CASE STUDY: How Philips drove consumer engagement and repeat purchase

Background
In 2009, Singapore was chosen for the launch of Philips’ first Consumer Loyalty Programme. The Philips Family Rewards program (PFR) addresses its ambitions to create a closer relationship with consumers through establishing a direct connection and building on the resulting opportunities for dialogue.

In addition to creating a valuable commercial connection, Philips wanted to speak with its consumers in the way it knew those customers thought about the brand, through one window, as one brand.

Since the programme’s inception, this position has been further strengthened with Philips Lighting joining Philips Consumer Lifestyle which was the first division on the platform.

Aim
The programme aims to create consumer loyalty with members earning points that can be redeemed for discounts against subsequent product purchases, by building on an easy to use system of online interactions and transactions.

Alongside the core program is the facilitation of word-of-mouth and consumer advocacy that is driven from monthly activities, such as cooking classes using Philips products. Other benefits include the opportunity for members to ‘test drive’ upcoming products.

A comprehensive Consumer Relationship Management (CRM) programme was created by F5DIGITAL with the digital elements bridging gaps in the relationship between this large international brand and its consumers.

Execution
Interactions were created across multiple touchpoints spanning the three broad areas of the whole consumer lifecycle—pre-purchase, purchase and post-purchase.

This also necessitated the involvement of a wide variety of stakeholders and was realised through a formal interview process.

The country and user research resulted in all communication within the programme being both highly customised and personalised. It is driven, not only from the members’ profiles, but also from their behaviour. Attending one of the many events is just one aspect of member behaviour that is considered.

Each month, the programme generates over 5000 communication variants, ensuring it connects with its members with the most appropriate and relevant communications.

Results
The relationship (as measured by the Net Promoter Score (NPS) index Philips uses) between the company and its consumers on the programme has, over time, risen by 57 per cent compared to those consumers not involved with the programme.

The program has yielded over 21,000 product reviews on the website fostering transparency and peer-to-peer communication while providing Philips with valuable insights.