Liquid Barcodes

Resources

Simply Nothing Like Nespresso

Paula Thomas, Chief Content Officer, Liquid Barcodes

31/05/2020

For student marketers, perhaps some of the most exciting insights imaginable have come from Nespresso. Originally launched in 1986, long before premium coffee had become one of the world’s most popular drinks, Nestlé in Switzerland created a concept so compelling that it eventually took the world both by surprise and by storm, but at first, it nearly failed!

Recently dubbed “the Apple of coffee”, few brands boast anything close to the level of glamour and exclusivity of Nespresso, achieved at least in part by the irresistible charm of its global brand ambassador George Clooney – the iconic star Nespresso says was chosen its by Club Members as “the perfect personification of the understated elegance and authenticity.”

This article discusses the role of innovation and loyalty in Nespresso’s inspiring evolution becoming a $7.5 billion brand, as well as its clever use of the increasingly popular subscription model to continually delight its customers.

Nespresso brandThe Nespresso brand embodies luxury, sophistication and exclusivity. 

Lessons in Loyalty 

With the benefit of hindsight, it’s incredibly surprising that Nespresso barely survived its first decade in business. Originally designed for restaurants, the product was failing and only its then CEO Jean-Paul Gaillard realised its potential to delight coffee-loving consumers. Even now, there are few individuals who can match his achievements having personally created a “multi billion worldwide market segment” which still leverages the best of Swiss ingenuity and sophistication.

Gaillard’s strategy was to create the concept of “Le Club” – an exclusive community of loyal advocates that continues to this day. From those humble beginnings, the programme has evolved to a three-tier programme with benefits extending from free delivery for all purchases over 100 capsules and a coffee masterclass for “Connoisseurs”, up to exclusive products and experiences for “Ambassadors”. 

Nespresso membersNespresso members are classified by the length of their loyalty as well as their spend. 

Simple Subscriptions 

While Amazon Prime is perhaps the world’s best-known subscription programme worldwide, for coffee-lovers, the programme launched by Nespresso must surely come a close second. Customers subscribe to one of two packages depending whether they simply need a regular stock of capsules or also a Nespresso machine. 

For Machine Owners:

For customers who’ve already invested in a Nespresso machine at home, coffee capsule plans range from £17 a month to enjoy one cup a day, up to £50 a month for those who indulge in four or five, with the £30 plan suggested as its “most popular” capsule plan. As well as free delivery, subscribers enjoy a 10% credit “thank you for subscribing” bonus each month, as well as the flexibility to cancel at any time. 

Non-Machine Owners:

With Nespresso machines costing anywhere from £89.99 to £649.99, it was clearly a bold but essential move for Nespresso to provide free machines to coffee lovers who needed one, in return for their long-term loyalty on capsules. A “£1 Nespresso machine” concept was launched in the UK in July 2017 with three subscription packages to choose from, at a time when the patent had expired on the design of Nespresso capsules, bringing unprecedented competition for the product and brand.

Suddenly cost conscious consumers could save up to £95 a year using non-branded capsules with their Nespresso machines – a tempting choice that must have tested the brand’s true strength. And the strategy seems to have worked. The “£1 machine offer” now boasts thirteen options, ranging in price from £20 per month up to £70 per month depending on the desired machine, and the number of capsules needed each month. 

Nespresso Nespresso focuses on simplicity, additional credit or a free machine as some of its unique benefits for subscribers.

Innovation:

With intense competition inevitable in such a profitable industry, Nespresso is still relying on both innovation and its customer relationships to stay ahead. In the words of Vincent Leroudier, its Digital Customer Innovation Manager, the company is using digital technology to “share the Nespresso experience, build stronger relationships with people…. offering them new products…. and innovative ways to access them”. This has resulted in the launch of the “Nespresso Assistant” on Facebook Messenger in 2018 – a chatbot that advises customers on special offers, ways to recycle and an eCommerce option we are promised will enable users worldwide by 2020 to order their caffeine fix without ever leaving the Messenger app. 

In Closing:

Nespresso first started selling online twenty years ago and has continued to build its brand, designing beautiful boutique stores in premium worldwide locations while also embracing the beauty of subscriptions as a compelling business model.

In our increasingly complex and often frantic lives, subscribing to a favourite brand offers customers a real solution and one less thing to remember in the grocery store. For a brand like Nespresso, it offers the perfect combination of customer commitment and also a valuable connection to the community.

While the original brilliance of Nespresso has been to successfully enable any of us to create a perfect cup of coffee, along the way it also created a new consumer culture and became the global reference point for an entire industry. It’s truly inspiring to see this iconic brand using the concept of an exclusive “Club” and now subscriptions to drive loyalty and advocacy and ensure its enduring success in our coffee-loving culture. 

Nespresso

About Us:

Liquid Barcodes is a leading global loyalty and digital marketing technology company specialised in the convenience store and foodservice industries. Our proprietary cloud-based technology platform allow retailers to create and manage their digital marketing campaigns with a proprietary process we call the “customer connection cycle’ to engage, promote and reward customers activities in real-time across digital and media channels.

How we do it:

We have developed the most advanced loyalty and digital marketing technology platform specifically for convenience store and foodservice retailers globally.

Retailers use our self-service dashboard to create and manage loyalty driven marketing campaigns that increase purchases with their existing customers, as well as effectively target and acquire new customers through partners or paid media channels.

One core component of live loyalty is gamification. We have gamified branding, loyalty and promotions. We believe this approach is essential in order to get customers’ attention and ultimately truly engage them with repeatable actions thereby winning their loyalty.

Check out some of our exciting/proven results here:

www.LiquidBarcodes.com

About Me:

Paula Thomas

Chief Content Officer, Liquid Barcodes and Independent Loyalty Consultant

With over twenty-five years marketing experience, I specialise in loyalty marketing consulting, managing consumer loyalty propositions, strategy and operations. In addition to working with Liquid Barcodes, my clients have included Telefonica O2, Three Mobile, Electric Ireland, Allied Irish Bank and The Entertainer Group, as well as Avios – the global points currency for some of the world’s top airlines. I am also a former judge for the Loyalty Magazine Awards. 

—————————————————


Blog post

Liquid Barcodes Makes U.S. Debut at 2022 NACS Show

Liquid Barcodes exhibited at the 2022 NACS Show demonstrating loyalty, subscription and payment applications.   For the first time in history, Liquid Barcodes had the pleasure of exhibiting in two prominent locations at the 2022 NACS Show both in the busy New Exhibitor Area as well as in the featured partner kiosk in Verifone’s booth […]

Blog post

Save Thousands in Credit Card Fees With ACH

Visa and Mastercard announced an increase in interchange fees earlier in the year and retailers are taking action and sending a message by migrating their customers to new solutions, including mobile app-based ACH payments, and in the process increasing profits by not only reducing credit card fees but also boosting loyalty via innovative app-based incentive […]

Blog post

Subscription Programs Are Economically Smart Investments

Monthly subscriptions to products and services are economically smart investments for retailers and customers With a recession looming and gas prices still at record-high levels, customers are tightening their grip on their wallets. But this doesn’t mean they’ll be turning their backs on convenience store purchases and there are ways you can weather the impending […]

Blog post

Converting Impulse Shoppers to Automatic Customers

Subscription programs for drinks and snacks encourage customers to change from impulse buyers to automatic customers   Customers stop at gas stations and convenience stores to buy fuel, for beverages and snacks and to use the bathroom, essentially in that order of priority. A NACS survey of gas-buying customers found that half went into the […]

Blog post

Maxol Launches First-of-Its-Kind Loyalty App

Maxol, Ireland’s largest family-owned forecourt and convenience retailer, announced it has launched a new customer loyalty app with never-before-seen features in the Irish market. After more than a century serving Irish customers, Maxol’s 240+ stores and service stations are located throughout Ireland and have enjoyed global recognition for their best-in-class operations, store design and offers. […]

Blog post

Delivering Personalized Content With Machine Learning and Image Recognition

Build personalized customer connections, improve efficiency, and make intelligent, data-driven decisions using machine learning and image recognition.   It’s 7:15 in the morning and a customer – Amy – is on her way to work. She is on the hunt for coffee and breakfast and stops at a convenience store. She opens her store app […]

Blog post

Sweet Tea and Coffee Subscription Beverage Programs Brew Recurring Revenue

As summer nears, consumers are turning their attention towards refreshing iced beverages and iced tea is a hot seller this time of year, especially when sold with a subscription beverage program. Sweet tea might be the quintessential drink of southerners in the U.S, but the rest of the country has developed a taste for the […]

Blog post

Circle K’s Use of Beacon Technology to Activate Car Wash Subscription Program

Beacon Technology and Car Wash Subscription Programs Beacon technology used in tandem with a customer-facing car wash subscription program revolutionizes the customer experience by providing a quick, convenient experience. Innovation is the key to continued growth and ensuring a frictionless customer experience should be top of mind for any retailer. Circle K’s vast global network […]

Blog post

Unlimited Car Washes!

Subscription programs for car washes are a hot trend in convenience retail.

Blog post

Car Wash Program Drives Sales for United Pacific

Car wash programs are revenue drivers for convenience stores and fueling stations around the globe. Making sure the process is convenient and cost-effective for customers increases traffic and drives in-store sales. Oftentimes, car wash units occupy a small corner of the lot and do not receive much attention. This is not the case for those […]

Blog post

Danish Railway Rewards Riders with DSB Plus

The Danish railway system, known as DSB, is going the distance to reward customers by partnering with convenience retailer 7-Eleven to deliver points towards food and coffee simply for riding the rails. Whether commuting or travelling longer distances, riders who join DSB Plus earn points whenever they travel within Denmark. DSB is an abbreviation for […]

Blog post

Subscriptions for the win!

Amazon Prime is, by nature, a subscription under the auspice of membership. Pay an annual fee, get 2-day shipping and exclusive deals. Amazon took it one level further with “Subscribe & Save” where you can get everyday – and not so everyday – items shipped to you on a regular schedule.  In the early days […]

Blog post

Customer Retention Program of Circle K Vietnam

As the first international convenience store brand to launch in Vietnam, Circle K has over a decade of expertise catering to the needs of the 96 million residents of this huge country, operating a network of over four hundred convenience stores each open 24 hours a day! So launching an outstanding customer retention program was […]

Blog post

Stinker Stores Named Best New Loyalty Program in the U.S.

        2021 Best New Loyalty Program  Stinker Stores’ new loyalty program offers multiple redemptions with a single scan and stands out with a gamification feature to keep customers engaged. This article is originally published on CStoreDecisions and written by Erin Del Conte | October 28, 2021 Stinker Stores, with 103 convenience stores across Idaho, […]

Liquid Barcodes

Put a rocket under your loyalty program

With our loyalty platform, we help design and operate world-class, tailor-made subscription and reward programs that make sure your customers always come back.

Book a Demo →

We are trusted by global brands.

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes

Convenience retailers all over the world have engaged and rewarded consumers with our tailor-made loyalty programs.

To our case studies →

Liquid Barcodes
Liquid Barcodes
Liquid Barcodes
Liquid Barcodes