Nike: Facilitating Customer Experience to Co-Create Value

By: Ashley Wright

There are many personal benefits to being a part of a community. In online communities, there is a chance to share ideas, gain encouragement and advice, and connect with people that you otherwise would not have the opportunity to meet. From a business standpoint, creating an online community in which consumers can communicate about shared interests and connect using your brand name or specific product line, generates an opportunity to gain significant knowledge about the wants and needs of your target population, as well as to collect an immense amount of specific feedback from people who are using your products.

Using the foundation of experience co-creation (ECC), Nike has created an online running community specifically focused around their line of running shoes, and an innovative running device created in partnership with Apple, called Nike+. Nike+ is a small device that inserts into Nike shoes and monitors an individual’s activity and uploads it onto an online profile. This community allows users to track their progress, challenge their friends and get encouragement from other runners in the community. Another aspect of the community is the health education that runners receive from experts regarding ways to capitalize on their running progress and how to avoid injury while training. This kind of open forum and educational opportunity enhances the runners’ experience in their training as well as with the product and the Nike brand as a whole.

By giving the customer a positive experience through the community the value of the Nike+ product increases as it not only contributes to their exercise routine, but also to their social experience, giving them a sense of belonging. This additional value increases the likelihood that these customers will remain loyal to the company and remain involved in the community. Also, in the online realm, people are more likely to post, share or tweet about how their experience with your product made them feel. As a company, being able to monitor and facilitate these conversations between consumers, about their experiences and the product, you are able to track and create new innovations based on direct customer feedback. It allows you to build value directly based on the customer experience.

Nike utilizes the DART model as a way to capitalize on the Nike+ brand. Building dialogue for customers to communicate with one another within the community as well as with the company allows real-time conversation and helps to build trust in the brand. The Nike+ device allows customers to access the community, and the online forum allows the company to access customer feedback and product evaluations. The community decreases injury risk for runners because it educates them, and it decreases risk of customer dissatisfaction because enables the company to constantly receive and adjust to customer feedback, ensuring better value creation. Finally, in this model transparency of the information shared between both consumer and company allows for the success of the company by providing customers with a wide variety of information and the opportunity to provide meaningful feedback that the company can use to create new products..

By using the DART model to build value with the customer, Nike has become a perfect example of how to successfully create an online community that benefits both the consumer and the company. Using these kinds of formats allows businesses to remain continuously aware of changing values, wants and needs of their customers. By building these communities and allowing for customer engagement, it can help to catapult seemingly any product or brand into untapped success.

http://search.proquest.com.proxy3.noblenet.org/docview/194368638/fulltextPDF/3C336DEA258D476CPQ/1?accountid=40663

Ramaswamy, V. (2008). Co-creating value through customers’ experiences: the Nike case,            Strategy & Leadership, 36(5), 9-14.

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25 thoughts on “Nike: Facilitating Customer Experience to Co-Create Value

  1. cimminoc March 14, 2016 / 2:35 am

    The community that has been built by Nike+ is a great asset to the company as well as the consumer. The company is able to gather information on who their target market is and what exactly they want in Nike products. The consumer is able to gain a product that is perfected to meet their needs. Information and knowledge turn into a better product for Nike and customer loyalty. This puts them a notch above competitors such as Under Armour and Adidas. These rival companies are unable to gather information as quickly and accurately as Nike. Nike+ creates a social community with customers that are passionate about a strong brand in Nike. This marketing strategy of Nike helps them create the best product while propelling Nike to be the industry leader in market share.

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  2. reganka March 14, 2016 / 4:41 pm

    I agree that the creation of Nike+ was a great way for Nike to have more value as a company and also offer more value to their consumers. Because Nike buyers can now be a part of an online community, Nike+, their workouts are encouraged and enhanced. This definitely puts Nike at an advantage over its competitors and likely attracts a larger customer-base.

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  3. Julie wusenich March 17, 2016 / 1:33 am

    Through innovation, Nike was able develop an online community and bring the consumer in touch with other consumers, as they share experiences. Great article and presentation, especially with sharing your personal experience of designing a personalized pair of Nike via the website.

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    • Aishwarya Gunti March 21, 2016 / 12:56 am

      Yes, I also liked your personal experience. If ever I want to a new pair of shoes, I definitely would like to experience what you experienced!

      Like

  4. ANDiEJANE (@andie_janee) March 20, 2016 / 10:29 pm

    I believe that Nike utilizing the DART model is a great idea to capitalize on the Nike+ brand. I think that building the dialogue for the customers to communicate with one another within the community and allowing for real-time conversation allows for a trust in the brand. Nike + is a great way to keep yourself motivated and connect with the community as well as get the customer feedback you need from the company which is an advantage. Nike + users enjoy the competition as well as motivation throughout the community to help them achieve their goals. This allows for Nike + customers to continue to want to use it, as well as trust the Nike + brand to reply with customer feedback and give them the information they need and want.

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  5. Aishwarya Gunti March 21, 2016 / 1:00 am

    Though such communities are great to create brand loyalty, it is also a threat as negative experiences could spread through same word of mouth. I am contemplating on what Nike does to minimize the damage in such situations?

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  6. CJ Enos March 24, 2016 / 12:24 am

    While I totally agree that by using the DART model Nike has crated a community where they can capitalize on their brand. What I wonder is how would this attract a runner who does not typically use the Nike brand. For example I run and have a brand of running shoes that I use. I also belong to a community of runners where we track our progress, share advise and push each other. How would Nike differentiae itself to attract me to use their brand?

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    • Megan Lac April 3, 2016 / 7:13 pm

      I have the same question CJ. There are numerous other ways to track your running such as a fitbit, garmin, etc. The only leg up Nike has on these other ways is that they don’t have shoes that go along with them, users have to wear their own shoes. On top of that, what’s stopping people from running in Nike shoes and using an alternative tracker/community instead of Nike+?

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  7. Abagail Stacey March 28, 2016 / 12:16 am

    I thought your post was clear and to the point and I agree with you on how important it is to know what the customers values, wants and needs are in order to be a successful company. Giving the customers that availability to associate their thoughts to other consumers and the company is a great way to learn and be innovative. People don’t have others to workout with or have someone there to motivate them so I think Nike+ attracts a lot of peoples’ attention knowing they get to compete with others who are using the same product. People like to make goals and accomplish them and Nike+ gives them that opportunity and can make them a better running by incorporating the educational piece. Customers will become better runners and do it the right way so they don’t get hurt and think it’s because of the shoes they are wearing.

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  8. HechuanLou March 28, 2016 / 8:28 pm

    The ideas that Nike build Nike+ and utilizes the DART model are very creative for a shoe industry. They combine the customers and their products together, and make the interaction directly with customers. Also, customers can communicate with each other through Nike+. Like what other comments said, it has a lot of benefits for both the company and the customers. However, it also has a lot of disadvantages, for example, it will spread bad news or negative product information quickly and widely before Nike take measures to prevent those. Customers can easily stand together to against a brand.

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  9. Ronald Zampanti March 29, 2016 / 9:26 pm

    The creation of the Nike+ product device truly helped facilitate and strengthen Nike’s online community. I believe it is harder for other companies to successfully build an online community as Nike did because not too many companies have socially interactive products like Nike+. As it is already stated in this article, the Nike+ devices allow consumers to track their progress and challenge each other. It is hard to build a strong online community around products that are not too socially interactive. Brands need to figure out ways to make products that have the social aspect that Nike+ has. A sense of belonging among consumers of a certain product/brand is important in increasing the value of that product/brand.

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  10. Justin Flory March 30, 2016 / 2:25 am

    Nike+ has been very successful because of the value that is added for the consumer, but the company has also been very successful because its products help the company of Nike as a whole. Nike was able to build a successful community of people who share similar interests and Nike is able to use this group of people to make their products and services better for the future. Nike really has out done itself with this concept and a lot of other companies could follow Nike and be just as successful. A company that is interactive and builds relationships with its consumers is definitely an exciting and interesting one.

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  11. cassidylebert March 31, 2016 / 10:51 pm

    Nike has done it again standing on the front lines of innovation. Their creation of an online community further benefits their quality reputation focused around consumer experience. It also gives Nike more social listening power. Creating an online community for running associates the brand with valuing health and education.

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  12. Matthew Kent April 1, 2016 / 12:38 am

    I think online communities are very effective and beneficial for consumers in many different ways. Nike+ is a prime example of how consumers can collaborate with each other weather to talk about any issues encountered, milestones reached, or simply encouragement and confidence building. These online communities absolutely help give people a sense of belonging which only woks as another asset for the Nike brand. Nike+ online community has definitely help Nike build more brand equity and for sure consumer loyalty.

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  13. Meghan Gulbrandsen April 3, 2016 / 8:59 pm

    Nike did a great job by creating this online community where people of the same interest can gather. Technology has such a significant influence on our lives in today’s world that having this type of platform online creates a very easy and convenient place for its customers to accomplish exactly what they need.

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  14. Sean April 7, 2016 / 7:32 pm

    The online community Nike has created is a huge asset to the company. Being able to find your most passionate customers and share with them information, news etc. is so valuable. Being able to help connect them with other like-minded people is also incredibly valuable to a brand.

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  15. Derek Lawton April 13, 2016 / 1:28 am

    Nike+ is a great thing for the Nike community. I know many people who use Nike+ and love it. Nike+ is a great way for Nike’s consumers to interact with each other and give positive feedback. It creates a good reputation for Nike and keeps the customers happy and satisfied.

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  16. Meg April 19, 2016 / 5:52 pm

    Nike has created a great online community, and it is important for competitors to note the strength of the community. The online community allows people to come together and discuss the Nike brand, which then continues to strengthen the connection consumers feel with the brand. Nostalgia needs to be utilized by the company, and the company wants the customers to feel as if they have a relationship with the company.

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  17. Chansamone Voralath April 20, 2016 / 1:54 am

    It is such a great idea that Nike created a Nike+, an online community, where members can share ideas, interact and motivate each other and track their progress on health and fitness activities or even engage in a friendly competition. This allows members to feel connected to the brand and Nike’s community and soon will become Nike’s loyal customers, if not already.

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  18. Aidan Kelly April 22, 2016 / 12:50 am

    Nike+ was a great creation by one of the most innovative companies. It has been able to connect users all over the world to Nike’s products as well as connecting users with each other. When users purchase Nike shoes that are Nike+ compatible they feel as if they are connecting with their running shoes which is a feature unlike any other on the market.

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  19. Alicia April 22, 2016 / 6:15 pm

    There is no doubt that the reason for all of Nike’s success is the innovative approach that the company uses in everything they develop. The DART model is a great way to satisfy customers and properly build success. The idea of teaching people how to work out, help them do it properly so that they receive the most benefit from it and allow them to keep track of their progress is a great way for Nike to learn more about their consumers as well. The more they learn, the better they will be able to please them in the future. Staying up on the latest technology, trends, and wants, needs and values of their consumers is the extremely vital to becoming successful, and remaining successful.

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  20. Colleen Flynn April 24, 2016 / 9:08 pm

    I agree that creating a sense of community is a very powerful marketing technique. Nike+ exhibited this very well and had a made a great following. I know that I would be more apt to exercise if people were looking at my rankings and competing against me. Also, I thought it was very interesting that injury rates were decreasing because people were being more educated on the proper ways to eat and live a healthy lifestyle. When you think about it, the concept of getting out and running with a sneaker and technology is not that crazy of an idea, but what makes the movement such a great success is the community that has been built behind it. Nike has branded itself into a community at large and that is what makes them the powerhouse that they are. Nike+ created a community as well, making it an undeniable success.

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  21. Joseph Sanfilippo May 5, 2016 / 8:46 pm

    I think Nike+ was a great feature Nike added to really create a sense of community and to get everyone excited to use their product. I do not have a Nike+, but I can see just how much of an impact it can be, especially people who want to compete against their friends and family. Their product is also very helpful, as it helps people exercise and eat healthier. Nike has become a huge brand over time, and will remain that way by creating ideas as creative and innovative as Nike+.

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  22. alexzahlaway May 5, 2016 / 10:59 pm

    This is a great article and I agree with your first point discussing the benefits of being part of a community as well as the benefits it provides companies in terms of feedback and analysis of customers. People naturally gravitate to people with similar activities/interests so it is important to provide an attractive place to meet and discuss the topic, similar to Harley Davidson and their “motorcycle club” which has a massive following. Relating this to our other classes we can also see how program like this drive brand loyalty even if some customers don’t realize it. In the case of Nike, someone who purchases of sneakers and gets involved with the Nike+, etc. online programs and discussions would most likely end up purchasing another pair and other products because they want to return and and stay involved in the community. Overall a very interesting topic and it seems with the DART model Nike has created a very successful and helpful environment.

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  23. Joe Lamagna May 6, 2016 / 12:41 am

    This trend definitely seems to be the way of the future. Having a product no longer differentiates you from the market. In today’s consumer world most products are manufactured in the same factories, and the competition in the free markets are limiting the ability to have price differentiation. These factors are causing businesses to find other ways to differentiate from the market and the way they have come up with is to create an experience. We have seen it time and time again with, Apple, Nike+, Under Armor’s Map my Run. Companies are either creating a story with their product, an activity that pairs with their product, or a lifestyle image to differentiate their product. It will be interesting to see if this is just a fad that fades or the new standard for a long time.

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