Big data is defined by dictionary.com as “extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially related to human behavior and interactions.” If any brand does this well, Nike does. With multiple product lines in almost 200 countries, Nike thinks deeply about its worldwide customers and the best ways to market to them.
According to Forbes, Nike is innovative not only in its product development, but also in the way that it serves its market segments. Using a strategy called “category offense,” Nike focuses not only on geography, but the sporting endeavors that individual customers enjoy most. If you’re a golfer from India, for example, Nike believes that messaging about golf products would be more relevant to you than messaging tied to your culture, location or county. “The theory is that people who play golf, for example, have more in common than people who simply happen to live near one another,” according to Forbes writer Bernard Marr. “And that philosophy has worked, with sales reportedly rising more than 70% since the company shifted to this strategy in 2008.”
Retail and marketing strategies like this cannot be created or exist without big data. Big data is the key to unlocking those patterns and insights that brands like Nike need to understand their customer and the sales opportunities that exist in today’s worldwide market.
But where is the data coming from? In Nike’s case, they capture a good deal of customer data through their own wearable products. I have the NRC app (Nike Run Club), which tracks how many miles I run each week as well as the Nike products that I buy and how many runners are in my circle. It also features runner stories that are created to inspire and encourage. This is one of many Nike apps that provide very targeted and current data that can be analyzed for market research purposes.
Not a runner? You can choose from a variety of Nike apps that represent your interests. The app store offers everything from Nike Training Club to Nike SNKRS (for the fan of fly kicks) to NikeConnect a sports fan app. Better believe that all of these app are collecting information and all of them include a link to the Nike store.
In addition to the primary data that Nike itself collects, it can also purchase data on consumers who are athletic or want to become athletic from a variety of sources. All of that data combined ensures that Nike knows you better than you know yourself.