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4A免费策划:奥美-Philips Brand Equity Board


Philips Brand Equity Board
Customer Relationship Marketing 15-Jul13

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Why Relationship Marketing

? A consumer perspective ? CRM as sustainable competitive advantage ? Media effect and media efficiency

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CRM: A consumer perspective
The consumer (in Europe) is changing: ? Feel unconfident about their future * ? Need a feel of trust to buy * ? Trust from a brand will grow when the brand is more open and ?on level’ with the consumer * ? If customers trust you, it will be easier to sell and they will come back for more...

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* = source: The Henley Centre
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CRM: Competitive advantage
? Where products become more and more similar, communication becomes the differentiating factor ? In every category, very few households make or break a brand (the high spending minority) ? The most successful brands are those with the most loyal heavy users (Garth Hallberg) ? CRM aims to build better bonds with this segment

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? The advertiser who finds a direct way to the hearts and minds of these people wins
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CRM: Competitive advantage

from

counting the people you reach
to reaching the people who count

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CRM: Media perspective
? The number of brands is still increasing in almost every market (e.g. Korean brands) ? Mass communication gets less efficient due to media-fragmentation ? Mass communication gets less effective due to increasing mass media and outdoor information-pressure; outspending the competition is not the solution

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? Consumers ?zap? in TV and print more than ever
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CRM: Media efficiency Felix TV commercial

Split run test on users database: 50% no mailing (control), 50% received a mailing that announced a new TV commercial. Announcement mailing was sent 1 week before broadcasting.

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Results Felix: (after broadcasting 15 spots)
EFFECT:

Reach Spont. awareness

just TV DM+TV 26 % 56 % 44 % 77 %

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CRM: Media Perspective

from mass media to

integrated media

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What is CRM about?
? More bang for the buck ? Requires building your own media

? Reaching the people who count ? Profiting from multimedia synergies

? Growing the right relationships

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Growing the right relationships
A dialogue - a concrete result of a relationship - will only be fruitful if the timing and the message is right and relevant. We call this commitment - and the underlying process - to build profitable relationships: Customer Ownership. Because, in the end it is about creating a sense of ownership in the customers? mind:

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My shop, My BMW, My Philips.
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Growing the right relationships

First principle of a Philips CRM program: DFM (Differential Marketing). Focus on the best (potential) customers.

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All consumers are not created equal: focus on best customers
? In the relationship, we?re able to determine the actual and/or the potential value of the customer

? This value is the determining variable for investment
? Every brand, product and category has low and high profit consumers

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“Fish where the big fish are”
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The Pareto principle
Sales & Profit

High Medium Low No-Volume

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Total Market
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Differential Marketing: credit card spending
Transactions 95% 5% 11% 3% Spend per year

$ 5,090
$ 1,080 < $ 100 0
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<1%
0%

1
85% % adults

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Differential Marketing: Audio
(U.S. market, source Mediamark)

Spend last 12 months H M $ 1.900 $ 800 0.6% 1.1%

Total sales

40.3 %
31.1 % 28.6 % 0
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L
Non

$ 150
0%

6.4
91.9% % adults

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Growing the right relationships

Second principle of a Philips CRM program: The sales cycle. Focus on the low hanging fruit

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Sales cycle
Prospect

Investment
Market Buyer

After market
Loyal Customer

Profit
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The three opportunities in the sales cycle
Value

B. Sales gap: Selling to existing customers
is up to 7 times less expensive.

C. Retention gap:
Customer equity A 5% improvement in the defection rate boosts profits by a multiple of up to 10.

Time

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A. Acquisition gap:
Winning new customers costs money.
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Following the low hanging fruit
ROI

best customers
other customers in the database

high

retail partner lists
outside list Targeted mass media

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low
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Growing the right relationships

Third principle of a Philips CRM program: Represent the private face of the Philips brand.

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Growing the right relationships
? Create a communication platform, the Philips way to speak with its best customers

? Understand who we are talking to and how close they are to Philips

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Growing the right relationships
There are 3 routes, in principle, to bond with your customers: You can create financial, social, structural bonds - or a combination of these.
High
Prisoners
Happy marriages

Behavioural Loyalty
Distant lovers

Strangers

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Low

Emotional Loyalty

High
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Growing the right relationships
Fourth principle of a Philips CRM program: Bridges that work ? Internet ? Databases ? Call Centres ? Mail ? Retail
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Growing the right relationships
Brand

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We don’t know yet Company which bridges exist Customer and how well they function. We build, repair, maintain as we go along.
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Value added by growing the right relationships
? Identifying the most profitable customers; ? Getting a higher share of their business;

? Reducing both the expense of communicating to the wrong people and defections from your brand; ? And turning loyal customers into brand advocates.

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(Why) CRM for Philips
4 principles

best customers
low hanging fruit private face functioning bridges

Focus during the first 16 months Will analyse, develop and fix

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Remember: It?s a journey
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II. How to get started
The next 16 months

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How to get started
1. Testmatrix 2. Evaluation

3. Cost & Timing
4. Year 2000 event

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Objectives
? Improve marketing efficiency ? Increase effectiveness of communications

? Improve loyalty degree (retention)
? Learn what works and where

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Strategy
? Testing campaigns in 6 countries ? Evaluation and refining CRM approach

? Exportation approach to other markets

…learning while earning...

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Test matrix
Business Units International: TV (Renewal) Audio (CDR) Videq (VCR) Audio (MP3) Videq (DVD)

Local:

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Test matrix
Moments of truth & target groups TV Renewal of existing TV to widescreen

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Moving households Secondary house owners Marriage/divorce Intention to buy TV Children in household Philips TV owners (approximately 6 years old)
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Test matrix
Moments of truth & target groups Audio Cross sell CDR

Students/young professionals Secondary house owners New car buyers Philips car CD owners Philips CD owners

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Test matrix
Local campaigns MP3 UK & USA Music & PC enthusiasts Philips owners France & USA Philips owners

DVD

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After first half year
? Analysis of Q1 and Q2 results ? Refine and redefine programmes and objectives

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Campaign evaluation: basics
1. 0-measurement 2. Set goals for the campaign 3. Including tests - per campaign - per country Per campaign : 90% campaign, 10% control 4. Evaluation Q1 and Q2 5. 1-measurement & evaluation of the (series of) campaign(s) 6. Export of campaigns to other Philips markets … a continuing process ...
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III. Why OgilvyOne worldwide

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How to measure experience working across borders:
Four Good Indicators ? ? ? ? Network of offices across the regions How the network “nets” Our clients – the company we keep Our expertise in handling international accounts

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World?s strongest, most experienced direct network
We are where our Clients need us to be.

Stockholm Oslo Copenhagen Helsinki Amsterdam London Frankfurt Montréal Dublin Warsaw Rodgau Brussels Toronto Prague Paris Seoul Zürich Budapest Buffalo Chicago Beijing Madrid Milan Vienna New Delhi New York Tokyo Los Angeles Lisbon Istanbul Hong Kong Miami Bangkok Taipei Barcelona Athens Mexico City Bombay Manila Caracas Bangalore Guayaquil Kuala Lumpur Singapore Jakarta Auckland Sydney Hobart Wellington

Santiago

Rio de Janeiro S?o Paulo Johannesburg Montevideo Buenos Aires Cape Town

Market leadership
? In 14 of the 30 largest markets we are ranked the #1 agency. ? Our nearest competitor is ranked #1 in two markets.

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Market-by-Market Leadership
Europe/Africa
Belgium France Germany Ireland Italy Netherlands Portugal Scandinavia S. Africa Spain Switzerland United Kingdom 1 1 2 1 1 1 1 2 1 1 2 2

Americas
Argentina Brazil Canada Chile Mexico Uruguay United States 1 1 1 1 1 1 5

Asia/Pacific
Australia Hong Kong India Malaysia New Zealand Singapore South Korea Taiwan Thailand Japan 4 1 1 1 1 1 1 1 1 8

Consulting
Through our consulting services, we define the customer relationship and devise programs to increase customer loyalty

Our decidedly “customer-centric” approach utilises the most advanced technologies to research our clients? most valuable customers: their buying dynamics, profitability, and where and how to get more like them.

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Communications
We develop creative communications that move consumers into deeper, more valuable relationships with a brandtranslating strategic thinking into big ideas We?ve always provided higher-quality creative work. It is our most visible product and, in many ways, the summation of all our marketing thinking

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We?ve won almost 5 times as many awards (the kind based on results) as our closest 44 competitor

Connections
Using a series of interrelated disciplines across all media, including data services and contact centre-services, we build bridges that connect our clients? brands with their customers--constantly seeking new and innovative ways to give customers reasons to buy, to buy more, and to stay loyal to a brand. We currently operate 11 Contact/call centres worldwide and we are the largest call centre network in the Asia Pacific region
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Interactive
Today OgilvyInteractive is the largest integrated interactive agency in the world, with 22 offices servicing more than 40 countries and the largest media buyer on the web. With the full leverage of a global communications agency, we produce oneto-one marketing solutions online that build brands, as well as customer equity?with cutting-edge interactive technologies.
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Interactive
? Ranked #1 New Media Agency by Advertising Age in 1999 ? Named one of the Best Top Ten Interactive Agencies by Adweek ? Named one of the Top Five Leading Agencies by The Red Herring (1998 & 1999) ? Winner of the 1999 Grand Clio ? Winner of three 1999 Cyberlions at Cannes including the Cyberlion Grand Prix

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How the Network “Nets”
World’s Strongest, Most Experienced Network

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? International thinkers, attracted to the OgilvyOne network by our global reach ? Trained to “think globally, act locally” – International transfers and exchanges – Adopt-A-Country programs – Worldwide training and Creative Directors? meetings ? United in a common discipline: Customer Ownership ? Connected instantaneously by technology
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Common processes: knowledge sharing
? Common and consistent brand image delivered by: – Brand teams made of specialists who aren?t forced to specialize. – Knowledge flows from individuals to brand teams via most up to date IT ? Lotus Notes: IBM/American Express/Unilever Solution Centers ? On-line Creative libraries ? Truffles
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How we handle international accounts: three approaches
I
Central Coordination
Central Development Central Execution Local Implementation

II
Central Coordination
Central Development Local Execution Local Implementation

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Central Coordination
Local Development Local Execution Local Implementation

How we handle international accounts: three approaches
I
Central Coordination
Central Development Central Execution Local Implementation

IBM Software Servers
Advertising and Direct Marketing concepts, artwork, photography and even some printing handled by New York – local deployment, with modifications on an exception basis only if truly necessary (e.g. Korea)

How we handle international accounts: three approaches
III
Central Coordination Local Development Local Execution

American Express Best Practices
The headquarters central coordination team monitors direct marketing activity worldwide to identify best practices in all acquisition, retention and loyalty work. Information is packaged and shared with local markets to help local teams optimize performance

Local Implementation

International clients & CRM
Nestlé Seagram Wings alliance

CRM

Jaguar
American Express

Unilever
Ford IBM Tactical DM
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Nestlé & OgilvyOne
Latest tools and processes developed for Nestlé

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Let?s make things better
? “The markets treat Customer Relationship Marketing as an investment. They do not realise that it is a matter of survival, that it is no longer possible to build brands with untargeted media” Philippe Véron (Nestlé GM)

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