Question

Since 2020, Nike has been investing heavily in its digital assets, namely its mobile apps, which include the Nike shopping app, the Nike SNKRS app for sneaker collectors, and the Nike Training Club app for at-home workouts and fitness tips. Mobile apps offer a prime opportunity for marketing analytics, enabling brands to harvest customer data and then use that information to generate personalized in-app experiences or offers, and tailored notifications that align with customer preferences.The SNKRS app, in particular, has received a lot of attention due to its customer scoring system, dubbed the ‘dedication score’ by Nike CEO, which helps to determine which customers are successful (and which are not) in securing much-anticipated new releases; the implication being that Nike’s most engaged and loyal customers will be rewarded with the most limited-edition trainers.Similarly to Spotify Wrapped, Nike is using customer data to reward customers, encouraging peaks in activity ahead of new releases and creating a buzz amongst users. As such, Nike attributed the 18% annual revenue growth in its digital business to consumer demand across its mobile apps.(What data does NIke collect from customers?)

Answer 1

Nike collects a variety of data from customers through its mobile apps, which helps the company enhance user experience, inform marketing strategies, and drive sales. The types of data Nike may collect include:

1. Personal Information: This includes basic details like name, email address, phone number, and shipping address. This information is used for account creation and order fulfillment.

2. Demographic Information: Nike may collect data on age, gender, location, and other demographic factors to segment their audience and tailor marketing efforts.

3. User Behavior Data: This includes how users interact with the app, such as time spent on the app, pages viewed, items clicked, and purchasing behavior. This helps Nike understand consumer preferences and optimize the app's user experience.

4. Purchase History: Data on past purchases, including types of products bought, frequency of purchases, and purchase amounts, is collected to analyze consumer trends and offer personalized recommendations.

5. Engagement Metrics: For apps like SNKRS, Nike tracks user activity, including entries into draws for new releases, participation in promotional events, and overall app engagement, which helps calculate the "dedication score."

6. Feedback and Reviews: Users can provide feedback on products, which can help Nike improve existing products and services.

7. Fitness and Activity Data: For apps like Nike Training Club, users may share data related to workouts, fitness goals, and performance metrics, enabling Nike to provide personalized workouts and fitness advice.

8. Location Data: Geographic information may be collected through the app to provide localized content, promotions, or to direct users to nearby stores.

9. Social Media Integration: If users choose to link their accounts with social media platforms, Nike can gather additional data from those networks about users’ interests and social activities.

Nike ensures that it adheres to data privacy regulations and provides transparency on how this data is used, giving customers control over their information. The ultimate goal is to create personalized experiences that foster customer loyalty and drive engagement within their digital ecosystem.