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How nike is using analytics to personalize their customer experience.

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When you think of sports apparel, the first brand that comes to mind is likely Nike. The company’s commitment to innovation and alignment with superstar athletes like Michael Jordan has made it an industry powerhouse for more than 30 years. That’s what makes it so interesting that a brand as well-known as Nike has shifted its business model in recent years.

For decades, Nike has operated with a retail-first model, where the vast majority of its revenue comes through wholesale. That hasn’t changed necessarily, as wholesale still represents the bulk of Nike’s sales, but Nike Direct — the company’s direct-to-consumer initiative —  contributed $10 billion in sales  during 2018. By 2020, that’s projected to increase to $16 billion.

Why is Nike having so much success going direct to the consumer, and how are they using analytics to deliver a better customer experience? What can other brands learn from Nike's approach? That’s what we’ll explore in this article.

Nike is hyper-focused on the customer.    

Nike is using an app to deepen its relationship with customers. The app provides access to the Nike Plus rewards program, which offers exclusives and early access to new products. The differentiation starts with access to Nike experts for whatever sport you play. Need a new baseball glove? Let the experts recommend one for you. Nike also offers personalized workouts through the app, as well as priority access to its events.

Another piece of Nike’s direct-to-consumer efforts is its 30-day wear test for shoes. Now customers don’t have to worry if their shoes will fit when ordering them online.

On top of the wear test, customers can use the  Nike Fit app to snap a picture of their feet using their phone and get the perfect shoe size for every style of Nike shoes. According to Nike , 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.” This sizing data is stored on your Nike Plus profile, so you know the right size wherever you’re shopping.

Nike is also  leveraging its supply chain  to get closer to personalization. Last month, Nike selected 28 designers in New York City to create new shoes. The “NYC By You” project leveraged Nike’s distribution channels to produce new designs in small quantities.

Nike has always been world-class at mass-producing each of its shoes. But once they master making one shoe one time, it’ll represent a new frontier for this industry-leading innovator.

Acquisitions have given Nike deeper insight.

Nike has been able to build out these capabilities in large part due to a key acquisition they made. Last year,  Nike acquired  a leading data analytics company called Zodiac. What Zodiac allows Nike to do is crunch together its data points from customers using the Nike app and other connected devices like Fitbits to know customer habits and predict purchasing decisions.

Using these analytical insights, Nike has improved its customer acquisition and retention by identifying which customers to target and knowing when to target them. If a customer usually buys shoes every six months and it’s been 12 months since the purchase, Nike will know to reach out and prompt that customer to resume their purchase cycle. Going on offense in this regard will help Nike reduce churn, cutting down a huge expense for the company.

As more startups disrupt various apparel industries, Nike is defending their turf by investing in data science to better understand the customer journey. Nike Direct is not just an app. It reflects the company’s mission to know its customers and offer them better products and services.

That’s where the idea originated to start a shoe subscription service for kids (once called EasyKicks, now called Nike Adventure Club). Everyone knows kids outgrow their shoes, but analytics show Nike how often kids need new shoes and when parents typically look to buy them. Kids tend to be brand agnostic, but by removing the headache of going out to buy new shoes, Nike has engendered serious customer loyalty amongst parents.

What can brands learn from Nike?

Nike never waits for competitors to come along and disrupt their business. They are constantly disrupting themselves, which is a great lesson for companies large and small. Innovation is happening too fast to sit still. You should always aim to reinvent certain parts of your business model. Nike is still looking to win with its product, but now it’s looking to differentiate its brand based on service and offer a superior customer experience than its competitors.

That’s not the only lesson we can take away from Nike’s efforts. Every company needs to be investing in not just data science, but the business-driven part that links the customer with the insights team. Customer preferences and tastes are always changing, which means you need data to stay on top of the changes. Be intentional about building a small, focused team that can foster that connectivity. That’s what Nike has done since launching Nike Direct in 2017: hiring hundreds of people to join its team and drive this initiative forward.

Investing in data science also means being unafraid to make acquisitions when necessary. Nike purchased Zodiac. Its competitor, Under Armour, purchased MyFitnessPal in 2015 and began a collaboration with IBM Watson in 2016. Both companies understand that buying businesses can help close the gap between them and their customers by leveraging customer data.

Finally, after you’ve invested in your team and built out the connective piece to them and your customers, use that data in every aspect of your decision making. Nike is a huge company with millions of moving pieces and they’re paving the way in this regard. Everything from using a smartphone camera to get people the perfect-sized shoe to timing the next shoe delivery for growing children of busy parents — Nike is leveraging customer data on all fronts.

Why? Because they know their future success depends on a strong connection between business and data.

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Nike’s E-Commerce UX self.__wrap_n!=1&&self.__wrap_b(":R2abb396:",1)

This is a case study of Nike’s e-commerce user experience (UX) performance. It’s based on an exhaustive performance review of 932 design elements. 243 other sites have also been benchmarked for a complete picture of the e-commerce UX landscape.

Nike’s overall e-commerce UX performance is mediocre. This is mainly due to mediocre Mobile Web , Mobile App , and Desktop Web performances.

First benchmarked in April 2012, and reviewed 28 times since then, most recently in July 2024.

Performance :  22.1 Mediocre

URL :  nike.com

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Overall UX Performance

950 Guidelines · Performance:

Desktop Web

300 Guidelines · Performance:

301 Guidelines · Performance:

349 Guidelines · Performance:

To learn how we calculate our performance scores and read up on our evaluation criteria and scoring algorithm head over to our Methodology page.

The scatterplot you see above is the free version we make public to all our users. If you wish to dive deeper and learn about each guideline and even review your own site you’ll need to get premium access .

Nike’s Desktop Web E-Commerce Design

35 pages of Nike’s e-commerce site, marked up with 255 best practice examples:

Nike’s Mobile Web E-Commerce Design

33 pages of Nike’s e-commerce site, marked up with 256 best practice examples:

Nike’s Mobile App E-Commerce Design

30 pages of Nike’s e-commerce site, marked up with 177 best practice examples:

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How Nike Customer Experience Uses Artificial Intelligence To Improve Engagement & Personalization

Artificial intelligence helps Nike's customer experience take product customization to another level. Find out how Nike uses AI to engage customers.

Nike, the world’s largest sports apparel company, is at the top of its game. Thanks to artificial intelligence (AI) that fuels its customer engagement efforts, the brand is still growing in more than just revenue.

Worldwide spending on AI systems and research hit $154 billion in 2023 alone.

A general sentiment about AI in the retail business is that it forms closer ties between brands and their users, while reshaping the customer care segment.

Some of the Nike customer experience key features that AI is impacting significantly are:

• Personalized Recommendations
• Life-like Virtual Assistants
• Better Scalability Through AI Data
• Contextual Relevancy Aids Personalization
• AI-Based Insight For Betterment Of Customer Activation

This article will take a studious look into how AI helped Nike’s customer experience strategy grow. We will also look at some of the most revolutionary Nike artificial intelligence applications that may become a norm in the near future.

Table of Contents

Nike Customer Experience, Artificial Intelligence & Product Personalization: A Case Study

Nike and avantgarde tech go back a few years together.

One of the most astounding examples of customer care and artificial intelligence symbiosis comes straight from their workshops.

In 2015, the Nike brand acquired a patent based on an Augmented Reality Design System. This paved the way for the application of holographic technology into sneaker design.

A year later, they invented self-lacing shoes – inspired by the iconic footwear from the movie “Back to the Future.”

As Matt Wujciak of Customer Contact Week Digital writes, health and wellness are becoming more prominent points of interest of millions, and consumers everywhere are buying sports equipment like sneakers in increasing volumes.

In such a climate, Nike could be forgiven if they kept doing what they were already doing and just reaped the rewards (revenue).

But that’s not the foundation of long-term success for any business. Knowing that mixing things up is best while at the top, Nike announced the Triple Double Strategy in 2017.

What it entails is the following:

• Doubling the impact of innovation
• Doubling their market speed
• Doubling direct connections with consumers

Nike’s special focus was on the customer connection, which yielded some truly impressive results.

The end goal? More consumer engagement, employee loyalty and business longevity.

Here is what Nike did.

How Nike’s House Of Innovation Revolutionized The Brand’s Retail

In 2018’s Q3, Nike apps contributed to over 60% of digital business.

It began in April 2018 with the acquisition of Tel Aviv-based computer vision firm, Invertex Ltd.

This move was pivotal in Nike’s securing of new digital platforms and complemented another the previous buy of Zodiac Inc – analytics and consumer data company.

The Invertex buy was met with proclamations of building “groundbreaking innovations to help Nike serve millions of members around the globe.”

Nike’s Chief Digital Officer further commented that this business maneuver would “further the company’s capabilities in computer vision and artificial intelligence,” promising “the most compelling consumer experience.”

The Nike artificial intelligence revolution continued with another purchase on August 5th 2019:

“Nike announced its acquisition of Celect, a predictive analytics company founded in 2013 in Boston. The acquisition is the latest in a series of deals made by Nike to improve their new strategy of selling directly to customers. Celect’s technology will be integrated into Nike’s app and website. Celect’s technology also allows Nike to have the proper inventory to meet customer demands.” – Rebellion Research

The Nike brand wanted to shift its business strategy towards direct sales to customers. To that end, digital design studio Virgin MEGA helped Nike launch the SNKRS app.

This was a basis for Nike’s House Of Innovation : a “blueprint for future retail locations,” integrating digital and physical retail into a single store.

Nike Customer Engagement & Personalization Of The Buying Experience

The brand’s New York flagship store “knows” all there is to know about their customers who enter it and log into the app: their color preferences, their favorite sports, their foot size and so on.

Nike’s customer engagement program uses this info to provide a personalized customer experience of the highest order.

The data, collected via the app, is used by Nike to decide which sneakers to stock in which retail stores and, more broadly, what future direction the company should take.

Their shoppers can also scan clothes in the shop and send requests for a piece of desired clothing to be sent to a fitting room in their exact size. 

Nike Maker Experience & Nike By You

In IBM’s January 2019 publication, “ The coming AI revolution in retail and consumer products,” Nike’s artificial intelligence efforts got a great amount of attention.

It explained the automated process behind the sports apparel company’s custom-designed sneakers.

As a way of engaging with its customers, delivering on their expectations and making it possible for buyers to create their own pair of dream sneakers, Nike developed a system dubbed “The Nike Maker Experience.”

This system made designing one’s shoes almost instantaneous. It allowed the customer to make their own sneakers and leave the retail location wearing them!

The process is wonderfully futuristic and beyond convenient:

A pair of blank Nike Presto X sneakers is placed within a system. The customers choose the colors and graphic elements they’d like to add to their customized Nikes. And all this through voice activation commands!

“The Nike Maker Experience” makes use of artificial intelligence, object tracking and projection systems to create the desired product, 100% tailored by the buyer, according to their tastes.

The final product is completed in less than two hours. For the sake of comparison, the standard sneakers customization procedure – with client communicating their wishes to the brand – takes two weeks.

By personalizing the customer experience through customization of every single element of their shoe, Nike is able to attract even the most indifferent of demographics to their products.

The brand has taken on numerous brand ambassadors – musicians, sports figures, street artists, lifestyle influencers and others – to promote this industry-leading feature.

They also design their own, ready-made sneakers, that Nike places on their online store for display and for customers to purchase.

That’s the integral part of the “Nike By You” lifestyle scheme, which entails complete customization of products with an almost unlimited range of bespoke signature elements – all through the power of AI.

Once the customer has designed their shoe online, they can save it on Nike’s website, get an instant shareable link and share their own, personal Nike sneakers with their friends on social media.

The possibility of sharing a product socially enhances customer satisfaction and user experience – all part of Nike’s customer-centric policy.

How Artificial Intelligence & Customer Engagement Improved Nike’s Brand Reputation And Customer-Centricity

90% of all the Big Data in the world was made in the last few years.

Artificial intelligence is capable of capturing the Big Data that is reshaping the landscape of online and retail stores in more than one way.

Big data and AI have given rise to personal (virtual) shopper assistants.

These virtual assistants can:

• Facilitate the use of voice and image searches
• Analyze customer’s preferences and their history of behavior
• Make predictions for sales and segmentation
• Analyze reviews
• Process orders
• Suggest solutions and answers to questions etc.

Virtual assistants are also sometimes called chatbots – and Nike is already capitalizing on them, by boosting the conversion rate from retail campaigns.

The company is extensively using data algorithms to cultivate customer trust.

Customer trust and loyalty are intertwined and dependent on each other – which is why Nike went one step further, which led to a notable rise in shoe sales.

The brand is constructing a conglomerate of personalized customer relationships via “one-stop shops” for custom-tailored workout regimens and shoe recommendations based on AI algorithms.

As an example, the company developed the “Nike+” program for loyal customers , offering them an exclusive sneak-peak into new and future releases.

They are also allowed, through this AI-based individualization scheme, to engage with experts for equipment recommendations.

Nike Fit: Augmented Reality App For Scanning Customers’ Feet

Nike rolled out the Nike Fit app as a part of their individualization agenda. Augmented reality-infused technology takes a snap of customer’s feet and, with absolute precision, measures them.

The goal is to get the perfect shoe size for the buyer, who may be making the purchase out of the comfort of their own home (away from retail location) without fearing whether they got the size right.

Nike Fit uses a smartphone camera to capture and scan customer’s feet using these AI elements:

• Computer vision
• Data science
• Machine learning
• Recommendation algorithms

The whole process takes just a few seconds. It is a superior method of measuring a person’s foot because it takes into account its entire morphology and anatomy, rather than just length and width.

Once the foot is scanned, Nike treats its customers with a “best fit for you” recommendations.

A product personalization program is completed in the app: once you search for shoes to buy after measuring your feet, you will only see your size for any given pair of sneakers in the store.

Nike Fit reshapes not only the way their shoppers experience shoe purchases while getting high-end service, i t also helps Nike be more accurate in designing and manufacturing their products.

The Impact Of Nike’s Customer Engagement Program

Nike’s customer engagement combines mass-produced retail stores with interacting with individual customers and AI technology to communicate their products in a more personal way.

They do this through:

• Ready-made products
• State-of-the-art apps and customization programs 
• Rewarding loyalty schemes
• Retail shops that blur the line between physical and virtual experiences

The outcome is the cultivation of customer trust and the creation of brand integrity and recognition that will turn to legacy.

Nike’s artificial intelligence program not only anticipates customers’ needs and helps the brand meet them – it communicates to the customers that what they truly want is possible and achievable; t hat they themselves can partake in designing a product fit only for them.

Nike’s yearly revenue amounts to $51.5 billion . Investments in AI have helped grow the revenue share through the Nike Direct segment (brand’s site, app and stores combined).

The shift towards direct sales to consumers led them to rise from $9.08 billion in 2017 to $21.3 billion in 2023. Direct revenue now contributes to almost half of Nike’s profits and this number continues to climb.

The key to these turnover figures was in the company’s many innovations – “Nike House of Innovation” being the most prominent one.

The brand’s artificial intelligence technology is used for customer cultivation: to satiate the consumers’ hunger for experiences, personal and responsive retail environment.

What these products and services enhanced by AI, big data and recognition algorithms are making possible is:

• Improved personalization: Artificial intelligence is pushing Nike’s business – as it does the entire fashion segment – towards selling directly to customers, cutting out the middle-man, and offering a fully customizable, experiential shopping.
• Empowering self-service: AI changes the notion of waiting for your turn to be serviced and your product to be delivered. Chatbots are already handling the majority of customer queries online.
• Constant availability: Services powered by AI, such as virtual assistance agents, don’t go to sleep. The 24/7 availability is one of the most sought after qualities in customer care but was also the one that was hardest to procure until AI appeared.
• Virtual assistants provide happy experiences: Client courtesy is always a guarantee with virtual assistants and chatbots. Real-life customer representatives may have a bad day – whereas with AI, the company is sure to always have a “smiling” assistant providing a quality user experience.
• The consumer becomes the ultimate signal of demand: Thanks to big data and machine learning algorithms, the brand continues to close the gap between them and the consumer.

When Invertex purchase was announced, Nike’s Chief Digital Officer, Adam Susman, proclaimed that the company’s goals of personalization were only shaping up.

The addition of “world-class data-science talent and best-in-class tools” was to be used to “power one-on-one relationships with consumers through digital and physical consumer experiences.”

Nike Artificial Intelligence & Customer Engagement Takeaways: What’s In The Future?

Nike’s website gets 180 million visits per month, with 9 minutes being the average time spent by visitors.

In an interview for Particle Data website, Heidi O’Neill, president of Nike Direct in charge of eCommerce and direct retail, revealed what artificial intelligence and machine learning mean for the company in the long run:

• The curation of completely personalized stores for every single shopper in the future, by looking at every retailer and their specific consumer relationship
• Innovations like audio-guided run in Nike Run Club app track running stats
• Using big data to know where Nike consumers are and to select and curate products in stores accordingly
• Using data science to identify and invite high-value consumers to exclusive events, such as guest spots by top designers in House of Innovation store

Nike CEO Mark Parker has previously stated that the success of NYC and Shanghai flagship shops exceeded all expectations – and he had AI and ML to thank.

“Both stores create the most personal and responsive retail environment in the industry. It’s a digital experience brought to life in a physical space, ” comments Parker.

Based on announcements by Nike’s top executives, further personalization, customer engagement – with a dash of exclusivity – will remain a company’s priority.

When it comes to exclusivity, House of Innovation’s mythical 5th floor is reserved for Nike+ members only.

But other than housing exclusive gear, it’s also symbolic of the brand’s direction: transparent benefits for all who simply choose to engage themselves up a notch. Also, a Nike+ membership is free of charge.

The company is already mulling the development of their digital customer experience in these three ways:

• Building customer relationships through mobile apps
• Career advancement for store and customer support agents 
• Implementation of AI innovation via Voice of Customer

This final point offers a most immediate glimpse into the future. Nike Live is a promise of a “hyper-localized” customer experience – an ecosystem of sorts, bolstered by consumer research through a Voice of Customer program.

The entire experiential concept is centered around a smartphone app which is in charge of member’s loyalty points and information on products.

The futuristic retail concept, located in Los Angeles, is available for Nike+ members only and traces buying patterns and customer engagement typical of the area the store is in. Another location is in plans for Tokyo.

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Nike Case Study

In 2020, when most companies were busy looking at how to cut costs, Nike decided it was the perfect time to invest in digital, and to branch out of retail stores and into apps. Since then, they’ve reported over 5% fiscal growth and a 19% increase in digital revenue. In the year that they launched their first app, online orders increased by 82%.

Okay: context.

It was during COVID-19, where most stores were closed and brick-and-mortar locations had to figure out how to connect with their customers and still provide them the same great experience as shopping in-store – not an easy task for any brand, especially ones as big and as sprawling as Nike, that also has to deliver the same quality across all of its stores.

With the additional challenges of logistics taken into consideration, Nike had a pretty long road ahead of them, but they’ve managed to pivot what can be a very tricky transition into a global reconstruction of their brand.

When did Nike actually start working on its digital?

Digital initiatives take time to set up. You need the right team, the right approach and, crucially, the technology. It can take years to set up a digital branch of a brand that upholds the same brand ethics and standards that its stores achieve.

Nike started their plans in 2016. It took them four additional years to plan and fine-tune their apps in a way that would work with their existing brands, rather than as an afterthought to their stores – and there’s the big difference.

Apps need to be as much a part of your strategy and brand approach as your logo, your brand tone of voice, and your customer service strategy – more so if you want it to become its own service, such as what Nike wanted to do with their digital branch.

What did Nike do differently with their apps?

Nike’s apps are great: regardless of whether you’re a Nike fan or not, they offer a lot of value for their customers. If you’re a fan, even more so.

Their very first app, SNKRS, published in 2015 (yes, they were experimenting with digital even then!) was actually really built for their superfans: the ones who know everything there is to know about limited release sneakers, and make a point to stock up on the latest collaborations as soon as they arrive. It’s really not an app for every Nike fan – only the ones who buy Nike limited edition sneakers as often as they can. It’s a bold move to make considering that superfans with money is a very niche segment of the overall audience, however, by releasing SNKRS, Nike created this echo effect on the rest of its business.

Limited edition anything is a hot commodity. Combining it with digital just makes it simultaneously easier for your customers to attain, and harder to ignore when they don’t, and when you throw in superfans who will want to keep up with the latest from their favourite brand, you have a successful formula for building an app where even if the audience is small, you can still see a lot of benefit.

Consider: just in 2019 alone, SNKRS generated over $750 million in revenue, or around  20%  of Nike’s digital business.

They have other apps. Nike App and Nike Training Club, both of which provide them with a significant amount of customer data – meaning Nike has their finger right on the pulse of what sort of content does best with their audiences, and they can build on that. The Nike App keeps fans updated with footwear, apparel, and member experiences that you can’t get just by visiting the store, creating this idea of exclusivity that is hard to resist for a wider segment of their audience than just the superfans.

The Nike Training Club, on the other hand, gives you free content. Over 200 workouts, both with and without equipment, with special trainers and a variety of time limits to follow. The Nike Training Club is a good idea on two fronts: not only does it build excellent ties between Nike and its consumers, it also brings in new fans that might not have any reason otherwise to invest in Nike over its competitors. It also pairs well with Nike Run Club, their specific running-focused app.

All of these apps give Nike information. What Nike continues to do well is build on it.

Data is crucial for any business. A bigger business has more data, so understanding which of it to follow and which to ignore can get very complicated unless you know what you’re looking for.

Nike keeps an eye on its data, and you can see it even in the way they collaborate with artists to create shoe designs, and then create events to follow up. The  Kendrick Lamar shoe  launch only appeared to Nike fans living in LA, and gave you instructions on not just how to obtain the shoe, but also to win the opportunity to attend a performance by the artist.

Could Nike’s popularity drop once people are used to the app?

Nike’s popularity could drop for a number of reasons, however it likely won’t be because of the app. The app is providing a service to its consumers that cannot really be replicated in store: from personalising your own sneakers to staying up to date with the latest Nike news, the kind of growth that they’ve achieved using the app is difficult to weaken. Nike, through its apps, isn’t just building an app: they’re building a business that can last through fluctuations in their audiences – and that is likely to keep them going even when people change phones and have to redownload all their favourite apps, which could be a problem if your app isn’t as well-received.

What about Nike’s physical stores? How do they benefit from apps?

It might be surprising to hear but  most people shop on mobile devices  – after all, you might have your tablet and your phone with you more often than you do your computer, so buying through an app has become second nature. By linking their digital segments with their retail segments, Nike has completely sped up the process of mobile checkout and online ordering, which means people get their orders faster, and they’re more likely to remember the good experience they had using the app and will use it again in the future.

Nike: Takeaways:

There are three lessons you should take away from the Nike digital segment case studies.

• Know your audience.
• Build for your audience.
• Don’t stop building for your audience.

Nike’s every digital move is made to improve on its last, and to continue creating ties between itself and the consumers that populate Nike’s apps. It can afford to provide free content as a way to keep people coming in. It can afford to create niche events that only target the most ardent fans – but it can afford to do all this because it has studied the data that the app provides, and that’s an unmatched way of building a business, not a single app.

Nike did a lot of research before they invested in their digital segment, and it’s the kind of thing that can be replicated, but it takes a lot of work. To really get the benefit of an app you need to put in the work that goes behind it. As we’ve said before, you’re really not building just a one-time thing: you’re trying to build something that lasts longer and keeps growing.

If you need help on how to build an app that keeps growing with you, we’re happy to help. And if you’re just looking for someone to talk to about apps, we’re also happy to do that. Drop us a line, and let’s talk.

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Case Study: Nike

Nike, a global leader in athletic footwear, apparel, and equipment, has consistently leveraged cutting-edge technology to maintain its competitive edge. Central to this strategy is product analytics , a powerful tool that allows the company to gain deep insights into customer preferences, optimize product development, and enhance user engagement through its digital platforms. This case study explores how Nike integrates product analytics into its operations, driving innovation and maintaining its status as a top brand in the sports industry.

Product analytics at Nike starts with extensive and multifaceted data collection. Nike gathers data from various sources, including its e-commerce website, mobile apps, retail stores, and social media channels. The data collected ranges from purchase history and user interaction on digital platforms to feedback from physical store visits. This vast amount of data is processed and analyzed to extract actionable insights, then used to inform decision-making across different departments.

One of the key areas where Nike excels in using product analytics is through its digital fitness platforms, such as the Nike Run Club and Nike Training Club apps. These apps provide a wealth of data on user behavior , including workout preferences, frequency, duration, and performance metrics . By analyzing this data, Nike can identify trends and patterns that help improve the app experience and tailor content to meet user needs. For example, if analytics show a growing interest in high-intensity interval training (HIIT), Nike can introduce more HIIT workouts and related content, ensuring users remain engaged and satisfied.

Additionally, product analytics allows Nike to personalize the user experience on its digital platforms. Nike can offer personalized recommendations, promotions, and content by understanding individual user behaviors and preferences. This personalization is evident in how the Nike app suggests products based on previous purchases or browsing history, enhancing the likelihood of conversion . Such targeted marketing boosts sales and fosters a stronger connection between the brand and its customers.

Beyond enhancing digital experiences, Nike utilizes product analytics to drive innovation in product development. The company employs a data-driven approach to design and refine its products, ensuring they meet the evolving needs of consumers. For instance, the company can gather insights into user interactions and feedback by analyzing data from smart products like the Nike Adapt, which features self-lacing technology. This information is crucial for making iterative improvements to the product, enhancing its functionality, and ensuring it delivers the best possible user experience.

Nike’s commitment to sustainability is another area where product analytics plays a pivotal role. The company uses data to track and reduce its environmental impact, from materials sourcing to manufacturing processes. Product analytics help Nike identify more sustainable materials and methods and monitor the success of its sustainability initiatives. For example, by analyzing supply chain and production process data, Nike can find ways to minimize waste and reduce carbon emissions, aligning its operations with its sustainability goals.

Product analytics help Nike optimize inventory management and improve the customer shopping experience in retail. Nike can make informed decisions about stock levels, product placement, and store layouts by analyzing sales data, foot traffic patterns, and customer preferences. This ensures that popular items are always available, reducing the risk of stockouts and enhancing customer satisfaction . Moreover, analytics can reveal insights into seasonal trends and regional preferences, allowing Nike to tailor its inventory and marketing strategies accordingly.

Nike’s use of product analytics extends to its marketing campaigns as well. By analyzing consumer demographics, purchasing behavior, and campaign performance, Nike can create highly targeted and effective marketing strategies. For example, product analytics can help determine which types of advertisements resonate most with specific audience segments, enabling Nike to allocate its marketing budget more efficiently and maximize ROI. This data-driven approach ensures that Nike’s marketing efforts are impactful and cost-effective.

The success of Nike’s product analytics strategy is evident in its financial performance and market leadership. By continuously leveraging data to inform its decisions, Nike stays ahead of industry trends and deeply understands its customers. This helps create products that resonate with consumers and fosters a loyal customer base that trusts and values the brand.

In conclusion, Nike’s integration of product analytics into its business operations is a testament to the power of data in driving innovation, enhancing user experiences, and achieving sustainability goals. From digital fitness platforms to retail optimization and marketing strategies, product analytics is at the core of Nike’s ability to remain a frontrunner in the competitive sports industry. By continuing to invest in and refine its analytics capabilities, Nike is well-positioned to adapt to changing market dynamics and meet the modern consumer’s needs.

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• September 23, 2023
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Case Study: How Nike is Leveraging AI Across its Operations

Nike, a global leader in sportswear and athletic footwear, has long been at the forefront of innovation and customer engagement. In recent years, the company has made substantial investments in Artificial Intelligence (AI) and other emerging technologies to transform not just its products but also its customer experience, supply chain, and IT operations. This drive towards tech-enabled solutions has been especially significant in the face of the global pandemic, which pushed consumers and businesses more towards digital platforms. Nike has collaborated with partners like Cognizant to modernize its IT infrastructure, offering both onsite and remote support across a wide range of hardware and applications. With a focus on sustainability, customer engagement, and operational efficiency, Nike’s AI journey represents a compelling case study in corporate innovation.

Key Takeaways

• Nike employs AI to enhance customer experience through hyper-accurate shoe fitting, personalized offers, and virtual assistants.
• Advanced analytics and AI-driven strategies have been adopted in Nike’s supply chain to improve speed, accuracy, and sustainability.
• Collaboration with IT major Cognizant to bring in hyperautomation and AI into Nike’s technology operations, aiming for improved service productivity and cost savings.
• Challenges include data privacy concerns, achieving 24/7 customer service accessibility, and ensuring the sustainable use of technology.

Deep Dive: How Nike is Leveraging AI Across its Operations

Nike’s approach to AI is holistic, covering a wide array of applications from customer experience to supply chain management. In customer engagement, Nike uses AI-powered apps that offer hyper-accurate shoe fitting and personalized recommendations. The company also employs AI for deep customer analytics, aided by its acquisition of Zodiac, a data analytics firm. On the supply chain side, Nike has integrated AI and machine learning to predict product demand and to forward-position popular products, reducing lead times and improving service quality.

Implementation

Nike has been pragmatic in its AI implementation. Customer-facing AI solutions include an app that employs augmented reality and a 13-point measuring system for shoe fitting. In its supply chain, the company has opened multiple regional distribution centers fueled by AI algorithms to meet localized demand more effectively. Furthermore, through a five-year agreement with Cognizant, Nike is enhancing its global technology operations. This includes multilingual IT customer service, deskside and dispatch depot, as well as application and infrastructure support.

Nike’s AI initiatives have been quite successful. The AI-powered apps have not only improved customer relationships but have also provided valuable data for product design and inventory management. Nike has also tripled its digital order capacity in specific markets thanks to AI-enhanced supply chain operations. The collaboration with Cognizant is expected to bring new self-service capabilities, improve service productivity, and offer significant cost savings.

Challenges and Barriers

While Nike has seen significant gains from its AI investments, challenges do exist. Data privacy is a significant concern given the vast amount of customer data collected through various apps. The ambition for 24/7 customer service through AI tools like chatbots also poses its own set of challenges, including maintaining the quality of service. Additionally, the drive for sustainability requires Nike to continuously scrutinize its tech-enabled operations for environmental impact.

Future Outlook

As consumer behavior and technology continue to evolve, Nike is poised to further its AI capabilities. Plans likely include the expansion of AI in customer service applications, increased automation in the supply chain, and deeper collaborations with tech partners like Cognizant. Given its past performance and strategic focus, Nike’s AI initiatives will undoubtedly continue to play a significant role in shaping both the company and the broader retail industry.

Nike’s journey in AI represents a well-rounded strategy that touches multiple facets of the business, from customer experience to supply chain and IT operations. By focusing on delivering personalized experiences, optimizing operations, and tackling challenges head-on, Nike serves as a textbook example of how AI can be effectively implemented in a large, global enterprise. Its efforts in AI have not only improved its bottom line but have also set the stage for future innovations that will likely continue to redefine the retail landscape.

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Sources: Cognizant To Drive Nike’s Efforts In Hyper-Automation, AI In 5-Year Deal Nike and Cognizant expand their relationship into technology Nike building its global ‘digital first’ supply chain’ with 1,000 picking robots How Nike Leverages AI for an Exceptional Customer Experience

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Please note you do not have access to teaching notes, co‐creating value through customers' experiences: the nike case.

Strategy & Leadership

ISSN : 1087-8572

Article publication date: 5 September 2008

This case aims to demonstrate how leading firms are learning how to sustain competitive advantage by co‐creating experiences of value with customers.

Design/methodology/approach

The shoe company Nike provides a glimpse of the next “best practices” of value co‐creation with customers. By engaging with informed, connected, and networked customers around the globe, Nike has found their shared experiences to be a new source of value.

The paper finds that customers are now informed, connected, networked, and empowered on a scale as never before, thanks to search engines, engagement platforms, the growth of internet‐based interest groups, and widespread high‐bandwidth communication and social interaction technologies. Customers have learned how to use these new tools to make their opinions and ideas heard.

Practical implications

A few leading companies like Nike are involving customers in the value creation process by offering Internet sites where they can share their interactions and experiences. These range from customers' ideas about how to improve or customize products to their feelings when they use products.). For Nike, the learning from these interactions creates new strategic capital. The company can now learn directly from customers' direct input on their preferences. Nike can build relationships and trust with the Nike+ community and experiment with new offerings, all the while enhancing its brand.

Originality/value

The strategic opportunity for Nike is to build and promote the use of Internet engagement platforms through which the firm can build customer relationships on a scale and scope as never before. Effectively managing these new initiatives initially posed a new challenge for Nike, a traditionally product‐centric organization. Now their viewpoint is reversed. “In the past the product was the end point of the consumer experience. Now it is the starting point.”

• Value added
• Customer information
• Social interaction
• Consumer marketing
• Customization

Ramaswamy, V. (2008), "Co‐creating value through customers' experiences: the Nike case", Strategy & Leadership , Vol. 36 No. 5, pp. 9-14. https://doi.org/10.1108/10878570810902068

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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Nike: Changing the Sneakers Game

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• | Pages: 23

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Effie Case Study: How Tinder's Turnaround Started 'With a Swipe'

The whimsical campaign, from aor mischief @ no fixed address, boosted revenue by 11% in q3 2023.

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In its latest marketing campaign , Tinder riffs on some classic romantic comedy tropes straight out of a 1990s Jennifer Lopez flick, with adorkable, clumsy characters, chance encounters on busy city streets and rain-soaked embraces.

The message is that meet cutes happen on Tinder all the time, although maybe not exactly the way they do in Hollywood movies.

The nostalgia-steeped effort, delivered with a wink by agency of record Mischief @ No Fixed Address , would have been unthinkable before last year, when Tinder was largely considered a place for one-night stands and nothing more. The coveted demographic of young women, in fact, had derisively likened it to “a sleazy bar.”

The difference between then and now? “ It Starts With a Swipe ,” an Effie Award-winning campaign that dropped in February 2023 and changed the trajectory of the legacy dating application, spiking its third-quarter-2023 revenue by 11% year over year to $509 million.

As the brand’s first global work, the ads didn’t shy away from the app’s ingrained bad rep. And while that may seem counterintuitive, the goal was to show that initial human connections via Tinder, no matter how impulsive or visceral, can lead to something more meaningful.

“The real unlock on Tinder was not trying to change the perception that Tinder is a hookup app, but instead changing the perception of what a hookup can be,” Jeff McCrory , chief strategy officer and partner at Mischief, told ADWEEK. “We wanted the world we were creating for Tinder to be hopeful—young singles want to meet people, explore and see where it takes them.”

Heavy competition, high stakes

The stakes were high, with Tinder having just posted four straight quarters of declining revenue while feeling the heat from well-funded, aggressive competitors in the space like Hinge, Bumble and OkCupid.

As a prime mover in dating apps , having debuted in 2012, Tinder had carved out a high-profile place in popular culture but didn’t have a well-defined brand platform to speak to existing, lapsed or potential users, according to Stephanie Danzi , its senior vice president of global marketing.

“It was absolutely time for us to take control of our brand narrative,” Danzi told ADWEEK. “In a sense, we reintroduced Tinder to the world to prove why we matter to a new generation of singles.”

While the category had become jam-packed with looking-for-love options since Tinder’s groundbreaking entry onto the scene, dating app fatigue had also set in more recently, especially with Generation Z. 

Women in that age group had left Tinder for other apps or ditched the scene entirely. After a decade of almost consistent double-digit revenue growth, Tinder saw a decline in the first quarter of 2022, followed by a second, third and fourth.

Against that backdrop, Tinder couldn’t afford a fumble, with Danzi saying, “It’s impossible to overstate how important this was,” although Tinder’s widespread brand recognition acted as a bit of a double-edged sword.

Tinder and Rival Apps Court Gen Z in the Age of Online Dating Fatigue

“Because of our prominence in the space, and culture as a whole, Tinder is a bit of a lightning rod for social commentary,” Danzi said. “We’ve seen how recent brand missteps can be amplified across channels like wildfire.”

Rom-com but make it punk

After extensive brainstorming and refining, the creative team infused its approach with “a touch of whimsy,” McCrory said, “but not overly saccharine and sweet—like a rom-com/punk rock mashup. Who wouldn’t want to live in a world like that?”

The resulting campaign featured an all-inclusive cast of Gen Z daters representing the app’s core membership and the various relationship categories they fell under. They aimed to give a modern take on dating gone right, showing that users could define relationships in their own ways.

Color-saturated ads were inspired by the throwback look and feel of romance novels, complete with swirly font treatments and clever copy that heralded relationship milestones like leaving a toothbrush at a crush’s house.

One eye-catching 15-second video centered on a couple pawing each other on a nightclub dance floor but later going on a furniture shopping excursion together. The tagline: “Some Tinder dates turn into one-night stands. But some turn into two nightstands.”

Media buys were as strategic as the creative message, with Tinder blanketing social and digital channels, for obvious reasons, while also hitting streaming platforms such as Hulu, Roku and YouTube.

“It Starts With a Swipe” dropped initially in the U.S. and Europe before expanding to South America, Asia and Australia, representing more marketing firepower than the brand had ever used before. Its out-of-home ads in well-trafficked locations made a splash in major cities such as New York, Los Angeles, Berlin, Paris, London and Madrid.

Stellar outcome

Results of “It Starts With a Swipe” went far beyond expectations. Tinder’s “first choice” score rose from 22% to 36% in two months, which is 280% over the brand’s stated objective. Post-campaign, more women under 30 said they felt that Tinder was a place for “any type of relationship,” rising from 31% to 48%, 340% over objective.

Brand consideration increased by 16 points, with a 15% bump in young female consumers who said, “Tinder is a brand for people like me.”

Parent company Match Group credited the campaign with boosting user sign-ups, particularly among women and young demos, returning the brand to positive growth and overtaking competitors in brand preference.

“It Starts With a Swipe” will continue as an umbrella campaign for the foreseeable future, per the brand, with the team adding new facets and executions. 

Tinder Writes Its Own Romcoms for the Dating App Era

The latest incarnation, for example, uses celebrities for the first time, with actors Lana Condor from Netflix’s To All the Boys franchise and Evan Mock from HBO’s 2021 Gossip Girl remake. Expect another push for the traditionally busy back-to-school season.

Tinder has “just warmed up our marketing muscle,” Danzi said. “We’re looking to step into culture in ways that make sense for the brand but also get people talking.”

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After Supreme Court ruling, judge considers Trump's immunity claim in classified docs case

Donald Trump is seeking to build on his Supreme Court victory, which provided immunity from criminal prosecution for his official acts as president, by asking judges in his federal classified documents case and in his New York hush money conviction to throw out all of those charges.

U.S. District Judge Aileen Cannon postponed deadlines Saturday to debate evidence in the classified documents case and instead asked for written arguments about Trump’s immunity in the next two weeks.

Trump’s lawyers asked Cannon on Friday to halt all action in the classified documents case until she rules whether the charges are valid.

New York Judge Juan Merchan postponed sentencing Trump for his hush-money conviction of 34 counts of falsifying business records, which had been scheduled for Thursday, until September.

When the Supreme Court formally returns the election-interference case to U.S. District Judge Tanya Chutkan, she must weigh which charges are still valid to prosecute.

Neither Justice Department special counsel Jack Smith nor Manhattan District Attorney Alvin Bragg has responded to the Supreme Court’s decision yet.

Trump’s lawyers, Todd Blanche and Christopher Kise, have argued the high court’s ruling means each of the judges will have to determine which conduct is official or unofficial – and not use any official conduct as evidence for charges against unofficial conduct.

Here is where the cases stand:

Supreme Court orders 'close analysis' of whether Trump conduct was unofficial

The reason for uncertainty about criminal charges against Trump is because no former president has ever been charged before and the Supreme Court hadn’t ruled on whether they could be.

Until July 1. That’s when Chief Justice John Roberts wrote for a 6-3 majority that former presidents can’t be tried for their official acts, but could potentially be charged for unofficial acts.

The ruling said presidents discussing policy with executive agencies can’t even be questioned about their motives. This ruled out charges involving Trump urging his acting attorney general to pursue allegations of election fraud with officials in swing states.

But the ruling left open the possibility of charges dealing with Trump’s recruitment of fake presidential electors to support him in states President Joe Biden won. Roberts wrote that determining whether Trump's pressure on then-Vice President Mike Pence "requires a close analysis of the indictment’s extensive and interrelated allegations."

“The President is not above the law,” Roberts wrote. “But under our system of separated powers, the President may not be prosecuted for exercising his core constitutional powers, and he is entitled to at least presumptive immunity from prosecution for his official acts."

Trial judges must now determine whether Trump’s conduct for the various charges was official or unofficial.

Judge postpones filings in classified documents case to study Trump's immunity claim

Trump was charged with retaining national defense records and conspiring to hide them from government authorities until FBI agents seized them during a search of Mar-a-Lago, his Florida estate, in August 2022.

Prosecutors have noted the entire case involves conduct after Trump left the White House in January 2021. Smith's team office said Trump did not have legal authority to designate secret national security documents as personal records and send them to his private home. But Trump’s lawyers have argued his decision to ship the documents to Mar-a-Lago was an official act.

In an order Saturday, Cannon scrapped a Monday deadline for Trump to disclose his experts and Wednesday deadlines for prosecutors and defense lawyers to share more evidence in the case.

Instead, Cannon set a deadline July 18 for Smith to respond to Trump’s request for immunity. Trump will have until July 21 to respond.

Cannon hasn’t set a date for a hearing, but said she could still collect more evidence.

Trump’s lawyers want Cannon to only move forward on two issues in the case: Smith's request for a gag order preventing Trump from making comments that could incite threats against FBI agents working the case, and whether Smith was properly appointed to his job as special counsel.

In the Supreme Court’s ruling on immunity, Justice Clarence Thomas, wrote  a concurrence  questioning Smith's appointment, even though that wasn't at issue in the case and many special counsels have been previously appointed under similar circumstances.

Judge in federal election interference must also determine unofficial conduct

The Supreme Court hasn’t formally returned Trump’s election-interference case to Chutkan, under what is called a “mandate,” which might not happen until Aug. 2.

“The judgment or mandate of this Court will not issue for at least thirty-two days,” Supreme Court clerk Scott Harris wrote July 1 to the D.C. Circuit Court of Appeals.

Chutkan will have to review which charges – if any – can go to trial once she gets the case back.

New York sentencing postponed because of potential immunity

Merchan previously postponed sentencing Trump in the hush-money case, which had been scheduled Thursday, until Sept. 18.

But that’s only if necessary. Merchan plans to decide Sept. 6 whether Trump is immune from the charges, even though his case involves state charges and the Supreme Court was reviewing federal charges.

Trump was convicted May 30 of falsifying records to hide his reimbursement to private lawyer Michael Cohen, who paid $130,000 to silence porn actress Stormy Daniels about alleged sex with Trump before the 2016 election.

The financial arrangements between Cohen and Daniels happened before Trump was elected president. But his series of 11 payments to Cohen – through his private company – happened the first year of his presidency.

Merchan previously ruled that Trump filed an immunity argument in the case too late to be considered.