Nike is one of the most iconic brands in fashion and athletics right now. From the un-mistakeable “swoosh” to the “Just Do It” slogan, everything about the brand is instantly recognizable. They are known for their shoes, their apparel, and their outfitting of the world’s greatest franchises from soccer to basketball.
Through the commercials they produce and the athletes they sponsor, Nike aims to send a clear message: stay hungry and keep climbing. Think you’ve reached the peak? Find a new one. This same attitude carries into their corporate strategy as evidenced by their newest experiment with Big Data.
Last week, Nike unveiled their new concept store “Nike by Melrose” that was constructed and stocked using data about how customers from the area interact with Nike. The store integrates with Nike digital commerce data through the Nike Plus app. The customer’s Nike Plus app is designed to enhance the shopping experience, send push notifications with special offers, and enable specialty functions. Using a custom algorithm to analyze the consumer’s previous habits, the store is able to better serve the customer base in the area by offering products that are of interest to the patrons. All of the products stocked in the Melrose store are there because customers in the area have shown a statistically significant interest in them.
This data translates into more opportunities for personalized interaction throughout the customer engagement cycle. For example, the app may even reserve shoes in a certain style/size using purchase history or product interest data from the user’s app, encouraging them to drop by the store and check them out. This not only provides an opportunity for Nike to make a sale, but offers an additional service to the customer: the experience of being “styled” by your favorite brand.
The entire design is meant to ensure that the thrill of shopping in the store never results in the all too familiar disappointment when the store doesn’t have your size, style, or color. That very experience is what drives many customers to shop online. To ensure availability of certain products, you can pre-order items from the app that will be available for pickup from a secure locker in the store, or scan an item in the store and request a different size to be brought out to you. The app will tell you other color options for each product and what is still in stock at your location. While the benefits to the customer are rather obvious, this data also allows Nike to become more efficient in how they maintain their storerooms and meet product demand. Understanding their customer’s purchasing habits allows them to match their inventory with items that are more likely to catch the consumer’s eye.
As Nike expands this model, the data they collect on consumer trends can also inform future product design. Nike competitor, Adidas, recently revealed their AM4NYC and AM4LDN shoes that were designed to suit the needs of runners in New York and London respectively. Using data on foot strikes, terrain, stability, etc. collected from sensor feedback on runners in each city, Adidas designed a shoe tailored to suit the unique challenges each city presented for runners. Their approach was to not only collect data on the consumers in the area, but to actively work to design a solution that improved the experience of running in an Adidas shoe. Eventually, Nike may choose to leverage the data they are collecting to similarly design not only stores, but the products themselves to better suit local consumer experiences. For now though, their data is focused on maximizing the impact of their existing products.
This solution leverages big data to better inform Nike’s brick and mortar stores, not eliminate them. Nike understands that the experience of walking into a store and being able to leave with exactly what you came for is a desired experience for consumers. They have created a digital product that not only compliments their existing business model, but enhances it.
At ClearObject, we work to create digital products that enhance your organization’s existing offering. This allows you to monetize your data through the creation of a new product, enhancement of an existing offering, or efficiency gains in your production process. Contact our team today to learn more.