The document discusses strategies for building customer loyalty through digital engagement. It advocates for a consumer-centric loyalty program that develops long-term relationships through personalized communication across multiple touchpoints. The key aspects of a successful loyalty program highlighted are developing personal relationships with customers over time using emotional and engaging communication tailored to individual profiles and preferences.
Marel Q1 2024 Investor Presentation from May 8, 2024
Loyalty adtech final-email
1. Loyalty in the digital world
How to drive engagement ?
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3. ✗ ✗ ✗
Data Rewards Points Systems
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5. Do you really need my birthday date ?
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6. ✗ ✗ ✗
Design Emails Products
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7. Do you CARE ?
do you KNOW me ?
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8. Is about Engaged Through
Consumers over Time Multiple
Touch points
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9. Consumers engaged over time
Supporting pillars
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10. A Successful loyalty program
RELATIONSHIP PERSONAL
ENGAGEMENT LONG TERM
TONE EMOTIONAL
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11. Create a relationship with customers
PERSONAL
Meet Date Learn Wedding
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12. ✗
Our job goes beyond pushing
Choose what you
want !
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13. First contact matters the most !
FIRST CONTACT
FIRST IMPRESSION COUNTS
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14. Use each interaction to learn more
First interaction
Updated
Communication
communication
Modification of
Consumer Consumer action
information
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15. 1:1
Personal is Personal…:=)
You pretend Talk to me
you know me personally
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16. LONG TERM
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17. Maximize your assets
Cost of Retention Cost of Acquisition
17
8x
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18. The more you engage,the more we know
you
Interactions Profile Update Communication
• Website activities • Offers
• Product purchased • Normal messages
• Profile
• Interactivity to eDM
• Products registered
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19. Relationship level
A personal relationship takes time
Desired State
Time
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20. EMOTIONAL
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21. Moving to an emotional connection
• Feedback loop
• Comments
• Sharing
• Diversify offers • Coming back
• Emotional product Step 3
• Engagement
• Selected message activities
• Selected product Step 2
• Personal
communication
Step 1
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22. Adding social elements in Loyalty
LOYALTY PROGRAM SOCIAL MEDIA
• OFFERS • COMMENTS
• POINTS • SHARING
• PRODUCTS
Allow exchange • FEEDBACK
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23. Successful Loyalty program
Consumer centric
Long term relationship, like in a wedding
Multiple touch points
Personal relation and communication
Emotional communication going beyond products
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25. Family Rewards (Philips internal video)
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26. Large company issues : Product approach
One company
Sectors Sectors Sectors Sectors
BU BU BU BU BU BU BU BU BU BU BU BU BU BU
PRODUCTS
Confused
? ? ? ?? Non relevant
Consumers offers
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27. Our approach
CONSUMER
PROFILE
PRODUCTS
On need basis only
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28. Answering traditional issues
CONSUMER
Philips Family rewards core principles And not (only)
✔ …is at the center of the discussion Products
✔ … is engaged in a dialog between consumers and Philips. Push message
✔ … interacts with Philips and leaves feedback Be spectator
✔ … receives information based on his profile, his wishes and his Non relevant
communication
relation
… is engaged with Activities Products or sales
✔
… is contacted personally with customized content Generic offers
✔
✔ … receives product offers if relevant to his profile Non targeted offers
✔ … is addressed based on his channel preference Mono channel
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29. Singapore insights
✗ ✔ ✔
FOOD REBATE FAMILY
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30. Applied to Philips Family Rewards
• Immediate $50 offer when you register
• Direct rebate on your next purchase
• Reward for every action
• Doubles up as Product Registration
• Family centered program
• Benefits can be shared among
members
• Rebates can be shared among
members
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31. MEASURING SUCCESS OVER TIME
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32. Concretely for the first three months
Interest Activation Engagement
JOIN USE ACTIVE
Members # # Products Registered Coupon
Redemption
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33. Communication rules
FREQUENCY HISTORY MESSAGE
No spamming Systematic Systematic
or overload learning personalized
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34. How does it work ?
FIRST interaction SUBSEQUENT activities
Consumer Current product New purchase Activity
Program Warranty Warranty
registration registration registration
POINTS POINTS
= =
DIRECT REBATE DIRECT REBATE
CREATE VOUCHER CREATE VOUCHER
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35. Long term relationship creation
Any kind of action
PROFILE PROFILE
UPDATE UPDATE
Improved
Communication
Communication
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36. 4 kind of digital communication
Non members Members
Invitation e-mail Transactional Booster Monthly
• Drive new • Automatically • Automatically • Activities
registrations generated generated • Offers based on
• Increase • Interaction with • Reminder profile
awareness the site • Relationships
• Personalized • Personalized
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37. Transactional email example
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38. Sequence of events
GO Creative Test Launch Booster
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39. One Shot to make it right
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40. Test of eDM on 10% Database
4 different target audience
Total Philips 3 different headers
Database
Personalize message
118,318 Personalize offer and copy
10%
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41. 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 Monetary Program Benefits
Objectives
Theme
Family Concept Instant gratification Program based
Special Invitation Just for
Get Instant $50 Savings Register Your Philips
You –
with Products for Exclusive
Text
Join the Philips Family
Philips Family Rewards Benefits!
Today!
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42. Dedicated approach per audience
1 THEME
1 CREATIVE
CUSTOMIZATION MESSAGE
Product Warranty Club Philips Generic no info
8,500 17,500 36,000 54,000
Product Name Name Generic
Name Member
Register product account Activation Register Register
Product mention Benefits driven Invitation
First Name Club Philips reward
Number of Points Updated program
Loyalty
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43. Family Picture : Concept
Clear CTA : Register Now
Personalized benefit
Personalized copy
Actual Product (if needed)
Actual Points Numbers (if needed)
4 key messages linked to the
program
CTA Reminder
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44. Invitation results
Creative Test Actual Invitation Launch
10% database 90% remaining
3 Headers Selected Headers
4 Target Groups 4 Target Groups
Personalized message Personalized message
YTD Target YTD Target
Delivered 8,324 Delivered 74,792
Open 32.33% 18% Open 42.28% 18%
CTR 13.38% * 5% CTR 14.16% 5%
Members 438 Members 3,134
Total 530 (inc 92) Total 3,664
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45. Convert the lost sheep….:=)
First Communication # Register
STOP
Booster
Address that audience specifically
Focus on the Stopping point (where)
Address their specific need
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46. Addressing non completed profile
Customer selection Message
Header with clear objective
Same template , different message
Family Immediate benefits not achieved
Rewards Update Call To Action
Members
Who did not Personalize based on preferences
complete known
profile
43%
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47. Same template
Clear CTA : $50
Reinforce message
Personalized copy
Same key messages
Recall on Key CTA
CTA Reminder
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48. Dedicated action to push redemption
Customer selection Message
Header with clear objective
Same template , different message
Family Immediate rebate not redeemed
Rewards Update Call To Action
Members
Who did not Personalize based on preferences
use vouchers known
Example of real product you can
afford based on your profile
57%
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49. Same template
Clear CTA : Use your voucher
Reinforce message
Personalized copy
Leverage same message
1to1 offer, based profile
CTA Reminder
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50. Follow up emails
Not completed profile Benefit boosting
Same Database Same Database
Only people who did not Only people who have points
complete their profiles Personalized message
Personalized message 3x
4x
YTD YTD
Delivered 1,861 Delivered 2,438
Open 67.76% Open 72.6%
CTR 67.49% CTR 55.21%
Profile completed 492
Coupon 222
Total 3,664
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51. Launch is a success
Jan March April June July December
Launch Phase Ramp up Sales driven
Target Q1
✔ Members
Visits
1,140
11,400 17,084
5,883
• Internal DB
• Recruitment
Products Reg 200 3,522
• Proven concept
Vouchers
Redeemed 50 153
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52. Time to start Monthly communication
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53. 3 Main Themes
24 modules
1200
combinations
6000 edM
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54. Main offer
• Test Drive LCD LED
• Test Drive Garment Steamer
• Birthday offer
Product Key action
• Register your products
• Redeem now
Points status – Personal Cash Points and Family Cash Points
Products – 3 products Member status
• Baby Care • Complete your
• Culinary Registration
• Grooming • Refer to a friend
• Lifestyle • Update your profile
• Sound And Vision
• Home and living
• Healthy Living
News
• Baby Care
• Culinary
• Grooming
• Lifestyle
• Sound And Vision
• Home and living
• Healthy Living
• Generic
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55. April edM
April eDM
Entire Database
2 Main themes
1200 variations
Personalized message
YTD
Delivered 6,610
Open 53%
CTR 25%
TV test 30%
Garment Test 19%
Birthday 13%
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56. And measure their involvement
• Are family members more engaged than normal consumers ?
• Do they recommend the brand more ?
• Do they spend more ?
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57. YES : NPS is higher (recommendation)
+83.43%
+24.59%
Passive members Active Members
Survey made in April on 626 consumers. Based on your experience with the brand, how likely will you recommend
Philips to your firends
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58. Are they more active ?
Generic email Family Rewards members
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59. YES : involvement is higher
Specific Carnival eDM
Family members 53%
One to One offer
Personalized message 42%
30%
YTD
Delivered 11,025
14%
Open 53%
CTR 30%
# purchased 370
Normal eDM Family Rewards
Value $95k
Open rate CTR
Comparison made between Family Rewards members and none Family members
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60. 4 times more efficiency than Average
PHILIPS CL Average FAMILY REWARDS PROGRAM
53% 50%
42%
34%
30%
25%
18% 14%
12%
3%
Average CLS Invitation April eDM May eDM Carnival
Open rate CTR
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61. 10k members, 9k product registered
12000 Online
POS warranty May eDM
11000 deployment redirection
Booster email
10000 Invitation email
9000
Creative Test
8000
7000
6000
5000
4000
3000
2000 Members
Product registered
1000
0
27-Jan 3-Feb 10-Feb 17-Feb 24-Feb 3-Mar 10-Mar 17-Mar 24-Mar 31-Mar 7-Apr 14-Apr 21-Apr 28-Apr 5-May 12-May 19-May 26-May
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62. Integrating social Media
PERSONAL
SOCIAL MEDIA
COMMUNICATION
• Offers Feedback •
• Information Rating •
• Promotion Comments •
Registration •
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63. Login with Facebook Connect
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66. Twitter : Instant information + link to FB
5000 Friends
WALL POST
COMMUNITITY
MANAGER
CONSUMER
67. 5000 Friends
WALL POST
PHILIPS FAMILY REWARDS
5000 FOLLOWERS
FB CONNECT
AUTHENTIFICATION
FACEBOOK BLOG COMMENTING
DATABASE
F5 Community
Manager
500 Friends
CONSUMER NEWS CONSUMER PROFILE
FEED
1000 FOLLOWERS
CONSUMER
PLUGGED-IN
LEGEND:
PRODUCT POST
BLOG POST
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67
68. Launch and Engagement are success
Jan March April June July December
Launch Phase Engagement Sales driven
✔ ✔
• Internal DB • Starts discussion • Generate Xtra Sales
• Recruitment • Social Media • Regional
deployment
• Proven concept • NPS
• Multichanel
• Create relationship
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69. Conclusion
Is about Engaged over Through
Consumers Time Multiple Touch
points
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70. Visit us
www.philips.com.sg - www.familyrewards.philips.com.sg
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71. For more information
f5dc http://bit.ly/aEmARR www.f5dc.com
gregbirge gregory.birge@f5dc.com
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