Nike’s CRM Essay
Nike manufactures shoes also athletic clothing such as shorts, shirts, jackets and under armors; wristbands, bag packs, jerseys and socks are also sold by Nike (Rao, 2012). The Nike slogan, Just Do It, have placed it’s brand in the mind of consumers, through the recognition of it’s products and promotional tools used worldwide (Rao, 2012).
Customer Relationship Management (CRM) is focusing on meaningful, long term relationships and not immediate profit with the customers (2010, p.202). According to the research, in 2012, Nike launched a new business division called Nike Digital sport (NDS). The objective of NDS was designing to develop technologies that allow the users to track their personal performance while Nike collected and stored data relating to customer needs. Because of NDS, Nike has been able to communicate more effectively with customers about their needs. Nike also has it’s own social networking service called Nike+ (Rao, 2012). This social networking service focuses on building social networks and relationships among people and communities. Nike has built relationships between the company and customer by understanding the customer’s needs and preferences.
CRM programs implemented by Nike are mainly operational and strategic. For example, Nike Fuel enables customers to record their progress through the use of Nike Plus devices. These devices are designed to update customers on the latest Nike sports trends and insights, and allow them to communicate with Nike. Another CRM program implement by Nike is Nike + Connect apps. It is a free app developed by Nike that uploads customer’s Nike+ data from plus devices to their accounts. Nike also created a Nike+ running app that enables customers to share their experience on social media sites such as Twitter and Facebook.
According to the research, Nike reaches over millions of fans every day in an interactive dialogue, rather than having to rely on big sponsored events to reach this number (Stokes, 2012). The massive volumes of freely shared user data produce meaningful brand insights, lead to product innovations, and allow the brand to get closer to consumers. Effective CRM has enabled Nike to collaborate with customers, drive business processes, maximize Return on Investment (ROI) and support brand development (Stokes, 2012).
Nike promises to stand behind all of the company’s products for both consumer and retail accounts (Nike, 2014). Nike’s web site enables its customers to use the search function to search for information related to Nike’s customer service policies. The answers are provided by the use of intelligent automates response technology. The website also provides customers with answers of Frequently Asked Question (FAQ). Through the implementation of this program, Nike is able to have an open communication line with and a better understanding of customers.
Customer facing process results in a product or service that is received by an organization’s external customer (Stokes, 2012). In 2010, Nike created a division called Nike Digital Sport (DS). DS provides skilled resources, budget, and coordination across the enterprise (Cendrowski, 2012). Nike’s goal was to create a combined consumer experience that shapes responds to the evolving preferences of consumers (Cendrowski, 2012). Nike DS leads most customer-facing digital projects, releasing products under the Nike Plus brand. Personnel, designers and a team of marketers work together to develop new digital innovations. Together, they work to find new ways to mine large amounts of highly accurate customer data, which is a key strategic asset for marketing and product development in the highly competitive digital space. Nike plans, in the future, to become ever-closer to each of its customers around the world.
I think in the future, Nike should considering incorporating a link similar to zapdata.com to the Nike web site. Customers can click on the link and contact Nike in real time via text-chat software hosted by a second party such as a live person. Customers can click on a text-chat button and the site launches a new window and have questions answered by a live representative. Customers can continue to browse Nike while a support representative answers their question(s). If after asking the question a customer is still having difficulty finding the information, the representative from Nike online can simply send the page to the customer with the information that he or she was seeking for. This might impose a high cost to Nike starting out, but the increase in sales will quickly cover the expenses and further enhance the company’s customer support and satisfaction.
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