NIKE Aligns All Firepower to Elevate Customer Experience

Many brands often talk about the customer experience, enhancing it to a degree that sparks greater engagement and brand loyalty. Some brands are better at this than others.

Take NIKE, for example.

Its CEO, Mark Parker, doesn’t just talk the talk when it comes to upping the ante on customer experience.

“We’re aligning all of our firepower against the consumer experience,” Parker said during the company’s recent third-quarter earnings call. “To see consumers’ rising expectations, we’re driving fundamental change in three core areas of our business, through the innovation that inspires them, the supply chain that delivers it quickly, and in the marketplace where we connect personally with consumers. And while we continue to see great success in all three areas, we committed to doubling our impact in each of them. We call it our triple double. So what do I mean by that? In products, we’re doubling our cadence and scale of innovation through performance and sports style. Throughout our supply chain, we are doubling our speed, from product insight to delivery to the consumer, and in the marketplace, we’re doubling our direct connections with consumers through digital membership and personalization.”

Parker cited the following three key areas: 2X innovation, 2X speed, and 2X direct.

“Let’s start by going deeper on 2X innovation, where we’re shifting to even faster innovation cycle and scaling more effectively,” he explained. “Our consumers will feel the impact of this immediately. For example, in just a few days we’re launching our highest performance and most visually striking Air Max Cushioning System ever. We’ll continue to push the edges of style with Air Wafer Max and quickly scale it into new models. And to kick off the sub-two-hour marathon, we’ve developed a disruptive design with the NIKE Zoom X Midsole. The Zoom X provides runners with an incredibly comfortable ride and energy return like we’ve never seen before. With running footwear, we’re always looking to improve efficiency. That’s why we’re so excited about the new NIKE Zoom Vapor Fly 4%. As a former marathoner, I know that even a 1% gain would be an impressive accomplishment. But over our previous best shoe, this delivers an astronomical 4% gain in efficiency. It's no surprise that feedback from our lead athletes has been off the charts. We can't wait for more runners to give it a try when we release the NIKE Zoom Vapor Fly 4% in early June.”

Third-quarter sales rose 5 percent, to $8.4 billion.

“Last quarter, I talked about our relationships with consumers and how we’re getting sharper and moving faster to serve them,” Parker added. “That sense of focus has only accelerated over the past 90 days. The consumer has decided digital isn’t just a part of the shopping experience. Digital is the foundation of it. This, and other factors have shifted consumer patterns, especially in North America, impacting traffic, the economics of brick-and-mortar retail and is driving a more promotional environment in the near term. While we are mindful of these near-term dynamics, we remain focused on the long-term. The current backdrop represents a tremendous opportunity for NIKE because the brands that win are going to be the ones that have been out in front with digital and leading with service. While we don’t expect this transition to be simple, we are clear about what it will take to get there.”

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