Nike + Community = Leadership
Since the last customer highlight was so popular and since Nike’s newest online community went live yesterday, I thought I’d share some of the kick-butt things that they’re doing. They are an unbelievably creative company that spends a huge amount of time engaging with their customers. Loic had already interviewed Michael Tchao (first video). I got a chance to do the same with Roberto Tagliabue (who also provided videos about how Nike puts on events for their community’s “super users” as well as a commercial they made highlighting their top community member).
You guys sell apparel, what does an online community have to do with that?
For Nike, you are no longer just buying a sneaker. You are joining the largest global running club. We offer you shoes and apparel that helps you run longer and faster. This is our “hardware.” We now offer you cool “software”: ways to track your progress, tools to find people to challenge. We want to keep you active and motivated.
You started this road by focusing on one product–Nike+ Running. Why that product and what have you learned so far?
We noticed that something interesting was happening in the world of running: more and more people were running with music and a good majority were running with an iPod. We thought that we could add a little extra that could enrich the experience of running. So we made a sensor that tucks into the shoe. We worked with Apple to have the sensor talk to your iPod and reveal your running data while you are listening to music. The big learning? Enrich an existing behavior and make it simpler: press a button and start running. We will do the rest. Do not disrupt something very basic and liberating like going for a run with tons of complex features.
Video: Nike’s event with their online community “super users”
But lots of folks wonder what the tangible business value is, what’s Nike’s experience so far?
As of February, 2008, Nike+ members have run over 50,000,000 miles, logged over 14,000,000 runs and issued over 450,000 challenges. We created the world’s largest running club at nikeplus.com. 40% of community members who didn’t own Nike+ ended up buying. That is pretty tangible.
What happened that you didn’t expect?
The desire of runners to find other runners happened very fast and was unexpected. Since day one, runners were using ‘creatively’ different functionalities of the site to accomplish this. Like the Mapit application. It allows you to trace your runs and to visualize your progress. A lot of runners took it in a different way. They were looking at public runs posted in their neighborhood in order to meet other runners and run together. Same happened online. It was meant to be a place for people to talk and to help each other solve technical problems with their nikeplus products or with their iPods. We found that the most active section was and still is the one about organizing runs and challenges: Men vs Women, College X vs College Y, etc.
Commercial featuring Nike’s top community member
What have you learned about your customers you didn’t know before?
We are there listening continuously to our users and keeping the “party” alive. As in real life people tend to aggregate where there is a fun party going on with a lot of people and energy. NikePlus is a fun party with tons of people, but there is more. Now the users can ask to have more or change things when they are bored and we (Nike) can answer right away. It is an everyday learning when you have a product/service that allows you to communicate in both directions.
Where does Nike want to learn next? 
We just launched a cool new product for all the people that don’t like or don’t want to run with music: Nike+ SportBand. It tracks your distance, calories burned and other performance information and it is your key to access the NikePlus application and community. It is an even simpler concept… Just run. We do all the rest like calculating your distance, calories and time.
How has this changed your conversations internally at Nike?
NikePlus made us learn a lot and change a lot. The overall direction in digital shifted. It is less about Nike and more about you, the athlete. Now the user is at the center and Nike is there to serve experiences to better them. We simply enabled what was not possible or very difficult before. Now you have the tools to challenge a friend and to see who is really the fastest. Now you can connect with other runners like you and see how they run, how long and how fast.
How might you imagine influencing internal collaboration now that you’ve created powerful external communities?
We are using a similar tool to enable our digital producer around the world to publish, comment and share content faster before they go live.
Things people have said about this post
Clearly a company that is paying attention, and wining in the social space (real and online) as a result. The key measurement cited — 40% of the non-Nike+ owners in the running community (many presumably arriving via the “challenge” feature) ended up buying Nike+ equipment is a great example of the inherent opportunities to *measure* and refine (–> best practices) the overall (integrated) marketing effort as a direct of social experience.
Dave, any ideas about how to translate that to an internal social experience, one behind the firewall?
[…] thanks go out to Twitter’s SamLawrence for pointing out what Nike is doing in the Social Community Space and the success they are […]
Sam,
I would recommend that Nike get involved on Get Satisfaction. http://tinyurl.com/3lmetn
So Far Nike is not involved and GetSatisfaction is a bit of the Standard Bearer today in terms of customer interaction outside the firewall. They have developed API’s to make it easier for companies like Nike to participate with its customers
See http://tinyurl.com/3mqk27
Great post Sam. The value of that Nike is finding in their community, coupled with what Trevor Edwards’ comments about community-building at Nike in last October’s NYT article signal great change ahead for most companies (in particular marketing departments).
““We’re not in the business of keeping the media companies alive,” Mr. Edwards says he tells many media executives. “We’re in the business of connecting with consumers.”
Awesome.
Wow, powerful stuff. Has the other running shoe company across the river been listening? As for an internal social experience, surely there is an exciting way to link the external to the internal community. First company to blur that line? Nike has over 30,000 employees, I imagine some of them do some running and are perhaps already competing on Nike +’s external platform. Does Nike have internal competitions? Link the employee’s data from external participation? Utilize the external data for internal evaluation/research/development? (seems they are already doing this) At the very least utilize it to introduce Nike employees to the capabilities/benefits of internal collaboration?
Internal social experience… Hmmmm… Roberto Tagliabue mentions “tools to find people to challenge”. What types of internal challenges do large corporations have? (No, I don’t mean P&Ls, power struggles, Chief Legal Counsels with martinis and pinky rings…) Sales competitions/promotions? Productivity/Top User contests? Office sports pools? Trivia contests? A start to powerful internal communities?
Just tossing out the first ideas that popped into my head.
Great interview and videos Sam.
I left a design/mfg firm before web 2 tools were wide available, but knowing what I do about those kinds of companies and these kinds of tools, there is great upside in the idea that “behind the firewall” the conversation revolves around finding the “take-aways” from the social network (”runners like to run together”) and using those ideas in product development and delivery. If Cluetrain is an accurate predictor, the firewall will rapidly become semi-permeable.
PS. Bill Johnston - Link to NYT article?
PPS - I wish something like this existed for cyclists
[…] you to engage your consumer. Better yet enable them to engage with each other. Take a look at this example of how Nike is acting on these basic principles (i.e. enabling their customers to engage with one […]
I’m curious why they used blogs for product pages when wiki documents would seem to be a better fit. I’m sure there’s something I’m missing.
[…] Go Big Always - Nike Community = Leadership - Another case study pointing up community as a value delivery mechanism - this time Nike. […]
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[…] leaning on social media to reach customers. New Balance has a ’studio’ type site, and Nike has launched an online community […]