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The Nike Customer Experience And The Role of Its Journey Map

Within the fashion and apparel industry is an extremely competitive division where major brands vie for supremacy. Among them, one brand stands out not only for its incredible products or eye-catching campaigns but also for its ability to delight customers in various ways through every touchpoint that consumers experience – we’re referring to the Nike customer experience.

In this article, we will delve into the world of Nike’s Customer Experience, taking a closer look at some of their most successful initiatives, their customer journey , and some recommendations for implementing similar actions in your projects or businesses.

The Heart of Nike’s Customer Experience

At the core of Nike’s customer experience strategy lies a commitment to providing stylish products that perform exceptionally well. This commitment is reflected in their range of athletic gear, meticulously designed to cater to the needs of athletes and sports enthusiasts alike.

However, to become one of the leading brands in your industry, that alone is not sufficient. This is where customer experience strategies come into play. These are initiatives that focus on the customer journey, from the moment someone sees an advertisement or enters a Nike store to the post-purchase interactions. All of this is done with the aim of delighting their customers.

These strategies serve as the backbone of brand loyalty, reputation management, data-driven decision-making, customer retention, and global relevance. Nike’s unwavering commitment to delivering exceptional customer experiences ensures that it doesn’t just sell products; it sells a lifestyle, a mindset, and an enduring connection with its customers.

Nike has become a master of these types of initiatives and actions. In the following sections, we will explore some of the most successful ones and reflect on what we can learn from these strategies.

Examples of Nike’s Customer Experience Strategies

House of innovation.

The House of Innovation project by Nike significantly impacts the customer experience. These flagship stores, known as ‘temples to shopping in the digital age,’ blend physical and digital worlds seamlessly, immersing customers in the Nike brand’s ‘Just Do It’ ethos. The digital integration enhances convenience and engagement with features like QR codes for virtual dressing rooms and interactive wall displays.

An important element to highlight within this initiative is personalization. Exclusive services like Nike by You offer NikePlus members one-on-one customization sessions with designers, creating unique, branded products. This elevates the shopping experience and strengthens the emotional connection between customers and the Nike brand, fostering loyalty and advocacy.

The Nike App was a game-changer for both Nike and its customers. Their App enhances the shopper experience by giving access to the NikePlus rewards program. This loyalty program offers members exclusive products, member exclusives, access to Nike experts, personalized workouts, priority access to events, and, most importantly, gives Nike insights into customers’ shopping habits and product preferences. This personalization enhances customer satisfaction and strengthens the emotional connection between consumers and the Nike brand solidifying their loyalty and enriching their shopping journey.

Nike Live Stores

The introduction of Nike Live stores in various locations has brought a revolutionary shift to the customer experience. These dynamic spaces, beginning with the inaugural store in Los Angeles, offer customers a shopping environment that feels alive and ever-changing. Nike Live stores transcend the traditional retail model with rotating product arrays, local artwork, and interactive features like the sneaker bar and consultation services. Customers can now immerse themselves in a personalized shopping experience, trying out shoes on treadmills and enjoying the vibrant atmosphere.

Technology in Physical Stores

Nike has succeeded in providing unique experiences to people visiting their physical stores by incorporating advanced software and hardware that surprises anyone who interacts with such technology. These implementations are not merely experiential; they make the purchasing process simpler and more efficient for people. Some notable examples include:

Replica Kiosk: A digital retail kiosk with a 65″ touch display where Nike Football fans can find, customize, and order their favorite Nike team products. It provides real-time product availability for both in-store and online purchases, streamlining the shopping process and improving stock efficiency.

Nike Bootroom: An interactive surface with a 65″ multi-touch display that facilitates employee and customer interactions. It offers real-time availability information for Nike products based on size and color, thanks to RFID technology and 3D cameras.

Mobile Connect: This feature offers free WiFi in-store, promoting extensive use of digital terminals. It enables more than 1,000 interactions on busy days, often involving groups. Integrating seamlessly with the retailer’s mobile app supports customers’ journeys throughout the store and allows convenient content sharing via smartphones.

Media Wall: The multi-touch, multi-user wall serves as a dynamic information hub, displaying campaigns, products, and real-time social media updates. It aggregates content from platforms like Facebook, Instagram, and YouTube, including soccer team rankings and scores. Additionally, customers are encouraged to engage by taking selfies, which are instantly discoverable through custom hashtags.

The Role of the Customer Journey Map in a Company’s Strategy

The customer journey map is a graphic and visual representation of all the points of interaction between users and a brand. This includes any type of contact, ranging from seeing an advertisement to something as involved as making a purchase.

These touchpoints are usually organized into stages and include additional information to better understand the steps or actions a potential consumer takes.

Each of these customer touchpoints is an area of opportunity if leveraged effectively. Likewise, they can become pain points where the user experience and perception can be negatively affected. Therefore, constant monitoring of each of these points and a strategy for continuous improvement are of great importance in the growth of any business.

Example of Nike’s Customer Journey Map

Below is an example of a fictitious customer journey map for Nike, created with reference to some of the most common touchpoints in the industry and information gathered from media and specialized portals.

Nike’s customer journey map would look like this:

Stage 01: AWARENESS

Stage 02: consideration, stage 03: purchase, stage 04: usage, stage 05: loyalty, stage 06: advocacy, start delighting your customers by nurturing every stage of your customer journey.

In a market flooded with choices, consumers are not just looking for products; they seek an emotional connection with the brands they choose. This is where the customer experience comes into play and becomes a differentiator that positions brands like Nike above others, even if they offer equally good products.

These types of strategies are not exclusively reserved for large corporations; in fact, they are something that all companies should implement regardless of their size or revenue. The rewards of doing so are numerous and impossible to ignore, especially if you aim to build a base of loyal and happy customers.

QuestionPro has developed an entire suite of tools and solutions to help you implement a successful customer experience strategy.

Among the most notable are:

QuestionPro CX, our Customer Experience Management Software,

A platform with everything you need to delve into the minds of your customers and understand their satisfaction levels. Thanks to features like our ticketing system and survey platform, you can identify opportunities within your customer journey to delight your users at every stage.

QuestionPro SuiteCX

A platform with everything you need to create customer experience journey maps and perform journey analytics in a simple and effective way. You can integrate various data points, user persona profiles and easily edit them to create action plans and detailed contact strategies.

If you’re interested in learning more about our solutions and how QuestionPro can help you empower your business, please contact us. We’d love to chat with you and find the best way to execute your projects with our technology.

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Nike’s Customer Experience Puts Their Best Foot Forward

Creating a cohesive cross-channel experience for customers has become a high priority for brands during the pandemic. With shoppers relying more on ecommerce , brands had to undergo a digital transformation to ensure that they instill confidence in their customers via online channels. 

Over three weeks, we examined Nike’s email and mobile marketing experience. By completing various actions—sign up for emails, abandon a product browse, abandon a cart, etc.—with Nike, we were able to uncover customer experience successes as well as opportunities. 

Nike has an excellent experience when it comes to marketing their products. They sent multiple triggered abandoned cart and abandoned browse emails to encourage us to buy products we had looked at. However, there is the potential to further personalize some of these messages. With the data Nike collects, message individualization could reach a whole new level. 

The results of our research are at the end of this post in our Customer Experience Analysis, but first we’ve highlighted some stats below for context about our time with Nike.

The First-Hand Customer Experience

In the attached analysis we illustrate the research process in a timeline to demonstrate when and how Nike shares their marketing messages.

Over the three weeks we received:

• 32 messages total
• 17 emails (12 promotions, 2 welcome emails, 3 abandoned browse/cart)
• 15 mobile messages (8 mobile inbox, 7 push notifications)

Our goal with this research was to better understand how retail brands are using their marketing messages during a time where ecommerce has become more prevalent than ever before. Do they use multiple channels? How personalized are their messages? Are their cross-channel strategies cohesive and centralized? While our takeaways only capture a small sample of Nike’s full customer experience, the insights gained are applicable to other apparel brands and retail brands in general. 

As a new user, Nike did well to gather our information and welcome us as a Nike Member. They sent not one, but two welcome emails describing the benefits of becoming a member with links to download their app and talk to Nike experts. 

One takeaway, in particular, however, is Nike’s collection of zero-party data . Gathering data directly from the customer, rather than through third parties, ensures the data is highly accurate and aligned with the customer’s preferences. Nike collects information like customer name and birthday to be able to provide individualized messages to each user. But, there is room to improve their personalization efforts. 

See how Nike can go a step further with personalization and other takeaways in the analysis below and be sure to check out our other Customer Experience Analyses on HBO Max , ASOS , and e.l.f. Cosmetics . 

Iterable is the AI-powered cross-channel communication platform that helps organizations like Redfin, DoorDash, Calm, and Box to activate customers with joyful interactions at scale. With Iterable, organizations drive high growth with individualized, harmonized and dynamic communications that engage customers throughout the entire lifecycle at the right time.

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Lessons from Nike’s customer experience: the power of an omnichannel CX

Of the half a million brands out there, only a handful are nailing their customer experience (CX). Which is interesting, considering that 80% of brands believe they offer a superior CX, according to Bain & Company .

One brand that has seized the CX throne and continues to maintain their reign is Nike. The athletic apparel giant is known and loved globally. Our new guide, How Nike seized the CX throne (which you can download here ), delves into the details of what makes Nike the powerhouse it is - from their creative use of technology to their ultra-personalized brand experiences. 

One of my favorite points in the guide is how Nike blends their physical and digital customer journeys to offer an all-round exceptional CX . The brand doesn’t prioritize their in-store experience over digital or vice versa. Instead, they seamlessly integrate the two, giving customers the best of both worlds. Definitely a brand we can all learn from. 

Merging your online and offline experiences can do wonders for your CX. But why is that? And how can you leverage this?

The power of an omnichannel CX

Today’s customers are more connected than ever. As a result, creating a successful omnichannel experience has become essential to a superior CX. Customers are now engaging across digital channels and physical store locations, and the experiences you deliver need to be seamless on both. 

An omnichannel CX ensures customers can engage with you on their preferred channels - whether online or offline. This way it becomes easier to form a positive impression of your brand. Today, 73% of shoppers use multiple online and offline channels throughout the customer journey, according to Harvard Business Review .

Merging the offline and online, Nike style

Nike is no stranger to the benefits of offering a unified CX. They’ve been blending their physical and digital customer journeys for years and continue to do so in exciting and innovative ways.

We partnered with Nike on an activation campaign that showed us just how committed they are to providing a holistic CX that wows customers every step of the way. The goal was to create a highly personalized campaign that showcased their ultra-soft, ultra-springy sneaker, the Nike Epic React. Our approach was centered on bringing the experience and feel of the shoe to customers without them actually wearing it. 

To do this, we designed a 360° experience campaign that enabled customers to experience what wearing the shoe feels like through Nike.com, the Nike app, and interactive installations in Nike’s flagship stores.

Whether they were at a physical store or in the comfort of their homes, customers could virtually explore the shoe and personalize it to their taste. The experience enabled them to build their own 3D runner based on their answers to questions about their running style and personal preferences. 

Creative elements describing the shoe’s lightweight and bouncy nature helped customers visualize the shoe’s feel: as light as balloons, as soft as teddy bears, as responsive as springs, and so on. The end result was a personalized running experience that could be named, downloaded, and even shared on social media. Try it yourself, you can create your own 3D runner here .

By combining online and offline channels, the campaign offered customers a unified CX and gave Nike the opportunity to connect with their audience through different touchpoints. Apart from winning multiple awards, the project gave customers the chance to experience Nike’s innovative new sneaker in a thrilling and memorable way.

The campaign is just one example of how Nike seamlessly fuses together online and offline experiences to offer a holistic CX. Another testament to this is the Nike app, which offers customers access to in-store features like booking appointments with Nike experts, skipping the payment queue by opting for in-app purchases, and reserving items that are unavailable in-store or don’t meet their specific requirements. Not to mention the Instagram-worthy selfie backgrounds in stores that brilliantly boost the brand’s online presence. 

How Nike seized the CX throne

Why consistency is key.

One of the trickiest parts of unifying online and offline experiences is maintaining consistency across the experiences you craft. Consistency is crucial to building trust and providing a positive and memorable CX. 

Most brands struggle with maintaining consistency when scaling up. Digital ecosystems have become more complex than ever before, and there are an increased number of touchpoints that need to be looked after. 

On top of that, teams often have to work with multiple departments, sometimes across different countries and time zones. This makes speaking the same language and keeping everyone on the same page progressively more difficult. 

The answer to tackling these inconsistencies? A design center of excellence .

In a nutshell, a design center of excellence connects all your design systems and files in a hierarchical structure, starting with your brand design system which sits at the top. This core system informs and influences all connected subdesign systems, ensuring consistent and on-brand designs across all products and experiences you build. 

A design center of excellence is essentially the foundation of your digital ecosystem. There’s a lot more to it than its potential to create a more consistent CX. Learn all about what a design center of excellence can do for you in our comprehensive Scaling design guide .

Looking ahead

It’s no secret that the metaverse is transforming the CX landscape. Our online and offline worlds are becoming even more enmeshed, making it all the more important to craft a holistic CX. 

Unsurprisingly, Nike is well aware of this and is already one step ahead. In partnership with online gaming platform Roblox, they’ve created their own metaverse called Nikeland, where visitors can engage with the brand (and each other), access promotional offers, and immerse themselves in various experiences in Nike’s exciting virtual world.

Last year, Nike blurred the lines between real life and virtual reality by bringing Nikeland to life through an incredible activation in their New York store. The first floor was transformed into a physical version of Nikeland through augmented reality (AR) . Visitors could dress their personal 3D avatars in Nike products, engage in various AR games, and even design their own mini-games. 

The result of this seamless integration of Nike’s online and offline worlds? A whopping seven million unique visits to Nikeland from intrigued customers all over the world. There’s no doubt these numbers are increasing as you read this. 

There’s a lot to learn from Nike’s long-term success. Of course, I’m aware that not all brands have the same resources to disrupt the CX game as Nike does - but that doesn’t mean you can’t be successful. Keep innovating, flex your creative muscles, and make your CX strategy a priority above all else. 

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How Nike Combines Customer Centricity with Brand Reputation to Stay on Top

When you’re the top dog in sports apparel (an increasingly lucrative industry as consumer interests continue to shift towards athletic health and wellness trends), as well as the largest global footwear brand, it might be easy to keep doing what got you there. In 2017, Nike recognized its dominant market share across these two industries and interestingly decided that this would be the perfect time to start drastically changing some of its marketing and customer service practices. The apparel juggernaut introduced the Triple Double Strategy - promising to double its “cadence and impact of innovation,” double its “speed to market” and double its “direct connections with consumers.” The three components of Nike’s Triple Double Strategy sound nice on the surface, but one proved more profitable than the others. 

Beyond strategic distribution and brand protection, Nike is also doubling down on the Nike Customer Experience (NCX) as a way to create more personal connections with customers. To make a strong customer experience a reality, Nike is investing heavily in front-line agents as part of its marketing team.

Agent (Athlete) Engagement

Nike wants their agents to “join because they love our team” said Larry Rodgers, Senior Director of Retail Concepts, at CCW Austin . “We wanted to ensure our athletes [Nike customer service agents] have a natural career path… We have many experts who then left [traditional] consumer services and then went to our social media team which is actually still part of consumer services. They can also become a product line manager, who is involved in the engineering of products, category experts, brand marketers,” and more. 

Read More: Here's What to Consider When Building an Employee Experience Program

Nike Apps and Machine Learning

In addition to agent engagement, Nike is investing in customer centricity through  technology, acquiring multiple tech start-ups that contributed to Nike application integration (which has led to a big increase in shoe sales). Customer service, tech, and digital marketing collaborate in using their apps to personalize consumer relationships by being the one-stop shop for anything sports related you might need, from customized workouts to AI-based algorithms for shoe recommendations. 

Besides its 30-day wear test (“30-DAY FREE RETURNS DIRT AND ALL,” as stated on the Nike website), some of Nike’s most popular customer benefits include access to the Nike Plus rewards program, which offers exclusives and early access to new products, access to Nike experts for whatever sports-equipment recommendations you or your kids play, and personalized exercise regimens. 

Read More: 3 Companies Capitalizing on Predictive Data Algorithms

In addition to AI-based individualized features on the Nike app, the Nike Fit  app is dominating customer service in the footwear industry, snapping a picture of customer’s feet using their phone to get perfect shoe size for every style of Nike shoes. According to Nike Fit, the app uses “computer vision, data science, machine learning, artificial intelligence, and recommendation algorithms” to measure “the full shape of both feet, offering the ability to know your truly perfect fit.” Nike’s approach embodies the notion of customer-centric innovation; it is using advanced analytics and machine-learning to create actual value for customers. This is not innovation for innovation’s sake — it’s advancement for the customer’s sake. 

In a way, Nike is going “big picture” and “small scale” at the same time. On the one hand, it is functioning as a one-stop-shop for its target customers (through training and workout recommendations in addition to apparel and footwear), essentially adapting the Amazon model to the world of athletics. On the other hand, it is leveraging people, process and technology to create special, personal connections with customers.

To put it simply, Nike doesn’t just sell products. It tells customers what they want — and then makes that value readily available. The key is Nike’s ability to cultivate customer trust. Between its brand legacy, its knowledgeable team and its commitment to the entire athletic experience, Nike proves it knows athletes. With personalized recommendations, it then proves it knows individual customers. This one-two punch puts Nike in the unique, coveted position of consistently anticipating and meeting customer needs. It allows Nike to “Just Do It.”

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Source: Nike

How is nike excelling at driving loyalty with digital.

Nike on Friday reported its third straight quarter of online growth of approximately 80 percent. But the bigger long-term benefit is expected to come from enhanced digital engagement that has added more than 70 million new members globally since the pandemic arrived.

“What we know is more engaged consumers buy more,” said John Donahoe, CEO, on an investor call . The former eBay CEO took over at the start of this year to further fuel the company’s digital transformation.

Nike generated over 7 billion brand impressions across social platforms globally in the latest quarter, growing awareness for NIKE Running Club, NIKE Training Club and SNKRS, its app for limited-edition online drops. Earlier this year, Running Club and Training Club, which provides workouts, became free to use after formerly using a subscription model.

Nike also improved its reach via executions such as “Never Too Far Down,” which was YouTube’s top ad during 2020. The overall touchpoints led to over 400 million social engagements in the quarter. Nike, Mr. Donahoe said, is “creating dialogue and opportunities for action” to support further engagement.

“We’re deeply focused on the member funnel outcomes, including new member buying, reactivation and retention and it’s working,” he added. “Importantly, buying member growth is outpacing new and active member growth and growth in member demand is outpacing total digital growth.”

The quarter marked the launch of SNKRS Live, Nike’s first-ever product drop via livestreaming that sold out in under two minutes.

Nike also hosted its first Member Days, which offered members globally first access to rewards for activity and personalized exclusives across stores and digital. The event reached over 60 million members across 25 countries, supporting higher conversion for the quarter.

“It’s no one thing,” said Mr. Donahoe about Nike’s digital outreach. “And I learned this from my days in the digital world. It’s a lot of little things that make a difference to be a great digital company. And we’re a clear leader here. We’re extending our market share lead digitally and we’re going to continue doubling down.”

• Nike, Inc. Reports Fiscal 2021 Second Quarter Results – Nike
• Nike Membership – Nike
• PREPARED REMARKS / UNOFFICIAL TRANSCRIPT – Q2FY21 NIKE, Inc – Nike
• Nike Inc (NKE) Q2 2021 Earnings Call Transcript – Motley Fool

Discussion Questions

DISCUSSION QUESTIONS: How important is membership engagement to Nike’s recent success? What can other retailers and brands learn from Nike’s digital approach?

Nike’s In-app engagement is very good. I noticed more frequent drops and discounts. Clearly they are increasing the investments in promotions and loyalty. Nike’s brand strength and the mass advertising it does with celebrity athletes gets used in the personalized promotions and 1:1 engagement. Great strategy and execution.

Membership engagement is critical to Nike and all other brands. The lesson: behind simple “engagement” is a fully thought out digital ecosystem to acquire, understand, and motivate members built out over a number of years. While Nike’s CEO said “it’s not one thing,” he’s wrong; a maniacal focus on the customer is that one thing all retailers (and brands) can focus on for growth.

Nike’s digital business allows the brand to continue to connect with its members and increase sales despite store closings and restricted occupancy. Nike has added over 70 million members to its loyalty program this year. Over 60 million customers across 25 countries participated in Member’s Day, a new event providing unique retail moments, first access to products, exclusive products and added rewards. Other brands can take a page from Nike’s DTC strategy. Three years ago, Nike reduced the number of wholesale distributors to focus on the direct-to-consumer market. The brand went from over 30,000 distributors down to focus on 40 of them. This pivot allowed Nike to maintain control of the brand and keep close ties with its customers, a strategy called “Consumer Direct Offense.”

Nike has been engaging their customers around passion and values for decades. These new digital channels are simply (great) examples of what brands can accomplish when they personalize around topics that are important to customers.

Of course Nike invests heavily in the talent, apps, and campaigns – but this allows them to create a community of advocates that end up not being very price-sensitive. All marketers should follow Nike closely and piggy-back on the elements of marketing that could work in their own businesses.

Agreed Chuck – Nothing new to the core strategy from Nike’s perspective, just different vehicles for achieving it.

Once again, we see how effective engagement can drive revenue and loyalty. These marketing investments (including making Training Club and Running Club free) helped make Nike fitness partners for millions of shoppers. Once you reach “lifestyle partner” status, you have reached marketing nirvana. The trick, of course, is maintaining that status, but Nike seems to have figured out how to do that as well. Huge (if not necessarily new) lessons to be learned about making marketing investments that build real connections.

Once again, this proves how successful Nike has been in taking complete ownership of their branding, messaging, and personalization strategies with their loyal consumers. Pre-COVID-19, Nike was making significant strides with their physical experiential stores, such as the House of Innovation, etc. However in a COVID-19 quarantined world, digital has proven to be the most effective engagement platform to drive revenue growth, drive outstanding experiences, and enhance customer loyalty.

Nike’s provocative and mission-driven messaging continues to drive interest in the brand that has been relevant for decades. Digital engagement is completely dependent on execution, and Nike has essentially been flawless in this space. In an industry where traditional marketing strategies simply are not effective, Nike has taken their messaging straight to the consumer and eliminated the middle man retailer.

Membership engagement makes Nike magnetic, as consumers crave connection this year. Belonging to Nike’s global health and fitness community gives consumers physical and mental health benefits, including hope.

Lessons for other brands include:

• Diversity matters: Celebrating both elite athletes and exercise novices makes the brand exciting and inclusive;
• Habits pay off: Membership rewards build a consumer habit of interacting with a company, which can boost brand trust. Omnichannel shoppers are more loyal and likely to recommend a retailer, as Harvard Business Review reported in 2017; and
• Stand out online: Embracing digital innovation like livestreaming helps brands differentiate their offerings and reach younger consumers.

“It’s no one thing,” is the key to Nike’s success. From their mobile app engagement, to livestreaming and YouTube videos, Nike knows where its customers are and what they want. By delivering on those fronts Nike has made itself part of its customers’ lives and that’s the stickiest any brand can get! For Nike’s digital members, this ecosystem of engagement is providing tangible value to their lives and that increases their love of the brand and with it, their purchasing power. Nike’s direct-to-consumer sales have been up by 32 percent at their last reported quarter, so the plan is certainly working. Investing in digital engagement has paid off for Nike but the main lesson for other retailers is the comment I started with – it’s no one thing, it’s the combination of all of these touchpoints and engagement channels that cements the loyal relationship with the customer.

To engage with a brand — beyond a sale — can create an emotional connection. This is what drives repeat business and potential loyalty. Nike seems to be very good at getting their customers excited about what’s new at Nike. And they are masters at marketing the right merchandise to the right customers. This creates a level of personalization that draws the customer even closer to them.

Nike is the master of DTC at this moment. Top shelf, IMO. Great digital workout apps, use of marketplace (Walmart), social media and yes, physical stores (all with BOPIS) as well as a fantastic web site. They also made some critical moves this past year in terms of eliminating “fringe” vendors to narrow access, which is something huge brands (Under Armour) have had a hard time doing over the years. A+ all the way around and a role model/road map for all other brands going forward.

Nike excels at just about every aspect of what I call the 8 Essentials of Remarkable Retail (full disclosure, Nike is a past client). They’ve fully embraced being digitally enabled and leveraging the power of mobile. The Consumer Direct Offense has further pushed what has historically has made them memorable. Most importantly, by encouraging brand enrollment (literally and figuratively) and narrowing their distribution, they are creating a far more personalized experience. Having been with them at the outset of this remarkable journey, it’s amazing to see what they are bringing to life in a relatively short amount of time. Other retailers would be wise to study what they’ve done.

Loyalty, personalization, and great online support are just a few of a great membership program’s founding principles. Since Nike’s pullback from third-party sellers, they have gained super control over their digital branding platform. More great brands must follow their lead if they don’t want to see their brand’s dilution.

A handful of years ago, I read an article in a business magazine that basically said “face it Nike, you’re a software company now.” At that time, there was an app that connected to chips in specific shoes to track mileage and remind a person to stay motivated to reach their fitness goals, and shortly thereafter the ability for a consumer to customize their shoes on the brand’s website. This was the beginning of leveraging technology and of digital engagement with customers that the brand has learned from and continues to build upon today.

They — and other brands across segments ranging from automotive to beauty products — have realized the engagement with and personalization for the consumer is critical to success. This is particularly true for highly undifferentiated products where substitutes are easily available, often at a better price point. Other retailers and brands should take note of Nike’s success and how they handle engagement across digital and in-person channels. As a top consumer brand, they have set the expectation for others to follow. This is a case where being “second mover” could work to other brands’ advantage.

Nike took digital services that were previously fringe products fueled by subscription models and made them free at a time when a much wider audience was looking for exactly that kind of solution. Rather than promote a paid service to this new audience, they took a gamble that bringing new “customers” in the door through a free product that still met the Nike quality/brand standards would breed long-term, profitable customer relationships, and it paid off.

Retailers could learn from their focus and willingness to adapt their product and service for their customers, not just for quick profit-centered solutions, but ultimately to fuel success in uncertain times.

Director, Retail Market Insights, Aptos

Michael La Kier

Vice president, brand development - iga, inc..

Brandon Rael

Strategy & operations transformation leader.

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The Better Blog

How nike engages customers through meaningful stories (and you can, too), by reem abouemera on 09/09/2021.

While Nike’s success is often attributed to its innovative products and strong branding, Nike’s products aren’t its centerpiece. Rather, it’s how it engages its audience through incorporating meaningful stories into its brand communication.

While Nike (and many other brands) have every reason to talk big about their latest technologies and products, that’s not what it does. Instead, putting customers at the heart of its communication and empowering them to dream is the core of its marketing strategy, and that’s how Nike succeeds.

Introduction:

What do you think of when you think of Nike? Is it the swoosh logo, the “Just Do It” slogan, or popular athletes? While those are the classics of its marketing strategy, today, Nike is all about real customer value. For that very reason, it’s one of the top 20 followed Instagram accounts worldwide .

Nike doesn’t do its content marketing just to tick a box and call it a day.  Instead, it sets the bar high when it comes to having a meaningful, relatable theme that fits in with the brand.

In this article, we’ll showcase a few of the company’s campaigns to convey how a little storytelling goes a long way. But it isn’t just any old storytelling; it’s storytelling that sells the emotional benefits of Nike’s products in a subtle yet compelling manner. You, too, can follow the same strategy to build a loyal customer following.

Make Emotional Connections With Your Customers

Nike campaigns induce the right emotions in their customers through carefully crafted ads that tell meaningful stories.

Keeping in line with its “Just Do It” slogan, Nike portrays most of its customer segments as heroes challenging themselves through the hardships of life and fighting against any voices claiming that “they can’t,” only for Nike to step in to tell them “Just Do It.”

For instance, in “The Toughest Athletes” campaign above, Nike spoke to women at the most transformative stages of their lives: when they’re pregnant and during the early months of motherhood.

Intimately capturing more than 20 mothers and bringing together female athletes like Serena Williams, Alex Morgan, Perri Edwards, and more, Nike touched the hearts of women as it underscored their power and strength.

In doing so, Nike, as a brand, became more meaningful in the eyes of its female customers.

The campaign also coincided with Nike’s launch of its first maternity collection, NikeM . On top of that, it had partnered with pre- and post-natal expert Jane Wake to develop audio-guided workouts for new mothers in the Nike Run Club app.

Nike listened to its customers, learned about their pain points, and genuinely supported their relationship with sports during that transformative period, while fully embracing their challenges.

Live Up to Your Brand’s Mission

Nike’s mission is “To bring inspiration and innovation to every athlete in the world,” with an asterisk at the end that says, “if you have a body, you are an athlete.” Not only does Nike live up to that mission through its diverse product portfolio in segments related to sports, but also through all of its content.

The “Find Your Greatness” campaign is just one of many that encourage individuals of all ages, backgrounds, and even bodies to reach new heights by believing in themselves. With the combination of people along with the narration that details what greatness is, the campaign was influential.

It isn’t just a creative campaign: it fits perfectly well with Nike’s mission. And that’s what the brand always does: it stays true to its mission and remains consistent across all its communication channels. Be authentic to your company and your brand.

Sell Benefits, Not Features

Despite Nike’s continuous usage of the latest technologies in its shoes, the company rarely advertises those product features. Instead, the emphasis is all on creating content that promotes the benefits of the products and how they can add value for their customers.

Even when there’s newsworthy technology that it would like to communicate, Nike always makes it a point to break it down into simple pieces of information that its typical customers would easily understand.

Taking the above video from Nike’s official YouTube channel as an example. It spoke about Nike’s Move to Zero (zero carbon and zero waste), thoroughly but concisely explaining how this will affect the company’s shoes. But, more importantly, it highlighted how Nike is helping “protect the future of sports.”

The bottom line here is to speak your customers’ language, no matter how much you want to brag about your latest product’s specifications. Tell your customers what’s in it for them and educate them.

Leverage the Power of Social Media

For Nike, social media isn’t just a tool – it’s a lifestyle. A large part of its presence is on social media channels, and through them, it creates a sense of community among its customers.

Using themes and hashtags like #justdoit and short, punchy, inspirational, and compelling posts, Nike always generates content that’s easy to read and share.

Not just that, but its accounts also frequently request a call to action from followers to engage with them in conversations, and they do.

When there’s a two-way street between you and your customers, you’re nurturing your client base. So it’s not simply about posting but also about attracting, engaging, responding.

Want To Execute a Content Marketing Strategy Like Nike?

It’s not impossible. Your customers are heroes in their own ways, too. We can help you put your business on the map by providing real customer value through content that resonates with your potential audience.

Test drive our services – from content marketing ideas to measuring analytics. We’ll help you convey your new technologies by highlighting their benefits rather than their features, and we’ll make sure you don’t lose your voice in the process.   Try Media Shower for free.

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3 ways nike uses consumer insights to design new sneakers, data helps nike answer, "who are the consumers we want to serve and what are they looking for" said ceo john donahoe..

Nike posted strong results in digital sales in its most recent quarter, as the apparel and footwear brand recorded 24% growth across apps and mobile.

At Nike, digital is a key part of the direct-to-consumer strategy that has become a priority for the brand in recent years as it exited or scaled back several important longtime wholesale partners.

“Looking ahead, [our Consumer Direct Acceleration strategy] continues to unlock our future growth potential by powering up our holistic offense across innovation, brand engagement and marketplace, all fueled by consumer insight,” CEO John Donahoe told analysts on the company’s recent earnings call. “As we know, consumers today have rising expectations and changing behaviors. What creates separation for Nike in this dynamic environment is our innovative product, brand scale and direct connections we have with our consumers.”

A key piece of this is customer data. This information is not only being harnessed to drive sales. Consumer insights play a growing role in the innovation process that creates new products. Talking to customers is nothing new among brands, but Nike's membership programs and other outreach efforts give it unique scale in identifying the next trends.

“Thanks to our consumers' love of our brand, we enjoy a high rate of engagement, fueling richer, deeper understanding,” Donahoe said. “Across the company, our insights model creates confidence in growth in ways that are uniquely Nike as we make the entire enterprise faster, more efficient and more targeted in the growth opportunities that we go after.”

Nike’s approach offers a window into how brands can leverage data that is gathered directly from customers. Known as first or zero-party data, this type of data is gaining increasing importance as third-party cookies and identity-based tracking tools fall out of favor due to privacy concerns.

Donahoe offered a look at three areas where Nike is using consumer insights:

In running, Nike is applying insight from the Nike Run Club app, as well as consumer feedback across brand touchpoints and marketplaces. When it found that Invincible wearers were putting more mileage on their shoes, it rolled out a new edition that was designed to provide more cushioning and comfort.

“Consumer response to the Invincible 3 was strong across our geos and throughout Nike Direct, strategic wholesale partners and running specialty doors,” Donahoe said. “And what really sets Invincible 3 apart is how we executed across the marketplace, driving consistent storytelling across channels, working closely with our partners to elevate our own retail presentation and theirs, all with a sharp focus on helping consumers find the right shoe for them.”

Runner feedback also led to the launch of a new shoe in complementary categories, such as the fast-growing trail running segment. This led to the launch of the Pegasus Trail 4, which is proving to be particularly popular among women.

In basketball, Nike is talking directly with athletes. They identified three key aspects of the game: cutting fast, playing long and jumping high. For instance, talking directly with WNBA star Sabrina Ionescu led to a shoe designed for cutting on a dime.

Air Max, which is an iconic Nike line, is “a great example of how we build significantly scaled businesses off our greatest performance innovations."

Using insights, the brand leverages qualitative and quantitative member data science as part of the brief process.

“We're able to ask ourselves, who are the consumers we want to serve and what are they looking for?” Donahoe said.

To create a shoe that is launching next week called Design by Japan Air Max 1 '87, Nike used polling data from the SNKRS app and local member surveys. At launch, the members who participated will be the first customers.

“Members who participated will be the first targeted for the shoe, creating NIKE's first full circle insights-to-shopping experience,” Donahoe said.

That’s how data shows up in what the consumer buys.

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Us imports expected to fall 22% in first half of 2023: nrf, labor disputes on the west coast could cause further disruption heading into peak season..

When the first half of 2023 is complete, imports are expected to dip 22% below last year.

That’s according to new data from the Global Port Tracker, which is compiled monthly by the National Retail Federation and Hackett Associates.

The decline has been building over the entire year, as imports dipped in the winter. With the spring, volume started to rebound. In April, the major ports handled 1.78 million Twenty-Foot Equivalent Units. That was an increase of 9.6% from March. Still it was a decline of 21.3% year over year – reflecting the record cargo hauled in over the spike in consumer demand of 2021 and the inventory glut 2022.

In 2023, consumer spending is remaining resilient with in a strong job market, despite the collision of inflation and interest rates. The economy remains different from pre-pandemic days, but shipping volumes are beginning to once again resemble the time before COVID-19.

“Economists and shipping lines increasingly wonder why the decline in container import demand is so much at odds with continuous growth in consumer demand,” said Hackett Associates Founder Ben Hackett, in a statement. “Import container shipments have returned the pre-pandemic levels seen in 2019 and appear likely to stay there for a while.”

Retailers and logistics professionals alike are looking to the second half of the year for a potential upswing. Peak shipping season occurs in the summer, which is in preparation for peak shopping season over the holidays.

Yet disruption could occur on the West Coast if labor issues can’t be settled. This week, ports from Los Angeles to Seattle reported closures and slowdowns as ongoing union disputes boil over, CNBC reported. NRF called on the Biden administration to intervene.

“Cargo volume is lower than last year but retailers are entering the busiest shipping season of the year bringing in holiday merchandise. The last thing retailers and other shippers need is ongoing disruption at the ports,” aid NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “If labor and management can’t reach agreement and operate smoothly and efficiently, retailers will have no choice but to continue to take their cargo to East Coast and Gulf Coast gateways. We continue to urge the administration to step in and help the parties reach an agreement and end the disruptions so operations can return to normal. We’ve had enough unavoidable supply chain issues the past two years. This is not the time for one that can be avoided.”

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Nike Ups its Game: Understanding the Keys to Nike’s Sustained Success

Performance FY 2023

Like a championship athlete, Nike continues to reach new heights and break records, leaving its competition in the dust. According to its latest earnings report, Nike delivered mid-teens growth and exceeded $50 billion in revenue during the fiscal year 2023 , adding $7 billion in total on a currency-neutral basis.  The revenue increase was broad-based across men’s, women’s, and kids; across performance and lifestyle; across all channels and geographies; and across the Nike, Jordan, and Converse brands.  Matthew Friend, NIKE, Inc. CFO, summed up the results: “Throughout the year, we drove competitive separation by doing what Nike does best: serve athletes with product innovation and rich storytelling amplifying our brand voice through key sport and consumer moments.”

The Playbook

Throughout the years, Nike and its portfolio of leading brands have continuously invested in innovation, developing a suite of curated collections with iconic products, convenient services, and personalized experiences for shoppers to choose from that accelerate engagement and build lifetime customer value. While the athletic powerhouse has placed large bets on its own online and offline channels with the Consumer Direct Acceleration strategy, the retailer is also incorporating its wholesale partners in its marketplace ecosystem in a meaningful way.

“Across our business, we continue to build a marketplace that addresses how consumers want to be served, giving them what they want, where they want it, and how they want it. Nike creates distinction across the marketplace by segmenting consumer experiences to drive deep, direct connections with consumers and grow the marketplace,” NIKE, Inc. President and CEO John Donahoe said in the recent Q4 2023 earnings release.

Beyond corporate ambition and motivation, what sets Nike apart and expands its competitive separation in a crowded marketplace? What is Nike’s playbook that differentiates its brands and creates added value for customers and shareholders?

In addition to leadership, teamwork, and competitive culture, some of the most critical ingredients of Nike’s successful strategy include:

• Customer-centric strategy;
• Unique brands and innovative products;
• Purposeful journeys and interconnected experiences;
• Broad market reach and omnichannel orchestration;
• Cutting-edge retail environments;
• Investments in digital platforms;
• Scalable, sustainable supply chains and inventory management;
• Strategic partnerships.
• Customer-Centric Strategy

Nike places a high premium on understanding, connecting, and serving its valued customers across all brand touchpoints to drive sustainable, profitable growth. Nike’s consumer insights and engagement model is fueled by its membership program, designed to simplify and elevate interactions, deepen valuable connections, increase recency and frequency of purchases, and drive long-term brand loyalty.

Nike has invested in implementing an insights-driven strategy supported by real-time analytics solutions that facilitate informed consumer-centric decisions, provide culture-changing benefits, build new audiences, deliver differentiated experiences, and intensify connections with its valuable customer base. Furthermore, they have invested heavily in developing various mobile apps focused on running, fitness, training, and shopping, designed to create sticky experiences and deepen customer connections.

John Donahoe said, “It’s these connections that serve as one of our greatest competitive advantages as we translate insight into innovation. Thanks to our consumers’ love of our brand, we enjoy a high rate of engagement, fueling richer, deeper understanding. This is all powered by our membership offense. We know our consumers better and are better able to serve them, with data-driven insights fueling the end-to-end value chain, including product creation, marketing and merchandising.”

Though its customer-centric strategy is focused on meaningful consumer connections, Nike has mastered creating compelling value propositions, designing differentiated experiences, implementing scalable operating models, and optimizing channel operations that deliver significant value to both customers and shareholders.

• Unique Brands and Innovative Products

High-quality goods, services, and experiences are table stakes in today’s crowded market. Nike takes it to the next level by positioning each brand within their portfolio with a unique offering that maintains relevancy, so consumers know what sets them apart. Matt Friend noted, “Our confidence is grounded in the power of Nike’s portfolio: deeply connected to the consumer, centered in sport and youth culture, fueling authenticity and distinction unrivaled in breadth and depth.”

Brand positioning is all based upon a value exchange. Brands provide products and services, and if those offerings and experiences add value to the customer, the customer provides information, money, loyalty, and advocacy in return. The secret to Nike’s success is grounded in its culture of innovation that fuels its engagement and experience model through the portfolio of leading brands, seasonally relevant product assortments, personalized and relevant communication, and innovative retail environments.

Matt Friend noted that one of Nike’s greatest competitive advantages is its relentless pace of innovation. “We innovate to make athletes better, to serve more athletes, and to make the world better for athletes everywhere. We have some great opportunities over this next fiscal year to showcase our latest innovations on the global sports stage.”

No brand connects people to sports by bringing innovative products to market like Nike. They dominate numerous athletic pursuits, introducing new and updated footwear platforms across categories including soccer, basketball, running, and lifestyle. Nike’s greatest advantage is its authenticity to “combine innovation, brand, and the culture around sport and do it all at a global scale.”

• Purposeful Journeys and Interconnected Experiences

For many consumers, their purchase journey can be fragmented and disconnected, leading to a high level of frustration during the consideration process.

Investment in innovation is the cornerstone of a frictionless consumer journey and a successful omnichannel experience strategy. As consumers’ expectations and demands continually increase regarding their shopping experience, the ability to be innovative and adapt online and offline has become a must-have capability in the fluid retail landscape. Nike is actively involved in a race with competitors to adapt to the evolving needs of consumers. This competitive battle will continue to accelerate rapidly as shoppers continually seek more value, greater convenience, and a personalized experience.

Nike understands the importance of innovation and personalization and has invested in, designed, and implemented best-in-industry unique, elevated, and interconnected experiences. These experiences are seamlessly coordinated across digital and physical, commerce and social, owned and partnered touchpoints.

They have identified and developed solutions to alleviate their target audience’s pain points in the shopping mission and provide a frictionless and personalized experience that builds brand loyalty and lifetime value. Nike has successfully crafted and integrated personalization across the entire shoppers’ journey, from in-store offline browsing and consideration to online retargeting ads, email, and text messaging, to website user experience.

In addition, Nike has a suite of game-changing mobile apps linked to its membership program, with more than 150 million active members, serving as the foundation of its sticky experience ecosystem. Nike’s digital platform meets customers where they are and allows them to get what they want when and how they want it. The SNKRS mobile app announces the releases of highly coveted new sneakers to customers, notifies them when their favorite shoes drop, and allows them to reserve select sneakers when launched with SNKRS Pass.

• Broad Market Reach and Omnichannel Orchestration

It has been well documented that Nike has captured surging demand due to its significant investment in building an omnichannel ecosystem to support the steady and consistent shift away from wholesale and toward a higher mix of direct-to-consumer sales. However, like most digital-savvy retailers, the pandemic accelerated e-commerce growth and put its well-timed strategy on a fast track. Nike’s Consumer Direct Acceleration strategy “continues to unlock our future growth potential by powering up our holistic offense across innovation, brand engagement, and marketplace, all fueled by consumer insight.”

However, its wholesale partners and the connected membership program remain important to Nike’s ongoing strategy. This is amplified by John Donahoe, “Our whole marketplace strategy is to allow consumers to get what they want, when they want, how they want it across our own digital, across our own retail and across our wholesale partners, all tied together with our membership program, which is 150 million active members.”

As Nike has developed its strategy and scaled its business, they have successfully built its market presence, grown its audience, and provided consumers with expanded choice, access, and convenience. They harmonized the balance between broadening brand reach for greater accessibility and consistently orchestrating how it intersects and engages with its target customer.

Matthew Friend amplified this point, “Our strength begins with our scale, from our investment in innovation to our sports marketing portfolio, our digital platforms, and our global reach. We create value for consumers around the world, leveraging Nike’s scale and competitive advantages to drive sustainable growth and strong returns to shareholders over the long term.”

Nike has clearly and purposely defined roles for each digital and store channel to deliver its products, services, and experiences, designed to optimize the shopping mission and journey. They clearly understand that omnichannel customers who engage across a seamlessly coordinated omnichannel ecosystem are considerably more valuable than single-channel shoppers who utilize only one transactional touchpoint.

• Cutting-Edge Retail Environments

The company’s DTC strategy starts with integrating its digital and physical channels by constantly creating innovative tech-heavy store environments to go beyond simple showcases for new products and transaction hubs. Nike’s concept stores are the physical manifestation of the brand. They are a critical marketing tool to drive engagement and build community with loyal customers by utilizing unified commerce digital tools and mobile apps that take their cutting-edge in-store experiences to the next level.

From opening its 68,000 sq. ft. six-level House of Innovation concept store in NYC to the responsive digital Nike Live concept launched in LA in 2018 and the Nike Rise concept in Guangzhou, China, in 2020, Nike has placed a high premium on rolling out new engaging and exciting retail environments. The brand also introduced the Nike Style retail concept with curated collections in Seoul, Korea, last summer with gender-agnostic lifestyle product zones and a social media content development studio. The Jordan brand launched its World of Flight in Milan, positioned as the intersection of basketball and streetwear culture, at the end of 2022.

Furthermore, as of last month, Nike has revamped their store strategy with all Nike Live stores that have now become Nike Well Collective stores that showcase holistic fitness, highlighting movement, mindfulness, nutrition, rest, and connection. John Donahoe explained, “We continue to invest in Nike store concepts that create new distribution and serve growth opportunities not currently being addressed by our wholesale partners. The recent unveiling of our Nike Well Collective which responds to deep insight from our female consumers rebrands Nike Live and creates an elevated approach to retail. Nike Well Collective brings new energy and sharpens our focus on serving the opportunity we see with women.”

• Investments in Digital Platforms

In fiscal 2023, Nike accelerated direct consumer relationships across its digital platforms, achieving YOY digital growth of 24% fueled by double-digit increases in traffic on mobile and apps, increasing the overall digital share to 26% in FY23, compared to 10% in FY19.

Nike’s digital business has unlocked significant strategic and financial benefits by focusing on reaching, acquiring, and serving high-value customers. The retailer has also seen strong consumer responses as they continued to innovate the coordinated shopping journey across the website, mobile, and app, leading to increased traffic, new member acquisition, intensified engagement, and a higher average order value. The digital channel should drive outsized growth and provide a tailwind that powers future topline e-commerce escalation and accretive margin expansion, including its owned digital channels and retail partners like Foot Locker and Dick’s Sporting Goods.

John Donahoe stated in the recent Q4 2023 earnings release, “Today, in the industry, with digital and physical growth converging, we’ve accelerated investment to create a truly distinctive digital experience through our own platforms. Every year, we serve traffic in the billions, which delivers strong digital growth, as both conversion rate and average order value continue to improve.”

Matt Friend provided additional details, “We’ve been talking for some time about how our consumer-led digital transformation is transforming NIKE’s financial model. You really see it both in terms of revenue and gross margin. And if you look at the momentum that we’ve been driving from a top-line perspective, I would say that we’ve benefited from a higher mix of business going through our digital and our direct channels.”

• Scalable, Sustainable Supply Chains and Inventory Management

Nike has gained a competitive advantage by innovating the supply chain, improving speed to market efficiency, and responding quickly to market trends and shifts in consumer behavior. Nike is leveraging automation and supply chain technology to forward-position high-demand frequency products to deliver faster, more precisely, and without compromising sustainability.

In addition, Nike is transforming its digital-first supply chain to power long-term growth by accelerating the opening of several regional distribution centers across the United States and Europe that increase capacity, speed, and precision. Advanced demand-sensing and inventory optimization technology platforms support its multi-node regional distribution network.

Also, Nike continues to make progress in inventory management, as their “decisive actions” in response to changing conditions in the supply chain and the marketplace have enabled them to “navigate through shifting dynamics with continued improved efficiency.”

Matt Friend stated, “NIKE is more agile, responsive, and resilient than before the pandemic, with operational capabilities and an experienced team that enable us to create competitive separation. We enter 2024 with clear advantages: strong consumer momentum, a robust product innovation pipeline, healthy inventory, and a normalized flow of supply.”

• Strategic Partnerships

Nike’s shift away from wholesale retail has been a well-documented story. Over the past few years, Nike has “created greater focus and differentiation by working with fewer multi-brand partners.”

However, while Nike’s digitally powered direct-to-consumer initiative remains the key strategic driver of near and long-term growth, the wholesale channel continues to be an essential part of its strategy to gain access to key consumer segments and achieve scale in points-of-sale across the marketplace. “Wholesale partners play an integral role in our future marketplace, first, to authenticate our brands and then to create scale of distribution through a consistent consumer experience across a larger retail footprint,” said Matthew Friend.

Nike places its partners into three complementary groups that each serve distinct needs in the marketplace ecosystem:

• Large multi-brand partners with the scale and willingness to invest in retail experiences and connected digital membership to drive long-term growth;
• Neighborhood authenticators that provide brand access and drive energy and deep consumer connections in the local community;
• Accounts that provide access to consumers across different segments and price points.

The partnership connected membership strategy appears to be working and “beginning to bear fruit. We feel very good about as the sales momentum that we continue to see from Nike Direct and our top strategic partners – including DICK’s Sporting Goods, JD, Sports Direct, and our City Specialty partners.”

Nike and Dick’s Sporting Goods recently launched a new connected partnership that enables Nike Membership and Dick’s Scorecard members to connect their accounts. Nike values Dicks as one of its “important strategic partners,” Donahoe said, and this program represents a way to keep consumers of both stores connected.

Due to strategic vision and continuous investment in innovation across all areas of its business, Nike has successfully differentiated its portfolio of brands and created significant value for both customers and shareholders. Their leadership, competitive culture, iconic products, convenient services, personalized experiences, and connected marketplaces continue accelerating sustainable growth and set Nike apart in a highly crowded and competitive marketplace.

Shawn is a Strategic Planning Subject Matter Expert whose management consulting expertise includes strategic planning, consumer experience, retail innovation, digital commerce, omnichannel operations, and enterprise optimization. Shawn has over 35 years of leadership experience as a strategic consultant and omnichannel general manager. Before working with McMillanDoolittle, Shawn was responsible for the direct-to-consumer business at Columbia Sportswear, Liz Claiborne, Samsonite, and Tommy Hilfiger. Shawn holds a BBA from Abilene Christian University.

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Nike Customer Journey Design Recommendations

Can Nike use Customer Journey Design Principles?

Yes, Nike can use Customer Journey Design principles in the Footwear industry. Nike has to carefully evaluate the positioning and targeting strategy in the Consumer Cyclical sector, to build a highly effective customer journey.

What is Customer Journey? What is Customer Journey Design?

Customer Journey is the compelling series of experiences that a brand or a product delivers to the customers that keep them coming back for more. It is a sequential design of not only the product purchase journey but also post sale usage experience and service experience. For example Customer Journey Design is a deliberative act of putting in place touchpoints that can not only improve the customer experience but also reduce friction throughout the whole – pre purchase, purchase, and post purchase experience. For example

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Different types / examples of customer journey design

Some of the most prominent examples of customer journey types employed by the leading organizations are -

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Gastronomic restaurant, coffee shops & starbucks, grocery chains, fitness and hiit workouts, steaming services, how nike can use customer journey design principles to better improve its customer journey.

More often than not companies try to routinize the customer journey that is making it more effortless and predictable. For example Amazon one click shopping experience. Once the product is selected customers don’t have to fill in the address and other details, don’t have to fill financial data to pay, and don’t have to follow up the order as they receive constant notifications based on what stage the delivery process is. But this constant drive to routinize the customer journey is not suitable for most products as the motivation behind the purchase varies.

What are the four archetypes of Customer Journey Design

Routine – effortless and predictable, trek – requires effort and predictable, odyssey – requires efforts and are unpredictable, joyride – effortless and unpredictable.

None of the archetypes explained above are superior to one or another. All four types of customer journeys can help organizations to achieve long-term success in the marketplace. It all boils down to the type of the product and services of the company. In fact as Nike is a multinational company in Footwear industry with diverse products and services offering – it can use all the four above archetypes for different products and services.

What are the five steps of Customer Journey Design

The firve steps of Customer Journey Design for Nike in Footwear are are – identify product service archetype Footwear industry, applying archetype design principles to Nike products & services, cue purchase decisions based on Footwear ecosystem, streamline touch points across Nike distribution & service channel, and build a post sales strategy based on product features and usage.

Identifying product archetype fit for Nike products in Footwear industry

First step of designing the customer journey design for Nike products and services in Footwear industry is to identify and categorize the products and services based on different types of archetype

Put the archetype’s design principles into action in Footwear industry

As Nike is operating in multiple product categories in the Footwear industry, the bigger challenge is how to categorize various products and services of different archetype and how to serve them using either existing backend operations.

Cue purchase decisions at the right time

Even though customer journey is not confined to streamline the purchase decision, but it is one of the most critical parts of the process. Providing right purchase cues at right time can enable Nike to increase its market share in Footwear industry.

Streamline the customer journey design at every opportunity

By streamling customer journey at every opportunity is not confined to making it effortless and routine, but to optimize the touchpoints based on product and service archetype.

Consider different customer journey archetypes for different customer segments

Finally Nike can build different customer journey designs based on the expectations and behavioral aspects of various customer segments.

To succeed in the hypercompetitive market, marketing managers must design a compelling customer journey that can make customer return for more. The customer journey design should consider – product and service archetype of Nike in Footwear industry, positioning of various products, customer expectations and existing go to market strategy, and finally providing a streamline process in line with product features, usage, and customers’ expectations.

SWOT Analysis / SWOT Matrix of Nike

Pestel / pest / step analysis of nike, customer journey design solution.

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More From Forbes

Customer engagement drives nike profits up 16%.

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For the first half of the fiscal year, Nike profits were up 16% with revenue up 8%; higher customer ... [+] engagement and strong holiday sales contribute to healthy performance. Photographer: David 'Dee' Delgado/Bloomberg

John Donahue, president and CEO of Nike NKE , talked about how having a direct connection with the consumer is the “liquid gold” that is driving higher profits. For the first half of the fiscal year, Nike profits were up 16% with revenue up 8%. In the second quarter (Q2), profits were up 7% and revenue up 1%.  

Nike’s direct customer connection

Donahue explained that the direct consumer connection allows Nike to understand, engage and serve that consumer in a personalized way. He discussed Nike's leadership position in the industry, noting that the company has the information, data, and infrastructure to deliver the longer term goal of fostering the direct-to-consumer relationship.

Nike’s higher margins were strong contributors to the encouraging bottom line profit numbers and to the healthy Q2 performance overall. For Q2, gross margins were 45.9% compared to the previous year’s Q2 margins of 43.1%. The improved margins were attributed to the growth in the direct-to-consumer business, the higher prices and the assortment of products sold. 

Financial results driven by direct to consumer and digital

Matt Friend, executive vice president and CFO of Nike, reviewed the key highlights of the Q2 results, including Nike’s direct-to-consumer business up 8% along with digital which grew 11%. Nike owned stores were up 4% while wholesale was down 6%. Friend stated, “Nike’s digital growth is outperforming comparisons and being fueled by our member-centric focus. Nike digital is now 25% of total Nike brand revenue, up three points versus the prior year.” 

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Customer engagement grew by 27% and repeat buyers by 50% versus last year, resulting in higher average order values. Friend also discussed the strength of the mobile app which is driving 40% of digital demand. Friend said, “We now have over 79 million engaged members across our Nike ecosystem. And as Nike’s digital ecosystem continues to grow, we are beginning to see the compounding benefits of scale – from brand awareness and consumer connection, to data informed personalization and inventory utilization, to loyalty.”

Strong customer engagement in connected marketplace

A connected marketplace is driving higher engagement with customers. The new wellness workouts, with Megan Thee Stallion in the Nike Training Club App, had double the number of daily active users. Her curated looks also generated double the demand of any other content during the same time period according to Donahue. The new strategic partnership announced with Dick’s Sporting Goods DKS last month will allow customers to link rewards programs of Nike Member accounts with DSG accounts to unlock exclusive offers, products and experiences. 

"Nike’s strong results this quarter provide further proof that our strategy is working, as we execute through a dynamic environment," said Donahoe. "We are now in a much stronger competitive position today than we were 18 months ago.” Donahoe thanked the 75,000 global teammates for all their hard work over the past year and commended the associates on the continued innovation and experiences provided by the Nike team.

Donahue began the earnings call with a reflection on the great contributions of Viril Abloh , “He was a brilliant creative force who shared a passion for challenging the status quo and pushing forward a new vision, while inspiring multiple generations along the way.” Abloh died early this month at age 41 from cardiac angiosarcoma, a rare cancer. He was the founder of Off-White and the artistic director of Louis Vuitton and frequently collaborated with brands like Nike.

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The Customer Journey: Strategies and Investing Prospects

A customer can be exposed to a brand through various touchpoints and channels depending on their individual journey and the brand's marketing strategies. For example, interaction with a brand’s website or an ad on a social media channel can expose a customer to a product or service they are interested in.

But a customer’s journey doesn’t always follow set rules. Rather, it’s quite a fluid path encompassing everything from the customer’s exposure to a product or service, researching, and finally purchasing the product or service and possible seller follow-up.

For example, before buying a product, a customer would weigh various options and compare them. Some buyers prefer utilizing free trials before making a purchase. For others, reading customer reviews is an essential factor in influencing their decision. Yet others may look into a company’s social and environmental practices before spending their money on them. 

Hence, for brands, mapping customers' journeys is crucial in gaining a realistic idea of a customer’s shopping experience and in understanding and anticipating the needs of potential customers. Also, once the end goal is met i.e., a purchase is complete, steps to retain the customer must be exercised. For example, through value, offering promotions, and pushing relevant content.

Research suggests that companies that focus on customer experience  report better revenue growth  than their competitors. In comparison to their competitors, companies that focus on experience management (XM) outshine other businesses by more than a 15% margin.

AI and customer journey

AI technology has the capability to process vast quantities of data and handle the labor-intensive tasks associated with data collection. This allows brands to dedicate their efforts to examining customers' behavior patterns and improving brand recognition. 

Often, brands may end up producing marketing content that doesn’t resonate with their target audience. With AI, brands can generate models to predict customers’ buying behaviors and preferences. By using these models, the brands can create targeted content that meets the needs of their customers. 

AI models are also great for improving the customer experience. AI bots can quickly solve problems, direct customers to relevant products, and answer product or brand-related questions. Utilizing AI in customer journeys sets brands apart from their competitors. Top technology companies such as Amazon, Google, Microsoft, and IBM are actively incorporating AI in their customer experience journeys. 

An omni-channel approach

Today, brands are ditching linear forms of customer engagement and shifting to an omni-channel approach. Providing a unified experience across all channels allows customers to discover products easily, gain all relevant information in one place, and make quick buying decisions.

For example, a customer who wants to buy a product may first search it on the company’s website or app and then place a pickup order in the store. While no brand has fully mastered the omni-channel approach, incorporating it in a brand’s marketing strategy certainly provides an upper hand.

Companies at the top of the game

Freshworks ( FRSH ) is a SaaS platform offering customer experience tools for businesses to improve their customer service processes. The company also offers an omni-channel, AI-driven customer service suite that is mainly dedicated to support and ticketing solutions. The average  one-year price target  for FRSH is $26.01. With the rise in popularity and demand for customer experience tools, the stock is expected to see significant growth. The projected revenue for FRSH is expected to grow to 217 MM (49.53%) by December 31, 2025.

Kroeger ( KR ) is also dedicated to creating a  seamless and personalized digital ecosystem  for its customers. Based on a customer fulfillment center (CFC) model, Kroger’s ecosystem reads the proximity of its stores relative to a customer’s location – delivering in as little as 30 minutes. The CFC model uses vertical integration, machine learning, artificial intelligence (AI), and robotics to provide cost-effective and swift pick-up and delivery options.

Taking a significant step forward, the company recently announced that it now  accepts Electronic Benefit Transfer (EBT) payments  for online pickup and delivery orders at any of Krogers stores across the US.  KR  has a solid ranking of #3 (Hold) on the Zacks Rank. It has a VGM Score of A, as well as a Growth Style Score of A, which makes it one of the top picks for growth investors. Analysts are forecasting year-over-year earnings growth of 6.9% for 2024.

Having developed one of the strongest brand experiences in retail, Nike ( NKE ) incorporates customer experience throughout its customer journey — also dubbed Nike Consumer Experience (NCX). An example of NCX is Nike’s app serving as a centerpiece for all communication, including member offers, access to Nike experts, and personalized recommendations.

The app not only serves the consumers but is also a great yardstick for Nike to track customers’ shopping habits and product preferences, paving the way for developing personalized experiences for the customer.

Validea's guru fundamental report  rates NKE highest  using the P/B Growth Investor model based on the published strategy of Partha Mohanram. NKE boats a 88% rating based on the company’s valuation and fundamentals. Investors interested in large-cap stocks can consider adding Nike to their portfolios.

The future of customer engagement

The customer journey is expected to become an integral part of every challenger brand’s marketing efforts in the future and is poised to be driven by a convergence of trends and technologies. Expectations for highly personalized consumer interactions will soar, and businesses will rely on AI to tailor experiences based on individual preferences.

Seamless omnichannel experiences, conversational interfaces, and augmented reality will become pervasive. Instant customer support will be a reasonable expectation, and brands will be held to a certain standard for their customer support practices. Adapting to these shifts and prioritizing customer-centric values will become integral for businesses looking to succeed in the evolving landscape of customer engagement. 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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David Cotriss

David Cotriss is an award-winning writer of over 500 news and feature articles on business and technology. His LinkedIn profile can be found at https://www.linkedin.com/in/davidcotriss.

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Digital Retail Experience

Aware of how today's consumers are utilizing both the digital and physical worlds; Nike sought to create a new 'digital' retail experience. An experience which combines retail store, eCommerce and mobile customer journeys – seamlessly. Previous collaborations with Nike made Demodern the perfect partner to envision a holistic concept. After evaluation of the customer journey we set our goals on crafting an integrated omni-channel strategy. The solution consists of three prototypes which were launched in a Berlin flagship store just in time for the 2015 Champions League final.

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Connecting the Store and the Online World

Envision a solution where the partition between the digital and physical landscapes no longer exists. To solve this we sought to create a fully integrated, 'seamless' retail environment. Seeking digital excellence in both customer frontend and technical backend. In part the solution was to create new interactions while expanding on product details and assortment with real-time availability. The other part was to deliver these experiences through leading edge technology. To better connect consumer and product we sought to create an adaptive environment which engages the consumer respective to their journey. Three custom built multi-user, multi-touch terminals expanded the brand experience with product information and online purchasing options. Focus groups and user analysis further validated our concept while strengthening insight into today's consumer expectations.

Combining Concept and Technology

The key technical task was to develop and install three stand-alone terminals, communicating via an underlying middleware and server infrastructure – within just ninety days.

Each terminal has a custom technical stack. Additionally, the terminals are integrated with the existing store's ERP catalog and eCommerce shop to inform real-time product availability. Design and development in Unity, a game engine rather than a web solution, guarantees high performance and flawless usability as well as overall stability. Backgrounds, animations and videos perform in Ultra-HD with 4k resolution.

Mobile Connect

The value proposition for the key target group of football orientated teenagers is the free WiFi which helps to make extensive use of the terminals. On heydays, more than 1,000 interactions take place, mostly in groups of three or more. For purchasing and sharing via the customer's mobile device we developed the mobile-connect feature.

How does it work?

Access to the mobile-connect feature is gained via a captive portal. This solution allows for flawless integration with the retailer's mobile phone app. Customers' smartphones connect to support their journey as they move through the retail environment. Connected users can receive content via a simple shake of their smartphones.

Image and Social: The Media Wall

A multi-touch, multi-user wall displays campaigns, products and related social media bursts. This installation allows multiple interactions across an ultra high definition surface spanning 9m2. The wall aggregates live updates from Facebook, Instagram and Youtube, with rankings and scores from international and local soccer teams. Customers can intuitively push this media rich content to their smartphones. To make the experience more engaging, customers are encouraged to leave their mark by taking a selfie which is instantaneously discoverable through a custom hashtag.

Customization and Purchase: The Replica Kiosk

A digital retail kiosk with a 65" touch display where Nike Football fans can find, customize and order their favorite Nike team products. Here one can see product availability in real-time for both in-store or online purchase. Online purchases are completed on the customer's smartphone via mobile-connect; in-store purchases are expedited via a connection to the cash desk. Terminal analytics help inform what stock is kept on-hand and ultimately how to improve overall stock efficiency. This helps to broaden the available assortment while making use of the shop area efficiently.

Interaction and Comparison: The Nike Bootroom

An 65'' interactive surface with multi-touch facilitates employees and enables customers on their continued journey. Nike products are comparable with real-time availability for size and color, detected by the ERP system. This installation is comprised of product videos, league statistics and comparable shoe data. Product detection is informed through RFiD technology paried with 3D-cameras, supporting user interaction and positioning.

Next Generation Retail Experience

Our project closes the gap between two retail worlds that have been separated for far too long – physical and digital. A holistic and seamless customer experience is one crafted of an omni-channel strategy, considering store, mobile and online-shopping experiences. A new generation of retail is manifested. Bringing together new features, tools and content, easing maintenance while increasing sell-through. We are the customers' ally.

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20 th annual webby awards, nike digital retail experience.