Segmentation is central to Nike’s success
Nike has more than 100 million members in its Nike+ loyalty program and hopes to triple that number in the next five years, the company’s chief digital officer, Adam Sussman, explained in a keynote session at Shoptalk.
The company is keen to add to its ranks as Nike+ members shopping on the brand’s elevated platforms spend nearly four times the amount as non-member guests. This is a fact Mr. Sussman attributes to correctly targeting customers, which Nike defines by segment.
“Ultimately, we know when we deliver the exact right product, experience and storytelling it makes a tremendous difference,” he said.
Mr. Sussman described three of the customer segments that Nike has broken out and the different lifestyle-targeted offerings it makes available to them.
The “Weekend Runner” is a 30-year-old woman with a half marathon coming up in a few months, said Mr. Sussman. As an active user of the Nike Run Club app, the company has a great deal of data on her running and achievements. Nike recently added an app feature, which plays recorded encouragement and advice from coaches, and has another that recommends shoes based on a runner’s mileage and running habits.
The “Style Shopper” is defined as a 26-year-old woman who wants to be on-trend before, during and after workouts. The Nike app is tailored to this customer, featuring information on athletes and what Nike products they wear. It also includes data-based product recommendations, invitations and a “Reserved For You” function, which automatically reserves select products for customers in the correct size and invites them to buy. The app also allows users to message directly with accomplished athletes for product recommendations or even book a face-to-face appointment.
For the “Dedicated Sneakerhead” segment, Nike has taken steps such as gamifying its exclusive product launches with its SNKR Stash experience. With SNKR Stash, Sneakerheads go on a city-wide treasure hunt for virtual “Stash Spots” where they can purchase the products via mobile. Nike plans to enhance the experience with Stash Squad, now in development, which allows fans in areas remote from a treasure hunt to join a “squad,” watch the event via livestream and receive the product if their squad leader wins.
DISCUSSION QUESTIONS: How important is it for brands to create customer segment profiles, like Nike’s “Weekend Runner,” “Style Shopper” and “Dedicated Sneakerhead,” when developing next-gen customer-facing technology? What sort of data should brands base segment profiles on, and how can they get it?