Week Five: Monitoring Site Current Events

Nike manufactures shoes for men, women and children and also athletic clothing such as shorts, shirts, jackets and under garments; wristbands, bags, balls and socks are also sold by Nike (Rao, 2012). The Nike slogan, Just Do It, and the Swoosh symbol have placed its brand in the mind of consumers, through the recognition of its products and promotional tools used worldwide (Rao, 2012).

Nike’s CRM Program

According to Stokes, Customer Relationship Management (CRM) is a customer-focused approach to business that is based on meaningful, long term relationships and not immediate profit (2010, p. 202). In 2010, Nike launched a new business division called Nike Digital Sport (NDS). The objective of NDS was to develop technologies and devices to allow users to track their personal performance while Nike collected and stored data relating to customer trends and needs. Through NDS, Nike has been able to communicate openly and effectively with customers about their needs. Nike also has its own social networking service called Nike+ (Rao, 2012). This social networking service focuses on building social networks and social relationships among people and communities. Nike has built relationships between the company and customers by understanding the customers’ needs and preferences.

CRM programs implemented by Nike are mainly operational and strategic. One CRM program implemented by Nike to build and maintain customer relationships is Nike Fuel. 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 customers’ Nike+ data from plus devices to their nikeplus.com accounts. Nike also created a Nike+ running app that enables customers to share their experience on social media sites such as Twitter and Facebook.

Nike reaches over 200 million 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).

Customer Service Policies

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.

Web site Navigation

Nike, Inc. (nike.com) has more than seven million visitors each month. Navigation of Nike’s web site is user friendly for both loyal customers and occasional browsers. The language used on the site is clear and easy to understand. Nike’s latest products and ad campaigns are featured near the top of the Nike.com landing page. Newest products include Mercurial: soccer cleats, The Last Game Collection: National Team Replicas, Cool under Pressure: U.S. National Team Kit made in red, white and blue, and Nike Tight of the Moment: four limited edition national tights. Nike’s main feature ad is currently for the Run for your Country Campaign which is introducing and promoting the new Lunarglide 6 iD. The 6 iD is customizable exclusively online at Nike.com. All Nike products featured on the landing page are shown in bright, eye capturing colors. Links to follow Nike are available for Nike, Nike Store, Nike Fuel, Nike Basketball, Nike Running and Nike Soccer.

Category and subcategory names are clear and mutually exclusive. Subcategories are immediately displayed when the menu is clicked on; items listed in the menu are classified logically. The website has a filter option where visitors can select the size, style and color of the chosen subcategory items they are viewing. The task flow is very efficient. The website has a safety and security page which covers all of the major questions users may have about the site’s security practices. The site has an SSL certificate and provides customers with an SSL Secure Checkout. The website is designed to help the company remain the most authentic, connected, and distinctive retailer in sportswear.

Customer-Facing Business Processes

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.

Current Article on CRM        

Measuring the ROI of Social CRM, written by Scott Nesbitt, discusses CRM and how to measure the ROI of Social CRM. According to Nesbitt, measuring the ROI of social CRM can be done but it isn’t as simple as it sounds (2011). Due to the newness of Social CRM and other social technologies, it is difficult to pinpoint exactly how CRM impacts the bottom-line (Nesbitt, 2011). A number of analysts and experts advise that company’s look beyond simple financial measures and metrics to find the ROI of Social CRM (Nesbitt, 2011). Intangible factors should be taken into consideration as well. One important factor is customer retention and loyalty through improved communication. It is important that customers find the help needed from online channels rather than inundating a support team (Nesbitt, 2011). Other factors include answering questions such as, Are customers more engaged as a result of starting a social media campaign? Have registrations, click-throughs, responses to call of actions and registrations increased? Measuring CRM’s ROI involves looking at money saved, sales, and also customer trust and satisfaction (Nesbitt, 2011).

Future Considerations

In the future, Nike should considering incorporating a link similar to zapdata.com to the Nike.com 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 liveperson.com. 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 rep 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.

 

References

Buttle, F. (2009). Customer Relationship Management: Concepts and Technologies (2nd ed.). Burlington MA, USA: Butterworth-Heinemann.

Cendrowski, S. (2012). Nike’s new marketing mojo. Fortune Magazine. Retrieved on June 17, 2014 from: http://fortune.com/2012/02/13/nikes-new-marketing-mojo/

Naveed, H. (2012). Nike, Inc. Website Analysis. Website Analysis. Retrieved on June 16, 2014 from: https://sites.google.com/a/email.vccs.edu/bus100hnaveed/home/website-analysis.

Nesbitt, S. (2011). Measuring the ROI of Social CRM. Social Technology Review. Retrieved on June 17, 2014 from: http://www.socialtechnologyreview.com/articles/measuring-roi-social-crm

NIKE, INC. (2014). Business Overview. Nike Global Growth Strategy. Retrieved on June 17, 2014 from: http://nikeinc.com/news/nike-inc-introduces-2015-global-growth-strategywww.nikeresponsibility.com/report/content/chapter/business-overview

Rao, A.S. (2012). Digital Marketing at Nike: From Communication to Dialogue. IBS Center for Management Research. PDF Document.

 

Week Four: Nike.com

Advertising on Site

The three sites I have followed for the last four weeks are Nike, Inc., Victoria’s Secret.com, and Nike+. Victoria’s Secret and Nike do extensive advertising on their Websites. Nike’s latest products and ad campaigns are featured near the top of the Nike.com landing page. Newest products include Mercurial: soccer cleats, The Last Game Collection: National Team Replicas, Cool under Pressure: U.S. National Team Kit made in red, white and blue, and Nike Tight of the Moment: four limited edition national tights. Nike’s main feature ad is currently for the Run for your Country Campaign which is introducing and promoting the new Lunarglide 6 iD. The 6 iD is customizable exclusively online at Nike.com. All Nike products featured on the landing page are shown in bright, eye capturing colors. Links to follow Nike are available for Nike, Nike Store, Nike Fuel, Nike Basketball, Nike Running and Nike Soccer. Nike, Inc. (nike.com) has more than seven million visitors each month; the website is designed to help the company remain the most authentic, connected, and distinctive retailer in sportswear.

Sales, specials and seasonal items are displayed on Victoria’s Secret landing page. Product categories, Victoria’s Secret PINK and VS All Access tabs are located across the top of the page, beneath the website heading Victoria’s Secret. Visitors can also sign up for email, access account information, purchase gift cards, find a store and shop catalogues from this page.Nike Plus seems to direct all advertising toward the Nike Fuelband.

Products

Athletic footwear is NIKE’s primary business; it consists of 52 percent of the company’s total revenue. Footwear includes shoes for walking, running, and basketball, cross training, sport inspired casual footwear and soccer footwear (NIKE, 2013). Sporting equipment, apparel and other sporting goods make up NIKE’s secondary business (48% of revenue when combined). Sporting equipment and other sporting goods consist of products such as protective equipment, balls, and technology relating to sports. Apparel and other sports include licensed apparel carrying national sports team logos and a variety of workout clothing items.

Victoria’s Secret, established by Roy Raymond in 1970, is the world’s largest retailer of women’s lingerie (Lang, 2013). Victoria’s Secret in known around the world for dominating the market with high end fashion collections, super models, fragrances, and its famous runway fashion shows. The company is among the top direct marketers of women swimwear, apparel, makeup, fragrances and mainly lingerie (Lang, 2013).

Nike Affiliate Program

Nike operates in over 160 countries around the world and has four affiliate businesses which are a part of the company (Webgains, 2012 & Lewis, 2010). These businesses include 1) Cole Haan: designer, marketer and distributor of luxury handbags, shoes, coats and accessories, 2) Converse, Inc.: designer, marketer and distributor of athletic apparel, footwear and accessories, 3) Hurley International LLC: designer, marketer and distributor of youth lifestyle and action sports apparel, footwear and accessories and 4) Umbro Ltd.: a United Kingdom-based soccer (football) brand (Nike, 2012).

Nike currently has an affiliate marketing program that provides an opportunity for affiliates to partner with the leading sports brand as it strives to bring inspiration and innovation to every athlete in the world. Affiliates can earn between 9 to 11 percent commission on all sales that are determined to be valid (Webgains, 2012). NIKEiD commissions were set at 14 to 16 percent commissions as a launch incentive for the new product (Webgains, 2012).

The NIKE affiliate program lists the idea affiliate partners as True content sites, Sports sites, News sites, Health and fitness sites, Bloggers, Fashion/clothing/shoe sites and shopping directories (Webgains, 2012). Potential affiliates can complete the program sign up process; there are four steps that an applicant must complete. The first step is to apply to the NIKE affiliate program; second, the application is review; third, if accepted applicant receives access to an extensive range of NIKE banners and links and four, affiliates are welcomed and encouraged to place links on their websites to begin sending traffic to NIKE and start generating sales (Webgains, 2012).

Communications I Receive from Nike.com

The communications I receive from Nike are weekly emails. The first email I received from Nike was a welcoming letter and afterwards I have received a weekly newsletter informing me of new products and current Nike events.

Article on Affiliate Marketing

This week I located an article titled, Is Affiliate Marketing worth the Risk? In the article, Mark Cohen discusses a recent interview with Kellie Stevens who was chosen in 2009 by the industry as its Affiliate Marketing Legend of the Year (2013). Stevens discusses some ways that affiliate marketing programs actually scam the affiliates who sign up and draw customers away from their business page by offering them discounts through the use of popup ads that appear on their site after installing software for affiliate marketing programs. According to Stevens, “There are way more good, honest affiliate marketers than bad” (Cohen, 2013). The article goes on to explain that affiliate marketing programs are worth any of the hassles that may need to be dealt with. This article relates to Nike by reinforcing the fact that as long as affiliates are bringing and directing more traffic to the company’s Website, both affiliates and the company are making money from the affiliate partnership program.

References

Cohen, M. (2013). Is Affiliate Marketing Worth the Risk? New York Times. Retrieved on June 11, 2014 from: http://boss.blogs.nytimes.com/2013/12/04/is-affiliate-marketing-worth-the-risk/?_php=true&_type=blogs&_r=0

Lewis, M. (2010). Nike’s $27B Growth Plans & Stats On $1.5B Action-Sports Group. Trans world Business. Retrieved on June 04, 2014 from: http://business.transworld.net/36324/features/nikes-27b-growth-plans-stats-on-15b-action-sports-group/

Nike. (2013). Annual Report 2013. Beaverton, OR: NIKE, INC. Retrieved on June 05, 2014 from: http://investors.nikeinc.com/files/doc_financials/AnnualReports/2013/docs/nike-2013-form-10K.pdf

Webgains News. (2012). NIKE Launches on Webgains. Retrieved on June 04, 2014 from: http://www.webgains.com/public/2012/09/10/nike-launches-on-webgains/

Week Three: Monitoring Current Events

The email newsletter I signed up for last week was from Nike. The site confirmed me within five minutes of signing up and I received my first email instantly. The first email I received was a welcoming email. It informed me that I had just joined a word wide team of athletes that is united by one same goal: to push the limits of their potential. I was then informed that it is now my turn. The email listed all of the benefits I would get for being a member. There was a bright orange tab for me to click on to explore Nike in this section of the email. The second section of the email had the heading Gear up and get going; subheadings read: What’s new and NIKE+ Fuel band SE. The third section of the email had the heading, “Top Styles we think You Might Like.” Following this section, Highest Rated, New Releases, and Store Locator was listed. The email concluded with the invitation to follow Nike on Facebook, Twitter and Instagram. Privacy Policy, Get Help, and Unsubscribe followed on the next line. The last line includes a link to contact Nike and an opportunity to share the email on Facebook and Twitter. I have not received any additional emails from the company following the welcoming email.

The email I would create for this company would also be a welcoming email with similar content. My hook would be to provide a coupon for a 10 to 20 percent discount on the first order placed online. I would include a sales code within the email so I could track all of the orders that were placed directly from the emails I sent.

WELCOME TO NIKE

You have just joined a worldwide team of athletes united by one goal: to push the limits of their own potential. Now it’s your turn!

(I would insert photos of a diverse group of individuals wearing Nike Products and engaging in different types of sporting and leisure activities).

As a member, you get:
Free and easy returns on all orders
Express Check out
The ability to track and share your Nike + activity
Access to NTC member services

As a thank you gift for joining our team, we’d like to give you 10% off of your first order placed on Nike.com. Enter the following code into the Sales Code box during checkout to receive this exciting gift.

NIKES 30211

Contact List

My plan to obtain a list of contacts to send the email would be implemented through the use of social media. I create a link to both the company’s Facebook and Twitter pages asking consumers to sign up to receive emails. I would highlight the benefits the consumer would receive by signing up. I would offer a Nike t-shirt, water bottle, etc. as a prize that would be drawn from the names of everyone who had signed up each time 100 new subscribers was signed up.

Measuring Email Results

I would use Constant Contact to send the emails which includes tools that measure the results of the emails. I would measure the number of orders received from the emails sent by the number of customers who placed orders using the sales code that was email specific. I would also use the sales code to track monetary profit gained from the emails sent.

 E-Mail Marketing Still Works

Article Summary

In the article, E-Mail Marketing Still Works, Gail Goodman discusses the importance of e-mail marketing in today’s business world.  With the rise of social networks such as Facebook, Twitter, and Myspace, some companies doubt the power that an e-mail has versus the popularity of marketing on a social network.  Goodman looks at and dispels three misconceptions that businesses have relating to the inbox. The first misconception that businesses have is that the inbox is irrelevant because consumers receive unsolicited e-mails every day.  The author argues that this is false by showing that consumers are being picky about which e-mails from companies are worth their time.  When consumers sign up for a mailing list, this shows that the consumer is confident in the product and the content of the e-mail is valuable to them.  Companies can build strong relationships with these consumers which value quality over quantity.

The second misconception is that the social media has replaced e-mail marketing.  Although consumers can make casual connections on social media sites, it may be challenging for companies to target their audience. This is due to the fact that consumers may be sidetracked by other activities going on within the social network.  E-mail marketing also has the advantage because an e-mail demands your complete attention.  The consumer’s attention may be held for just a brief moment, but the consumer can still connect on a one-on-one level and then spread the word to others.  The final misconception is that young people do not use e-mail. As social networks continue to rise, companies believe that 18 to 20 year olds won’t respond to marketing e-mails. This is in fact not true due to the changing workforce and the cultivation of business to business and business to customer relationships. Companies actually find that that young students graduating college from utilize e-mail as a primary means of communication once they enter the workforce. As technology continues to change, the world continues to adapt to the changes and e-mail marketing continues to stand the test of time and prove that it is a valuable tool for marketing that is adaptable to any strategy.

This article applies to Nike’s utilization of e-mail marketing. Nike can reach its desired audience by sending emails to consumers who have signed up to join the company’s mailing list which shows their desire to receive e-mails from the company. Sending e-mails to consumers who have signed up shows good ethics. Nike also uses social networks to encourage consumers to sign up for emails. The promotion of good ethics, while promoting products to consumers is an important aspect of successful marketing.

References

Goodman, G. (2009). E-mail Marketing Still Works. Entrepreneur. Retrieved on May 04, 2014 from: http://www.entrepreneur.com/article/202772

Week Two: Nike Inspired, Innovative and Aligned to Achieve Goals

Ranked as the number one innovative company of 2013, Nike has modified its business model and shifted its spending away from traditional media use to social media ([Carr, 2014] & [Ozanian, 2010]). Over 200 million fans are reached by Nike every day through interactive dialogue, rather than big sponsored events such as the World Cup and the Super Bowl to reach this amount. Nike has also incorporated the fast path of scalable solutions and corporate responsibility which enables Nike’s progression to a closed-loop business model. Nike is targeting athletes who can demonstrate a high return on investment (ROI) and be measured by its number of Twitter followers and Facebook fans (Ozanian, 2010). Nike is concentrating on the teams that display the greatest engagement and activation with the highest total of central followers through social media (Ozanian, 2010).The Nike Basketball page has over 5 million likes, Nike Football page over 19 million likes, and Facebook page over 15 million likes (Stokes, 2013). Social media posts normally have a high discussion and interaction level (Stokes, 2013). Nike is engaging 1.4 million on the Nike Football page, 1.7 million on the NIKE core page, and 1.2 million on the United Stated Nike.com store page (Stokes, 2013).

Nike strives for innovation that grows the company, serves the athlete and delivers inspiration (NIKE, Inc., 2014). The company has expanded on its mission statement with 11 maxims that every employee can use to guide the decisions they make (Payne, n.d.). It integrates these into the development of its entire workforce. Nike’s maxims are an excellent example of how to communicate the mission and vision throughout an organization (Payne, n.d.). As the world’s leading athletic footwear, apparel and equipment company, NIKE, Inc. is dedicated to inspiring every athlete to reach their full potential (Payne, n.d.).

NIKE seeks to deliver shareholder value through sustainable growth (NIKE, Inc., 2013). The corporation has been successful and continues to grow. The corporation has more than doubled its revenue over the last 10 years; company goals are to deliver $30 billion in revenue in 2015 and $36 billion by 2017 (NIKE, Inc., 2014). NIKE, Inc. sales have increased greatly from $19.2 billion in 2010 (Martin, 2010). Nike, Inc. increased its number of employees by 10,000 in 2013 to attain an employee base of 48,000.

The substantial capacities of consumer data that is freely shared through social media enables Nike to build closer relationships with customers, produce important insight to the brand, and lead to increased innovative products.  Another way Nike captures data is through the usage of Nike Plus. Users provide Nike with detailed personal information about their physical workouts which Nike in return uses to make consumers lives better. Customers provide Nike with large amounts of personal information to make their program work in the best way for them. Nike E-Commerce and Multi-Channel Strategies have played a major role in the retailer’s success (RIS, 2011). Nike has integrated its social and mobile channels and stores with its e-commerce channel (RIS, 2011).

Nike’s Eleven Maxims

1. “It is our nature to innovate.”
2. “Nike is a company.”
3. “Nike is a brand.”
4. “Simplify and go.”
5. “The consumer decides.”
6. “Be a sponge.”
7. “Evolve immediately.”
8. “Do the right thing.”
9. “Master the fundamentals.”
10. “We are on the offence – always.”
11. “Remember the Man.”

References

Carr, A. (2014). Nike: The No.1 Most Innovative Company of 2013. Most Innovative Companies 2013. Retrieved on May 30, 2014 from: http://www.fastcompany.com/most-innovative-companies/2013/nike

Martin, T. (2010). Nike: A Quest for Sustainability. Sustainable Business. Retrieved on May 30, 2014 from: http://www.sus-bus.com/nike-a-quest-for-sustainability/

NIKE, INC. (2010). Nike, Inc. Introduces 2015 Global Growth Strategy. Retrieved on May 29, 2014 from: http://nikeinc.com/news/nike-inc-introduces-2015-global-growth-strategy

NIKE, INC. (2014). Business Overview. Nike Global Growth Strategy. Retrieved on May 31, 2014 from: http://nikeinc.com/news/nike-inc-introduces-2015-global-growth-strategywww.nikeresponsibility.com/report/content/chapter/business-overview

Ozanian, M. (2010). Nike’s New Business Model. Forbes. Retrieved on May 29, 2014 from: http://www.forbes.com/sites/mikeozanian/2010/08/05/nikes-new-business-model/

Payne, J. (n.d.). Management Accounting- Business Strategy. Retrieved on May 30, 2014 from: http://www.cimaglobal.com/documents/importeddocuments/15_sn_businessstrategyjulyaugust08.pdf#page=1&zoom=auto,-14,556

Rao, A.S. (2012). Digital Marketing at Nike: From Communication to Dialogue. IBS Center for Management Research. PDF Document.

RIS. (2011). Nike Executive Reveals E-Commerce and Multi-Channel Strategies. Retail Information Systems News. Retrieved on May 31, 2014 from: http://risnews.edgl.com/retail-news/Nike-Executive-Reveals-E-Commerce-and-Multi-Channel-Strategies65804

Stokes, R. (2013). EMarketing: the essential guide to marketing in a digital world (5^th Ed.). Quirk eMarketing (Pty) Ltd.

Nike’s Mission Statement

“to bring inspiration and innovation to every athlete in the world”, together with a quote from the company’s late co-founder, Bill Bowerman: “If you have a body, you are an athlete.”

Week One: Monitoring Nike Website & Current Events

 

The website I will be monitoring for the next six weeks is Nike. I chose Nike because it is a B2C, Business to customer, site that uses a Bricks-and-clicks model which combines a traditional retail outlet with an online storefront (Xu Hong, 2010). Nike has factory outlets, stores and online websites to distribute the company’s products (Xu Hong, 2010). The Nike slogan, Just Do It, and the Swoosh symbol have placed its brand in the mind of consumers, through the recognition of its products and promotional tools used worldwide (Rao, 2012). Nike manufactures shoes for men, women and children and also athletic clothing such as shorts, shirts, jackets and under garments; wristbands, bags, balls and socks are also sold by Nike (Rao, 2012).

Nike launched a new business division in 2010 call Nike Digital Sport (NDS). The objective of NDS was to develop technologies and devices to allow users to track their personal performance while Nike collected and stored data relating to customer trends and needs. Through NDS, Nike has been able to communicate openly and effectively with customers about their needs. NDS was the aggressive shift at Nike from traditional to digital marketing strategies. Nike launched its website in 1996 and its online store in 1999 (Rao, 2012). In 2005, Nike redesigned its website and offered customers a new service called NIKEiD (Nike Shox, 2009). Customers can design their own shoes through NIKEiD which was not an option previously or with other brands including the top competitor Adidas (Nike Shox, 2009).

Nike has greatly increased its presence over social networking sites in the last several years (Yahoo! Finance, 2013). Mike also has its own social networking service called Nike+ (Rao, 2012). This social networking service focuses on building social networks and social relationships among people and communities. Following Nike will be interesting and exciting because I am a loyal customer to the brand and because the company is always growing and coming up with great new athletic products.

References

Nike Shox. (2009). Pricing and Distribution Strategies. Retrieved on May 23, 2014 from: http://laura-nikeshox.blogspot.com/2009/04/pricing-and-distribution-strategies.html

Rao, A. S. (2012). Digital Marketing at Nike: From Communication to Dialogue. Andhra Pradesh, India: IBB Center for Management Research.

Yahoo! Finance. (2013). Nike Shows Us How to Adapt To A Digital Era. Mobile IPhone Android Digital Advertising Development Agency. Retrieved on May 05, 2014 from: http://finance.yahoo.com/q/cf?s=NKE+Cash+Flow&annual