THE PROBLEM
How do you hit short-terms sales targets whilst still building an emotional connection with consumers?
Client
NESPRESSO
Project Type
BRAND STRATEGY, LAUNCH
Location
UK
References
THE BRIEF
Nespresso have incredibly ambitious requirements when it comes to attracting new subscribers. This means a strong focus on short-term tactical activity to hit quarterly targets.
Nespresso came to us to help them create a vision for the future of subscription in the UK that would help them hit the sweet spot of responding to consumer needs, brand building and delivering commercially.
But in an increasingly competitive market, growth was slowing and at the same time subscriber churn was increasing.
OUR SOLUTION
We knew the answer to the brief lay at the intersection between consumers, culture, category and data.
We quickly identified a disconnect between what the Nespresso brand stood for (and the retail experience) with the current experience of subscription.
We started by speaking to a mix of current, lapsed and prospect Nespresso customers across the UK on our digital ethnography platform Cumulus. The visual nature of Cumulus meant that we were able to observe and capture broader coffee behaviours and needs which provided rich context.
We also reviewed subscriptions from other categories which were influencing expectations as well as perceptions and experiences of direct coffee pod subscription services.
There was a heavy focus on expectations of Nespresso as a brand and the experience of subscription.
All of the video feedback meant that we could provide compelling evidence to stakeholders that big changes needed to be made to unlock growth.
OUR SOLUTION
Our strategy team turned insights into propositions.
Following the initial consumer research, our strategy team created 4 proposition territories which we then optimised with stakeholders and consumers.
Stakeholder Interviews
We reviewed our initial consumer findings with a range of stakeholder groups across Nespresso; from senior executives through to logistical teams.
They helped us to identify solutions as well as barriers we would need to overcome to make these a reality.
Co-creation
We then validated and optimised the concepts with consumers through a series of co-creation workshops. These sessions not only helped to make the concepts better, but also the best way in which to communicate specific benefits.
Build the business case
We then quantitively screened the proposition concepts to identify which to lead with and to make sure our compelling business story was supported by robust data.
THE RESULTS
Long term vision.
Short term wins.
We packaged all of this work up into a final report and workshop that provided a long-term brand building strategy for Nespresso subscription, with a clear roadmap of activity they could get after right away.
The first iteration of the Nespresso Plus model was launched in February 2022. It focused on the need to bring more emotion to the subscription, to simplify it and centralise around the coffee offering.
As a result of our work, Nespresso Subscription saw:
- The biggest growth year (2022) for UK subscription, expanding by 63k (vs 43k in 2021).
- Nespresso now has 17% of our customer base on subscription (up from 12% in 2021)
- 35% of all machines sold through our direct channels were sold on subscription (up from 23% in 2021)
- 4% improvement in attrition with noticeably fewer customers cancelling in their first 3 months.
“We felt a strong partnership with the Mix from the start. They were thorough and engaged us throughout the research process, helping us build a brief together. They have a lot of expertise in research and market dynamics, and challenged our thinking to develop valuable insights still used today, 3+ years after the research.”
Coralie Adams
Head of Nespresso Subscription UK
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