Nespresso's strategy

Résumé du document

How Nespresso made it to turn a basic product into a luxury one through its CRM strategy? Drinking coffee is such a common habit that brands always offered all the elements to enjoy this beverage at home; the coffee, the machine, the filters… As a result, the quality and taste can never constant and the best way to appreciate a high quality coffee was in a bar or restaurant, equipped with professional machines. Nespresso nevertheless decided to open access to premium coffee experience at home… A strong concept, a relevant positioning supported by an exemplar CRM strategy leaded the brand to success. So we will first present the concept, then analyze the key elements of the strategy and try to foresee threats to finally develop recommendations.

Extraits

[...] Thanks to this, Nespresso can address personalized mails that put the customer in a perceived special- person position. Besides of this double need fulfilment, Nespresso also performs a very efficient CRM integration, and applies a differentiation strategy based on total service offer. In fact, the services are strongly associated with the buying of the machine, so that all the CRM is part of the product. It increases the quality by adding to the high technical advantages of the product a real emotional link with the customer. [...]

[...] Because of its luxury positioning, Nespresso is emphasizing the quality of its products and the pleasure that customers get from it. So that they almost apply a jewellery product communication strategy. The magazine is the perfect illustration of this. Here are some titles of articles taken from the Nmagazine : - Anna NETREBKO : Prenez un café avec la nouvelle Maria CALLAS éblouissante ! - Joyaux gastronomiques : Jill James en quête du plus précieux don de mère nature : les truffes. [...]

[...] In 2005, Nespresso became the official coffee of the 32nd America's Cup (the regatta race). This partnership allowed the brand to benefit from a very strong presence on the media. This year, Nespresso is the official coffee supplier of the international tennis tournament Roland Garros. The brand would like to go further this year: the marketing investments will increase by in the media in CRM and of in shops. CRM Tools 1 The “Club Nespresso A product quality valuing organization The perceived quality of Nespresso for the customer is based on 2 specific needs of the consumer: - self-esteem need - belonging need Nespresso made it to surf on those two needs. [...]

[...] Providing the customer with a loan machine during the repair period. Of course repairing the flawed machine in a short time. To return the machine to customer's home. Extending customer's guarantee for an additional 6 months. Moreover, there is a kind of self maintenance service online in which the customer is asked to select its machine model in order to follow the demonstration for decaling the machine. The customer can download the demonstration file, keep it within its personal computer at home and then consult it. [...]

[...] Nespresso tries to respond to it with services as heterogenic and efficient as possible. Finally, by receiving, and observing customers in the boutiques, Nespresso harvests a lot of data regarding the habits of its customers. Those data will, after being mined by Calleo, of course be used in the upcoming short term strategy of the company. The Boutiques also allow Nespresso to handle the customer in a face-to-face relationship, and to perform a very efficient reinsurance Technical support and other tools Technical support CRM in that context is used to improve customer service and consequently increase customer satisfaction or at least to keep it at an equal level in case of problem. [...]