How Nestles using Shopify Plus to target Milleni

How Nestles using Shopify Plus to target Millenials

https://www.shopify.com/enterprise/how-nestle-is-using-shopi…

This is a fascinating case study published by Shopify describing how Nestles (mammoth company, the WORLD’S LARGEST food and beverage company) is using Shopify Plus.

When I say fascinating, you have to read this:

…Nestlé wanted to somehow convince millennials that making the transition into adulthood will be a bit easier with a quick and delicious cup of coffee…It would be one of Nestlé’s first forays into the world of B2C ecommerce. …[They] took what they learned from their social listening sessions, created language to match what they heard, and designed a channel through which Nestlé could show rather than tell millennials how Nescafé might make their lives better.

The idea was to introduce the Nescafé Sweet & Creamy brand by touching a nerve with millennials… …That meant giving away samples. It also meant Nestlé would have to build out an ecommerce infrastructure, ensure logistics and fulfillment went off without a hitch, and seamlessly integrate analytics and other systems so it could optimize the campaign…Remember, it all had to be done from scratch…And completed in just eight weeks.

“I’ve never launched anything this quickly,” Rosenberg says of the Nescafé Sweet & Creamy campaign targeting millennials. “Other platforms would never allow us to launch this quickly which is one reason we chose to partner with Shopify.”

…Shopify Plus… is now the foundation on which the Nescafé Sweet & Creamy campaign is growing. Not only does the site humorously attempt to persuade millennials that an instant coffee can be a convenient solution that helps overcome adulting problems, but it aims to prove it… “The goal was to get them to sample so we offered them Nescafé for free.”

The results?

…[It] yielded a blockbuster response no one expected: 70% conversion rate when samples were available. The goal was to give away 21,000 Nescafé samples over the course of a year. However, 90% of that goal was achieved in just a few hours when the campaign launched in March 2016…We actually had to shut down the campaign the very first day…People were so receptive to the Nescafé offer they literally blew through our expectations.”

There’s also evidence, according to Nestlé, that many of those millennial samplers have become customers who now purchase Nescafé. “From a sales point of view we’re ahead of our target, so it’s a big thumbs up…We’ve been really successful recruiting users to the brand and have not only seen purchases but repurchases as well.”

It’s a fun read and it will make you add to your Shopify position. I’d urge you to follow the link and read the whole thing (with its amusing illustrations).

Saul

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Referring to another recent thread, instinct tells me that Shopify is a good one! [not even half joking]

Fascinating. SHOP is my one exception to rules-based investing…

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Thanks for sharing that article about Shopify and Nestles, Saul. Helps point out how they have strengths over the competition. Meeting their target within hours is amazing!

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I am itching to increase my SHOP allocation but surely a stock that shoots up 67% in 6 months should offer a better entry point just around the corner, or maybe not!

anyone else have the same decision?!

I am itching to increase my SHOP allocation but surely a stock that shoots up 67% in 6 months should offer a better entry point just around the corner…

It may happen, but you have to take into account that their revenues are rising 93% per year right now.

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The Shopify IPO happened in May 2015. They are up around 50% since then. If this stock has a future then this is only the beginning of what might happen.

I have waited for other stocks to go down and give me a better share price. Sometimes it never happens. I bought shop in April and added some more in August. So I am up 33%

Should I add more to my 6% position ? Maybe, I don’t know. But I am certainly not selling. In a way, not selling is sorta like buying. But not really…hmmm, maybe I should gradually keep adding more to SHOP like Saul sometimes does with certain of his holdings.

I waited a long time before I finally gave up waiting on AMZN and actually bought in.

A few others too.

Good luck with your investing decisions fireblade.

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