nike loyalty program case study

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Companies With the Best Loyalty Programs

When you shop, you usually want to get a little more out of your experience than a simple transaction at the counter. Some brands attract customers by offering rewards through customer loyalty programs. Read on to learn more about some of the top companies with customer loyalty programs.

Sephora has a loyalty program that makes the splurge worth it when you stock up on their premium beauty products. This program tracks points (which are based on purchases), and offers various rewards at given intervals. But instead of giving loyal fans sample products or ones in shades that might not be complementary for every skin tone, Sephora’s incentives include gift cards and exclusive discounts. Customers can also choose to trade in their points for premium samples of products tailored to their unique shopping styles.

Amazon’s Prime program is one of the most popular customer loyalty programs out there. This loyalty program requires buy-in from Amazon customers, but delivers a ton of incentives to join. From free books and movies to two-day shipping, Amazon Prime gives customers great perks, and allows them to save a bunch of money on the purchases that they make from the site. Additionally, Prime customers receive access to exclusive deals and a special discounted shopping day called “Prime Day.”

Starbucks has a rewards and loyalty program that helps customers to earn free coffee with every drink they buy. The Starbucks rewards program is a free one that’s tied to using a Starbucks gift card with each purchase. From each of these purchases, customers get loyalty points (or stars), which they can later redeem for free drinks. Rewards members receive other perks, too, like free birthday drinks and BOGO deals.

Nordstrom’s rewards program looks a little different than the typical “earn points, get stuff” deal, but it’s still incredibly popular. Nordstrom relies on brand influencers who share info and exclusive deals on their social media channels. In return, influencers receive special perks and discounts on items from the store.

The North Face

While The North Face offers a somewhat standard loyalty program that trades incentives for purchases, it’s anything but your average rewards deal. Customers can opt in when they make purchases, and will receive points for every dollar spent. But they can earn points in other ways, too. Using the North Face app, customers can join the VIPeak program, which gives certain perks for participating in company events or checking into certain adventurous locations. When it’s time to cash in, customers can choose from tailored experiences, like once-in-a-lifetime hiking experiences.

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Scale success story: Nike loyalty scheme

With a brand value of $15billion , Nike is the most valuable sports brand in the world. In 2019, the sportswear giant’s global revenue totaled $39.1billion . But along with their monetary success, comes something else to brag about; the Nike loyalty scheme. In 2017, the program had over 100 million members who, according to Nike, spend around three times more than guest customers on the website. Since then, Nike has been improving its rewards program, fine-tuning it into one of the best loyalty schemes in ecommerce.

How does the Nike loyalty scheme work?

The Nike membership program is a club where Nike customers and fans can receive exclusive perks. Shoppers become a member through the Nike website or any of their four apps; the Nike app, Nike Run Club, Nike Training Club and SNKRS. 

The Nike app is the main hub for the rewards program. Here, customers can view their rewards, receive messages from Nike and browse member-only collections. And, when members use the other apps, their engagements are reflected in the main Nike rewards app. Customers can also scan the app in Nike stores and at events to earn rewards while they’re there.

The benefits of the Nike loyalty scheme includes: priority access to tickets to sporting events, exclusive products, early access to product launches, expert advice on training and exercise, rewards for being active through their apps, special offers on birthdays and, to top it off, free delivery.

Amongst the big online players, Nike ranks ninth in brands with the most loyal customers. Let’s dive deeper into some of Nike’s loyalty program benefits and why it is so successful.

Why is the Nike loyalty scheme a success?

Nike offers members four core values at the heart of its program: 

1. Exclusivity

2. Community

3. Personalization

4. Omnichannel experience

Let’s look at how they’re offering these values to customers, why it is a successful loyalty strategy and how you can replicate it in your own loyalty program. 

Exclusivity

A key benefit of becoming a Nike member is that you gain access to exclusive perks. Loyal customers have access to priority tickets to sporting and Nike events. They are allowed to shop exclusive collections only available to members. They also gain the privilege of shopping products and collection launches before they’re released to the general public. Loyal Nike customers see the value of this benefit as many products are limited editions and become collector’s items later. 

79% of consumers say being able to unlock exclusive benefits makes them loyal. Nike has positioned exclusivity as one of the main reasons to join their loyalty program. It makes their loyal customers feel special and it lets them stay ahead of infrequent Nike shoppers. Learn more about the psychology of rewards and exclusivity here.

To replicate Nike’s approach in your own program, try adding loyalty tiers . Fast-fashion brand, Never Fully Dressed , uses tiers to give members top-shelf perks not available to regular customers. Members in the low tiers receive exclusive discounts. And, in the higher “Supremely Sassy” tier, they gain access to “Secret Sales”.

Another reason customers engage with the Nike loyalty scheme is the community. Membership gives customers access to free workout classes, training support and educational content. They also offer inspirational articles to keep members motivated and a place where they can follow and comment on similar interests – much like a social media app. 

Togetherness and community are also apparent through Nike’s messaging. The program’s call-to-action reflects this with powerful language like “Belong” and “Join Us”, which urges shoppers to become members.

Community is important for building long-term customer relationships. 47% of consumers said they are motivated to be loyal by becoming part of a like-minded community. Establishing a following of people who share the same interests creates an emotional bond between Nike’s consumers and the brand. This secures loyalty as Nike will be front-of-mind when consumers need sporting goods.

Build your own brand community by engaging with customers in the spaces they socialize in. Never Fully Dressed rewards customers loyalty points for a social follow. Then, on their channels, they post tutorials on how to style their garments for different occasions. They’re providing valuable content in this space and get back in front of their most valuable customers as a result.

Personalization

Another pillar of the Nike loyalty scheme is personalization. Loyal customers receive gifts for birthdays and member anniversaries which makes them feel special. But there’s more. Members get access to their own online Nike store which is full of recommended products based on what Nike knows about them from past purchases and engagement history. 

With 61% of shoppers saying they will return to a brand if they are shown personalized product recommendations, Nike has struck gold.

Personalization within the program makes each loyal customer feel understood and valued, rather than the same as casual shoppers. Plus, having their own Nike store saves time searching through irrelevant items for something to buy. 

To take the same approach and delight shoppers, add personalized loyalty components to your program. Never Fully Dressed welcomes logged in members with their name and unique points balance. 

Omnichannel experience

Another appeal of the Nike loyalty scheme is its omnichannel experience. Whether customers are shopping in-store, on-site or through their four mobile apps, their loyalty program membership stays connected at all times. Customers use the same login for each of the Nike apps and the Nike website. They can also scan their loyalty profile while shopping in-store. No matter where customers choose to shop, their loyalty will be recognized.

This seamless and connected loyalty experience across all of Nike’s brand touchpoints ensures every purchase loyal customers make is accounted for. This is pleasing to customers and encourages them to keep engaging with the program.

Use Nike, and other big-brand loyalty programs, to inspire your retention strategy, secure long-term loyalty and scale your ecommerce business.

Want to learn more strategies on scaling up your ecommerce business? Take a look at our How to scale your ecommerce business resources. Access four insightful webinars and ebooks to help take your business to the next level.

Ready to start a loyalty program? Book a demo with a member of our team today.

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Rewards Case Study: Nike Membership

If you’ve ever interviewed for a marketing position, chances are you may have been asked the classic question: “What is a brand that you believe does a great job when it comes to marketing?”

While there are thousands of brands that fit the bill, there’s one that often comes to mind: Nike. A brand so powerful, the very name means victory . A brand whose logo is so iconic that it some consider it the #1 most recognized symbol in the world and communicates motion even when it’s perfectly still. Needless to say, Nike is one of the greatest contemporary brands in commerce but does that greatness extend to their rewards program?

The Nike Membership rewards program is an interesting example of a modern twist on the classic rewards program, but even Nike has some pros and cons. In order to get a better idea of what this program looks like, I’ve taken a run at breaking down the pluses and minuses of what Nike Membership has to offer.  So, like Nike would say, let’s just do it.

Where Nike Membership scores

The Nike Membership rewards program has a lot going for it. Just like in the rest of the Nike experience, their branding is an incredibly strong asset , but the success of their program goes beyond the look and feel of the site. With Nike Membership, Nike has put together a rewards system that any athlete will find valuable.

Nike has rewards designed by athletes for athletes

One of the first things we noticed about the Nike Membership rewards program was their rewards portfolio. Most brands only offer their customers a combination of discounts and other financial incentives, but Nike’s focus is on delighting their customers through highly targeted experiential rewards .

That’s not to say Nike Membership doesn’t offer any transactional rewards. Nike Membership does offer its members free shipping on all orders and the ability to try any product for  60 days with a “no questions asked, no receipts needed” return policy.  However, at the end of the day those perks seem trivial when compared to the main event.

Nike Membership offers its members access to special Nike events where they can meet and train with other members of the Nike community.  Nike members get early access to new training gear in the Member Shop and Nike experts who can help them make purchase decisions and discuss training best practices.

These (among other) Nike Membership experiential rewards are a fantastic example of what it means to truly understand your customers. Nike’s customers are motivated by the ethos of authentic athletic performance, and the benefits of the Nike Membership program speak to that in volumes. By matching their rewards to their customers’ values they’ve created a rewards program that these athletes actually want to be a part of because it caters to their needs and mirrors their interests.

When customers shop at Nike, they’re buying more than a running shoe or a pair of shorts. Nike customers are buying into everything the brand stands for, the idea of pushing for better, the spirit of friendly competition, and the value of sweat. When you read through the rewards in the Nike Membership program, it’s clear that the people who designed them understand these values too.

Nike Membership is  a beautifully (and consistently) branded rewards program

Nike is no stranger to aesthetic expertise. Their stores are decorated with perfect action shots of athletes that look ready to run right out of the picture and straight into a marathon. This visual acuity is mirrored in the Nike site, with words and images that are sure to excite the athlete in all of us.

Apart from being visually stimulating, the branding on the Nike Membership site manages to accomplish another important task: it achieves an admirable level of consistency with the rest of the Nike experience. From the name of the program to the images that help explain its features, the Nike brand is front and center through it all. The familiar swoosh and motivational message lets Nike members know that this program is a natural extension of the Nike brand and therefore the Nike promise.

Beautiful and consistent branding goes a long way in getting customers to engage with a rewards program. At first glance, many customers feel like joining a rewards program is more hassle than it’s worth. Intentional branding can help them overcome that perception and share some of the love they already feel for the rest of your brand experience with your rewards program.

As Nike lovers ourselves, exploring the Nike Membership program felt exciting and yet familiar - the perfect combination for a new experience by a familiar brand.

Nike Membership is a mobile focused customer experience

We’ve discussed the importance of designing a customer experience optimized for mobile in the past, and Nike Membership is the perfect example of why. Their program doesn’t just take a mobile friendly approach - it celebrates it.

The Nike Membership flourishes on mobile devices with select images and formatting that plays to the handheld screens. For most brands, having a site that is mobile optimized would be enough of a leg up, but Nike pushes their mobile experience even further.

Nike members can enjoy four separate mobile apps that can enhance their use of the product. The Nike App, Nike Training Club, Nike Run Club, and SNKRS are all available for Nike customers to track their activity, get new workouts, and stay up to date on all of the latest gear.

The Nike Membership program isn’t just accessible on mobile, it actually opens up entirely new experiences for customers on their phones.  Nike’s commitment to their mobile experience means that Nike customers can take the brand whenever and wherever they go. As more and more experiences shift from our desktops to our handheld devices, mobile accessibility has become something of a necessity, and the Nike apps demonstrate that this is something Nike definitely understands.

Where Nike Membership gets benched

Even the best rewards programs have their shortcomings, and Nike Membership is no different. There are several program elements that trip up an otherwise awesome customer experience, but if Nike can tie up these loose ends their program will be off to the races!

Nike Membership doesn’t provide opportunities for re-engagement

As we discussed earlier, the Nike Membership program has some pretty sweet perks. The only problem is, these perks come on an all or nothing basis. As soon as you’re a Nike member you receive all of the awesome benefits that come with the program, with no additional  engagement to look forward to.

Contemporary rewards programs are designed for the long haul and come with opportunities for re-engagement .

Most contemporary rewards programs are designed with the long term in mind, and because of this these programs strive, above all else, for continued engagement. A points program gives points for every purchase, a VIP program keeps customers motivated to gain and maintain their status, and referral programs reward customers for each successful referral. These programs are designed to keep customers engaged and interacting with the brand.

This is where the Nike Membership program falls short. Since all of the rewards are available instantly, there aren’t any re-engagement mechanics to stimulate interest over time. This can lead to customers becoming disinterested over time and eventually disengaging from the program. A rewards program should never be seen as a set it and forget it tool.

While this may seem like a trivial issue, giving customers something to look forward to is a key component of motivation. Even as loyalty program enthusiasts, we have gotten bored with programs that fail to re-engage us over time. The nature of the fitness industry gives Nike a natural avenue for re-engagement. They could tie additional perks to maintaining an active lifestyle which could be easily tracked through their mobile apps. Speaking of those apps...

Nike+ has too many separate apps

We know we praised Nike’s mobile engagement strategy earlier, and a big part of that was because of their mobile applications, but we need to address the other side of that coin. You see one of the program’s strengths is actually hiding one of its weaknesses: Nike Membership has too many apps.

Before you call us hypocrites, allow us to explain: while we believe that each of the apps are highly valuable, Nike dilutes their impact by separating them. It is the separation of this value into multiple different applications that creates the issue.

Today’s customers are in a constant state of app overload which makes them hesitant to download new apps.

While customers are getting increasingly more mobile with their experiences, today’s devices haven’t quite caught up to their desires. Phones only have so much memory for applications, and there are a lot of other apps already vying for that space. With this in mind, many customers are weary  to download new apps, which means new applications need to show substantial value in order to convince a customer they’re worth downloading.

Having an app for each and every individual aspect of the program makes it difficult for cross-functional customers to take advantage of the whole program.  Take a customer whose workout routines include running, weights, and circuits and was also  interested in updates about the new flyknit runners.

According to Nike Membership this alone would make this customer  a candidate for three of their applications, but the thought of adding 3 new icons to a home screen is extremely overwhelming. If we add in other lifestyle choices like calorie tracking, the problem gets even worse. Customers that are daunted by the number of apps, will end up not downloading any and will miss out on the genuine value the program provides. By streamlining the value of their applications, Nike Membership can more effectively engage with their cross-functional customers.

Thinking of joining Nike Membership? Just Do It.

Like any training athlete, Nike Membership is still pushing to be its best but what it is, is a strong rewards program and a nearly flawless extension of an already amazing brand. With its focus on mobile optimization and hyper-relevant rewards, Nike Membership runs circles around the competition. By slimming their app catalog and providing some re-engagement opportunities, Nike can take their rewards program from great to legendary.

In summary, if you’re thinking about joining Nike Membership... well, you know the rest.

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Unravelling the Code to Incredibly Effective Nike Loyalty Scheme [Updated]

The e-commerce landscape is thriving. The primary challenge isn’t just drawing in users, but ensuring they remain engaged. Over 90% of businesses today offer a loyalty program. Some examples like a Nike loyalty program set the standard for rewards programs – and it’s possible to replicate the same in your store.

Nearly every retailer offers a loyalty program, and it’s likely you belong to one or more of them. The formula is familiar: buy products consistently, accumulate points, and then exchange those points for discounts or complimentary items. At a glance, cultivating customer loyalty appears simple. But more often than not, it’s not the case.

In this article, we’ll delve into the art of shaping a loyalty scheme , taking Nike’s strategy as an ideal illustration. By the end, you’ll possess the knowledge needed to launch your own effective loyalty program .

What Are the eCommerce Loyalty Programs?

Challenges for ecommerce companies in terms of customer retention, top reasons why customer loyalty and retention strategy are critical, types of rewards programs, how does the nike loyalty scheme work, the core secrets of successful nike loyalty scheme, ideas and trends for customer loyalty programs, summary: building a customer loyalty program.

E-commerce loyalty programs are systems online retailers use to offer perks to their customers. Users accumulate points or benefits when shopping. The more they shop, the more benefits they acquire, which can be used for discounts or complimentary items, motivating them to revisit the platform. 

Moreover, many eCommerce loyalty programs also offer benefits for various interactions, like writing product reviews, referring peers, sharing posts on social media, or even just registering or completing a profile. By offering benefits for a broad spectrum of user actions, they not only motivate purchases but also foster a deeper connection with the brand. 

The success of such a strategy lies in its clarity and simplicity. Users should find it straightforward to understand how to gain points and their value.

Retaining users for your eCommerce platform is as essential as bringing in new ones. Yet, ensuring user commitment hinges on multiple factors. 

Here’s a look at potential hurdles: 

• Market Dynamics : The online space is teeming with rivals presenting similar offerings. The vast options make it easy for users to switch preferences, underlining the need for retailers to differentiate themselves. 
• Exceptional User Support : Without direct interaction, providing top-notch support becomes challenging. Users look for prompt and efficient solutions. Falling short can result in them leaving. 
• Building Trust : Confidence is paramount for online shoppers. Since they can’t check out items firsthand, they rely on descriptions and feedback. Moreover, they need certainty that their personal and financial data remains secure. 
• Customized Experience : Users want personalized shopping journeys. Retailers not meeting this expectation might lose customers to those that do. 

Tackling these issues demands thorough interventions. A meticulously planned loyalty program for eCommerce can counter these challenges, differentiating you from the rest, cementing trust, providing customization, and bolstering user involvement.

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Customer loyalty boosts earnings, enhances sales performance, and enables long-term growth.

A well planned and implemented loyalty program may assist you in retaining existing customers, attracting new customers, reducing attrition, and increasing revenues.

Almost six in ten UK adults agree that firms should provide loyalty programs, and nearly 60 per cent of internet users consider ‘winning rewards’ to be one of the most valuable components of the retail purchasing experience.

• Loyalty programs establish an emotional relationship.  Customer loyalty and retention strategy enhance revenue and customer lifetime value. On the most fundamental level, this is accomplished through incentives. But there’s more going on here, and the emotional connection that loyalty programs build might be much more essential.
• Recurring customers have a high ROI.  On average, a business owner spends five times as much to attract a new client as it does to keep an existing one. Current customers are 50% more willing than new consumers to switch brands and spend 31% more on each transaction.
• Customer loyalty and retention strategy allow you to reach out to new consumers.  Solid client word-of-mouth is critical to gaining new consumers in the age of eCommerce and digital product reviews. In fact, personal suggestions are trusted by 83 per cent of customers, more than any other kind of marketing.
• Customer insights are provided through loyalty programs.  When you digitize your reward program, you have access to real-time data on how your consumers interact with your program and your business as a whole. Access to this data allows you to create unique and successful tactics for strengthening not only your loyalty program, but also your brand as a whole.
• Creating a successful customer loyalty program has never been easier.  A digitally enabled loyalty solution will be required if you want to grab the interest of modern buyers (and gain access to many of the perks highlighted in this article).

Your strategy’s design will hinge on your market and target audience. Here are some methods to consider: 

• Points System: The thrill of accruing points and aiming for perks keeps users coming back.
• Tiered Benefits: Regular users receive exclusive deals and premium services from eCommerce stores , showcasing appreciation and making committed users feel treasured. 
• Cash Benefits: Cash returns are a strong gesture, implying that retailers cherish user commitment. 
• Purchase Cards: These types of rewards programs offer a complimentary item after a set number of purchases.
• Membership Perks: They create an elite group, granting members the best deals or unique items, enhancing user involvement. 
• Philanthropy Points: Users feel good knowing their purchases aid noble causes, deepening the bond. 

If you are wondering how to create a loyalty program, start by thinking of its type. Pick the one that best ensures users of your commitment to quality and value. Adapt your strategy to your user’s desires and tastes, nurturing strong bonds, encouraging repeat buys, and carving a distinctive presence in the fiercely competitive digital space.

The entire program is distributed via apps and the Nike membership program. Fans may become members of one of the top retail loyalty scheme s in the world by joining up on the official brand’s website. They may also join any of the four applications available, which include:

• Nike Run Club, 
• Nike Training Club.

Customers can monitor their accumulated credits and receive communications from the firm regarding members-only collections, among other perks. As a result, it is one of the greatest instances of a loyalty system.

So, what is a loyalty scheme from the perspective of Nike? Perks include:

• obtaining first dibs on tickets to sporting events, 
• exclusive releases, 
• early access to new releases, 
• professional training guidance, 
• incentives for app engagement, 
• birthday offers, 

The icing on this perks-filled dessert is free delivery.

Nike is ranked ninth in the world in terms of consumer brand loyalty . Nonetheless, it is one of the firms with the most devoted customers.

Let’s broaden the plan and see how it turns out.

At the heart of the Nike loyalty scheme is a secret built on ideas such as omnichannel optimization, community development, exclusivity, and personalisation.

One of the primary advantages of becoming a Nike member is the availability of unique rewards. Loyal consumers get access to all of the fantastic things that the firm has to offer. They may shop unique member-only collections and receive things before they are released to the public.

Because of the exclusivity, the product is not easily accessible to everyone. With quality to back it up, the company can charge more for its products than competitors while still making a lot of money. 79% of Nike consumers said the special incentives are a big part of why they stick with the brand.

Exclusivity and rewards work well together to make the loyalty scheme ideas work . Adopting this scheme for your business can be done in the form of loyalty tiers that use a reward system to maximize engagement, sales and offer more perks as points accumulate.

Exclusivity

Another reason that Nike customers engage with the brand, is that they exist in a community that is tangible and useful. Users who join get access to free workouts, training instructions, and educational materials. The applications also provide articles about topics that the community finds interesting.

In what is one of the best loyalty schemes examples , Nike uses specific wording in ads. They also utilize call-to-action language to entice customers to become members and feel a sense of belonging. Almost half of all customers indicated they are more inclined to be loyal to a brand if they believe they are in the company of others who share their values.

The easiest method to achieve the type of engagement and community you want is to look for it on social media platforms where people are more inclined to spend their time. Putting the community first guarantees that you have clients who will connect with you and buy your items when they are announced.

Many times, it has been stated that personalisation is the finest approach to make clients feel as if they have a personal connection with the business. When a brand remembers their birthdays and anniversaries and treats them to such occasions, 61 per cent of the public feels special.

Personalisation is what makes loyalty stick. Customers feel thoroughly understood and well-treated, rather than simply another casual shopper who will come and go.

Using the same method is as easy as surprising consumers with a fantastic greeting on their birthdays, and addressing them personally using their name. It may also entail sometimes providing them with unique bargains on something they may have desired in order to make them feel special and loyal.

Nike employs a one-of-a-kind points system that may be reproduced to reward customers who spend more and advance them to higher tiers.

Personalisation

One of the enticing aspects of the Nike Loyalty Scheme is its robust omnichannel strategy, which links members’ mobile applications at all times, even while they are shopping in a store. They may then use the same login for all apps and websites.

Ease of access and integration of all activities to track points and deliver rewards appropriately is a terrific approach to keep your consumers coming back.

Customers can have their loyalty profiles scanned when purchasing in-store. The system is designed in such a way that consumers’ loyalty may be recognized by Nike regardless of the technique they use. A smooth omnichannel experience makes it easier to account for loyalty and reward it in a deserving way.

Omnichannel Experience

Gaining customer loyalty is on the rise as more companies rush to establish relationships with customers. The shift happening now is giving birth to new trends, which have interesting propositions and approaches that answer the question; why is the Nike loyalty scheme a success?

The most significant development in this market segment has been the implementation of emotional and behavioural-based loyalty programs. Traditional models in paid/subscription services such as Amazon Prime were driven by transaction-based models and behavioural models.

Emotional loyalty, on the other hand, has produced greater outcomes and lasted longer due to the stronger bonds built between a brand and its clients.

An emotional element incentive, as opposed to merely rewarding customers after they make a purchase, is all about addressing the question, “Why should I pick your product?” Gallup research reveals that when firms employ micro-engagements, personalization, data-driven choices, individualised rewards, and a seamless customer experience, strong emotional connections are developed.

Emotional and Behavioural-Based Loyalty Programs Are On The Rise

Not only does the omnichannel approach benefit the brands, but it also offers great benefits to the customers. Making the experience seamless, easy-to-navigate, and convenient leads to higher conversion rates, improved returns on investment, more sales, and better customer retention rates.

Our current future is more linked than mankind has ever been. As time passes, the relationships will become more interwoven and deeper. The Internet of Things (IoT) is generating connections that ensure customers may be rewarded regardless of where they spend, whether in a physical store or online.

Start by digitising your loyalty programs so that you can offer rewards across all channels and allow shoppers the opportunity to pick a channel that works best for them. With recent advances, connecting all of your channels is now easier than ever.

Omnichannel Reward Programs Will Be the Standard

The emergence of data-driven decisions has resulted in more efficiency and overall better results. Integrating data with machine learning models automates the processes, eliminating the need to go through mounds of data to determine who has a birthday and when to reward them.

The entire process can be automated and protected via blockchain, so clients know they will never lose their loyalty points for the rest of their lives. With blockchain, the loyalty rewards can all be aggregated and channelled into a wallet of redeemable points with value.

Many of the loyalty programs can be automated and optimized in a way that produces the best responses from the target audience. Before you adopt the ideas wholly, run pilot programs to see success rates before making programs generally available in your overall customer loyalty and retention strategy.

The Role of Big Data, Machine Learning, AI, and Blockchain

Brand interaction is becoming more mobile-focused than ever before. The reason for this is that more people are buying on their phones, checking out things on the move, and overall spending more time on their phones than on any other device.

The basis for focusing on mobile is that people carry it with them at all times and can get all of the benefits via mobile applications, while also providing marketers with the opportunity to directly interact and target customers in a tailored manner.

Although 84 percent of merchants provide a mobile loyalty experience, just 22 percent display loyalty points/rewards on the home screen. Experts call mobile the bridge between offline and online experiences by integrating engagement with mobile apps when customers make in-store purchases.

Mobile Loyalty Apps Will Continue to Gain Popularity

Personalisation just by names is not enough, which is why hyper-personalization is the name of the game. If the customer feels like your competition knows them better than you do, you will lose them.

As AI technology hits new milestones every year, hype-personalization does not have to be a hassle. It can be a mostly automated process where your only input is deciding what kind of format you would like it to follow.  

Loyalty programs can be used to personalise the customer experience while generating the kind of customer insights that a brand needs. Purchase history, product preferences, and redemption of points can all be tracked to make your marketing strategies even better and more informed, like the Nike loyalty scheme .

Hyper Personalisation Will Separate the Leaders & Laggards

Nike loyalty scheme, as well as other big-brands’ loyalty programs, may be used to inspire your retention strategy, establish long-term loyalty, and expand your ecommerce business. More data-driven and AI-driven models will be used in loyalty programs in the future years. They will make it simple to interact with your consumers at scale without the need for more staff or responsibilities.

We’ll see programs shift away from the old, analytical, emotionless approach and toward a more flexible strategy that focuses on the individual buying the goods and their emotions.

To that aim, WebMeridian provides all-in-one services for businesses seeking a more personalized approach. This is what customers are thinking about when they come up with loyalty plan concepts and programs. We can provide both offline and online companies with the force they need by basing the plans on what is emotionally significant. We can provide both offline and online businesses with the force they need to keep their clients for a long time by basing the plans on what is emotionally significant.

We work with companies of various sizes, and among our clients are well-known brands with a long track record of success.

Contact us to implement an efficient and reliable client loyalty program, and get started right away.

The RAPID loyalty method consists of three measures, each of which evaluates one of three aspects of customer loyalty: RLI (Retention Loyalty Index): The extent to which consumers will stay clients or leave to rivals; includes loyalty issues such as: renew service contract, leave to competitor (reverse coded).

Retention is the percentage of existing customers who continue to do business with you. Loyalty assesses a customer's proclivity to choose a corporate entity as a preferred option and suggests a degree of resistance to competition.

The total cost of the Magento eCommerce website includes developers’ hourly rates (30$-60$) as well as the scope of work required. Let’s take a look at the tasks that your online business will require: Step #1Requirements Investigation Stage (it usually takes nearly 20-40 hours); Step #2. Design of the Project’s Architecture (nearly 40-80 hours); Step #3. Installation of Magento 2 (1-2 hours); Step #4. Implementations of the Backend (needs at least 200 hours and depends on customisations you may need); Step #5. Implementations of the Frontend (starts from 200 hours); A project of this nature should take between 1000 and 2000 hours to complete.

What customisation encompasses as an action. Customisation is required if you need to rebuild or replace particular default features for your company’s needs. This necessitates more developer effort and may be accounted for as extra development hours. You may change the theme, modules, and shop features like goods, orders, search, login, and checkout. You may also contact us to adapt any feature for your shop and enable you to understand the prices based on our estimates. A tailored solution ensures that you do not squander money on features and capabilities that you do not require.

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Rewards Case Study: Nike

A few years ago, I found myself in an interview for a marketing intern position. After the standard opening pleasantries, they asked me a question I thought was very interesting: tell us about

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Zhenzhen Zhao

Hina Brohi , Rizwan Raheem Ahmed , Arslan Hussain Bhutto , Rabel khubchandani

This report is all about to show a Marketing plan for Nike’s products; with reference to older offerings the report shows the plan that how can Nike offer new products in the market. With respect to this the report contains comprehensive marketing plan components including company analysis (Nike’s current and future status), situation or market analysis and competitors analysis; the report shows the Nike’s objectives and marketing strategies in terms of its 4ps that is it is shown that Nike can offer and increase its product range by offering other related products as aerobic products to its customers and set value-based pricing strategy accordingly, and for new offerings it can increase its other media other than commercials that is it can focus more on social media to promote its new products and it may expand its business in other countries as China, Middle-East etc. Beside this, the financial budget of this marketing plan has been discussed which is been forecasted by reviewing Nike’s previous years revenue and marketing expenses figures. Also execution plan as well as contingency plan has been shown which is thoroughly depends upon Nike’s senior management and team work which would make its objectives possible new offerings.

Vanessa Spindig

The user has requested enhancement of the downloaded file. All in-text references underlined in blue are added to the original document and are linked to publications on ResearchGate, letting you access and read them immediately.

Aravind Babu

Edward Malthouse

Smith Boonchutima

Branded iphone apps have had varying degrees of success in appealing to the Millennial demographic. Our research conclusions are based on literature review, textual analysis of award winning apps, developer interviews, and discussion with two groups from the Thai Generation Y demographic, and show that successful branded apps for iphone follow a 3 stage development strategy, express brand identity, and meet the needs and preferences of the target audience. The findings show that in app design, color and typeface are commonly used to subtly express brand identity. Relevant messages delivered through an experimental style were found to express brand personality. Technologies and features in all three apps were simple enough to increase usability and prevent user confusion. The development strategy can be divided into 3 stages: pre-production, production and evaluation. It is also found that Thai Generation Y have a strong demand for iPhone apps that provide them with useful content, serve their specific needs, and fit with their lifestyles. It suggests that the brand officers should always be clear about the target group’s needs and expectations of design, features, and usage. Apps should be designed to engage with the consumer rather than simply selling products to them.

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Nike Membership Club Review

Nike is undoubtedly one of the most respected sports brands in the world. The sportswear giant does not only boast of a valuable brand but global success, with its revenue totaling $39.billion in 2019. As if this is not enough, its loyalty scheme, the Nike membership club, in 2017 recorded a membership of more than 100 million members, speculated to spend about three times more than ordinary shoppers on their store. In addition, the company has continued to fine-tune its rewards program to become one of the best in the global eCommerce industry.

This article will look at how the Nike membership program works, how it has been successful, and some ways in which it could be made more attractive.

How does the Nike Membership Club program work?

The Nike membership loyalty program is a club where customers have access to exclusive benefits. Nike shoppers can join by signing up on their website or their four mobile apps; Nike Run Club, SNKRS, Nike Training Club, and the Nike app.

The central hub for the loyalty scheme is the Nike app. Customers can view the rewards they have earned, receive notifications, and browse exclusive collections. Member rewards and engagements reflect in the main app, even when members utilize the other apps. Again, customers can redeem their rewards at Nike stores or events when they scan their app.

The benefits accessible to Nike members include exclusive products and collections, priority access to sporting event tickets, special birthday offers, expert advice on exercise and training, free shipping, and returns.

What are the good things about the program?

Nike has undoubtedly adopted specific strategies that have made its loyalty program win the hearts of its customers. Let’s delve into some of these values below.

Personalization

This is one of the strongest pillars of Nike’s membership scheme. Members receive gifts when they celebrate their birthdays . They also receive gifts on milestones such as member anniversaries which make them feel valued. Apart from this, loyalty members have access to their own Nike store online. This store displays product recommendations based on the data Nike has gathered about customer engagements and purchases. Using the personalization approach certainly makes customers feel known, valued, and understood. In addition, having their own unique Nike store eliminates the stress of having to search through dozens of irrelevant products when shopping.

Exclusivity

Another great benefit of the Nike membership program that has made it a huge success is that members can access exclusive perks . Unlike ordinary shoppers, Nike members have access to tickets for private Nike events and sporting activities. They are also allowed to shop for exclusive collections, which are made available to insiders only. Becoming a member also means that you will have the privilege of buying products before they are released to the public. These perks are highly advantageous to the brand’s most loyal customers because most of Nike’s products are limited editions and will later become collector’s items. The main idea is to give Nike members a heads up and an advantage over infrequent shoppers. This strategy has proven effective because the mere thought of having access to exclusive deals and new products is attractive to both new and regular Nike shoppers alike. As such, members who are already enjoying these benefits will certainly remain loyal to the brand in the long term.

Another good reason Nike has succeeded in its loyalty scheme is that it has created a strong community which has contributed to increasing customer retention . Joining the program gives customers access to training support, educational content, and free workout classes. It also provides them with inspirational articles that keep them motivated and a platform to either follow or share ideas on their similar interests. Nike also uses a powerful rewards psychology effect by creating a sense of togetherness through its branding and messaging. For instance, the call-to-action for the membership program uses words such as “Join us” and “Belong,” which urges visitors and shoppers of like mind to become participants. Thus, Nike solidifies its emotional bond with its customers and evokes a sense of loyalty by building a community of people who share similar interests in sporting products.

Omnichannel Experience

Finally, the Nike membership program appeals to most of its customers because of its omnichannel experience. Irrespective of whether customers shop online, in-store, or through any of the brand’s four mobile apps, their rewards program membership is always connected. Customers can use the exact login details for Nike’s website and each of their apps. While shopping in-store, they can scan their loyalty profile to be recognized and rewarded. The rewards program integration is so seamless that no matter where customers decide to shop, their purchases as loyal members are recognized and accounted for. This encourages its members to continue engaging with the brand.

How could they have made the program better?

Number of separate mobile apps.

There is no doubt that a strength of the Nike membership program is the ability to switch between apps and still access perks. However, using too many separate mobile apps is a drawback because customers might be hesitant to download each app. Cross-functional members who are cautious about their phone memory, for instance, will not be able to benefit from the whole program. Nike can make its program more attractive by streamlining the value of the apps so that customers don’t miss out on any of the perks associated with them.

Few re-engagement opportunities

While Nike does a great job of providing valuable perks, the brand does not offer opportunities for customers to re-engage. Members receive all the benefits once they join the program; however, the brand has not designed any element to keep them continually engaged. Rewards programs that use a point-based system , for instance, reward points for each purchase, while those that use a tier-based system offer more perks as members progress. However, with Nike’s instant access style, members do not have the motivation to stay engaged with the program. Nike could make the program more attractive by tying some additional perks to members who complete pieces of training so that members do not lose interest over time.

The Nike Membership Club is one of the most exemplary loyalty programs in the sportswear industry. This rewards program has proved successful and beneficial to a broad customer base with its emphasis on exclusivity, community, personalization, and an incredible omnichannel experience.

This article is part of our series of case studies of loyalty programs implemented by the world's most famous brands.

10 Innovative Rewards Ideas for your Loyalty Program

Which rewards can actually yield the results you need? With the wealth of information available, getting the right incentives for your clients can become an overwhelming process. First, you need to consider if your customers are excited about the rewards you give.

REI Co-op Membership Review

REI Co-op membership is one of the most notable loyalty programs in the outdoor industry, primarily for its modest $20 fee and incredible perks. This post will walk you through the ins and outs of the program, why it is an excellent rewards program, and some areas the brand could improve.

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Source: Nike

How is nike excelling at driving loyalty with digital.

Nike on Friday reported its third straight quarter of online growth of approximately 80 percent. But the bigger long-term benefit is expected to come from enhanced digital engagement that has added more than 70 million new members globally since the pandemic arrived.

“What we know is more engaged consumers buy more,” said John Donahoe, CEO, on an investor call . The former eBay CEO took over at the start of this year to further fuel the company’s digital transformation.

Nike generated over 7 billion brand impressions across social platforms globally in the latest quarter, growing awareness for NIKE Running Club, NIKE Training Club and SNKRS, its app for limited-edition online drops. Earlier this year, Running Club and Training Club, which provides workouts, became free to use after formerly using a subscription model.

Nike also improved its reach via executions such as “Never Too Far Down,” which was YouTube’s top ad during 2020. The overall touchpoints led to over 400 million social engagements in the quarter. Nike, Mr. Donahoe said, is “creating dialogue and opportunities for action” to support further engagement.

“We’re deeply focused on the member funnel outcomes, including new member buying, reactivation and retention and it’s working,” he added. “Importantly, buying member growth is outpacing new and active member growth and growth in member demand is outpacing total digital growth.”

The quarter marked the launch of SNKRS Live, Nike’s first-ever product drop via livestreaming that sold out in under two minutes.

Nike also hosted its first Member Days, which offered members globally first access to rewards for activity and personalized exclusives across stores and digital. The event reached over 60 million members across 25 countries, supporting higher conversion for the quarter.

“It’s no one thing,” said Mr. Donahoe about Nike’s digital outreach. “And I learned this from my days in the digital world. It’s a lot of little things that make a difference to be a great digital company. And we’re a clear leader here. We’re extending our market share lead digitally and we’re going to continue doubling down.”

• Nike, Inc. Reports Fiscal 2021 Second Quarter Results – Nike
• Nike Membership – Nike
• PREPARED REMARKS / UNOFFICIAL TRANSCRIPT – Q2FY21 NIKE, Inc – Nike
• Nike Inc (NKE) Q2 2021 Earnings Call Transcript – Motley Fool

Director, Retail Market Insights, Aptos

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Brandon Rael

Strategy & operations transformation leader, discussion questions.

DISCUSSION QUESTIONS: How important is membership engagement to Nike’s recent success? What can other retailers and brands learn from Nike’s digital approach?

Nike’s In-app engagement is very good. I noticed more frequent drops and discounts. Clearly they are increasing the investments in promotions and loyalty. Nike’s brand strength and the mass advertising it does with celebrity athletes gets used in the personalized promotions and 1:1 engagement. Great strategy and execution.

Membership engagement is critical to Nike and all other brands. The lesson: behind simple “engagement” is a fully thought out digital ecosystem to acquire, understand, and motivate members built out over a number of years. While Nike’s CEO said “it’s not one thing,” he’s wrong; a maniacal focus on the customer is that one thing all retailers (and brands) can focus on for growth.

Nike’s digital business allows the brand to continue to connect with its members and increase sales despite store closings and restricted occupancy. Nike has added over 70 million members to its loyalty program this year. Over 60 million customers across 25 countries participated in Member’s Day, a new event providing unique retail moments, first access to products, exclusive products and added rewards. Other brands can take a page from Nike’s DTC strategy. Three years ago, Nike reduced the number of wholesale distributors to focus on the direct-to-consumer market. The brand went from over 30,000 distributors down to focus on 40 of them. This pivot allowed Nike to maintain control of the brand and keep close ties with its customers, a strategy called “Consumer Direct Offense.”

Nike has been engaging their customers around passion and values for decades. These new digital channels are simply (great) examples of what brands can accomplish when they personalize around topics that are important to customers.

Of course Nike invests heavily in the talent, apps, and campaigns – but this allows them to create a community of advocates that end up not being very price-sensitive. All marketers should follow Nike closely and piggy-back on the elements of marketing that could work in their own businesses.

Agreed Chuck – Nothing new to the core strategy from Nike’s perspective, just different vehicles for achieving it.

Once again, we see how effective engagement can drive revenue and loyalty. These marketing investments (including making Training Club and Running Club free) helped make Nike fitness partners for millions of shoppers. Once you reach “lifestyle partner” status, you have reached marketing nirvana. The trick, of course, is maintaining that status, but Nike seems to have figured out how to do that as well. Huge (if not necessarily new) lessons to be learned about making marketing investments that build real connections.

Once again, this proves how successful Nike has been in taking complete ownership of their branding, messaging, and personalization strategies with their loyal consumers. Pre-COVID-19, Nike was making significant strides with their physical experiential stores, such as the House of Innovation, etc. However in a COVID-19 quarantined world, digital has proven to be the most effective engagement platform to drive revenue growth, drive outstanding experiences, and enhance customer loyalty.

Nike’s provocative and mission-driven messaging continues to drive interest in the brand that has been relevant for decades. Digital engagement is completely dependent on execution, and Nike has essentially been flawless in this space. In an industry where traditional marketing strategies simply are not effective, Nike has taken their messaging straight to the consumer and eliminated the middle man retailer.

Membership engagement makes Nike magnetic, as consumers crave connection this year. Belonging to Nike’s global health and fitness community gives consumers physical and mental health benefits, including hope.

Lessons for other brands include:

• Diversity matters: Celebrating both elite athletes and exercise novices makes the brand exciting and inclusive;
• Habits pay off: Membership rewards build a consumer habit of interacting with a company, which can boost brand trust. Omnichannel shoppers are more loyal and likely to recommend a retailer, as Harvard Business Review reported in 2017; and
• Stand out online: Embracing digital innovation like livestreaming helps brands differentiate their offerings and reach younger consumers.

“It’s no one thing,” is the key to Nike’s success. From their mobile app engagement, to livestreaming and YouTube videos, Nike knows where its customers are and what they want. By delivering on those fronts Nike has made itself part of its customers’ lives and that’s the stickiest any brand can get! For Nike’s digital members, this ecosystem of engagement is providing tangible value to their lives and that increases their love of the brand and with it, their purchasing power. Nike’s direct-to-consumer sales have been up by 32 percent at their last reported quarter, so the plan is certainly working. Investing in digital engagement has paid off for Nike but the main lesson for other retailers is the comment I started with – it’s no one thing, it’s the combination of all of these touchpoints and engagement channels that cements the loyal relationship with the customer.

To engage with a brand — beyond a sale — can create an emotional connection. This is what drives repeat business and potential loyalty. Nike seems to be very good at getting their customers excited about what’s new at Nike. And they are masters at marketing the right merchandise to the right customers. This creates a level of personalization that draws the customer even closer to them.

Nike is the master of DTC at this moment. Top shelf, IMO. Great digital workout apps, use of marketplace (Walmart), social media and yes, physical stores (all with BOPIS) as well as a fantastic web site. They also made some critical moves this past year in terms of eliminating “fringe” vendors to narrow access, which is something huge brands (Under Armour) have had a hard time doing over the years. A+ all the way around and a role model/road map for all other brands going forward.

Nike excels at just about every aspect of what I call the 8 Essentials of Remarkable Retail (full disclosure, Nike is a past client). They’ve fully embraced being digitally enabled and leveraging the power of mobile. The Consumer Direct Offense has further pushed what has historically has made them memorable. Most importantly, by encouraging brand enrollment (literally and figuratively) and narrowing their distribution, they are creating a far more personalized experience. Having been with them at the outset of this remarkable journey, it’s amazing to see what they are bringing to life in a relatively short amount of time. Other retailers would be wise to study what they’ve done.

Loyalty, personalization, and great online support are just a few of a great membership program’s founding principles. Since Nike’s pullback from third-party sellers, they have gained super control over their digital branding platform. More great brands must follow their lead if they don’t want to see their brand’s dilution.

A handful of years ago, I read an article in a business magazine that basically said “face it Nike, you’re a software company now.” At that time, there was an app that connected to chips in specific shoes to track mileage and remind a person to stay motivated to reach their fitness goals, and shortly thereafter the ability for a consumer to customize their shoes on the brand’s website. This was the beginning of leveraging technology and of digital engagement with customers that the brand has learned from and continues to build upon today.

They — and other brands across segments ranging from automotive to beauty products — have realized the engagement with and personalization for the consumer is critical to success. This is particularly true for highly undifferentiated products where substitutes are easily available, often at a better price point. Other retailers and brands should take note of Nike’s success and how they handle engagement across digital and in-person channels. As a top consumer brand, they have set the expectation for others to follow. This is a case where being “second mover” could work to other brands’ advantage.

Nike took digital services that were previously fringe products fueled by subscription models and made them free at a time when a much wider audience was looking for exactly that kind of solution. Rather than promote a paid service to this new audience, they took a gamble that bringing new “customers” in the door through a free product that still met the Nike quality/brand standards would breed long-term, profitable customer relationships, and it paid off.

Retailers could learn from their focus and willingness to adapt their product and service for their customers, not just for quick profit-centered solutions, but ultimately to fuel success in uncertain times.

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RESEARCH AND REPORTS

Case study: nike las vegas.

• CEM (Customer Experience)
• Customer Engagement
• Loyalty / Rewards Programs

GES teamed up with Nike to help create Nike’s largest retail footprint in the US. The new store changed its approach to literally envelope customers in the Nike brand, making the store seem more like a museum than a store.

Overview In the summer of 2011, Global Experience Specialists (GES) partnered with Nike to elevate its Caesar’s Palace location in Las Vegas, from the old “Niketown” brand to the new “Field House” concept. The store includes a significant expansion from 20,000 to 40,000 square feet, as well as a new customer experience.

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