Advertiser: Nestlé (Malaysia) Berhad Brand: Dear Nestle Creative Agency: MINDSHARE MALAYSIA Credits: -
Objective & Challenge
Nestle launched DearNestle in 2019, a centralized Customer Relationship Management (CRM) program with the objective of collecting first-party customer data and fostering customer loyalty across multiple brands and product categories. However, the program has encountered several challenges that need to be addressed: 1. Limited cross-selling opportunities: The program has faced difficulties in capitalizing on cross-selling opportunities due to the existence of brand-siloed recruitment programs. 2. Inadequate incentives and benefits for members: One of the primary challenges faced by DearNestle is the insufficient incentives to encourage customers to submit their data and remain actively engaged with the program. 3. Insufficient transparency on data usage: There has been a lack of transparent communication and clear information about data privacy measures and how customer data is used to build trust and ensure compliance with data protection regulations. When the agency took over the media recruitment and retention task in 2022, we found that the database had only accumulated 350,000 customers as of December 2021. The goal was to reach 800,000 customers by 2023 to actualize the purpose of DearNestle, which is to engage and retain customers for life. We recognized that a comprehensive overhaul was necessary to achieve this objective.
Insight & Strategy
Wellness for Life: A Comprehensive Customer Acquisition and Engagement Strategy To addresss the challenges faced by DearNestle, the agency has developed a robust three-pillar strategy that aligns with the company’s commitment to providing nutritional food offerings throughout every stage of life. This strategy encompasses over 500 brands from five core categories, ensuring a cradle-to-grave approach to wellness. The three-pillar approach focuses on acquisition, retention, and value extraction to optimize customer engagement: 1. Acquisition through need-based data collection: The agency has revamped the data collection process from brand-siloed to need-based, enabling a deeper understanding of the specific food solutions that customers seek based on their household’s unique needs. By capturing this information, we can tailor our offerings and marketing efforts to better meet customer demands, driving higher customer acquisition rates. 2. Retention and valorization through life-stage segmentation: To foster customer loyalty and increase value per customer, we employs life-stage segmentation. This segmentation allows Nestle to identify customers’ current and transitioning life stages, enabling targeted cross-selling and upselling strategies. By providing personalized recommendations and offers based on individual life stages, we can drive higher basket values and encourage long-term customer retention. 3. Always-on value extraction via eCommerce campaigns: Leveraging first-party customer data segmented according to needs and life stages, we implements smarter targeting strategies through eCommerce campaigns. By understanding customers’ specific requirements and preferences, Nestle can deliver tailored advertisements and promotions, driving both initial purchases and repeat transactions. This comprehensive approach establishes an end-to-end CRM ecosystem, encompassing customer acquisition, real-time activation, and equipped with first-party data to adapt to the imminent cookie-less world.
Activating the three-pillar strategy: Firstly, we initiated an in-depth analysis of the customer journey, focusing on the infant formula category, which emerged as having the most robust database. Leveraging this insight, we mapped out potential nutrition and consumption migration patterns from young families to growing families, enabling us to tailor retargeting and cross-selling offers effectively. To address the challenges surrounding transparency and customer benefits, we took a proactive approach by redesigning the recruitment form for new customer acquisition. The revamped form now allows respondents to select the specific product they wish to try, enabling us to distribute relevant samples accompanied by a special eComm coupon that incentivizes post-trial purchases. This approach ensures a more personalized and value-driven experience for new customers, increasing their engagement and likelihood of becoming loyal brand advocates. Furthermore, we implemented a comprehensive data ingestion process that segmentizes customer data based on their specific needs and life stages. This enriched and segmented data serves as the foundation for an always-on, end-to-end user engagement journey aimed at driving eCommerce conversions. The clear segmentation has guided a shift from brand-led messaging to segment-led eCommerce retargeting communication, ensuring more targeted and relevant interactions with customers. Additionally, the enriched data has informed the development of monthly EDM (Electronic Direct Mail) themes with dynamic content and consistent design, further enhancing the personalized and engaging experience for customers. Through these strategic initiatives, we were able to optimize customer engagement and enhance the overall customer journey. By tailoring our approach based on customer needs and life stages, while leveraging data-driven insights, we successfully drove improved eCommerce conversions and delivered a seamless, value-driven experience to our customers.
From Wellness to Wallet The three-pillar strategy has delivered notable business improvements: • Need-based data collection achieved the acquisition of 885,000 new customers by December 2022, surpassing the 800,000 target by 11%. • Hyper-segmentation based on life stages increased the active user base by 58% (from 38% in January 2022 to 60% in December 2022). • Continuous data enrichment through always-on campaigns led to a 241% improvement in Return-On-Ad-Spend (ROAS), grew from 3.5x to 8.45x. • Specifically on Shopee, ROAS was 6.7x higher than native audiences. • ROAS improvement across categories: o Infant Formula: ROAS improved by 295%, grew from 0.7x to 1.9x o Coffee: ROAS improved by 277%, grew from 1.2x to 3.2x. o Adult Milk: ROAS improved by 180%, grew from 2x to 3.7x. o Food: ROAS improved by 112%, grew from 3.9x to 4.4x. • A Conversion-lift-Study for Milo in November 2022 showed a significant 24x increase in 1PD (first-party data) ROAS. These results demonstrate the tangible success of the three-pillar strategy in driving business improvements, including customer acquisition, increased user engagement, enhanced e-commerce conversions, and improved ROAS across various product categories.