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Nike has established itself as a leader not only in product innovation but also in customer engagement. Its loyalty program, Nike Membership, has become a benchmark in the industry, effectively bridging the gap between what customers want and what retailers need to foster long-term brand loyalty, delivering value to both sides.
This blog post examines Nike's customer loyalty program, showcasing how the sportswear giant has created a comprehensive ecosystem to engage customers and foster brand loyalty. We deep dive into the structure of Nike's program, which revolves around four interconnected mobile apps, each serving a unique purpose while contributing to a unified customer experience. We explore key features of the program, discuss the program's mechanics and business benefits.
Nike's loyalty program is structured around a comprehensive ecosystem of four interconnected mobile loyalty apps, each serving a unique purpose while contributing to a unified customer experience.
At the center of this ecosystem is the Nike App, which acts as the main hub for membership engagement, offering access to exclusive products, personalized recommendations, and rewards tracking.
The other three apps – Nike Run Club, Nike Training Club, and SNKRS – cater to specific aspects of athletic lifestyle and sneaker culture, integrating seamlessly with the central Nike App.
The program operates on a free membership model, allowing Nike to offer value-added perks and exclusivity to its members without relying on traditional point accumulation.
However, the key feature of Nike's loyalty program is its omnichannel integration, providing a seamless experience across online, in-store, and all mobile entities. Otherwise, multiplying applications could be considered a textbook mistake, causing friction in the consumer-brand relationship. The omnichannel approach helps mitigate this risk by smoothly expanding channels to reach specific target groups.
This integration ensures that members have consistent access to their benefits and a personalized experience regardless of their chosen channel.
The program focuses on four key areas that work together to build strong customer relationships and brand loyalty.
Nike rewards its loyal customers with privileged access to new and limited-edition products. Members enjoy early access to product releases, exclusive colorways, and designs unavailable to the general public.
Additionally, the program offers priority tickets to sporting events, Nike-sponsored activities, member-only sales, and discounts.
The program utilizes members' purchase history and preferences to provide customized product recommendations and a tailored online shopping experience. Members also receive special birthday rewards and anniversary perks.
The Nike By You feature allows customers to create their own exclusive shoe designs, further enhancing the personalized experience.
The Nike Run Club and Nike Training Club apps enable members to connect with fellow fitness enthusiasts, share workouts, and track progress.
Challenges and achievements built into the apps encourage ongoing participation and create a shared experience among members.
Members use the same login credentials across all Nike apps and the website, can earn and redeem rewards across all channels, and enjoy features like mobile app integration for in-store shopping.
Read about mobile apps in loyalty programs: 10 best mobile loyalty program apps
The comprehensive approach to its loyalty strategy has led Nike to create a complex program that covers multiple aspects of boosting customer loyalty, which was no easy feat.
Having and maintaining four separate apps involves significant work – despite being interconnected, they are four distinct technical and business entities.
Ensuring all our work together seamlessly, delivering personalized content, and constantly driving engagement is an even greater challenge.
Let's try to break down this puzzle into its components.
Nike's reward system, centered in the Nike App, offers members benefits for purchases and engagement. While not using a traditional points-based system, members receive special offers and discounts. The app serves as the central hub for tracking and managing these rewards.
Nike leverages data from past purchases and engagement history to provide personalized product recommendations. Members have access to a personalized online Nike store tailored to their preferences.
The Nike App provides access to member-exclusive products. Approximately 170 member-only items are showcased on the website, including shoes, jackets, hoodies, and athleisure wear.
Members get priority access to new product launches and limited-edition items through the SNKRS app. This app focuses on exclusive footwear releases, providing notifications about drops, facilitating reservations, and offering insider details on product launches and events.
Members receive special, personalized rewards on their birthdays and membership anniversaries, making them feel valued and recognized. These gifts are automatically applied through a system which tracks member birthdays and join dates to automate the sending of personalized rewards or offers.
Nike organizes exclusive events, workshops, and workouts for members. The Nike Run Club and Nike Training Club apps offer challenges and competitions to keep members engaged and foster a sense of community.
Members have access to expert advice on training and exercise. The Nike Training Club app provides free workout programs and a range of strength, mobility, and cardio exercises. Complimentary workout classes are also offered to members.
Members can access Nike By You, a tool that allows them to customize exclusive shoe designs. They can select materials for each part of the shoe and choose from a set color palette, combining the experiential aspect of design with the transactional element of purchasing.
Members receive free shipping on orders exceeding $50, enhancing the value proposition and encouraging larger purchases.
Omnichannel is engraved into Nike's loyalty philosophy, and the aforementioned "free delivery" is one of its embodiments. But there are more omnichannel initiatives, and they deserve their own dedicated section.
First of all, Nike members can access the program through the Nike website or any of their four apps: Nike Run Club, Nike Training Club, SNKRS, or the main Nike app. The Nike App serves as the main hub for the rewards program, where members can view their rewards, receive messages from Nike, and browse member-only collections. When members use the other apps, their engagements are reflected in the primary Nike rewards app.
The program's omnichannel approach is further proven by its ability to recognize members across all shopping channels. Whether customers shop in-store, online, or through any of Nike's apps, their membership status and rewards remain updated and accessible. A unified login system that works across all platforms makes this challenge easier.
Additionally, members can scan their loyalty profile in physical Nike stores, bridging the gap between digital and in-person shopping experiences.
Read more about offline promotions: Loyalty program marketing: the power of offline promotion
According to a Nector.io analysis, Nike's loyalty strategy effectiveness is evident in its impressive membership of 100 million users, who spend on average three times more than non-member shoppers, proving the good health of its loyalty program.
This significant increase in customer value underscores the program's impact on driving sales and fostering brand loyalty. Furthermore, the program's focus on exclusive benefits resonates strongly with customers, with 79% citing these unique perks as a major reason for their loyalty.
The program's success extends beyond mere transactional benefits, tapping into broader consumer trends and preferences. Nike's emphasis on personalization aligns with the 61% of consumers who say they would return to a store offering personalized product recommendations.
Additionally, the community-building aspect of the program appeals to 47% of customers, who are more likely to remain loyal to brands that foster like-minded communities.
These efforts have culminated in Nike ranking as the 9th most loyal brand globally, reflecting the strong emotional connection the company has cultivated with its customers through its multifaceted loyalty approach.
Nike's loyalty strategy's effectiveness is evident in its impressive membership base. According to Sensortower, the four Nike apps generate an impressive number of downloads, with Nike App over 1 million.
More importantly, however, is that Nike's mobile ecosystem earns money. According to PocketWorks, only tthe SNKRS app, designed specifically for superfans, saw its annual revenues skyrocket from $70 million to $700 million in just five years. This app alone is responsible for 20% of Nike's digital business revenue and has contributed to a 5% growth in other product categories.
The same source tells that Nike's overall digital business grew by 38% in 2020, largely attributed to their mobile-first approach. The company's focus on membership and direct consumer connections has led to increased repeat purchases, higher buying frequency, and increased average order value. With 400,000 monthly downloads and a 5-star rating, the SNKRS app demonstrates Nike's commitment to long-term mobile growth.
Read more: The 32 key loyalty programs statistics
Extending its loyalty initiatives encapsulated in the Nike Membership program, the sportswear giant has launched Nike .Swoosh. This blockchain-based Web3 platform serves as a virtual marketplace where members can buy, sell, and trade digital Nike products, including virtual sneakers and apparel, earning real money.
Thus, .Swoosh goes beyond traditional loyalty "frameworks" by fostering a community of early-adopter enthusiasts and specifically targeting the youngest audience. .Swoosh members can participate in discussions, attend virtual and real-life events, and even contribute to the creation of virtual products that may influence future Nike designs.
Nike's loyalty strategies are indeed an industry benchmark, but blending transactional and emotional benefits, seasoning them with personalization, and wrapping it all up with an omnichannel experience is not such a secret recipe for success.
Here are other brands that – with some tweaks – follow this beaten path
The LEGO Insiders loyalty program offers a comprehensive rewards system designed to enhance customer engagement in the LEGO community. At its core, the program features a points-based system where members earn points with every purchase. These points can be later redeemed for various rewards, including discounts on sets, exclusive merchandise, and sweepstakes entries.
Beyond the points, LEGO Insiders members enjoy exclusive perks such as early access to new sets, limited-edition collections, and special gifts with certain purchases.
Additionally, the program encourages community engagement through the LEGO Ideas platform, where members can share designs and vote on other fans' creations, and the LEGO Insiders Community, which allows for sharing builds and connecting with fellow enthusiasts.
The North Face's XPLR Pass loyalty program is designed to reward customers for both their purchases and engagement with the brand.
The program features a straightforward points system where members earn 1 point for every $1 spent on The North Face products, either online or in physical stores across the U.S. and Canada. These points can be redeemed for rewards.
Beyond the basic point-earning structure, XPLR Pass enables members to collect points through non-purchase activities such as using reusable bags, downloading the mobile app, checking in at stores, and referring friends.
The program also provides exclusive benefits such as early access to limited-edition collections, field testing opportunities for gear, and a dedicated customer service line.
When talking about Nike, Adidas must appear as well, and so – the adiClub. This Adidas loyalty program rewards customers for their engagement across multiple touchpoints.
Members can earn points across various Adidas platforms, including the main Adidas app, CONFIRMED app for limited editions, and the Adidas Running and Training apps. This integration allows members to track workouts and runs to earn points, effectively blending fitness activities with the loyalty program.
Rewards range from early access to new product releases and exclusive member-only products to special discounts and access to members-only events. The program also incorporates gamification elements and personalized recommendations, creating a holistic loyalty experience that encourages ongoing engagement with the Adidas brand through purchases, fitness activities, and community participation.
By creating an ecosystem of interconnected apps centered around the Nike App, the company has crafted a comprehensive loyalty experience that caters to different aspects of athletic lifestyle and allows Nike to reach specific target groups effectively.
Nike's strategy aligns with current loyalty trends, emphasizing the importance of soft rewards and deeper brand relationships over simple discounts. This approach aligns with Nike's overall brand strategy, focused not only on selling sneakers but also on fostering the entire sneaker culture, where waiting long hours in line to buy new "hot drops" is fully justified and understandable.
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