Spikes Asia
NEO MEDIA WORLD, Hong kong / NESTLE / 2019
Overview
Entries
Credits
Background
Nespresso has been very popular in Hong Kong and the business was growing well in past years. However, market saturation results in a drop in demand for Nespresso’s coffee machines. Meanwhile, more competitive choices emerged such as re-usable capsules. Altogether, the search volume for Nespresso dropped by 29% YOY (2018 Q1 vs. 2017) for the Hong Kong market.
Our task was to uplift the transactions of both coffee capsules along with machines. We needed to change our traditional Search keyword buckets strategy (e.g. Brand, Product) to uplift transactions by deep diving into the coffee consumers’ behavior.
Idea
Coffee embodies exquisiteness and consumers often have their own personal choice of coffee. Coffee reflects who they are and adapts to ones’ mood, needs, and occasions.
We studied our CRM & SEM data and identified different consumer segments and characteristics. There were youngsters who are coffee novices, busy hard-working executives who crave strong or black coffee often, explorers who discover coffees from around the world, and discerning experts who master coffee knowledge. Their purchase journeys are different that led to different Online Search behavior too.
Our new strategy is to include these NEW INFLUENCING FACTORS to uplift the O-2-O ROI.
a) Coffee Interests/ Intent (search for coffee knowledge vs. coffee brewing methods)
b) LIFE INTERESTS (their life occasions and mood at that moment)
c) PURCHASE OCCASIONS (shop at store or e-shop?)
d) COFFEE FLAVOR
We achieved this with the 1st-ever TASTE DATA ALGORITHM!
Strategy
TASTE DATA ALGORITHM uses different new data streams to include those new factors in our SEM strategy:
1) Client’s POS system & Google Analytics: determine offline & online sales respectively
2) Google Analytics: further dissect audience life interests
3) Client’s CRM data: customers’ purchase history / coffee flavors
4) Device signals: search query came from Mobile or Desktop
Above data streams are combined with Google AdWords to determine consumer characteristics behind each search query, which led to the numerous Personalized Ad Copies to trigger higher consumer interest.
Our algorithm hence determines multiple “personas” for each search query, and as many as 80+ personalized Ad copies were delivered in our campaign period
Execution
1) Every time a user searches among our keyword lists, a match between POS(offline sales) & GA with AdWords (e.g. mobile number/ email) will determine if that person is a Nespresso customer
2) If yes, we further link to CRM database to review the purchase history to determine his/ her usual flavor
3) We would also reference life interests from GA based on In-market and Affinity segments (short term & actual behavior). This is more important when we determine the search query is not coming from a Nespresso customer in step 1
4) Device signal will determine the likelihood of an offline or online purchase
e.g. mobile>on-the-go>prompt them to store
e.g. a busy business executive searching on desktop in business hours>higher likelihood for purchase at e-shop
5) Based on the keyword the users search, we further determine their possible consumer characteristics based on their INTENT
Outcome
• Revenue Increase by 2.2X (vs. 2017 Average)
• ROI Increase by 3X (vs. 2017 Average)
• CPA Improvement by 75% (vs. 2017 Average)
• A proven O-2-O synergy where 56% of offline sales were influenced by our ads
• Industry Recognition - Nespresso is the 1st Advertiser to have run a successful O2O study across the whole of Greater China Area and Korea. (Source: Google HK)
• Audience Insight Expansion - Insights and data found from this modelling has been used to shape upcoming strategy and implement audiences across other channels for Nespresso Hong Kong.
• Evaluate Consumer Potential – Insights found allows us to further determine the consumer life time value and adjust spending and targeting based on potential over instant transaction.
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