As soon as I walked into the Nike Factory Outlet, an associate came over to me and asked me if I had the Nike app. I said yes, she told me to open it and add my location services and I would get an additional discount at check-out. I was thrilled and honestly this did give me incentive to buy more. At the item I did not think about anything but the discount, but later I realized that they were pushing me to use the app because this is how they were collecting more data on me and others as the customer.
Nike has become huge in using technology and collecting data to drive their company’s success and build a great customer relationship and experience. Nike’s app not only offers discounts but offers personalization to your style, you can even build your own shoe but not only that, they offer workouts and access to sports experts. By doing this Nike has improved their customer acquisition and retention, they are able to use predictive data to know when to target the customer and at the same time this data is helping them manage their local supply chain.
In 2019, Nike cancelled their contract with Amazon. This was part of their strategy to be able to collect more information about their customer. In class we discussed the difference between accuracy and access. Nike made a huge decision by ending their contract with Amazon in order to get obtain more accurate data information on their customer. Therefore the “access” of going onto amazon and getting your Nike product within a day or two is now taken away. I believe that Nike did make a right choice there. As much as I use Amazon, I will still be a loyal Nike customer and purchase from Nike, I would rather have Nike market more products that are tailored to me so I have easy access in purchasing the workout clothes or shoes that I want to buy.
I do believe Nike will find other ways to connect with the consumer but also be able to collect the relevant data that they need. An example is Under Armor bought MyFitnessPal and can market and sell their products directly to the consumer while using that app. I use Runkeeper to track my miles, I could foresee the application reminding me that it is time to buy new shoes after I hit a certain mileage and direct me to Nike products.
Biswas, Sneha. “Nike – Just Do It with Data Science and Demand Sensing.” Digital Innovation and Transformation, 18 Apr. 2020, https://digital.hbs.edu/platform-digit/submission/nike-just-do-it-with-data-science-and-demand-sensing/.
Mixson, Elizabeth. “Ai, Data and Predictive Analytics: A Look into Nike’s Formula for Growth.” AI, Data & Analytics Network, 25 Nov. 2020, https://www.aidataanalytics.network/business-analytics/articles/ai-data-and-predictive-analytics-a-look-into-nikes-formula-for-growth.