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.(Which customers benefit most from the data collection and how?)

Answer 1

The customers who benefit most from Nike's data collection through its mobile apps are primarily those who engage actively with the brand and demonstrate loyalty to its products. Here are the specific customer segments and how they benefit:

1. Loyal and Frequent Buyers: Customers who frequently purchase Nike products or engage with the brand through its various apps stand to gain the most. The 'dedication score' feature in the SNKRS app rewards these customers with enhanced opportunities to purchase limited-edition releases, giving them exclusive access that other, less engaged customers might not receive.

2. Sneaker Collectors and Enthusiasts: The SNKRS app caters specifically to sneaker enthusiasts who often seek rare and collectible footwear. By analyzing data on customer behaviors and preferences, Nike can offer personalized notifications for new drops that align with the interests of these collectors, thus enhancing their shopping experience and increasing the likelihood of a successful purchase.

3. Fitness Enthusiasts: Users of the Nike Training Club app benefit from personalized workout plans and fitness tips based on their usage patterns and preferences. This targeted content helps them achieve their fitness goals more effectively, resulting in a more satisfying user experience.

4. Data-Savvy Customers: Customers who are aware of data collection and actively participate in Nike's digital ecosystem may find the experience more rewarding. They understand that their engagement can lead to incentives, making them more likely to engage consistently with the app and the brand.

Ultimately, the benefits for these customers manifest mainly through personalized experiences, exclusive access to products, tailored promotions, and rewards for their loyalty and engagement. In effect, customer data allows Nike to enhance user experiences and foster deeper customer relationships, driving long-term brand loyalty.