The Challenge
In a market saturated with incentives and point-of-sale promotions, Philips identified that true differentiation lay in the quality of after-sales service. The objective was to build loyalty among authorized service workshops and improve service quality in order to reduce product exchanges, which are more costly than a repair.
The Solution
Representatives from 84 workshops nationwide were invited to product and customer-service training sessions. At the close, the “Campeones Philips Service” incentive campaign was launched (June 12 to November 30, 2006), with workshops competing in two categories evaluated through quality audits and a Mystery Shopper initiative, in which secret shoppers brought in a product with a simulated fault and evaluated service quality, diagnosis, and whether a repair was offered. The top-scoring workshops won a group trip with a companion to Iguazú Falls.
Results
Product exchanges (both within and outside warranty) fell by 18%. In 88% of Mystery Shopper visits, service was rated good or very good. Total campaign investment: $107,340. As this was an endomarketing campaign aimed at changing behavior, no direct sales were generated and no ROI was calculated.
Notable Details
Given the success of this first incentive campaign aimed at Philips’ technical service network, the company hired AV Business again in 2007 for a second edition. The campaign won Bronze at the 2007 FIP (Iberoamerican Promotions Festival).
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