A case for increased trial rates via personalisation and database management. The printed mailing achieved six times higher scores on "intention to act" than an email. Proving the value of a printed document.

1. Personalisa*on
to
Support a launch : generate Trial

2. OVERCOME BARRIER
PERSONALISED USP’s

3. Consumer insights
Barrier to trial …
• Against electrical toothbrush
• Manual are more effec*ve
• Effec*veness come through good tandpasta
Reasons for using it…
• Transi*on (from together to alone)
• Minimum brushing *me (3 min)
• Month hygiene (good brushing process)

4. 1:1 approach
2 levels of personalisa*on…
LEVEL 1 LEVEL 2 AND..
Overcome barriers Product introduc*on Call to ac*on
Through specialists Through specific USP’s

5. 1:1 aproach
2 levels of personalisa*on…
WELCOME LEVEL 1 LEVEL 2

6. 1:1 approach
2 levels of personalisa*on…
WELCOME LEVEL 1 LEVEL 2

7. 1to1 Lab process
Philips 1to1 Lab – Sonicare for Kids
Recruitment & qualifica6on Ac6va6on
1to1 Email (1,3K)
Segmenta*on
Esurvey
Philips OCDB
(100K)
Recruitment
Qualified &
Unique DB Email 1to1
Segm. DB
Layou*ng
(3K) 1to1 DM (1,3K)
Op6nio
Ext. DB
(15K)
Mktg
Call center
efficiency
Coupon/Lego
Page 7 Sales / ROI
redemp*on

8. Email & Esurvey Recruitment
Learnings
• External DB =
8 x Philips DB
• Low in*macy between
Philips and consumers
• Email satura*on p. 8
Page 8

9. Marke6ng efficiency
Recall Recall
Intent to
having Opened it Read it content
act
received it (content or
message)
“Do you remember “What did you do with “Can you describe “Do you have the
receiving a DM?” the DM?” the DM?” inten;on to react?”
• Paper ‐ Total
81 86 70 96 67 90 60 64 39
n=200
• E‐mail ‐ Total
19 89 17 97 17 58 10 63 6
n=200
% of respondents (n=200) – 100% of the respondents
• Average
nB2C=33 68 45 40 36 22
• Average 63 89 88 58
nB2C=33
Page 9

10. Marke6ng efficiency
Strong
activation case
Efficient
Limited recall
mailing
Strong recall
case
Limited
reaction level
Activation rate
E-mail Paper
Average
(48.4%)
Improve
Do it again
attention
Improve action
Average (67.3%)
Recall rate
Activation rate = 50% * intention to react (base=people having read mail) + 50% * intention to purchase (base = people recalling ad)
Learnings
• Email is saturated by history of mass campaign with unsegmented content
• 1to1 campaign delivers marke*ng efficiency : recall, read, inten*on to act & to buy
Page 10

11. Sales conversion efficiency
Learnings
• 1to1 campaign delivers sales conversion. Email & Paper DM converts equally.
Page 11 • elevance of message is more important than sales promo*on
R

12. Philips Experience
Danny Coppens :
CRM Manager Benelux
Philips Consumer Lifestyle

13. Philips challenge & 1to1Lab
• Philips structural challenges
– Large Consumer DB but no customer knowledge
– Email = mass or spam
– No personaliza6on / No mul6‐channel
– No ROI measurement
• Launch of Sonicare for kids in Belgium
• 1to1Lab as a learning tool
• Philips DB maturity & intimacy
• Marketing efficiency
– 1to1 vs mass
– Email vs Paper DM
– Brand building vs Sales activation
• Sales redemption & ROI
• Apply learnings & best practices to global
Page 13

14. Benefits of 1to1Lab
1to1Lab
for
Sonicare for kids
Outcome
Esurvey Esurvey 1to1 1to1
Esurvey
Data Market Marke6ng Redemp6on or
recruitment
enrichment Research efficiency Sales
Mktg benefits
1to1 vs mass
Market needs Sales & ROI
Philips DB vs Email vs Paper
Enriched profiles Product By Call to ac6on,
External DB Brand vs
Posi6oning by Media, by DB
Ac6va6on

15. Philips learnings
Marketing learnings
• Current consumer knowledge in DB is weak for relationship marketing
• Saturation of mass emails & low intimacy between Philips & consumers
• Product Range / USPs and market versatility justify a segmented / 1to1 approach
• 1to1 campaign delivers marketing & brand building (awareness, recall, act)
• 1to1 campaign delivers sales conversion
• Offline / Online media play a different marketing role (brand / sales activation)
• Message relevancy is more important than sales promotion
Organisa*onal learnings
• Philips Communica6on Culture today : Product‐centric >>>> Customer Centric
• Reac6vness of Philips internal services creates long 6me to market
• CRM organisa6on struggles to support marke6ng opera6ons & reversely
Page 15

16. Conversion Funnel & brand building
Today Tomorrow
Lifecycle
Above Rela*onship Mktg Channel / POS Sales
Mktg
• awareness • Product relevancy / info • shopping • Product experience
• brand image convenience
• Right Call to action / moment • Range awareness
• salesmen info
• Brand intimacy • product meet
• Cross‐selling
• Loyalty
• Brand in*macy
Page 16
Philips  Compe**ve advantage & premium posi*oning

17. EMS value proposi6on for Philips
Key elements Consumers Distr. Philips
Channels
Customer data driven ++ ++ +++
Pull to 1:1 multi channel push +++ +++ +++
Time to campaign +++ ++ +++
Customer lifecycle continuity +++ +++ +++
ROI data driven NR +++ +++
Bottom up CRM structuring NR NR +++
Tailor-made evolutive ++ ++ +++
Integrating existing/new NR NR +++
partners
End to end solution NR NR +++
Page 17