‘We follow up our
customers using an
omnichannel strategy’
Interview with Wim De Schutter, Nespresso marketing director Belux
Wim De Schutter
For two good years now, Wim De Schutter has been
marketing director BeLux at Nespresso and is the
man in charge of the local marketing strategy. Previous to this, he was marketing manager at telecommunications company BASE and before that he was
employed for ten years at FMCG companies such as
Ferrero, Danone and AB-Inbev (then still Interbrew).
BASE appears a bit of a sidestep, but De Schutte still
states that it was worthwhile. After all, the telecommunications company has a retail channel and a
service dimension (including a call centre). “That
dimension with the CRM and the customer base
was a component that I did not have with FMCG,”
he explains. De Schutter also found this again at
Nespresso. He made the switch to Nespresso as it is
an international and attractive brand and because
coffee is a great product.
Nespresso is the leading coffee brand and system
by Nestlé and is based on a club formula. Coffee
sales take place via own distribution channels, online and offline. Data are therefore also important,
as ‘to measure is to know’, as Wim De Schutter,
Nespresso marketing director Belux, tells us.
Marketing is
about bringing
clients to the
Boardroom
Nespresso is an international brand. How is the marketing of this conceived?
Wim De Schutter: “We are in a state of transition from
global to ‘glocal’ marketing, in which we give local ‘topInterview
with
David
Tornel
spin’. That is my
assignment
here.
‘Global’ applies to all
above-the-line advertising (the George Clooney spots)
and all product development. All other aspects are local:
activation, events, press moments etc. In this we also
occupy ourselves with business-to-business activities
(in partnership with a sales colleague in B2B) and retail
strategy, the boutique network. The boutiques have their
Nespresso is part of the Nestlé group and entered
the market 29 years ago. Nespresso has given
coffee a new dimension. Wim De Schutter: “It was
a matter of helping to give shape to the coffee
culture. Pioneering work has been done in the
single service segment. Since then, coffee culture
has developed a lot on all levels. Coffee is very
dynamic; it is a very attractive category with many
innovations such as ‘pure origins’, milk recipes, the
barista factor etc. There has been a very interesting movement with regard to other categories
such as wine and beer. Coffee has also evolved
in this direction. The consumer has become a lot
more empowered and wants to know more about
his coffee. The coffee market is still growing and
in this we are also still undergoing good development. The whole category is dynamic and continues to grow.”
own director, but in a marketing role you also give your
view of their development. On top of this, there is the
service dimension locally.”
Club member
What is the channel that brings in consumers more than
any other?
Wim De Schutter: “People become club members via a
number of different channels. When you buy a machine,
you register as a club member so as to be able to order
coffee. You can register yourself directly, you can do it in
the boutique or via retailers such as Krëfel and Van den
Borre. You are then our customer and the relationship
can be developed. As a club member, you have certain
advantages where service is concerned.”
How many come in via Krëfel, Van den Borre and suchlike?
Wim De Schutter: “For us the distribution partners are
very important. They bring in clientele that we are not
able to reach with our six stores.”
The machine-coffee combination is therefore necessary
for you?
Wim De Schutter: “That is what we propose. After all,
the machine was developed for our coffee. Today there
is competition on the coffee capsule market. The patent
expired two years ago and there is now talk of an ‘open
system’. Everyone now has the right to develop coffee
and capsules that are compatible with Nespresso. We
stand out through our coffee and our service. As far as
coffee is concerned: we work with the best coffees in the
world, the top 2% that is referred to as ‘gourmet coffee’.
There is a wide range of flavours, and every year new
ones are added. The consumer therefore has a great deal
of choice. Moreover, this is sustainable coffee (Nespresso’s sustainability programme is called ‘positive cup’). By
2020, 100% of our coffee must be sustainably sourced
and we want to be carbon neutral for all our operations.
This is a substantial commitment.
“In addition, there is the service. The call centre is available 24/7 and there is a machine repair service. If your
machine breaks down during the warranty period, we provide another machine until yours has been repaired, or
if that is no longer possible until a new one is available.
That is one of the advantages of club membership.”
OWN CHANNELS
What are your direct sales channels?
Wim De Schutter: “As Nespresso we have direct customer
contact. We do not work via classic retail, but we have our
own channels for ordering: the boutique network (there
are now six establishments in Belgium), the call centre
(a lot of people know that you can call it directly 24/7
for orders or in the event of problems) and the website
(now also with an app for iPhone and Android, the boutique in your pocket as it were). Among Nespresso staff
worldwide, 70% deal with direct customer contact. This is
very important for the provision of instant feedback. The
boutiques and call centre are the most major points of
contact. Online is growing thanks to the e-boutique. It is
>
important to have both: online and physical distribution.
Physical is important for service. People have a need to
physically see people who can tell the coffee story and
have contact with customers. That is more difficult via a
website.”
How important are data to Nespresso?
Wim De Schutter: “Data are crucial. To measure is to
know. That is our favourite slogan. Through direct contact
with consumers, we are able to work in a customised
fashion. If the end consumer always drinks coffee without
milk, then it does not make sense to propose a machine
with a milk function. With relevant data, you must be able
to work quickly and be active in real time.”
But then there needs to be an integration of the data
files so that if I have purchased something in the store,
they can also see that in the call centre if I contact
them.
Wim De Schutter: “Yes, for that reason we are opting for
central logging. We follow up our customers using an
omnichannel strategy. If someone has been in a boutique
and calls the call centre two days later, then we have the
track record of this so that the customer does not have
to explain everything again. Customers sometimes go
online first, then to the physical store and subsequently
order online. Omnichannel is a challenge. The advantage
is that we can manage all channels - and therefore also
all customer contacts - ourselves.”
This is the customer journey?
Wim De Schutter: “That’s right, and every channel has its
own role in this. If you go to a boutique, you are looking
for a coffee experience and explanation. Those who want
to order fast go online. But then you also have people
who come to our boutique and want to be served quickly.
You need to be able to act on this too. For that reason, in
Belgium we are above all introducing technology for this.
In this way, in the boutiques in Brussels and Wijnegem
you can put your order together yourself and make a
digital payment/check out using the RFID technology. We
are also working on other solutions such as an automated ticketing system that will notify you on your smartphone when your order is ready in the boutique while
you are out shopping. In this way, digital and physical are
getting increasingly close to each other and they complement each other. The basic principle is that it must be
utilitarian for the consumer/shopper. The technical feature
in itself is only a means and never an end.”
But with an open system, consumers may now look
elsewhere for their coffee capsules.
Wim De Schutter: “You have to see that in the spirit of the
times. Everyone has competitors. What you do, therefore,
is make your products better, your service better in such
a way that people say that our coffee and service are
superior. With us, you have peace of mind.”
>
CRM
What are the ways of staying in contact with club members?
Wim De Schutter: “Club members receive regular news
on the latest developments via email or postal mailings.
They are also regularly invited to events in and outside
of the boutiques. For example, we collaborate with chefs
who make recipes for Nespresso. We then allow these
recipes to be tasted at a range of events. In this way, we
develop the relationship further. Membership is naturally
free of charge.”
CRM then is the basis of your business?
Wim De Schutter: “Yes, but that is internal affairs and I am
not able to tell you very much, or anything at all, about
it.”
At Nespresso, do you now have an advantage over
FMCG people?
Wim De Schutter: “I have worked in FMCG before and
there the retailer knew who the customer was. The
advantage that we have at Nespresso is something that
all brands with their own distribution and direct customer
contact have. You also know more quickly when things
are not going well. There is an instant feedback loop.”
Do you think the marketing environment is richer now?
Wim De Schutter: “That is also the nice thing. Everything
is under own management and you can develop your
own strategy. You do not depend on other parties. That
is the difference which you must take into account if you
work via retailers.”
Before Nespresso you worked for BASE. How much of
your experience at BASE do you use now?
Wim De Schutter: “I have been using it since day one.
There are many things that are the same: a call centre, a
retail/boutique channel, CRM etc. And yet there is still a
very great difference. Here we have a physical product
with a service dimension. There is an advantage to this:
we have a product with an emotional factor. Customers
are happy most of the time. In the telecommunications
sector, customers called the call centre if there were
problems. With us, customers call it to make orders or find
out more about our coffees, machines and accessories.
The consumer experience goes a step further than with
telecommunications.”
Did you learn the ropes quickly?
Wim De Schutter: “I already have an entire career behind
me, but everything is coming together here. Here you
are selected for a given profile. The BASE dimension was
important in order to be here. There is no such thing as
coincidence.”
What is there that you can develop further for the customer experience?
Wim De Schutter: “Mobile payment. In this way, you will
be able to pay quicker in the store. Nespresso too will
take this step one day. We will examine whether iBeacon
technology can offer added value in the provision of faster and more in-depth product information. Once again, it
is not the feature in itself that is important, but rather what
you do with it. I predict that digital and data will quickly
provide disruption. In this fast changing world, it is then
a matter of selecting the technology that will make the
difference.”
ADMIRATION
Are there any companies or brands that Wim De
Schutter admires? “That’s a no-brainer,” he replies.
“Apple. A premium brand, international, global,
with its own channels (webshop, retail). Our model
can be compared with what Apple is doing. That
is also inspiring: providing perfect execution in
everything that you do, a seamless customer experience. As a consumer you then have the feeling
that everything is going smoothly. I am also a fan
of Apple and I own Apple products. You get the
feeling that a lot of thinking has gone into things
and that the design takes place as a function of
the end consumer. That is the power of Apple.”