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



Floris Regouin
Philips
February 2012
Philips, Floris Regouin, February 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
• Online: ± 2.2 billion
• Facebook: ± 800 million
• Google+: ± 100 million
• @LadyGaga: ± 19 million followers
• Justin Bieber on YouTube: ± 685 million
   views, owning retweet record of about 90
   thousand times!


 In 2013 eCommerce will already exceed $1T.
                   (Goldman Sachs)
 Asia and Latin America explosively growing,
varying from 10% to 18% CAGR to 2015 (Forrester)
                                     Philips, Floris Regouin, February 2012   4
Social media is…
• Not a Facebook page
• Not a YouTube video
• Not a advertising campaign on the web

  “Social media is a new way of
building relationship and finding
   personalized and meaningful
information based on what YOU
 want and not what advertising
               says”
Social networks like Facebook, YouTube,
LinkedIn and Twitter are the tools to enable
this.
                              Philips, Floris Regouin, February 2012   5
“Those who grew up digital have different brains. They
have different wiring and synaptic connections. This is the
defining characteristic of this new generation.” Don Tapscott

People have limitless
access to all information
always and everywhere.
Wanting seamless
experiences between
online & offline….

Converging the virtual and
real world for augmented
experiences that add
meaning to their lives.
                            Philips, Floris Regouin, February 2012
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, February 2012                                                             7
http://youtu.be/Nl9fvn8c_Eo
                              Philips, Floris Regouin, February 2012   8
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, February 2012                  9
“Orchestration of the Philips, Floris Regouin, February 2012 is key to success”
                                       digital initiatives                                        10
                                                                                                  10
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, February 2012                                    11
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, Jan 2012
                                                 Philips, Floris Regouin, February 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
                                                 MODERATION             RESPONDING          (HISTORY)
                PUBLISHING          LISTENING                                              TRACKING     MONITORING
                                                    (PRE/POST)         (REPLY/COMMENT)



                Community Manager                                                                       Web Care Team




                                                Monitoring the results of the
                                                       conversation
Source: Forrester                                 Philips, Floris Regouin, February 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, February 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, February 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, February 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, February 2012   17
Social Christmas Tree in Turkey in
Istanbul




Within one week more than 6,000 fans participated, sending
over 25 thousand invites and 10 thousands of cards and
thousands of tweets about this campaign providing energy to
light up the Christmas tree with energy saving Philips LED
bulbs.                              Philips, Floris Regouin, February 2012
Philips, Floris Regouin, February 2012   19
Using Social Media channels to engage
with consumers in conversations




Confidential       NPS Event - Amsterdam, February 7, 2012   20
#Sonicare – The Case
                   1.511 websites / domains
EXTERNAL DATA
INTERNAL DATA




                5.718 call logs/NPS free texts
                                       Philips, Floris Regouin, February 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, February 2012                           22
Learn from failures & build on & leverage best
practices


                                                              
 Continuous learning,
   sharing across
  Markets, Sectors &
   Functions and
   closing the loop
                     Philips, Floris Regouin, February 2012       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




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




    Philips, Floris Regouin, February 2012   25
Philips, Floris Regouin, February 2012   26
The social media experience @ FEI

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The social media experience @ FEI

  • 2. The Social Media Experience: New Barriers are Fading Philips Consumer Lifestyle Floris Regouin Philips February 2012
  • 3. Philips, Floris Regouin, February 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 • Online: ± 2.2 billion • Facebook: ± 800 million • Google+: ± 100 million • @LadyGaga: ± 19 million followers • Justin Bieber on YouTube: ± 685 million views, owning retweet record of about 90 thousand times! In 2013 eCommerce will already exceed $1T. (Goldman Sachs) Asia and Latin America explosively growing, varying from 10% to 18% CAGR to 2015 (Forrester) Philips, Floris Regouin, February 2012 4
  • 5. Social media is… • Not a Facebook page • Not a YouTube video • Not a advertising campaign on the web “Social media is a new way of building relationship and finding personalized and meaningful information based on what YOU want and not what advertising says” Social networks like Facebook, YouTube, LinkedIn and Twitter are the tools to enable this. Philips, Floris Regouin, February 2012 5
  • 6. “Those who grew up digital have different brains. They have different wiring and synaptic connections. This is the defining characteristic of this new generation.” Don Tapscott People have limitless access to all information always and everywhere. Wanting seamless experiences between online & offline…. Converging the virtual and real world for augmented experiences that add meaning to their lives. Philips, Floris Regouin, February 2012
  • 7. 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, February 2012 7
  • 8. http://youtu.be/Nl9fvn8c_Eo Philips, Floris Regouin, February 2012 8
  • 9. 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, February 2012 9
  • 10. “Orchestration of the Philips, Floris Regouin, February 2012 is key to success” digital initiatives 10 10 Source: www.shellmont.com
  • 11. 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, February 2012 11
  • 12. 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, Jan 2012 Philips, Floris Regouin, February 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 MODERATION RESPONDING (HISTORY) PUBLISHING LISTENING TRACKING MONITORING (PRE/POST) (REPLY/COMMENT) Community Manager Web Care Team Monitoring the results of the conversation Source: Forrester Philips, Floris Regouin, February 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, February 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, February 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, February 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, February 2012 17
  • 18. Social Christmas Tree in Turkey in Istanbul Within one week more than 6,000 fans participated, sending over 25 thousand invites and 10 thousands of cards and thousands of tweets about this campaign providing energy to light up the Christmas tree with energy saving Philips LED bulbs. Philips, Floris Regouin, February 2012
  • 19. Philips, Floris Regouin, February 2012 19
  • 20. Using Social Media channels to engage with consumers in conversations Confidential NPS Event - Amsterdam, February 7, 2012 20
  • 21. #Sonicare – The Case 1.511 websites / domains EXTERNAL DATA INTERNAL DATA 5.718 call logs/NPS free texts Philips, Floris Regouin, February 2012 21
  • 22. 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, February 2012 22
  • 23. Learn from failures & build on & leverage best practices  Continuous learning, sharing across Markets, Sectors & Functions and closing the loop Philips, Floris Regouin, February 2012 23
  • 24. 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, February 2012
  • 25. And then keep on playing to build your social media experience until your brand sounds nice! Philips, Floris Regouin, February 2012 25
  • 26. Philips, Floris Regouin, February 2012 26