5 October 2011, SAS Forum, Bussum

1. How Philips develops an online shopping
strategy with SAS Social Media Analytics
Bussum, 5 October 2011
SAS Forum Nederland 2011

2. A well-respected, blue-chip
company for 120 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)
33% of sales generated in emerging markets
Globally recognized brand (world top 50)
Our brand value doubled to $8.7bln since 2004
119,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 6% of sales
50,000 patent rights – 36,000 registered trademarks –
63,000 design rights
Source: Koninklijke Philips Electronics N.V., 2010 2

3. “…a global company of leading businesses creating
value with meaningful innovations that improve people’s
health and well-being.”
Leveraging critical global trends
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4. Let’s show some hands!
Some questions about
Social Media?
• Does your company use Social Media?
• Is your company in dialogue with consumers through Social Media?
• Does your company use Social Media for strategy development?
4

5. Consumers are moving outside the purchasing funnel:
Changing the way they research and buy your products.
Change in approach is a necessity.
The consumer decision journey
4
3
2
1
After purchasing a
The consumer
product or service,
Consumers add or
considers an the
Ultimately, initial
the consumer builds
set of brands, based
consumer selects a
subtract brands as
expectations based
on brand the moment
brand evaluate what
they at perceptions
on experience to
of purchase.
they want.
and exposure to
inform the next
recent touch points.
decision journey
Source: McKinsey, The consumer decision journey, June 2009

6. Clear roles to reinforce the brands with every
consumer interaction
Making promises
Communicate image
Deliver value
by
by
Marketing
Consumer Care
Keeping promises
TV Radio Print Paper Email Web Store Kiosk IVR Call Product
ad ad ad mail site center
Social Media Channels
Source: Forrester

7. Using Social Media channels to engage
with consumers in conversations
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8. First Listen, then engage on Talking with and
Supporting of our consumers
HOW? WHAT?
LISTEN
Not real time Real time
Look back and screen Screen specific “hot” topics
comments on particular
topics
TALK
Inform & learn Participate
Learn and understand Generate a topic and discuss
consumers’ opinions e.g. it with consumers e.g.
Philips community Streamium cafe
SUPPORT
Receive Reach out
Respond relevant information Update social channels, e.g.
to comments or questions external weblogs to inform
posted on social channels, e.g. or engage consumers with
Facebook, Twitter up-to-date information
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9. Through social listening heavy negative detraction
can be converted into positive sentiment
OHC ‐ US & UK NPS Oral Health Care (3 months rolling)
>600 relevant social comments
and consumer feedback 0%
comments
from >1500 websites/domains
and from >6000 call logs/NPS
free texts converted into 25 new Content
updates
categorized FAQs
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10. But through social listening more can be done:
In 2015, 80% of Dutch consumers will buy online
Very high internet penetration in the Online retail market will grow to
Netherlands (2010) over €6 billion in 2015
85% of population active online Major categories:
70% of online users shopped online • Consumer Electronics
• Clothing
Average spend €386 per person
• Event Tickets
How now to benefit and keep up
with this online growth?
source: European Online Retail Forecast, 2010 To 2015, Andrea Carini, Forrester

11. A growing online shopping audience that
increasingly shares experiences and expectations
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12. Social media analytics give additional consumer
research insights for strategy development
This time not a typical ‘branded’ approach, but a thematic one: ‘Online Shopping’
• Service • 12.000+ docs
• Reliability • 1.300+ sites
• Ease of use • 24 months
Natural Sentiment
• Comparing • Incl Twitter Language Analysis
• Design • 2 months Processing Execution
Define SAS Social
Rules Rules Media
concepts Crawl data Analytics
definition Validation
and queries Portal
• Additional analytics performed to validate data
• Tight deadlines delivering preliminary results
• Continuous learning strategy
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13. An example to demonstrate what’s on their minds and
hearts during their online shopping experience
• Where are they talking?
• What are they saying?
• Which topics keep them busy?
• How relevant are they?
• What is the sentiment that they express?
Ease of use Comparing Service Reliability Design
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14. Reliability is crucial, however consistency in
performance is king
• Compared to online clothing retailers, reliability is even
more important for consumer electronic webshops
– In particular, wrong stock information is a big dissatisfier
– When perceived as reliable, ease of use is rated less important
• Ease of use and service are more receptive to sentiments
• Overall sentiment is heavily impacted by a negative
experience  only a consistent positive performance leads
to a positive rated shopping experience
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15. Insights in emerging initiatives and upcoming trends
that may enhance the shopping experience
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16. Our answers to the questions
• Does your company use Social Media?
• Is your company in dialogue with consumers
via Social Media?
• Does your company use Social Media for
strategy development?
Consumer Care, March 24, 2011 16

17. Thanks for your attention
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