Net Promoter Score

6 Lessons To Boost Customer Loyalty From Nike NPS Score Strategy

Nov 5, 2024

6 mins read

Manisha Khandelwal

“Just Do It” – now that’s a recognizable slogan!

Nike is one of the most reputable apparel and shoe brands in the sports industry, boasting a value of over 30 billion US dollars. It also holds a steady market share in the athletic footwear industry at 24.7%, surpassing its competitors Adidas, Puma, etc.

Not just that, Nike NPS score is currently at 36 which can be considered a good NPS score as the retail and consumer goods industry’s average NPS score is 41. 

How does Nike keep achieving such high levels of success? What drives customers to keep coming back to Nike? How Nike is maintaining such a high NPS score in this competitive market? Let’s find out!

6 Drivers Behind Nike NPS Score

First of all, let’s get one thing clear – Achieving the kind of success Nike has is not a one-time thing, it requires innovation, consistency, and a collaborative culture where every team member shares the same vision. 

However, understanding their strategy, what worked for them, what didn’t, and what was their “eureka” moment, will definitely help you pave your path to success. Let’s discover its top 6 drivers behind customer loyalty.

1. Strong Loyalty Program

The image shows the various benefits of the NikePlus loyalty program such as personalized shoe designs, early member access, free class credits, etc. These benefits make Nike’s loyalty program an effective strategy for boosting Nike NPS score.

Nike’s loyalty program is more than just a point system. NikePlus is a textbook example of how to do customer loyalty right. NikePlus members can access exclusive collections, early drops, workout guidance, and more. In essence, Nike has built a community where fans feel valued and rewarded for being part of the brand.

Nike has created a culture of exclusivity with its loyalty program and this approach doesn’t just increase repeat purchases, it also makes customers feel like they are part of something bigger. And it’s clearly working because NikePlus members spend three times more than guest shoppers.

2. Innovative Products

The image shows the first Air Jordan prototype designed specifically for Micheal Jordan, as a part of Nike’s pitch.

In 1984, Nike was on the verge of shutting down its basketball division due to low sales and this was one of the turning points in Nike’s history. Nike signed Michael Jordan as its ambassador after a lot of persuasion, beating well-known competitors of that time Adidas and Puma, and establishing itself in the basketball sector.

How? Well, they designed a shoe line specifically for Micheal Jordan, “Air Jordan” using Nike’s Air sole technology. They pitched the prototype to the family, showing their attention and care for Michael Jordan. This innovation, attention to detail, and risk-taking ability contributed to $162 million in sales in one year, and Michael Jordan as its brand’s face. 

3. Digital Customer Engagement

The image shows the Nike Training Club app where members can access exercise routines to maintain a healthy lifestyle. This creates a seamless experience between offline and online training, boosting Nike NPS score and performance.

In this digital world, where a brand’s digital image can either make or break it, Nike is nailing its digital customer engagement. Their apps, like the “Nike Training Club” and “Nike Run Club”, offer users workout guidance, tracking features, and personalized content, creating a one-stop shop for fitness. But Nike’s digital presence isn’t just about functionality; it’s about staying connected with customers.

The numbers back up the impact of this strategy – digital sales accounted for around 26% of Nike’s total revenue in 2023. The brand has mastered the art of making online shopping feel personal and tailored. They even offer “Nike Fit,” a feature that helps customers find the perfect shoe size online by using augmented reality. With these digital tools, Nike has created an ecosystem that keeps fans engaged far beyond the point of sale.

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4. Creative Collaborations

The image shows the collaboration between Nike and Apple. This collaboration results in the creation of innovative products that customers anticipate and cherish, ultimately boosting Nike NPS score.

Nike has a knack for doing legendary collaborations with other well-known brands and taking brand collaborations to the next level. For example, Nike’s collaboration with Apple, Beats by Dre, Virgil Abloh’s Off-White, Travis Scott’s collaborations, etc brought a merge of design, sports, fashion, and music together. These collaborations aren’t just products, they are cultural moments that fans anticipate and cherish for a lifetime.

5. Strategic Acquisitions

The image shows Nike’s acquisitions with different brands and businesses like Converse, RTFKT Studios, etc.

Apart from its innovations and a consistent delivery of quality products, one lesser-known factor behind Nike NPS score is its strategic acquisitions. By acquiring promising businesses, Nike has expanded its business and influence while staying true to its core values.

Take its recent acquisition of RTFKT Studios and Datalouge. It showcases Nike’s embrace of Web3 and data-driven intelligence. RTFKT Studios’ expertise in virtual sneakers places Nike at the forefront in Metaverse and Datalouge’s data-driven platform fuels smarter product decisions and personalized customer experience

However, Nike’s acquisitions extend beyond technology. Remember its acquisition of Converse? It wasn’t just about adding a brand to their roster; it was about diversifying their appeal and attracting a broader range of customers.

6. Sustainability Champion

The image shows Nike’s “Move to Zero” initiative in which shows are made from recycled materials.

Did you know that 72% of Gen Z says that they are willing to pay more for products and services that are ethical and sustainable?

And Nike understands this because its market domination extends beyond the sports arenas and into real-world problems like sustainability. 

Through its “Move to Zero” initiative, Nike endorses a future of “Zero Waste and Zero Carbon”, which entails making products that deliver the same quality and best performance, without compromising the earth’s ecosystem. Because of this initiative, over 75% of Nike’s products now include recycled materials, showing that the brand is evolving with customers who are more eco-conscious than ever.

Conclusion

In every way, Nike’s approach to building deeper customer relationships is layered, strategic, scalable, and aligned with customer’s expectations and needs. From creating valued loyalty programs like NikePlus to keeping up with the trends with digital customer engagement strategies to solving world problems with sustainability programs, each of these drivers is more than just meeting customer needs – it’s about anticipating and exceeding them.

Manisha Khandelwal

Senior Content Marketer at SurveySensum

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