   Philips, Floris Regouin, April 2012   23
A very low investment with engaged responses
and great impact
                                            A reach of more than 80.000
                                        followers* via trusted inner circles

                                                                    ‘conversations’
                                                                       RT’s / +1’s

                                                                         tweets


                                                                       20 times
                                                                     #koffievoor2




                                                        * A sum of all followers tweeting about #koffievoor2


                  Philips, Floris Regouin, April 2012                                                          24
Learn from failures & build on & leverage best
practices


                                                           
 Continuous learning,
   sharing across
  Markets, Sectors &
   Functions and
   closing the loop
                     Philips, Floris Regouin, April 2012       25
10 Key lessons learned




  Listen      Analyze &      Continuous                         Start & do it   Not just
             Understand       Learning                                           a KPI
 Share &                  No resources,                          Speak the      Testing
Evangelize    Mindset     No execution                           Language       Testing




                          Philips, Floris Regouin, April 2012                              26
And then keep on playing to build
your social media experience until
          your brand sounds nice!




    Philips, Floris Regouin, April 2012   27
Philips, Floris Regouin, April 2012   28
29

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The social media experience @ Social media congres

  • 2. The Social Media Experience: New Barriers are Fading Philips Consumer Lifestyle Floris Regouin Philips April 2012
  • 3. Philips, Floris Regouin, April 2012 3 source: http://fashionolia.com/how-to-dress-for-a-festival-2/hands/ by Cocochic
  • 4. Statistics go through the roof! • World population: ± 7 billion In 2013 eCommerce will already • Online: ± 2.2 billion (Goldman Sachs) exceed $1T. • Facebook: ± 800 million Asia and Latin America explosively • Google+: ±varying from 10% to 18% growing, 100 million • @LadyGaga: > to 2015 (Forrester) CAGR 22 million followers • Justin Bieber on YouTube: > 723 million views, owning 2 retweet records! Philips, Floris Regouin, April 2012 4
  • 5. Consumers are moving outside the purchasing funnel - changing the way they research and buy their products The consumer decision journey Compare 2 1 4 3 5 Research Search Decide Purchase Discover After purchasing a The consumer Adding Forrester product or service, Consumers add or considersthe touch enriches an the Ultimately, initial the consumer builds set of brands, based consumer selects a subtract brands as points and Evangalize Friend expectations based Trust on communication brand evaluate what they at the moment brand perceptions on experience to and exposure to of purchase. they want. vehicles revealing full inform the next recent touch points. consumer experience decision journey Personalize Use Share Get help Web Company website Mobile Branch/store Call center Social Source: McKinsey, Forrester Philips, Floris Regouin, April 2012 5
  • 6. http://youtu.be/Nl9fvn8c_Eo Philips, Floris Regouin, April 2012 6
  • 7. Change in approach is a necessity! From To On/off On-going Interruption Engagement One-way push Two-way dialogue Product/category centric Consumer centric Fragmentation Focus Inconsistency Consistency Philips, Floris Regouin, April 2012 7
  • 8. “Orchestration of the digital initiatives is key to success” Philips, Floris Regouin, April 2012 8 8 Source: www.shellmont.com
  • 9. Here’s our journey. Social network guides X-Functional team Webcare toolkit Stage gate system SM Brand guidelines SM Guideline Brand principles Core platforms Socialcast B2C Strategy toolkit 2009 2010 2011 2012 Philips, Floris Regouin, April 2012 9
  • 10. We’ve learned that markets & sectors can be very different: • Emerging markets  social media (93% of online users use social tools at least monthly) • The West consumes rather than create (70% of online adults in Western countries are spectators) • No single picture of European social media user (Huge variations from country to country) • Japan follows different pattern than Asia (Only 28% visit social networking sites) By global guidance Philips enables and empowers local markets & sectors to be able to execute Source: Forrester, Global Social Media Adoption In Philips, Floris Regouin, April 2012 2011, Jan 2012 10
  • 11. Capture insights on customer behavior and experience & build a Consumer Experience Flow Experience flows help to visualize insights about how customers behave, think and how they try to achieve their goals Philips, Floris Regouin, April 2012 11
  • 12. Experience Flow | Kitchen Appliances Germany Philips, Floris Regouin, April 2012 12
  • 13. We defined clear roles and a simple framework to reinforce the brand with every consumer interaction Stimulating on-going Managing the conversation communication Making the promise Keeping the promise OWNED OWNED NON CONTENT MODERATION RESPONDING (HISTORY) PUBLISHING LISTENING TRACKING MONITORING CREATION (PRE/POST) (REPLY/COMMENT) Community Manager Web Care Team Monitoring the results of the conversation Source: Forrester Philips, Floris Regouin, April 2012 13
  • 14. Various tools to support WoW and execution Listen Dashboards, DSI Build ONE Talk Philips Participate Community Social Media Support Operations (Webcare) Social Media Energize Newsroom Facilitate & Moderate Philips, Floris Regouin, April 2012 14
  • 15. Finding the right KPIs to measure business & social objectives and define success Use relevant secondary metrics to understand how the needles are moving Philips, Floris Regouin, April 2012 15
  • 16. Then it starts with the real deal: Doing it, and doing it well! Some success stories in the different sectors Philips, Floris Regouin, April 2012 16
  • 17. Company page on Linkedin Philips has about 120,000 followers of the company page on LinkedIn with careers section, product & services tab for recommendations. Innovations in Health & Light programs delivered NPS and purchase consideration (MetrixLab, sep 2011) Philips, Floris Regouin, April 2012 17
  • 18. Philips, Floris Regouin, April 2012 19
  • 19. Using Social Media channels to engage with consumers in conversations Philips, Floris Regouin, April 2012 20
  • 20. #Sonicare – The Case 1.511 websites / domains EXTERNAL DATA INTERNAL DATA 5.718 call logs/NPS free texts Philips, Floris Regouin, April 2012 21
  • 21. Turning insights into results: turning negative sentiment to positive and reducing call center costs by 33% Quality Content Timer function updates Right product? Speed Hygiene How to brush? Highly positive perceived COSTS Customer Service Battery How does product work? Life expectation NPS Philips, Floris Regouin, April 2012 22
  • 22. Random act of Kindness: #Valentijn #koffievoor2 Philips, Floris Regouin, April 2012 23
  • 23. A very low investment with engaged responses and great impact A reach of more than 80.000 followers* via trusted inner circles ‘conversations’ RT’s / +1’s tweets 20 times #koffievoor2 * A sum of all followers tweeting about #koffievoor2 Philips, Floris Regouin, April 2012 24
  • 24. Learn from failures & build on & leverage best practices  Continuous learning, sharing across Markets, Sectors & Functions and closing the loop Philips, Floris Regouin, April 2012 25
  • 25. 10 Key lessons learned Listen Analyze & Continuous Start & do it Not just Understand Learning a KPI Share & No resources, Speak the Testing Evangelize Mindset No execution Language Testing Philips, Floris Regouin, April 2012 26
  • 26. And then keep on playing to build your social media experience until your brand sounds nice! Philips, Floris Regouin, April 2012 27
  • 27. Philips, Floris Regouin, April 2012 28
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