New Approach to Loyatly

Refreshing approach to Loyalty

Family rewards study case
DMAS – 23 Feb 2010
Gregory.birge@f5dc.com +65 9111 6849 WWW.F5DC.COM

2 2/24/10 @ F5 Digital Consulting - Reproduction forbidden without formal written consent.

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Data Rewards Points Systems

WWW.F5DC.COM


Do you really need my birthday date ? Do you really need my first name ?


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6
Design
2/24/10
Emails
@ F5 Digital Consulting - Reproduction forbidden without formal written consent.
Products

Do you CARE ?
do you KNOW me ?

WWW.F5DC.COM

Is about Engaged over Through
Consumers Time Multiple Touch points


Supporting pillars


VIDEO


House and Families
Consumer perspective Philips perspective

Individual Relationship Large Product Portfolio

Family Engagement Irregular Purchase Cycle

One pool of benefits Cross Sales / Up sales

Registration incentive

Direct rebate on next
product purchase


Make the consumer life easy
Relevant communication with consumers

Design Around You Easy To Experience Advanced

Complex hidden mechanics to achieve simplicity

Reaching personal Clear offer and
Console / Dashboard
communication benefits

Leverage your current Measurements of all
Team engagement
relationship with us actions

Testing and maximizing
Tracking and Learning Front end / back end
contacts


Easy to experience

First Philips purchase Enroll and register the Choose a product to Redemption at
product redeem Experience Showroom

  Purchase Philips product  Enroll , complete your profile   Pre selected list of product   Collection at Philips
Showroom
 Eligible for Family Rewards  Register your product  Direct rebate based on his
point level
 Browse and discover
product , offer, news  Points can be shared
 Product redeemed at Philips

14

Designed around you

Website Variables

History
Interest
Points
  Sense and Simplicity
  Design,
  Benefits, Offers, News Products
  My account…

15

Designed around you

Redeemable Products News

eDM communication

16

Advanced
Growing the relationship

Profile Based History Based Event Based

  Engagement email based on source of
Database

  Past Product purchase

  Adoption stage of the program

  Testing communication

  Measurement and Learning

  Marketing and feedback platform
  Feedbacks and opinion with
  Engagement Platform


How do we measure success ?

Long Term relationship
  Sales Impact
  NPS


Concretely for the first three months

Interest Activation Engagement

JOIN USE ACTIVE

Number of Members # Registered Products Redemption of Coupon
# Completed profiles

In less than 20 days vs Q1 target
INTEREST INTEREST ACTIVATION

members Total Page Views of Philips.com.sg Registered products

128%

64.28%
31.22%
Members Target end Q1 Visit Target end Q1 Target end Q1


$0*
External Communication

21 2/24/10 @ F5 Digital Consulting - Reproduction forbidden without formal written consent. *Only Internal Database communication

Sequence of events
GO Creative Test Launch Booster


One Shot to make it right


Test of eDM Before deployment
  Test subject line on 10% sample
  Apply best result on remaining 90% to
maximize result

Total Philips Database
 4 different target audience
118,318
 3 different headers

10%

One invitation : 4 key messages
1 THEME
1 CREATIVE
CUSTOMIZATION MESSAGE
Product Warranty Club Philips Generic Generic no info
8,500 17,500 36,000 54,000
  Product registered   Name   Name   No Name
  Name   Member of Club Philips
Info
Customization

  Register product   Activation of the account   Register now   Register now
  Product mention   Benefits driven   Simple Invitation with name
  First Name   Club Philips reward
  Number of Points   New Loyalty program
  Loyalty


One invitation : 4 key messages


Test invitation
  Family Picture : Concept alignment

  Clear CTA : Register Now for the new program

  Personalized message based on Target Audience

  4 key messages linked to the program

  CTA Reminder


Testing headers to avoid SPAM

80% of all emails received are considered as SPAM


Maximizing the edM headers
Target Group 1
Target Group 2
Target Group 3

Target Group 4

Test Header 1 Test Header 2 Test Header 3

Generate envy to be part of the program Emphasize the immediate rebate offer Create Loyalty , long term relation
Theme Objectives

as being part of a family Trigger value for money concept Generate values based on the program

Family Concept Instant gratification Program based

Special Invitation Just for Get Instant $50 Savings Register Your Philips
Text

You – with Products for Exclusive
Join the Philips Family Today! Philips Family Rewards Benefits!

Test result CTR varied by 45% max

Eligible Warranty 14.3% CTR Lift of + 38.8%
Product Focus
Register Your Philips Products for Exclusive Benefits!
Special Invitation for You. Join the Philips Family Today!
Club Philips
Loyalty Focus 15.7% CTR Lift of +1.3%
OCDB With
First Name 14.6% CTR
Reward Focus
Lift of +37.7%
Extract Philips Database OCDB Without
First Name 7% CTR Lift of +45.8%
10k

Results
Creative Test

  3 Headers
  4 Target Groups

3664
YTD Target 3418
3134
Delivered 8,324
Open 32.33% 18%

CTR 13.38% * 5%

Members 438
Total 530 (inc 92)
530


Final invitation

Eligible Warranty
Product Focus
Register Your Philips Products for Exclusive Benefits!
Club Philips
Loyalty Focus

OCDB With
First Name
Reward Focus

OCDB Without
First Name

Results
Creative Test Launch

  3 Headers   Selected Headers
  4 Target Groups   4 target Groups
  Targeted message
3,664 3664
YTD Target YTD 3418
Delivered 8,324 Delivered 74,660
Open 32.33% 18% Open 39.22%
CTR 10,72%* 5% CTR 11.62%
Members 438 Members 3,134
Total 530 (inc 92) Total 3,664


Lift based on choice of successful test
Lift from Test

+13.4% +20.1% +6.5%
Total CTR from eDM
20.00% 18.50%
18.00%

16.00% 15.40%

14.00%
13.40% 13.20%
12.40%
11.50%
12.00%

10.00% 10% test
8.00% 90% Blast
6.00%

4.00%

2.00%

0.00%
Warranty Club Philips OCDB First name


edM campaign efficiency measurement

x 2.3

Family Rewards

39.22% x 4.1
Philips Average
18% Family Rewards

Philips Average 2.8%
11.6%
Open Rate Click Through Rate

Next ?


1st thing to do to increase Members
First Communication # Register

STOP

Booster

 Address that audience specifically
 Focus on the Stopping point (where)
 Address their specific need


In our case
First Communication # Register

3,336

43% members 57% members
with non did not use their
complete profile first coupon

Booster 1 Booster 2


Booster one : Incomplete Profile
  Strong Header : One stop Away from $50
  Clear CTA : Reinforce above Header
  Familiar Visual : Ease the opening

  Conditions : What is missing and how to get it

  Personal Greeting and text

  Identical key benefits

  Updated CTA in line with overall message


Booster two: Enjoy your direct saving
  Strong Header : Rebate driven
  Clear CTA : Reinforce above Header
  Familiar Visual : Ease the opening

  Conditions : Explain the availability of the coupon

  Strong focus on the saving (top left corner)

  3 concrete proposal based on profile / best purchase
  Product Example
  Saving example


Results
Creative Test Launch Registration Booster Engagement Booster

  3 Headers   Selected Headers   Profile not completed   Use your benefits
  4 Target Groups   4 target Groups   1 Message   1 message
  Targeted message
YTD Target YTD YTD YTD
Delivered 8,324 Delivered 74,660 Delivered 1,459 Delivered 1,877
Open 32.33% 18% Open 39.22% Open 74.81% Open 84.28%
CTR 13.38% * 5% CTR 11.62% CTR 59.3% CTR 43.26%
Members 438 Members 3,134 Profile 19
284
completed =50%
Total 530 (inc 92) Total 3,664 Coupon
total
Total 3,664
coupons

* Inc

Start of event driven Communication
Take benefits of potential CNY purchase

  CTA based on Program mechanics

  Conditions : Re Explain the registration and benefits


  3 concrete proposal based on profile / best purchase
  Product Example
  Benefits based on registration

  Family concept reminder


Short Term engagement plan
Day 1 Day 3 Day 10 Day 17 Day 24 Day 31 Day 38 Day 45 Day 52 Day 59 Day 66

Enrollment Register past Drive Referral of Get feedback
confirmation 3 months product friends
purchases sales

Visit Family $50 Cash Drive $50 cash
Rewards redemption products redemption
website sales
Enroll family $50 cash
members redemption

Features enhancement Updated Engagement Modules Deployment

1 to 1 Multi Channel environment


Conclusion

Is about Engaged over Through
Consumers Time Multiple Touch points


Next Steps
Launch + Concept ✔ Financial Success

  Careful planning of Customer Journey
  Driven by Customer Benefits
  Extensive testing of communication
  Simple, Clear and Honest
  Customized Engagement See You in Q4 10


www.philips.com.sg
www.familyrewards.philips.com.sg


THANKS

Gregory.birge@f5dc.com +65 9111 6849 WWW.F5DC.COM

New Approach to Loyatly

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