(Image Source: Insider Retail)
For quite some time, Nike has been setting the standard for customer loyalty in every industry. In fact, Nike’s focus on customer engagement contributed to its strong performance in 2021; its profits went up by 16% and revenue by 8% in the first half of fiscal year. According to John Donahoe, President and CEO of Nike, having a direct connection with consumers is the “liquid gold” for driving growth.
“Nike’s digital growth is outperforming comparisons and being fueled by our member-centric focus. Nike digital is now 25% of total Nike brand revenue, up three points versus the prior year,” said Matt Friend, Executive Vice President and CFO of Nike. Friend also discussed the importance of the mobile app, which is bringing in 40% of the demand.
In addition, the firm prioritizes fostering relationships with customers via connected marketplaces. The wellness workouts with Megan Thee Stallion under the Nike Training Club App, for instance, had helped double the number of daily active users. Consumers are also very hyped up about the partnership with Dick’s Sporting Goods last month. These results give Donahoe great confidence in the current direction and strategy:
“Nike’s strong results this quarter provide further proof that our strategy is working, as we execute through a dynamic environment. We are now in a much stronger competitive position today than we were 18 months ago.”