We realised that the best way to improve ecommerce conversion rates, was to integrate offline and online media more effectively. That is exactly what we did.
Coffee is everywhere. It has become a cornerstone of our modern culture, daily ritual and even our online rhetoric. It’s a seemingly ever-growing trend with the unique ability to transcend all cultures and lifestyles.
Nespresso’s goal is simple: “To become the ultimate provider of daily pleasure for as many people as possible, worldwide”. Even though coffee is already a part of our everyday lives in SA, we’re only starting to wake up to the smell of portioned ground coffee now.
With only 105 000 households in SA drinking ground coffee, versus the 501 000 households drinking instant coffee, we needed to grow our share of the ground coffee market and attract new clients from the instant coffee market – while maintaining the world-class presence that Nespresso is so well known for.
With a comparatively modest budget, we needed to achieve this by fulfilling a simple objective – sell more machines and capsules of their incredible coffee in the online space.
With our main competitor increasing their ad spend by over 1100%, we needed to make the most of the opportunity at hand.
In order to grow our online audience, we first needed to learn more about them. Finding out what messaging they reacted to, which domains they frequented and how they behaved online would be essential to taking a greater market share.
We made the most of a few effective ways to get a glimpse into their lives. Firstly we spread awareness of the overall Nespresso campaign using our most powerful asset – the TVC. With a simple Shazam CTA added to the TV commercials, we were able to gather priceless data from over 27 000 people.
We coupled this with data gathered from our premium and programmatic media placements that took users to the site online, meaning we were able to draw a comprehensive picture of target audience’s online habits and actions. This is what is referred to as “prospecting”.
Next we were able to create audience segments based on either their engagement with our creative media, users going directly to www.buynespresso.com or having initially converted from first points of contact during the prospecting phase. This gave us the chance to run effective retargeting messaging while continuously optimising the campaign.
By looking at our current audience’s behaviour based on our retargeting strategy, as well as which domains provided users who were likely to follow through to purchase, we were able to build invaluable lookalike audiences.
Thanks to some priceless data from the Shazam interaction, a great placement strategy and the bolstered growth of our lookalike audience, our programmatic campaign went down like a designer latte.
It generated nearly 600 sales – contributing over R1 500 000 in traced revenue – an incredible return of R9.45 per R1 spent. This was Xaxis’ first campaign for Nespresso, yet they were able to almost halve the cost per acquisition in comparison with our previous 3rd party supplier.
Even the premium display media placement outperformed expectations. With the primary goal of creating awareness and some basic engagement, it was still able to generate over 170 sales for a revenue figure of over R350 000. That’s a return on investment of R1.4 for every R1 spent.