Customer Loyalty: how Nespresso takes advantage of this with a single click
How to sell more with your e-shop? How to build customer loyalty? These are questions that many traditional retailers are asking themselves when customers are converting massively to e-commerce. In this article, we present a system developed by Nespresso and strangely forgotten by conventional retailers. Yet, it makes customer loyalty a driving force for business growth. Introduction 80% of the purchases we make in supermarkets are recurring purchases. Charles Duhigg explains in his book “The power of habit” that a buying...
Nudge: 3 tips from Nespresso to sell its most expensive machine
Nudge marketing techniques can be used to promote good behaviour. But they can also be used to direct your buying behaviour in favour of the seller. This is what Nespresso is doing as part of the promotion of its subscription offer that we have already discussed here (note in passing the price increases). You have to admit that the marketers at Nespresso are smart (remember the Prodigio offer to track your slightest purchasing habits). Let’s take a look at their...
To increase customer loyalty, Nespresso launches a subscription offer
Three years ago, Nespresso launched the Prodigio, a connected appliance. The latter, under the guise of a few “gadget” features, actually controlled your coffee consumption and prepared the automation of orders. Since this marketer’s dream did not come true, Nespresso opted for a more user-friendly solution and has just launched a subscription-based package. What has changed? Not much. In today’s article, we analyse Nespresso’s subscription offer in light of the item we published yesterday on the...
Nespresso : the secret behind the new Prodigio connected machine
Nespresso just launched a new connected machine called “Prodigio”. This machine allegedly allows you to prepare a coffee with your smartphone and make sure you never run out of Nespresso capsules. This machine will however allow much more than that … but the customer will probably never get to know it. Let’s have a look behind the scene and discover the secrets of the Prodigio strategy. Churn : the one metric Nespresso is concerned about For...
RFID technology used by Nespresso to enhance customer experience
RFID technology has been around for some years now but its applications in B2C remained pretty scarce. In the B2B context it’s a little bit more popular although in most business contexts it’s still in its infancy or at the exploration stage. We were therefore extremely pleased to see one real B2C application rolled out at Nespresso that contributes significantly to satisfying customers. Waiting time conducts to unsatisfaction One of the huge issues Nespresso was facing...
Sara Lee vs. Nespresso : missed target
When I attended the “stratégie clients” show in Paris two weeks ago, I heard Julien Morel, the COO of Nespresso, explain how Nespresso was able to keep its market share in spite of new players like Maison du Café (Sara Lee) and Casino. While in France I went to a supermarket to test the Sara Lee capsules by myself and I’ve got an explanation. Sara Lee’s coffee is simply not as good as Nespresso’s. From a...
Eye-tracking and virtual reality: advantages and case studies
In this article, we present a brand-new technology that IntoTheMinds proposes exclusively to its customers. This is eye-tracking integrated into a virtual reality headset for market research purposes. This article explains how this recent technology works, its advantages, and case studies.
Subscriptions: Increase +200% revenues thanks to automatic renewal
Research conducted in 2023 analyzes the effects of automatic subscription renewal. Customers who forget to renew their subscriptions increase retailers’ revenues by 14% to over 200%.
ChatGPT: 4 sources of risk for inbound marketing
Companies that rely on SEO to find customers may need help with llead generation. After a few weeks of using ChatGPT and the new Bing, I look at the dangers of these conversational agents for companies using inbound marketing. Based on the search context, I have identified 4 issues likely to impact users negatively. Contact our agency for your inbound marketing projects Summary The opacity of the data used for training Wrong but very convincing answers Selection bias Risk to serendipity Conclusion The...
Customer Lifetime Value: definition, calculation, and an example
The Customer Lifetime Value (or CLV) is one of the best indicators to determine the value of a customer. It is very interesting to find the most profitable elements of its customer base. Nevertheless, the definitions of the concept differ according to the sources. However, our definition includes the most relevant scientific sources on the subject. In this article, we will also detail the calculation of the CLTV (click here to discover it). Finally, a numerical...
Stream your cooking with the Samsung connected oven: so useless
Samsung introduced a connected oven poetically named Bespoke AI™ Oven at CES in Las Vegas in 2023. Equipped with a camera, it allows you, among other things, to broadcast live the cooking of your favorite dishes. This innovation forces me to think about the waste of technological resources and the gap between innovation and customer expectations. Only for our subscribers: exclusive analyses and marketing advice Email address * Subscribe By signing up, you agree to our...
Business model by subscription: 11 examples analyzed
Subscription is a business model that has been adopted in many industries. Companies have realized that they can earn more revenue in the long term and increase their profitability. Subscription models often use specific pricing techniques to reduce the perceived price paid. The subscription business model is so profitable that it leads some companies to abuse it to prevent you from terminating (e.g., Amazon Prime). In this article, we analyze 11 strategies based on subscription. Only...
Marketing Mix : product
The first of the 7Ps of the marketing mix is, of course, the product. The term product does not mean a physical object. It can also be a service. To cover this first “P,” you will have to describe the characteristics of the product (design, packaging, functionality), its place in the range of other products, as well as the services that are attached to it (after-sales service, repair, recycling at the end of its life). Below, we...
![Marketing Mix: definitions, analysis examples [Complete Guide 2023].](https://www.intotheminds.com/blog/app/uploads/marketing-mix-240x240.jpg)
Marketing Mix: definitions, analysis examples [Complete Guide 2023].
The marketing mix aims at making your marketing positioning concrete. Often associated with the term “4Ps“, the objective of the marketing mix is to make your positioning tangible each time your brand is in contact with the consumer (the so-called “touchpoints”). This article explains the difference between 4P and 7P, explains each facet of the marketing mix with numerous examples, and ends with a detailed case study. To go even further, we suggest you consult our online resource, where we detail and illustrate...
Operational Marketing: definition, tools, performance measurement
Operational marketing is a crucial area impacting the performance of companies. It is the marketing actions taken to achieve the objectives defined by the marketing strategy. Ahmed et al. (2014) emphasizes in their research that the internal resources related to marketing and operations are an essential point of the performance and competitiveness of a company. This impact is notably moderated by economic conditions and top management’s involvement in creating and providing marketing and operational resources. If you only...
Marketing: this 10-year-old child will explain to you the concept of differentiation
How do you succeed in business today? More than ever, you have to know how to differentiate yourself. Differentiation has become an essential marketing strategy for business success. In this episode of ” The Business World with Pierre-Raffaele? ” we explain the concept of differentiation in a simple way. We use a concrete example, that of Rusée, a high-end leather goods brand that differentiates itself on two main lines: the use of recycled raw materials an...
Why do we innovate? Prof. Bruno Wattenbergh explains everything to this 9-year-old child
2020 rhymes with new features at IntoTheMinds. As we announced in a previous post, we have launched a series of videos about business. The presenter is a 10-year-old child, Pierre-Raffaele, who receives in his studio, guests who are experts in their field. In the 2nd episode of the series, it is a guest of choice who is welcomed by Pierre-Raffaele. Bruno Wattenbergh is indeed a professor of entrepreneurship and chairman of the Innovation Board of Ernst...
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[PODCAST] Future Trends in Advertising with Paul Lee (Deloitte)
For this first episode of the year, we innovate a little and offer you a podcast in English. Our first interviewee of the year is a reference when it comes to the advertising market and the universe of media. Paul Lee is Deloitte’s Global Head of Research for the telecom, media and advertising markets. A triple skill that allows him to take an innovative and in-depth look at a market that has been in almost constant...
Marketing strategy. The subscription business model is changing radically.
One more step towards consumerism. We are continually dematerialising property, and this time it is Nike that has gone one step further by offering a subscription for trainers. The Nike Adventure Club, currently reserved to the United States for children aged 2 to 10, provides subscription packages of up to $50 per month and allows you to receive up to 12 pairs of trainers per year with promotional materials such as brochures, stickers, and so on…...
Amazon’s new business move will lock customers further
Amazon looks to me as one of the most innovative companies in the world, far more innovative actually that any of the electronics giants out there which have done poorly at inventing any real breakthrough innovation for the last 10 years. Amazon not only innovates to make its logistics better, but it makes also some very smart business moves to consolidate its position on various markets. Its latest move, in the book edition industry, ressembles one...
Big Data : 4 types of filter bubbles
The question of the existence of filter bubbles (also called cognitive bubbles) is central to the fields of Big Data and algorithm design. Among different books, I was very much influenced by the Dominique Cardon’s book on algorithms and society. In this book entitled “What are algorithms dreaming of ?” Cardon proposes a framework based on four types of web measurements, each resting on a specified data type (see summary table below). Examples Data Population...
“What else” : do you remember where it comes from ?
“What Else” has become Nespresso’s tagline. But do you remember where it comes from ? When a friend of mine asked me this question, I couldn’t. Watch this 2006 video and you’ll remember quickly … Image : Rob d /...
Customers are the last hurdle to remove for a smoother supply-chain
The Nespresso Prodigio case shows that companies are trying to remove the last uncertainty factor to maximize loyalty. This factor is the customer himself. It’s not a bad idea indeed. Rather than building complex algorithms to predict customers’ behaviors, why not just remove the human factor from the equation ? If the proposed added value is sufficient it may well work. Prodigio’s value proposition : enough to automate customer’s decision process? That’s what Nespresso probably thought...
Le Substore : Heineken opens its popup store in Paris
It’s been quite a long time we haven’t been reporting about remarkable popup stores. Not that we didn’t want but we actually didn’t spot anything really exciting. We took the chance to visit the Substore, Heineken’s popup store opened in Paris (19 rue de la Verrerie) from 20 november until 20 december. The Substore was created and built around one new product brought out by Heineken : a personal beer pump (called LeSub) manufactured by Krups and...
The coffee capsules war will not happen
Sara Lee launched last year its Nespresso-compatible capsules. In Paris only 100000 samples were given for free. In August Sara Lee announced that they had reached the 100m$ revenues with this product. Still, the question remains for me whether this can be considered a success. Last year we already challenged this assumption on our blog and we are confirming our analysis today. What if this result was only the consequence of a temporary switching from Nespresso...
Customer experience in Paris : « stratégie clients » trade show
I spent two days in Paris to observe the latest trends as far as distribution is concerned and also to attend the “stratégie clients” show which was dedicated to customer relationship, loyalty, CRM and the like. This show was reserved for marketing professionals and exhibitors were actually mainly suppliers in the IT and call-centre fields. As far as I’m concerned I found that it had therefore not much to do with the relationship itself but more...
A call to reinvent the codes of the luxury sector
It’s too much. I was reading last week an article about Sushi Shop in a monthly French economic magazine. The author explained that Sushi Shop just let redesign its packaging by Kenzo, the famous clothing design who has diversified into a myriad of other activities. Sushi Shop claims to be a luxury firm within the Sushi industry and all the clichés of the luxury are actually used to justify its upper-tier positioning: black packaging, wording (they...
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