How Nike used messaging to generate $900mn in digital sales
Nike CEO John Donahoe shares the sportswear giant’s approach to maintaining customer engagement during the Covid-19 pandemic
Add bookmarkPrior to the Covid-19 pandemic, Nike was looking to generate roughly 30 percent of its overall business through digital channels by 2023. Once the pandemic hit and Nike stores were closed across the world, the sportswear giant suddenly found itself relying on digital channels for 100 percent of its business.
CEO John Donahoe shares how the business was able to utilize its 35,000 plus store employees, officially called store athletes, to connect with customers despite the fact that they were no longer able to go into stores.
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“We built an application where for customers shopping on the mobile app. If they had a question, for example they had watched The Last Dance and they want the same pair of Air Jordans that MJ was wearing during the episode. If they cannot remember which of two versions they are, they can simply ask a question and that question gets texted to one of our store athletes who are at their home,” Donahoe explains.
In this way Nike’s store athletes were able to continue assisting customers looking to purchase Nike products and store athletes were able to maintain some level of the experience that shoppers had come to expect from Nike despite the pandemic.
“This has really allowed us to stay connected with customers and, as a result, our digital business has just exploded. It has grown significantly and, even now that physical retail is back open, our digital business continues to grow,” Donahoe noted.
In its financial results released August 2020, Nike reported an 83 percent jump in online sales and an additional US$900mn in revenue from digital sales.
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