JD Super and Nestlé Deepen Digital Cooperation to Precisely Target Consumers

JD Super and Nestlé Deepen Digital Cooperation to Precisely Target Consumers

by Hui Zhang

JD Super, JD.com’s online supermarket, has leveraged big data to deepen its cooperation with Nestlé in consumer operations and product innovation. Nestlé shared the results of this cooperation with a virtual audience during a press conference on September 8th as part of the 9.9 JD Super Festival to celebrate JD Super’s founding.

How to precisely target potential consumers and recommend the right products to them has always been an obstacle for brands to overcome during the marketing process. JD Super and Nestlé’s partnership is focused on this effort.

User Lifecycle

JD points to both new user growth and current user maintenance in terms of user growth. The company launched a series of innovative initiatives to achieve quality user growth, and worked together with Nestlé to attempt in a full lifecycle user operation in the coffee category to precisely determine the brand’s target customers. By analyzing the shopping behavior of current users, JD introduced the concept of user lifecycle, and divided current users into different periods, including introduction period, growth period, maturity period and decline/loss period. Through machine learning and quantitative analysis, JD has formulated the optimal matching of marketing channels and user benefits and interests to promote user growth and drive conversion rates at all stages in the user lifecycle.

For example, consumers who bought Nestlé coffee on JD.com more than four times within the most recent 180 days are allocated into the maturity period. Consumers who have purchased fewer than four times are the target consumers for Nestlé, and JD data has helped reveal that they favor coffee which is usually sweet or milky. Nestlé selected specific coffee products for JD.com based on this information and JD matched appropriate marketing channels and user benefits and interests to promote user growth and drive conversion rates. In June alone, the conversion rate of people who were reached through advertising is two times more than those who haven’t been reached. Following the user lifecycle operation effort, the number of users in each period has also changed for the better, with a 12.19% increase in the maturity period, a 14.54% increase in the high-potential period, and a 16.27% reduction in the loss period in June as compared with May.

C2M

In addition to user lifecycle operation, JD also used its Consumer-to-Manufacturer (C2M) to help the Nestlé bring products to JD that are more consistent with the e-commerce giant’s needs. Tea Coffee, which is one of the co-developed products, has seen an increase of 100% in sales from June 1-18th month-on-month.

“We used big data to help Nestlé find users precisely, not only promoting sales but also helping the brand better understand whom should they take into consideration in product innovation,” said Tianfang Wang, the sales manager responsible for the coffee business on JD.com.

JD.com and Nestlé also won a marketing award, the 11th Tiger Roar Award, for their online-offline marketing innovation. The Tiger Roar Award organized by Hooxiao.com focuses on China’s marketing forefront and provides enterprises with the most progressive marketing ideas.

 

(zhanghui36@jd.com)

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