CASE STUDY NESPRESSO
Segmenting Audiences and Increasing Sales with A/B Testing at Scale
With personalized ads, the brand was able to increase sales significantly while also learning about how different audience segments purchase their various products.
Prior to working with Clinch on dynamic creative optimization (DCO efforts), Nespresso had been running a single ad creative to all audiences, with a 30% off on all machine’s coupon initiative. However, after several months there had been little improvement in performance.
Targeting three segments to begin with — Prospects, Retargeting, and Customers — Clinch was able to record and optimize real-time consumer insights by analyzing performance metrics and behavioral data to create predictive performance algorithms and machine learning to optimize the most relevant messages to consumers. By understanding these insights, Nespresso was able to show different personalized creatives to consumers based on previous and current activity shown through their website, sending the best performing creatives and markets for best return on ad spend (ROAS) in real-time. Their simple starting segments became much more differentiated over the course of the campaign.
This campaign changed how Nespresso engaged with audiences online – no longer blanketing them with a single message, but creating different campaigns and messages for different parts of the consumer journey. Clinch’s solution helped Nespresso improve their prospecting and remarketing efforts, with the right messaging and creative for each segment, helping drive consumers through the funnel. It also enabled them to reduce their reliance on discounts. What started as a one-month test campaign, turned into a 6-month partnership of data learning and optimization efforts. The success of the display campaign is going to be expanded to social this year.