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