New Communications in a Networked World: The Philips Case Study

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New Communications in a networked world – the Philips case

NEW COMMUNICATIONS IN A NETWORKED WORLD

Confidential Divison, MMMM dd, yyyy, Reference 3

We target attractive growth markets and have a compelling mission

“Philips’ strategy is to become the leading company in Health & Well-being.Growing demand for healthcare, a healthy lifestyle and energy-efficient lighting solutions will be driven by an aging population, increased environmental awareness and expanding emerging markets

Confidential Divison, MMMM dd, yyyy, Reference

Survey findings. • 81% : “Significant” or “Very Significant”• Most critical organizational issues

– Ensuring the right skill sets– Training and educating staff– Educating senior management

• Most critical executional issues– Understanding best practices– How to prioritize social media– Digital content … Managing corporate reputation in an

uncontrolled environment… Integrating online and offline across multiple channels

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Corp Comms/PRRelationshipsReputationContent

MarketingBrand

AdvertisingContent

Marketing and PR are converging

Digital strategies and social media increasingly blur the lines between Corp Comms/PR and Marketing. Natural assets from all disciplines are critical for success.

Social Media Success

Embraces two-wayBuilds relationships

RelevantIntegratedAdds valueMeasured


Trust

advertisements

14% 78%

{One-Way} {Conversation}

Trust the recommendationsof peers

Source: Forrester


Correlating social media engagement with financial performance. In the last twelve months

Revenue Growth % Gross Margin Growth %

Net Margin Growth %

-6%

5%10%

18%

Wallflowers Selectives Butterflies Mavens

-9%3%

1%15%

-11% -2% -4%

4%

Source: Altimiter/Wetpaint July 2009

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Internally.

McKinsey: Companies are measurablybenefiting from Web 2.0.

With customers.With partners and suppliers.

Source: McKinsey , September 2009


Increasing effectiveness of marketing

Increasing customer satisfaction

Reducing marketing costs

Reducing travel costs

Increasing number of successful innovations for new products or services

Reducing support costs

Reducing time to market for products/services

Increasing revenue

No measurable effects/benefits

With customers.

-15%

-15%

-20%

+10%

+20%

+20%

-20%

Awareness +25%Consideration +19%Conversion +17%Loyalty +20%

Increased effectiveness and customer satisfaction, reduced costs

Using a mix of techniques

Microblogging

Video sharing

Social networking

Blogs

Wikis

Podcasts

Rating

RSS

Prediction markets

Mashups

Tagging

P2P

Source: McKinsey Global Survey , September 2009

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Increasing speed of access to knowledge +30%

-20%

-20%

+20%

-15%

15%

+20%

+35%

-20%

Reducing communication costs

Increasing speed of access to internal experts

Increasing employee satisfaction

Reducing time to market for products/services Increasing number of

successful innovations for new products or services

Decreasing travel costs

Reducing operational costs

Increasing revenue


Microblogging

Video sharing

Social networking

Blogs

Wikis

Podcasts

Rating

RSS

Prediction markets

Mashups

Tagging

P2P

Internally.

Source: McKinsey Global Survey , September 2009

Increased knowledge, reduced costs Using a mix of techniques

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Increasing speed of access to knowledge +25%

-20%

-20%

+20%

-20%

+20%

-20%

+30%

-12%

Reducing communication costs

Increasing speed of access to external experts

Reducing time to market for products/services

Increasing number of successful innovations for new products or services

Reducing product development costs

Increasing revenue


With partners and suppliers.

+15%

Reducing travel costs

Increasing satisfaction of suppliers, partners, external experts

Reducing supply chain costs

Increased knowledge , speed, satisfaction and reduced costs …

Microblogging

Video sharing

Social networking

Blogs

Wikis

Podcasts

Rating

RSS

Prediction markets

Mashups

Tagging

P2P

Using a mix of techniques Source: McKinsey Global Survey , September 2009

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Philips and the online opportunities

• Channel thinking – Outside / In• Consistency – One Philips • Continuity – no hopping of and on• Creativity• Commitment across the Board

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People don’t care what you say about your company.

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Channel thinking – Outside In – news room


Channel thinking – Outside In - LinkedIn

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“It’s not about targeting audiences; it’s about drawing an irresistible bull’s-eye on yourself so audiences will target you.”

Dave Senay, CEO, Fleishman-Hillard16

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Traditional

Press releases

Pitching reporters

Factsheets

Special events

We Media

Search engine marketing

Buzz Web 2.0

Citizen journalism

MySpace

Social Media

Flogs

Publicity

Promotions

Media relations

IRBranding

Viral marketing

Tivo

Social networking

Metaverses

Folksonomy

Content optimization

Online editorial outreach

Syndication

FlickrNew

Consumer-generated content

Reputationmanagement Public affairs

Coalitions

Third party outreach

Grassroots

Mobile marketing

Advergaming

YouTube

PR stunts

Employeecommunications

RSS Blogs

Wikis

Tagging

Podcasting

Wireless

Facebook

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Value Equation: 5,000 people who want to hear your message are more valuable than 5 million who don’t.

From: Message 5,000,000 to possibly reach 500To: Personally reach 500 who influence 5,000 who influence 50,000 who influence 5,000,000

Organization

A new value equation.


Consistency across sectors


Continuity – Strategy is imperative!

• Digital Content strategy

• OnePhilips project – The themes around which we align – The properties that will be maintained– How we will measure effectiveness– How we will listen – How we will manage these properties for the long term

• Internal “Help desk”: why, when, what, how?


Continuity – Stakeholder Relations Network

GetInsideHealth Newsletter• A monthly, dynamic

newsletter individually tailored to the interests of our audience, alerting them to new, relevant content on GetInsideHealth.com

Results• Average open rate: 26%• Average click-through rate:

36%• Over 10,000 subscribers


Digital content strategy – Internal Communications• Digital Workplace

23Used on a creative commons license from Brian Solis and Pr 2.0


Creativity – what makes you stand out?

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Rupert Murdoch, CEO, News Corp.

“Now it’s the people who are taking control.”

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What are we looking at.

RelevanceInfluencer RankingsActivity, Reach and LinksShare of VoiceSentiment Sentiment vs. competitors% of Influencer’s EngagedTop ThemesGroup Membership StatsTheme-SEO coherence

Where are the conversations?Who is most important to me?How many people am I reaching?How am I doing vs. competitors?Are people positive or negative?How I am perceived vs. competitors?Do top influencers talk about me?What are people saying?How many people connect with me?Does my online profile align with the

conversation?

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How does that fit with our map.

• Using engagement, you get a more holistic appreciation of your customers' actions, recognizing that value comes not just from transactions but also from actions people take to influence others.

• Once engagement takes hold of marketing, marketing messages will become conversations, and dollars will shift from media buying to customer understanding.

http://www.socialmediaplayground.com/wordpress/wp-content/uploads/2008/04/forrester_engagement_metrics.png

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Here’s how. Qualitative.Meaningful 1:1 relationships Quality of conversationsTargeted reach to important niche

audiences/advocates Sentiment

–Positive–Negative

Word of Mouth

New Communications in a Networked World: The Philips Case Study

Business

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