social media amsterdam april philips final compressed

Building the leading company in

health and well-being

An introduction to Philips

Amsterdam, 14th-15th April 2011

Marcus Evans Conference

2

A well-respected, blue-chip

company for 120 years

Founded in 1891Headquartered in Amsterdam, the Netherlands

Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)33% of sales generated in emerging markets

Globally recognized brand (world top 50)Our brand value doubled to $8.7bln since 2004

119,000 employeesSales and service outlets in over 100 countries

€1.6 billion investment in R&D, 6% of sales50,000 patent rights – 36,000 registered trademarks –

63,000 design rights

3

Philips defined: we are…

“…a global company of leading businesses

creating value with meaningful innovations that

improve people’s health and well-being.”

Health and well-being

A commitment to healthy, fulfilled lives

in our communities and societies

our world

Meaningful innovations

Improving people’s lives

Going beyond technology

Introduced at the right time

4

Our focus on Health and Well-beingOur portfolio leverages critical global trends

4Rise of emerging

markets

Aging population

Increased consumer

empowerment and

sustainable lifestyles

Climate change and

sustainable development

5

Our Health and Well-being offer

is powered by 3 businesses

Healthcare

Lighting

Consumer Lifestyle

2010

6

Global trends

• Ageing population leading to an increase in chronic conditions

• Urbanization and rise of emerging markets leading to lifestyle

changes, fueling cardiovascular illnesses and respiratory and

sleeping disorders

Business priorities

• Move towards leadership position in Imaging Systems:

• At annual RSNA meeting, Philips unveiled “Imaging 2.0”,

a concept fueled by 8 breakthrough innovations

• Construction of healthcare R&D facility for Cardiovascular

X-ray equipment India

• Grow our Home Healthcare business:

• Increase awareness and treatment of Obstructive Sleep

Apnea (OSA) focused on emerging markets

• Strengthen leadership in Home Healthcare with the

acquisition of medSage Technologies LLC, a leading

provider of patient interaction and management

applications for home care providers

Healthcare

6

Healthcare

€8.6Billion sales

in 2010

35,000+People employed

worldwide in 100 countries

450+Products & services

offered in over 100 countries

1 2010 split

8%of sales invested in R&D

in 2010

Philips Healthcare

Businesses1 Sales & services geographies1

Imaging

Systems

Home

Healthcare

Solutions

Patient Care

and Clinical

Informatics

Customer

Services

North America International

45% 35% 20%

Emerging

Markets

39% 14% 21% 26%

8

Consumer Lifestyle

8

Global trends

• Consumers are increasingly focused on their

Health and Well-being

• The already substantial middle and upper income segments

of Emerging Markets are growing fast

• Back to basics: consumers want simple propositions from

trusted brands

Business priorities

• Accelerate growth in four defined value spaces:

Healthy Life; Personal Care; Home Living; Interactive Living

• Maximize Health & Wellness opportunity

• Invest and prioritize Asia-first innovations for local and

global markets

• Improve market shares in BRIC and key markets

• Take decisive action to bring TV to profitability

Consumer Lifestyle

€8.9Billion sales

in 2010


worldwide

€0.3Billion negative NOC

for TV end 2010

4%of sales invested

in R&D in 2010

1 2010 split 2 Other category (4%) is mainly license income and is omitted from this overview

Philips Consumer Lifestyle

Businesses1 2 Geographies1

Personal

Care

Health &

Wellness

Domestic

Appliances

Television Audio

Video

Multimedia

Mature

Markets

60% 40%

Emerging

Markets

13% 7% 17% 36% 13%

Accessories

10%

10

Global trends

• Ongoing urbanization and globalization

• Increasing need for energy efficient solutions

• Fast growing global illumination market, partly driven by

expanding renovation market

• Rapid adoption of LED-based lighting solutions worldwide

Business priorities

• Launch new professional solutions with specific emphasis on

being a leader in professional outdoor lighting solutions

• Substantially grow home lighting solutions business

for consumers

• Develop and market new forms of versatile and energy

efficient LED innovations

• Maximize the profitability of our conventional lighting business

Lighting

10

Philips Lighting

Customer Segments1

24% 17% 17% 11% 13% 5% 2% 3% 8%

Retail Entertainment Healthcare AutomotiveHomes Offices Outdoor Industry Hospitality

Lighting

€7.6Billion sales

in 2010


worldwide in 60 countries

5%of sales invested

in R&D in 2010

80,000+Products & services

offered in 2010

1 Indicative split

Saeco (2009)

Discus (2010)

Dynalite (2009)

Selecon (2009)

Ilti Luce (2009)

Genlyte (2008)

Lighting Technologies (2007)

Burton (2010)

Teletrol (2009)

NSW (2010)

Luceplan (2010)

InnerCool Therapies (2009)

Traxtal (2009)

Respironics (2008)

VMI-Sistemas Medico (2007)

Visicu (2008)

Emergin (2007)

Raytel (2007)

Tecso Informatica (2010)

Somnolyzer (2010)

CDP Medical Ltd. (2010)

Apex (2010)

Wheb Sistemas (2010)

Dixtal Biomedica e Technologia (2008)

Meditronics (2008)Alpha X-Ray (2008)

Medel (2008)

Shenzhen Goldway (2008)

Tomcat (2008)

Interactive Medical Developments (2008)

Lighting Consumer lifestyleHealthcare

Street Controls(2010)

Optimum (2011)

MedSage (2011)

Preethi (2011)

Emerging Markets

Our global reachFocused portfolio through strategic acquisitions*

* Strategic acquisitions since mid-September 2007 until January 2011

13

Regional

Cardio

vascular

Regional

Radiation

Oncology Systems

Global

Ultrasound

Unique leadership positions in many marketsCurrent NPS leadership positions1

Global

Patient

Monitoring

Regional

Home

Healthcare

Regional

Cardiac

resuscitation

1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally

Regional

Male electric

shaving & grooming

Regional

Blenders

Global

Mother and Child

Care

Global

Female

depilation

Global

Steam irons

Global

High Power

LEDs

Global

Juicers

Global

Lighting

Electronics

Regional

Power

Toothbrushes

Global

Professional

Luminaires

Global

LampsRegional

Consumer

Luminaires

Healthcare

Regional

Automotive

Lighting

Consumer

Lifestyle

Lighting

1 (Co)Leadership is defined as outperforming (>5%) or on par with best competitor, globally or regionally

Vision 2015Our ambition

Philips wants to be a global leader in

health and well-being,

becoming the preferred brand

in the majority of our chosen markets.

We believe Philips is uniquely positioned for

growth through its ability to simply make a

difference to people’s lives with meaningful,

sustainable innovations.

15

• Building on our legacy: Philips in its 120th year

• Targeting growth with Vision 2015 strategic plan

• Responding to fast-changing market conditions

• Continuing people-focus:

• Highly engaged Philips people

• Seamless transition to new management

• Strong relationships with customers

• Continued creation of meaningful innovations

Looking forward

Leveraging Digital Marketing

and Social Media

Session:

The Measurement Talk

Amsterdam, 14th-15th April 2011

Marcus Evans Conference

Survey, let’s have a show of hands

Key Questions in Social Media?

18

• Is your company ready for Social Media?

• Is your Consumer Care department ready for Social Media?

• Is your Consumer Care Social Media Operation effective?

http://go2.wordpress.com/?id=725X1342&site=denisewymore.wordpress.com&url=http://denisewymore.files.wordpress.com/2010/09/raised-hands.jpg&sref=http://denisewymore.wordpress.com/2010/09/07/raise-your-hand-if-you-were-a-teller/

19

Social Media actively used to create brand

preference for Philips

Waking up an arctic town

Promotional material of campaign in The Netherlands

20

Radio Print Special OOH

Online Advertorials

OOH

Online Banners

In Store

Blogs

Websites

Facebook

YouTube

21

In the Netherlands, only small increase in

consideration, but significant increase in brand

preference.

94

66

41

75

1525

15

94

70

45

82

21 2618

Awareness Familiarity Consideration Preference Purchase

Intent

(unpriced)

Ownership Retention

Base: Pre-wave (150); Post-wave (650)Sig Diff @ 95% or above

Pre-wave

Post -wave

22

A traditional purchase funnel no longer accurately

represents the way consumers interact with

brands.

Source: http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/The_consumer_decision_journey_2373

23

Consumers are moving outside the purchasing funnel -

changing the way they research and buy your

products. Change in approach is a necessity.

The consumer decision journey

The consumer

considers an initial

set of brands, based

on brand perceptions

and exposure to

recent touch points.

1

Consumers add or

subtract brands as

they evaluate what

they want.

2

Ultimately, the

consumer selects a

brand at the moment

of purchase.

3After purchasing a

product or service,

the consumer builds

expectations based

on experience to

inform the next

decision journey

4

Ratings

&

Reviews

Commun

ities

Registrat

ion

Facebook

.com

Syndi-

cated

Content

Ratings

&

Reviews

WoM

searchMobile

Care

Ongoing

CRM

24

Consumer Care Online

>50 countries

>30 languages

>30 million web visitors

>150 million page views

>15 million software downloads

>250 thousand surveys

60.000 products supported online

worldwide

7 business product groups

>30 product categories

Millions of interactions via repairs &

exchanges

Consumer Care is dealing in a complex environment

dealing with high volumes of consumer interactions

Global Consumer Care

Ad Hoc

CRM/Loyalty

Programs

Multiple

consumer

databases

Global Service

Network

13 Different

Reporting

7 Different Case

Mgt / CRM

Systems13 Different

KPIs/SLIs

Over 130

Local Contact

Numbers

Direct Link

between

Web and CC

Standardized

Training

Multiple

Insourced Call

Center Ops.

3 Service

Networks used

for Call Center

10 Call Center

Vendors

Standardized

Feedback

Process

7 Philips

Online Shops

Consumer Care, March 24, 2011 25

A change to our traditional strategy was needed to

adopt to new channels

Social

Web

Social

Owned

Guidance in CC funnel

Share knowledge

Co

ns

um

ers

ap

pro

ac

hin

g P

hilip

s

wit

h a

re

qu

es

t o

r p

rob

lem

26

Become organised to support our social media

strategy

DEDICATED LOCAL X-FUNCTIONAL TEAMS

WebCareTeam

Country Internet Manager

PR agentConsumer Experience Manager

Local Community

Manager

CENTRAL SETUP

Digital Marketing Manager

PR Manager

Consumer Care

Social Media Manager

Flagship Community

Manager

Social Media

Taskforce

In-house resource &Agencies

In-house resource &

vendors

7 BUSINESS PRODUCT GROUPS

MBRMin planning


Social Media objectives as extension

on Consumer Care directives

Aim is to have a sense and simple plan on global and local levels to execute on NPS & Cost of non-quality by

• Fast product quality feedback• Web content enhancements (outside-in)• Interaction & escalation management

Social Media

Objectives


Guidance to our contact channels–

Integration of chat on 3rd party platforms

http://www.prisjakt.nu/produkt.php?p=599262


Clear roles to reinforce the brands with every

consumer interaction

TVad

Radioad

Printad

Papermail

Email Website

KioskStore IVR Callcenter

Product

Communicate image

by

Marketing

Deliver value

by

Consumer Care

Social Media Channels

Making promises

Keeping promises


Guidance to our contact channels –

Facebook


First Listen, then engage on Talking with and

Supporting of our consumers


Driving NPS & GCR by improving web

content from consumer feedback

Consumer Data

NPS Feedback & Call logs

Social Media Comments

Analysedata

Topics & Issues

Webcontent

FitGap

Create &

Improve Content

Availability

Successfulness

NPS GCR

Manually


Converting heavy negative detraction

into positive sentiment

OHC - US & UK>600 relevant social comments

and consumer feedback comments

from >1500 websites/domains

and from >6000 call logs/NPS

free texts converted into 25 new categorized FAQs

NPS Oral Health Care (3 months rolling)

0%

Content

updates


Assisting our consumers through our

support forum by talking and supporting


2 Net TV server

outages cause peak

visits

Some Facts & Figures:• Language = English;

• Net TV & Blu-Ray

• Rolled out to WE & RU;

• >150.000 visits since July 2010;

• > 900 visitors per day;

• 3.5 minute per visitor, visiting 4 pages;

• > 1200 registered users;

• 15% of Net TV connected users in NL have been

on the forum!

• NPS Measurement in place

>50% of questions solved by consumers

Objective:

Drive peer to peer resolution to

support our contact strategy and

enable fast feedback on software

and services


... lead by strong brand promoters

Super promoter “Toengel” supported 100+ members

Consumer Care, March 24, 2011

37

Global guidance and enablement

Local empowerment and execution


Example: QQLQ #1 in best handling

consumer complaints - The Netherlands

In the period January to November 2010

Best complaint handling

1. Philips (3,4)2. Tele2 (3,0)

3. Wehkamp (2,8)

Fastest (within 24 hrs)

1. Tele2

2. TNT Post

3. Wehkamp

Most complaints:

1. Ziggo (1.691)

2. TNT Post (1.528)

3. UPC (1.245)

Worst complaint handling

1. Oxxio (1,5)

2. Nederlandse Energie Maatschappij (NEM) (1,6)

3. Neckermann Reizen (1,7)


Many other local initiatives, supported

through global guidance and global enablers

Using globally deployed tools

• Google Alerts

• Sysomos

• Oxyme

• Scup

• Tipyo

• Siebel

• Etc.

and many more


Simple KPIs to measure effectiveness of local Social Media

Operations

KPI Explanation of KPI Example Improvement

Digital Sentiment Indicator (DSI)

Monitor the digital sentiment, using the number of positive, neutral and negative comments.

Currently being set up, data not yet sharable

Avg FQF Turnaround Time

Monitor the performance of the Fast Quality Feedback via social media

Global Escalations

Improved from weeks to hours

% of Solved Questions by Community

Monitor the power of the community on Social Owned and Social Web

Support Forum >50% of questions answered

NPS on interactionsThe successful completion of conversations/interactions with consumers in NPS per transaction


Webcare Sentiment Indicator

The successful completion of conversations/interactions with consumers in sentiment score (per channel)

Brazil>50% of negative sentiments converted into positivesentiment

Web Traffic Volume

Monitor the impact of social media platforms that increase web traffic volume in specific channels (i.e., Support, Online Sales)

Facebookpages

>35x more traffic from Facebook after improvedintegration

KPI Explanation of KPI Example Improvement

Digital Sentiment Indicator (DSI)

Monitor the digital sentiment, using the number of positive, neutral and negative comments.


Avg FQF Turnaround Time

Monitor the performance of the Fast Quality Feedback via social media

Global Escalations

Improved from weeks to hours

% of Solved Questions by Community

Monitor the power of the community on Social Owned and Social Web

Support Forum >50% of questions answered

NPS on interactionsThe successful completion of conversations/interactions with consumers in NPS per transaction


Webcare Sentiment Indicator

The successful completion of conversations/interactions with consumers in sentiment score (per channel)

Brazil>70% of negative sentiments converted into neutral or positive sentiment

Web Traffic Volume

Monitor the impact of social media platforms that increase web traffic volume in specific channels (i.e., Support, Online Sales)

Facebookpages

>35x more traffic from Facebook after improvedintegration


Our answers to the questions

41

• Is your company ready for Social Media?

• Is your Consumer Care department ready for Social Media?

• Is your Consumer Care Social Media Operation effective?


Special

training

toolkit for

everyone

involved with

consumer

interactions

43

Thanks for your attention