It’s one thing to ensure that customers feel that their concerns are resolved quickly.

It’s something else to revamp how a company reaches customers. That’s what Nike has been up to lately. This approach seems to be paying off with sales growth as well as record-high stock prices.35 Nike CEO Mark Parker calls their Nike Direct effort a “massive transformation”

of the company.36 Selling to customers directly has changed processes throughout the company—including design, manufacturing, sales and more.

They rolled out the Nike SNKRS app to alert superfans about limited-edition releases.

Nike cultivated closer relationships with superfans with a suite of new experiences.

They also used SNKRS as a lab for how to better connect with customers digitally.

As Nike learns what their customers want, they are injecting that information into the first step of their process: creating new shoes. In the summer of 2018, they opened their first Nike Live store in Los Angeles.37 Sneakers and apparel made just for this neighborhood are being sold there. Nike figured out what residents in this area like based on data from their six apps.

Nike Live stores are all about a new kind of focus on the customer. A pair of shoes are waiting for you in a locker that pops open upon your arrival in the store. Then, you can take the shoes for a run on an in-store treadmill. Have questions? No problem! Feel free to ask Nike athletes who are ready to answer those questions. If you know what you want, you can schedule curbside pick-up from the store via the app.

Special offers also await customers visiting Nike Live stores. Scan your profile bar code in a store at a special vending machine and gifts like Dri-Fit socks are yours for free. Nike wants these stores to make shoppers feel special. And they offer what online shopping can’t: trying on items and getting in-person service.

Building a one-on-one relationship with consumers comes with perks. Nike doesn’t have to spend months working with retailers on how to target customers. And, based on data from their apps, they can keep a step ahead figuring out what customers want.

DISCUSSION QUESTIONS

1-1. What makes Nike’s focus on the customer different from most companies?
1-2. If you were in charge of taking Nike’s focus on the customer to the next level, what you would you do?
1-3. What advantages of online shopping and in-person shopping do Nike Live stores try to combine? Why (or why not) do you think they will be successful?
1-4. What do you think a focus on the customer will look like for companies in 2025?