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



Floris Regouin
@FlorisRegouin

Bratislava, April 2012
@florisregouin                                                                                 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: ± 900 million
  Asia and Latin America explosively
• Google+: ±varying from 10% to 18%
   growing, 100 million
• @LadyGaga: > to 2015 (Forrester)
         CAGR 23 million followers

• Justin Bieber on YouTube: > 730 million
   views, owning 2 retweet records!

                          (4 april 2012)




                                           @florisregouin   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          @florisregouin                                                                    5
http://youtu.be/Nl9fvn8c_Eo
                              @florisregouin   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

                               @florisregouin                      7
“Orchestration of the digital initiatives is key to success”
                                           @florisregouin                      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
                                                           @florisregouin                                                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 2011, @florisregouin
                                                         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
                       @florisregouin                11
Experience Flow | Kitchen Appliances Germany




                     @florisregouin            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                                       @florisregouin                                                          13
Finding the right KPIs to measure business &
social objectives and define success




Use relevant secondary metrics to understand
how the needles are moving
                               @florisregouin   14
Then it starts with the real deal:
Doing it, and doing it well!




Some success stories in the different sectors
                                   @florisregouin   15
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)
                                      @florisregouin   16
Using Social Media channels to engage
with consumers in conversations




                       @florisregouin   17
#Sonicare – The Case
                   1.511 websites / domains
EXTERNAL DATA
INTERNAL DATA




                5.718 call logs/NPS free texts
                                              @florisregouin   18
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




                                                     @florisregouin                           19
Random act of Kindness: #Valentijn #koffievoor2




                      @florisregouin              20
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


                     @florisregouin                                                            21
Learn from failures & build on & leverage best
practices


                                         
 Continuous learning,
   sharing across
  Markets, Sectors &
   Functions and
   closing the loop
                        @florisregouin           22
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




                             @florisregouin                              23
And then keep on playing to build
your social media experience until
          your brand sounds nice!




       @florisregouin                24
@florisregouin   25
26

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The social media experience @ Marketing Live

  • 2. The Social Media Experience: New Barriers are Fading Philips Consumer Lifestyle Floris Regouin @FlorisRegouin Bratislava, April 2012
  • 3. @florisregouin 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: ± 900 million Asia and Latin America explosively • Google+: ±varying from 10% to 18% growing, 100 million • @LadyGaga: > to 2015 (Forrester) CAGR 23 million followers • Justin Bieber on YouTube: > 730 million views, owning 2 retweet records! (4 april 2012) @florisregouin 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 @florisregouin 5
  • 6. http://youtu.be/Nl9fvn8c_Eo @florisregouin 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 @florisregouin 7
  • 8. “Orchestration of the digital initiatives is key to success” @florisregouin 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 @florisregouin 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 2011, @florisregouin 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 @florisregouin 11
  • 12. Experience Flow | Kitchen Appliances Germany @florisregouin 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 @florisregouin 13
  • 14. Finding the right KPIs to measure business & social objectives and define success Use relevant secondary metrics to understand how the needles are moving @florisregouin 14
  • 15. Then it starts with the real deal: Doing it, and doing it well! Some success stories in the different sectors @florisregouin 15
  • 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) @florisregouin 16
  • 17. Using Social Media channels to engage with consumers in conversations @florisregouin 17
  • 18. #Sonicare – The Case 1.511 websites / domains EXTERNAL DATA INTERNAL DATA 5.718 call logs/NPS free texts @florisregouin 18
  • 19. 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 @florisregouin 19
  • 20. Random act of Kindness: #Valentijn #koffievoor2 @florisregouin 20
  • 21. 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 @florisregouin 21
  • 22. Learn from failures & build on & leverage best practices  Continuous learning, sharing across Markets, Sectors & Functions and closing the loop @florisregouin 22
  • 23. 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 @florisregouin 23
  • 24. And then keep on playing to build your social media experience until your brand sounds nice! @florisregouin 24
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