How is Nike driving customer experience through digitization?

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With evolving customer behaviors and preferences, some of the multinational companies strategize to introduce a transformation in this digital age. Among these companies is the American multinational sports apparel giant, Nike. On the occasion of the Investor Day in 2017, Nike’s CEO and Chairman, Mark Parker and CFO, Andy Campion used the word “digital(ly)” around 69 times, announcing the company’s most innovative plan of driving customer experience through digitization.

Nike has been well-known for reaching out to its customers quite directly. It has been known since ages to have inspired the consumers with its athlete stories and inspiration. SWOT & PESTLE strategy analysis on the sport's veteran, acts as a helpful source in understanding Nike’s central aim and competitive strategy. However, besides the retail business, the company is also taking an initiative to increase its sales through its online stores and different methods of digitization which have accounted for about 90% of the quarter’s sales growth.

Nike sees the future as entirely digital and this is why it strives to innovate and evolve the digital experience to suit its customer preferences and behavior patterns. This surely is a major shift from the traditional methods of doing business to a new digitally powered way of increasing sales, thereby improving the customer satisfaction and experience. To ensure that the idea is executed in a proper fashion, Nike has devised certain strategies and plans for achieving the goal of digitization,

To begin with, Nike has come up with its Nike+ membership scheme that allows formulating varied customer experiences. The idea is to enroll a customer as a member and allow them to customize their profile on the basis of which Nike will be able to know their choices and preferences- the sports they like, the style of products they prefer, how active they are, etc. Such insight allows Nike to recommend and find out the exclusive product, give out style advice and rewards for their activity. Again, this helps drive customer experience entirely through a digital process and improves the overall business.

Another way in which the goal of digitization could be achieved to enhance customer satisfaction is through an intersection or amalgamation of the physical and digital environments of the company. In other words, the Nike App has been launched scaling multiple stores that can help to fathom customer preferences. Also, Nike Live, a new retail concept in LA has been introduced which is more like a small, data-driven store that includes an assortment of products, preferred the most by the consumers purchasing from the nearby zip codes. This surely is an important and interesting step towards improving customer satisfaction.

Partnership is another strategy for Nike in enhancing the customer experience through digitization. It has been seen partnering with other retail or social media platforms to reach out and benefit the consumers. For instance, it partnered with SNKRS App by triggering its stash drops to sell out Cortez Kenny III shoes to Kendrick Lamar fans during his recent tour.

This created an increasing demand through digitization. In this connection, Nike’s decision to work with Amazon as a retail channel is also mentioned worthy. As the CEO remarks, Nike has also partnered with Zalando in EMA and ZOZO-town in Japan. Tmall has also proven to be an exceptional partner and helped to elevate the brand profile and customer experience.

Nike has seen an acceleration in the digital business which far exceeds “even our own expectations,” as Campion said during a conference call. This has boosted sales by 13% overall. Besides devising various methods, Nike also has been focusing on speed with which to manufacture and deliver these products to the customers. It is also planning to invent new tools of manufacture like computational design with new Flyknit apparel.

Nike’s brand profile by SWOT and PESTLE gives us a detailed analysis of Nike’s strengths and weakness which is crucial to our understanding of Nike’s digital transformation journey.

Digitization helps explore the new boundaries and concepts that are yet untouched in the field of business. However, Nike is trying hard to achieve those boundaries through its process of manufacture, product styling, speed, delivery, and convenience in order to enhance and improve customer experience through digitization. The process is on and we hope that Nike just does it.


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