Nespresso is not just an ordinary coffee machine, with an ordinary look, branded in an ordinary way and making ordinary coffee. Instead it is a stylishly-designed machine, priced so that almost everyone who enjoys a luxurious cup of coffee can afford it. To raise their market visibility, the Nespresso company hired famous actor George Clooney for its advertisements. (Wow – George Clooney in a coffee commercial?? That’s unique all by itself.)
Nespresso also gathers an enormous amount of information about its users through a “customer club card” program. For example, the company can track how many “coffee buttons” (individual espresso serving capsules) a customer buys over a given period. Using this information, the company reminds their customers when it is time to clean their machine. The information also allows easy calculation of YARPU (Yearly Average Revenue Per User), LTV (Life Time Value) and COGS (Cost Of Goods Sold). How brilliant is that, for an offline product? They have nearly the same details about their cus- tomers as Google is able to gather through Google Analytics.
Another thing that makes Nespresso so very different from other coffee machines and services is that they have their own brick-and-mortar shops, where the customers can buy pack- ages of coffee buttons, machines and other Nespresso prod- ucts, and receive direct customer service from experienced, knowledgeable fellow coffee drinkers.
To sum up some of the things Nespresso is doing their way:
1. George Clooney as their “pitch man!”
2. Customer service that’s nearly perfect, with only expert, experienced support staff.
3. A complete concept that no other company comes close to matching.