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Grow Revenue and Engagement through strategic use of technology and innovation

Global CRM team Marta Federici, Guido Vaassen

Las Vegas April 26th 2017

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Introduction to Philips

Customer Obsession drivers @ Royal Philips

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Customer first culture

Insights driven approach Care and Supply superior experiences

1 on 1 value-driven relationships over a lifetime

Anytime, anywhere, superior engagement

Personalized information & solutions across the health continuum .

CRM AMBITION

“We aspire to create meaningful 1:!

relationships with our customers

leading to brand preference and long

term value exchange”

1. Deeply understand our consumers,

customers and patients

2. Deliver valuable 1:1 tailored experiences

3.Build long lasting relationships

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Core elements of our CRM approach

Strategy for a

transforming organization

Innovation driven by

Technology

Superior customer &

patient engagement

ROI

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Strategy for a

transforming organization

Technology fueled

innovation

Superior customer &

patient engagement

ROI Innovation driven by

Technology

Core elements of our CRM approach

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2 Philips stories to share

Black Friday campaign 2016 EIR – B2C Health

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Philips story 1

Black Friday 2016 The most successful global Black Friday campaign ever launched at Philips

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Objectives

Make a big sales impact in the US Market

Exploit new mobile channel opportunities

Boost speed to Market and adoption

Unleash operational excellence

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Campaign strategy Creative Operational excellence Scale

The winning factors

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1. Campaign strategy

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Grow and engage the Database, very timely

• In May 2016 we started to: Increase new consumer acquisition

Boost engagement 6 month

Enhance communication timing and relevance

Assess and improve operational set-up along the way

Team-up with our key vendors and partners

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2. Creative

Static design 2 steps approach: teaser & BF - same creative Flat offers on all products

State of the art interactive Oracle kinetic design 3 steps strategy: Teaser & Black Friday, and Cyber Week Tailored offers

Black Friday Creative / 2015 vs 2016

Black Friday (mobile)

Multi device-optimized creative Tablet kinetic

Mobile kinetic

Desktop HTML

Cyber Monday (mobile)

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3. Operational Excellence

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Running a tight ship

Management

• Global, local teams and Operations daily working in close alignment

• Operational process mapping and enhancement

• Dedicated Black Friday team

Planning

• Creative process started as early as May 2016

• Time spent on proper preparation to allow time savings on local implementation

Broadcast

• Advanced broadcast planning to ensure deliverability of multiple big amounts of emails, in a few days time, across multiple countries

• 24 hours campaign monitoring

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Behind the scenes of BF Testing & Segmentation

We created 18 audience segments. Per segment we built 1 email + 4 additional emails for testing

Of each segment, we then took out 5% for testing purposes

After about 1 hour we could analyse the test results and automatically send out the remaining 95%

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4. Scale

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Speeding up Market adoption

• US creative was used as the base design and a Global blueprint was created from it

• The blueprint allowed for faster campaign implementation for any adopting country

• Campaign approach and creative were aligned, on-brand, spam filter proof and ready-to-use

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The original US Black Friday campaign became a Global blueprint and successfully adopted by 7 additional markets!

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Results

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Black Friday 2016 results (YoY comparison)

2015 vs 2016

# emails sent: +415%

# of unique opens: +377%

# of unique (shop) visitors:

+314%

# orders: +207%

Revenue in Euro: +378%

Inbox placement score 90%

Open rates reached > 60% , CTR reached 21%

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Philips story 2

EIR – B2C Health Unlocking higher consumer engagement with sensitive health data

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Our challenge Consumers want to play a more active role in the management of their health. They want to be engaged, empowered and educated.

For Philips to talk with consumers about their health conditions, we need to ensure the privacy of their health data.

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I was diagnosed with COPD

I use a Philips sleep mask

I am interested in information about

sleep apnea

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• Stopping of Marketing activities • Financial sanctions such as Anti-spam fines • Bad press / brand damage • Criminal sanctions may also be imposed

Consumer privacy awareness: 92% of US internet users worry about their privacy online 77% have moderated their online activity due to privacy concerns 91% say to avoid companies that do not protect their privacy

Source: TRUSTE National Security Alliance, US Consumer Privacy Index, 2015

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Eir

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How does this translate to the consumer journey?

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Consumers click-thru a general marketing email and opt-in for future communications related to their health

Consumer clicks thru, opt-in and create a secured, password protected account

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Consumer receives email inviting them to register for our Dream campaign

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Consumers are sent an email indicating they have a secure message waiting for them

Consumer uses their username and password to retrieve message from “gated” area of Eloqua Eir

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Eloqua Eir sends email to consumer informing them that they have a secure message available

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Dream Family acquisition campaign

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Response rates EIR Silver pop Bench

mark

# of unique opens: +34% 27%

# Click through rate: +11% 5.4%

EIR results today

31% higher open rate than industry benchmark More than doubled click through rates compared to external benchmark

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In Norse mythology, and from 13th century traditional sources, Eir (Old

Norse "help, mercy"[1]) is a goddess and/or valkyrie associated with medical skill. Eir may have been originally a healing goddess and/or

a valkyrie.”

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