retaining and increasing brand loyalty and reputation
TRANSCRIPT
Retaining and Increasing Brand Loyalty and Reputation Carlos de Castro Head of Quality, BG Coffee, Consumer Lifestyle June 2011
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Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand & Converting Detractors
We are a global company of leading businesses creating value with meaningful innovations that improve people’s health and well-being
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Founded in 1891 Headquartered 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 employees Sales and service outlets in over 100 countries €1.6 billion investment in R&D, 6% of sales 50,000 patent rights – 36,000 registered trademarks – 63,000 design rights
Enabling health and well-being Where we live, work and play
Philips Healthcare Philips Lighting Philips Consumer Lifestyle
36% 34%
30%
The world’s 42nd most valuable brand in 2010 Brand value doubled since 2004
4.4
5.96.7
7.78.3 8.1
8.7
2004 2005 2006 2007 2008 2009 2010
A strong brand drives sales A significant amount of sales is attributable to the brand alone: • Healthcare 29% • Consumer Lifestyle 24% • Lighting 21%
High brand value growth With 7% in 2010, Philips outpacing the average value increase of 4% shown by other brands Strong internal brand 82% of employees are “proud to work for Philips”
Value of the Philips brand* USD billions
* Source: Interbrand Brand Valuation 2010
Consumer Lifestyle
€8.9 Billion sales in 2010
17,000+ People employed worldwide
4% of sales invested in R&D in 2010
Philips Consumer Lifestyle
Businesses Geographies
Personal Care
Health & Wellness
Domestic Appliances
Television Lifestyle Entertaine
ment
Mature Markets
60% 40%
Emerging Markets
Coffee
A strong position in emerging markets
Emerging markets represent 33% of sales Target 2015 at least 40% High corporate brand equity1 Consistently among the top-ranking players: India: top 10%, China: top 10%, Russia: top 40%, Brazil: top 10%
Championing growth with dedicated strategies Based on local market insights, supported by increased marketing investments
1 Source: Consumer Heart BEAT brand equity study 2010
Creating meaningful innovations Improving lives in new ways
Gain deep insights by requiring end-user input at every stage Transform insights into innovations by combining the different disciplines “Learn fast, fail cheap” by assessing value potential early Lead in open innovation by working in a spirit of open innovation
Some of our great coffee machines
06/07/15
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Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand & Converting Detractors
Close customer relationships
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Leader22%
Leader35%
Co-leader29%
Co-leader24%
2008 2010
59%
Customer loyalty is fundamental to growth and profitability We monitor our effectiveness with the Net Promoter Score based on a simple question: “Would you recommend us to a friend or colleague?” Delivering the WOW Maintained strong Net Promoter Score with 59% of our businesses holding industry leadership positions, up from 51% in 2008
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Consumer Care: 450 Philips Employees and 4000+ Outsourced
1. Web
2. 15 Call Centers
3. Parts WHS
4. Repair/Exchange Shops
5. Claims
6. CRM & Loyalty Campaigns SBE + 2000 others
PHILIPS
“WOW, Philips is making it easy-to-buy”. “WOW, Philips really values
me as a customer…”
“WOW, they just sent me a new one..”
“WOW, this agent was really helpful…”
“WOW, that was excellent service…”
“WOW, they really understand my problem”
“WOW, they fixed my TV same day…”
What Does Great Care Feel Like?
Detractor 0 to 6 NEUTRAL 7 & 8 Promoters 9 & 10
How to measure the WOW? The Power of NPS
What did we learn with NPS?
+ Speed and cost balance
Understanding expectations
+ Focus and accountability
Internal use only
Cost and Speed
Managing the consumer throughout the “funnel”
Accountability
Awareness and knowledge must be translated in “win promoters plans”
People focused
Consumers expectations are universal
Understanding
What did we learn with NPS?
German Consumer “Extremely competent, very friendly and understandable
advice”
Spanish Consumer “Speed in the response. No
silliness (that usually happens in other technical telephone
services)”
French Consumer “Listen, speed, skill, kindness”
Dutch Consumer Thinking, customer service and
solutions
US Consumer “Friendly, helpful service”
Chinese Consumer
“Hotline staff able to answer customer questions quickly”
Russian Consumer “Clear Answers”
What did we learn with NPS?
Understanding
First Time Right delivers the WOW and the costs
What did we learn with NPS?
Cost and Speed
Consumer Care automated NPS dashboard
Monthly automated reporting • 60 tailored report types in
PDF • Automated production &
distribution • >100 owners recipients
On-line access • Easy Extract Tool • Daily update • Single source for analysis to
drive improvement (PDCA)
Accountability
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Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand & Converting Detractors
Consumer Experience Planning
“Whenever and however I
contact Philips I get the same impression”
“However I contact Philips I get the same informa+on”
“Whichever channel I use, people are
always informed about my past interac+ons
(good and bad) with Philips”
“Whenever Philips contacts
me, I get a relevant message”
“Whenever Philips contacts me, there is
something in it for me”
Our strategy from our consumer’s perspective
How do we work together with MarkeGng? What We Need from
Marke/ng What We Do With It
• Value ProposiGon
• Product strategy
• MarkeGng strategy
• Global MarkeGng AcGvaGon Plan
• Local MarkeGng AcGvaGon Plans
• Consumer journey mapping to understand best approach from the consumer perspecGve
• Develop recommended consumer care strategy and service strategy
• IdenGfy channel capabiliGes and the best way to realize objecGves
• IdenGfy CRM opportuniGes
• Develop a proposed approach for driving consumer product registraGons
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Example of Colaboration MKT-Consumer Care: Robust Collection – range of high end Kitchen Appliances introduced in Germany/Austria, France, UK and Russia in September 2009 and in Italy, Spain, Portugal, Netherlands, Belgium, Norway, Sweden, Greece in March 2010
Euro 399
Euro 149
Euro 349 Euro 299
Euro 219
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Outline
• Who we are
• Measuring & Focusing
• Targeting & Reaching
• Safeguarding the Brand & Converting Detractors
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• February 2001 -‐ introducGon Senseo
• Unique partnership with Sara Lee (currently 17 different Senseo coffee pods)
• World wide sales reaching almost 25 million appliances
• In Netherlands > 6 billion cups of coffee sold
• Since 2008 produced in Poland, conGnuous renovaGon
Senseo Latte Select • First Senseo which can make fresh milk recipes!
• One of the growth drivers for Coffee
• Launched in testing countries in Sep 08
• Introduction in two waves in four countries
• NPS triggered Kaizen workshops and DFSS projects
• Consumer feedback is very positive
Highlight details: Senseo Latte Select NPS Team
Actions led by the NPS team
• NPS team involved all areas on a common approach and using Design For Six Sigma methodology
• Continuous Improvement based on Consumer Feedback: – Construction improvements on “easy to clean” – Intense communication to consumers: call center,
dedicated Senseo website, in-box communication, letters from service centers
• Design Improvement: – New technological solutions for milk frothing – Applied not only in this product but expanded to
automatic coffee machines
