Loyalty Adtech

Loyalty in the digital world

How to drive engagement ?

(c) F5 Digital Consulting Pte Ltd 2010, Reproduction partial or complete without authorization is strictly forbidden

2 (c) F5 Digital Consulting Pte Ltd 2010, Reproduction partial or complete without authorization is strictly forbidden

✗ ✗ ✗
Data Rewards Points Systems

Do you really need my birthday date ?


✗ ✗ ✗
Design Emails Products

Do you CARE ?
do you KNOW me ?

7 (c) F5 Digital Consulting Pte Ltd 2010, Reproduction
partial or complete without authorization is strictly
forbidden

Is about Engaged Through
Consumers over Time Multiple
Touch points

Consumers engaged over time
Supporting pillars


A Successful loyalty program

RELATIONSHIP PERSONAL

ENGAGEMENT LONG TERM

TONE EMOTIONAL


Create a relationship with customers

PERSONAL
Meet Date Learn Wedding


✗
Our job goes beyond pushing

Choose what you
want !


First contact matters the most !

FIRST CONTACT
FIRST IMPRESSION COUNTS


Use each interaction to learn more

First interaction

Updated
Communication
communication

Modification of
Consumer Consumer action
information


1:1
Personal is Personal…:=)

You pretend Talk to me
you know me personally


LONG TERM


Maximize your assets
Cost of Retention Cost of Acquisition

17
8x
(c) F5 Digital Consulting Pte Ltd 2010, Reproduction partial or complete without authorization is strictly forbidden

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


Relationship level
A personal relationship takes time

Desired State

Time


EMOTIONAL


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


Adding social elements in Loyalty

LOYALTY PROGRAM SOCIAL MEDIA

•  OFFERS •  COMMENTS
•  POINTS •  SHARING
•  PRODUCTS
Allow exchange •  FEEDBACK


Successful Loyalty program
  Consumer centric

  Long term relationship, like in a wedding

  Multiple touch points

  Personal relation and communication

  Emotional communication going beyond products


Family Rewards (Philips internal video)


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


Our approach
CONSUMER

PROFILE

PRODUCTS

On need basis only

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


Singapore insights

✗ ✔ ✔
FOOD REBATE FAMILY


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


MEASURING SUCCESS OVER TIME


Concretely for the first three months

Interest Activation Engagement

JOIN USE ACTIVE

Members # # Products Registered Coupon
Redemption


Communication rules

FREQUENCY HISTORY MESSAGE

No spamming Systematic Systematic
or overload learning personalized


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


Long term relationship creation

Any kind of action

PROFILE PROFILE
UPDATE UPDATE

Improved
Communication
Communication


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


Transactional email example


Sequence of events
GO Creative Test Launch Booster


One Shot to make it right


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%


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!


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


  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

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


Convert the lost sheep….:=)
First Communication # Register

STOP

Booster

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


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%

  Same template
  Clear CTA : $50

  Reinforce message

  Same key messages

  Recall on Key CTA

  CTA Reminder

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%

  Same template
  Clear CTA : Use your voucher

  Reinforce message

  Leverage same message

  1to1 offer, based profile

  CTA Reminder

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


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


Time to start Monthly communication


3 Main Themes

24 modules

1200
combinations

6000 edM

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


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%

And measure their involvement
• Are family members more engaged than normal consumers ?
• Do they recommend the brand more ?
• Do they spend more ?


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


Are they more active ?
Generic email Family Rewards members


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


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

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


Integrating social Media

PERSONAL
SOCIAL MEDIA
COMMUNICATION

• Offers Feedback • 
• Information Rating • 
• Promotion Comments • 
Registration • 


Login with Facebook Connect


Facebook : Start discussion
PRODUCT PG •  Listen
•  Learn
CONSUMER PROFILE
•  Engage
•  Promote
•  Recruit
FB CONNECT
AUTHENTIFICATION •  Measure
CONSUMER PROFILE
500 Friends
CONSUMER NEWS FEED

Twitter : Instant information + link to FB
5000 Friends
WALL POST

COMMUNITITY
MANAGER

CONSUMER

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
67

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


Conclusion

Is about Engaged over Through
Consumers Time Multiple Touch
points

Visit us
www.philips.com.sg - www.familyrewards.philips.com.sg


For more information

f5dc http://bit.ly/aEmARR www.f5dc.com

gregbirge gregory.birge@f5dc.com


Loyalty Adtech

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