John Donahoe, Nike’s president/CEO, discussed this subject on a quarterly earnings call with investors, and reported digital’s share of sales grew by ten points year on year for the company in its last three months of trading.
“Our Nike digital business is already meeting our mix goal of 30% [of sales], nearly three years ahead of schedule,” he said. (For more, read WARC’s in-depth report: Nike’s digital transformation gains speed in midst of COVID-19 pandemic.)
Nike’s owned digital properties logged 83% sales growth year on year, and delivered $900 million in incremental revenue. It’s e-commerce app also saw growth nearing 200%, with monthly active users growing in the triple digits.
“The accelerated consumer shift toward digital is here to stay,” predicted Donahoe. “I truly believe that Nike is just scratching the surface of what's possible.”
Nike’s membership program – a free service with perks like exclusive products, athlete stories, and training programs – also witnessed a 60% spike in active users and “even higher growth” in the number of people who made purchases.
Moreover, the amount of “contactable members” who agreed to receive email updates rose in double digits, according to Matthew Friend, Nike’s chief financial officer.
“As we grow digital engagement and we retain a higher proportion of engaged members with increased buying frequency, we will be lowering customer acquisition costs, increasing our return on adspend, and changing the shape of our demand-creation investment,” he added.
The Nike Training Club app, which provides on-demand access to exercise routines that can be completed at home, also enjoyed 50% of its members begin workouts in the last three months.
And the audio-guided runs on Nike’s Run Club app – offering guidance and inspiration for joggers of all levels – has recorded more than a million downloads in each of the last four months
Longer-term payoffs occur when Nike successfully encourages a consumer to use more than one of its digital offerings, Donahoe further reported.
“We know a consumer who connects with us on two or more platforms has a lifetime value that's four times higher than those who don't,” he said.
Sourced from WARC