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When Nike+ launched two years ago, there were many skeptics. Other corporations have tried to create a strong social network for their users. The results have been horrendous for most, but Nike has been able to build their brand and establish strong avenues of interactions with their customers through this social network.
What did they do that Coke, General Motors, and several other large corporations did not do?
First, they gave the platform connectivity and interactivity. Using a device within the running shoes themselves, members can track every run they do and keep accurate records of how well they are doing. This in itself has an appeal to those who are serious about running, but Nike+ took it a step further by allowing users to communicate with other runners around the globe. The mutual interest that can often be called a passion gave the network the “legs” to bring people in and keep them coming back.
The second thing they did was give purpose to the network. Through events that could only be coordinated online do to logistical challenges of multiple-locations worldwide, Nike+ made itself into a hub for runners to participate with distant peers towards common goals. Earlier this year, nearly a million users logged on and signed up to run a 10K race. It was sponsored by Nike simultaneously in 25 cities.
In a recent interview that Businessweek’s Jay Greene had with Stefan Olander, global director of Nike consumer connections, the enthusiasm for the products and network were evicent. Skeptics were harsh when the network first started, but its success in accumulating active users has made most silence their criticisms.
But in the end, the real question is, “Has Nike+ helped the company sell more running shoes?”
“Absolutely, yes,” said Olander. “We’ve seen great conversions so what we do in our continuous service is we see the relative market share that we gain from other brands and it gives us a tremendous opportunity. If someone is used to running in another brand and they like another brand, once you start using Nike+ you have a really good reason to try out Nike’s line of shoes.
“We like to think we have a fantastic running shoe line but a lot of that is just what you’re used to so if someone is used to another brand the only reason could be communication. Another reason is the community and you have another reason to try it out.”
While sales of related products have hit $56 million, it is a drop in the bucket for a company that posted $18.63 billion in sales in fiscal 2008. For a real impact that would raise the eyebrows of other corporations, there would need to be a bigger splash that crossed several products, not just the running shoe niche that appeals mostly to hard-core users.
“I am convinced that the learnings we’ve drawn from what Plus does from a behavioral perspective - absolutely we’ll be to use that and replicate it,” Olander continued. “I don’t think that it necessarily means always using the same technological solution with a chip in your shoe and a receiver but the insight that you can use digital technology to enhance someone’s performance and make sure that there is both a community angle of it and all the social attraction - all those layers we can definitely use in other categories.”
Posted on: Sunday, November 9th, 2008
Posted in: Featured, Network, Online Reputation Management, Other Social Networks, Retail, Social Network Marketing, Tech
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Comments: 13 Responses
November 12th, 2008 at 9:23 am
[...] read more | digg story [...]
November 12th, 2008 at 9:27 am
[...] article from Media Caffine here. Posted in Uncategorized [...]
November 12th, 2008 at 10:06 am
This is a great Tool for all of us that Nike interest.
Trigeia Twinz
http://www.TrigeiaBlog.com
What’s Your Passion ?
Trigeia Twinzs last blog post..We posted this in August. History was made.
November 12th, 2008 at 12:15 pm
[...] Here’s a pretty good article about how Nike has leveraged their social network. [...]
November 12th, 2008 at 2:12 pm
I would say that the first two - “user focus” and “niche building” are the most generally applicable tips for corporations using social networks. It’s those two more than anything else that are going to drive people to actually want to engage with these networks. Community goals are nice and drive sustained participation, but it’s having that singular focus on providing something of value that helps the most.
Just my humble opinion
Matt
PluggedIN Co.
http://www.pluggedinco.com/blog
November 12th, 2008 at 2:34 pm
This is just a splash in the bucket for vertical virtual community markets.
There is probably an infinite number of vertical markets out there, especially considering global presence where people have not interacted yet
now some of those communities could be profitable, some could be active and others may not move, but they exist and are only now being touched.
In the next 7-8 years we won’t even know the world as it is today. Avatars will be doing our shopping, Intelligent Computer Friends will act as Dieticians, Trainers and more. There is even a use case for doctors on a beach vacation to utilize his mobile phone as a virtual tool in performing a rare emergency surgery.
I’m running a vertical network based upon the mohawk hairstyle, http://www.MohawksRock.com and its fascinating to watch the growth and Key Opinion Leaders blossom in what would seemingly be a non-existant community until the lense of a world picture was applied to find a rich community of extreme hair enthusiasts.
CheyenneJacks last blog post..Regator of Decatur
November 12th, 2008 at 2:38 pm
Interactivity or connectivity did nothing for Nike+ as a “social network.” The site would have thrived regardless of whether you could connect with users. the transparency provided by the Nike+ chip and innovative, and could have easily launched independently of a social network.
The “purpose” you mentioned is probably what really drove the site’s success. Building a community around running was something new to the market. Nike connected people through the public events. This created a great experience–something entirely different than owning a piece of leather and plastic.
November 13th, 2008 at 4:03 am
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May 5th, 2009 at 11:04 am
Nike sucks!
July 7th, 2009 at 8:35 am
I think this is a great site for Nike enthusiasts. 1, I guess, it’s mainly because you get to keep track of how far you’ve run and how you’re doing. 2, is that it sounds like a great place to get to meet people who share the same interests as you do. Not only are you updated in all things related to the product, but you can get to converse with other people on the site. It’s a great way to connect, maybe even have a friendly competition every now and then. I sure will be checking this out.
October 3rd, 2009 at 1:19 am
What did they do that Coke, General Motors, and several other large corporations did not do?
October 13th, 2009 at 12:18 am
Nice Article and good tool. Thanks in advance, best regards slit
December 26th, 2009 at 9:06 pm
While sales of related products have hit $56 million, it is a drop in the bucket for a company that posted $18.63 billion in sales in fiscal 2008.