Transforming a Cup Above: Digital Transformation at Nespresso
As Nespresso continues to grow, there’s a lot to be learned from the progress this brand has made on the road to digital transformationNespresso created a truly transformative experience for its customers in recent years. Overall, they’ve enabled simple digital transactions, drove personalization and customization across channels, leveraged digital media to craft and deliver a compelling brand, and blended digital and physical for a meaningful omni channel experience.
Nespresso—what else?
First and foremost, Nespresso is a coffee experience, not a coffee product. In stark contrast to the grab-and-go culture of Dunkin’ Donuts and the creative coffee lounge Starbucks fashions itself to be, Nespresso is meant to be enjoyed slowly and luxuriously in the comfort of your own home. It’s not about the machines, the capsules, or the accessories and cups (though those are a big part of it); it’s about the moment of enjoying your coffee.Everything about the brand—from the wide range of colors and types of machines to the dozens of flavors of coffee to the various designs of mugs, cups, and saucers available—is aimed at enabling a personalized coffee experience that is unique to each person enjoying it. Founded in 1986, Nespresso is now present in 64 countries and this brand claimed annual revenue of 4 billion Swiss francs in 2014. The brand itself also has over 5 million Facebook fans, and 340,000 unique customers that visit the online boutique every day.To this end, Nespresso makes it extremely easy to get its coffee to your home with a seamlessly designed e-commerce experience that mirrors some of the best retail experiences in any vertical. With only a few taps on the web or in Nespresso’s mobile app, users (or “Club Members” as the brand refers to its most loyal customers, thus reinforcing its luxury status) can order any combination of capsules that will be delivered anywhere in the U.S. in just two days. Nespresso retains your order history and makes it extremely simple to order again.
Using data to personalize the experience
This simple reorder is just the beginning of Nespresso’s shrewd data strategy that enables user personalization and customization across all Nespresso channels. The company also leverages a cloud-based customer engagement solution that synthesizes all customer data—web and app orders, in-store orders, behavioral analytics, and interactions with Nespresso kiosks—into one unified customer view. This customer view empowers the brand to make recommendations for cross-sell and up-sell (which types of coffee or which new machines you might like) as well as targeted media and events recommendations that tap into what will appeal the most to each user. Not only is this personalization a shrewd growth strategy, but it also adds to the value that each customer account “remembers” your orders and helps you create a Nespresso experience that is uniquely tailored to your style.
Leveraging digital channels
Nespresso leverages its digital channels not only to enable seamless transactions, but to also distribute content that further reinforces its brand. This is not just done through traditional ad units or video content (although anyone who has seen the George Clooney video knows that traditional ads can also reinforce the premium brand status). Nespresso also provides a digital magazine with lifestyle content and sponsorships, like sailing, that fit the luxury profile.
Proving seamless omni channel transactions
The strength of this brand’s transformative experience is that it’s not limited to its digital touchpoints. Nespresso’s experience design extends beyond its app and website to a seamless in-store experience. Labeled as “boutiques” to further the brand value proposition, Nespresso’s physical locations are artfully designed with luxurious leather, wood, and glass. They feature elegant tasting counters where shoppers can sample any type of capsule, sipping it on their own time as they shop. At checkout, club members can swipe a leather keychain, instead of a credit card, to process their saved payment information. Visiting a Nespresso boutique strengthens brand loyalty by serving as a complement to the brand’s digital presence, augmenting the value, luxury, and personalization that define it.The fact that this brand knows its target customers inside and out, and knows how to cater to them in uniquely personal ways using a strong digital strategy is what helps them stay a “cup above” the rest. While the competition continues to heat up in this market, Nespresso is continuing to grow and expand, specifically in the North American market. By building upon their already solid digital foundation, we can only expect this type of growth to continue.