To craft an all-rounded and seamless user experience through online and offline channels, Nespresso adopted mobile as its medium of choice to facilitate cross-channel communication with consumers. Specifically, Nespresso deployed online mobile channels to drive audiences to an offline experience by directing their digital footprints to physical stores. Vpon Big Data Group offered a branding solution with its propriety big data analytics and mobile technology to help Nespresso accomplish this goal. Thanks to this big data analytics capability, audience targeting could be implemented to reach the right audience, while mobile technology enabled the launch of location-based services (LBS) targeting and the production of interactive creative that resulted in a significant increase in audience engagement.
Back to basics: Reaching the right audience
Reaching the right audience underlies the success of a marketing campaign, and that is exactly the beauty of digital marketing. Digital marketing enables brands to reach a specific person who is more likely interested in the brand message, which could never have been done in traditional marketing. To grasp the right audience, Vpon implemented two types of targeting strategy – "Audience targeting" and "Location-based services (LBS) targeting" through a series of Nespresso marketing campaigns.
With big data, audience targeting can identify potential buyers by developing a model to find out a "look-alike" consumer profile with high buying potential. Vpon defined the audience segments based on online behaviors and interaction via mobile devices, e.g. app installations, article preferences, and purchase history.
Additionally, Vpon was able to retarget and segment existing Nespresso lovers, segments including 'elegant mama', 'modern parents', 'finance guru', 'sports fanatics', etc. The segmentations had been selected in accordance with different messages of the campaigns. For example, the decaf capsule campaign received the greatest feedback among the 'modern parents' and 'elegant mama' groups.
As a result, audience targeting bought around 10% increment of the campaign CTR, while retargeting those audience groups resulted in nearly double the CTR of the general audience group.
LBS targeting also contributed to the campaign in a significant way. In the Shatin pop-up boutique campaign, Vpon targeted audiences located in both Shatin and Taipo districts; close to Nespresso New Town Plaza’s pop-up boutique. Because of the high relevance between the mobile ads and the location, the advertisement acceptance and CTR successfully drove the audience to visit nearby physical stores, bringing the O2O concept alive.
Creative strategy should never be overlooked
A mobile voucher is an efficient way to boost O2O performance due to its ability to shorten the conversion journey. The audience was allowed to save the mobile voucher with a simple click on the mobile ad and redeem a cup of coffee for free at the stores right away. The convenience created by a mobile voucher boosted the offline redemption rate, and was 65% higher than the average redemption rate.
Moreover, to break the advertising clutter, rich media interaction allowed Nespresso to catch the eyes of target audience, not to mention the user online experience through playing the coffee roulette game. This mobile interaction tactic increased the audience engagement rate to 20% more than the benchmarked average.
Nespresso senior brand manager Carrie Shum said, "We are very impressed with the outcomes of this mobile ad targeting campaign. On one hand, the brand and product message are clearly delivered through mobile channels. Moreover, we did witness a dramatic increase in footfall in all our retail outlets in Hong Kong. This O2O strategy surely augments the brand equity of Nespresso and makes the brand stand out from the competitive industry."