Customer Relationship Management: Case Study Analysis on Nike+

This case study analysis on Nike+ explores their customer relationship management strategies, CRM initiatives, expansion plans, and social media marketing tactics. Nike's partnership with Amazon, CRM programs like Nike Fuel and Nike+, expansion into women's accessories, and compliance with IT legislations are discussed. The article also highlights the importance of social media marketing and secure payment options for Nike's business.

Running head: CUSTOMER RELATIONSHIP MANAGEMENT
Case study analysis on Nike+
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Table of contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................2
Question 3..................................................................................................................................3
Question 4..................................................................................................................................4
References..................................................................................................................................6

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Question 1
Partnership expands the scope and arena of business for brands like Nike. As a matter
of specification, partnership generates teamwork within the brands, which is beneficial in
terms of reaching to the needs, demands and requirements of the customers (Kumar &
Reinartz, 2018). Nike officials have planned to indulge in partnership with Amazon in the
coming years. Keeping in mind the safety of the customers, there are plans for launching an
Amazon store (Nike.com, 2018). The brand personnel are hopeful that this partnership would
help in regulating the parameter of online retail business in an efficient and effective manner.
In order to achieve competitive advantage over the contemporary brands, Nike needs
to execute strategic planning. A wise step would be ensuring the presence of “zero
overlapping” between the products and services. Lackadaisical approach in this aspect can
lead to threat of substitutes.
Question 2
Nike believes that customers are the agents of achieving success. Satisfying the needs,
demands and requirements of the clients and customers is the key towards popularizing the
brand. Mention can be made of the “intensive market research”, which the personnel carried
out for reaching to the specific tastes and preferences of the customers (Nyadzayo &
Khajehzadeh, 2016). Owing to the huge fan following, Nike has established certain CRM
programs. Typical example of this are Nike Fuel and Nike +, which helps the personnel to
collect and store data regarding the trends, needs, requirements and the personal information
of the customers. Nike Fuelband enables the personnel to track the whereabouts, workplace
and the heartbeat of the customers. Mention can be made of NikeiD, which assists the
personnel to store the collected data on the specific tastes and preferences of the customers.

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Nike plus is the latest innovation, which develops stable interactions between the customers
and the personnel (Nike.com, 2018).
CRM initiatives proves beneficial in terms of proper management of the stability,
which lies in the relationship of the customers. These initiatives are: telephonic systems for
answering different types of customer queries; new marketing initiatives for measuring the
targets and converting them into the implementation through employee engagement; new
sales force system for maintaining the balance between the supply and demand and a web
portal for handling the queries of the customers. Most of the initiatives are IT based, which
replaces the legal requirements. Along with the technological advancements, adequacy needs
to be maintained in the defining the required improvements.
For ensuring the security of the customers from the cybercrimes, Installation of
privacy cookies in the customers’ profile would increase the security of their personal
information (Nyadzayo & Khajehzadeh, 2016). Regular maintenance and tracking the
responses would improve the stability in the relation with the customers. Maintaining records
of the products flowing from the internal to the external environment would reduce the
chances of losses.
Adherence and compliance to the IT legislations is essential in terms of averting the
instances of cyber crimes. Typical component of this is Data Protection Act (1998), which
would ensure the safety and security of the organizational data as well as the customers’
records (Choudhury & Harrigan, 2014).
Question 3
Expansion of the product line is important if brands like Nike intends to increase their
share of revenue. For this, Nike personnel need to establish contact with skilled and efficient

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suppliers. This would result in the creation of quality and branded products. For this,
consideration of the product life cycle is important. Prior to this, searching out the
prospective marketing opportunities would make the personnel aware of the expansion
strategies (Kumar & Reinartz, 2018). In the process of this research, Nike staffs would gain
an insight into the specific needs, demands and requirements of the customers. Stable
relations with the research and development team would result in the production of
innovative products. This would be an efficient means for attracting more and more
customers. Respecting the purchasing power of the customers, while marketing, would result
in the achievement of loyally, dependence and trust (Nyadzayo & Khajehzadeh, 2016).
Nike can focus on women’s accessories. This would be an innovative step towards the
business expansion. Adequate revenue of 7 billion makes the estimation realistic and
achievable. As a matter of specification, the launching of the women’s sport store in
California and Shanghai makes the recommendation realistic. Mention can be made of Nike+
Training Club, which has caters to the needs, demands and requirements of the women
customers all over the world. Rise in the revenue from $5 billion to $7 billion reflects the
measurability of the recommendation (Nike.com, 2018).
In order to adopt these recommendations, Nike staffs needs to ensure that the CRM
initiatives align with that of the identified and the specified objectives. For this, evaluation in
the form of meetings is needed.
Question 4
Social media marketing has altered the business scenario of most of the brands,
enabling them to sustain their position in the competitive ambience of the market. These
aspects can be true even for the business of Nike. Uploading the images of newly launched
shoes, bags and other accessories would enable the staffs to increase the trafficking of

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audience towards the brand image. Pay per click advertising would enrich the financial
parameter. Using secure payment options like PayPal would avert the fraud cases of hacking
the accounts or automatic debits (Choudhury & Harrigan, 2014). Installing privacy cookies in
the website would assure the customers that their responses would be secured. Consciousness
of the Nike staffs towards this direction is the cornerstone towards attracting more customers
and expanding the scope and arena of the business (Nyadzayo & Khajehzadeh, 2016).
Theme based advertisements and campaigns creates a social awareness among the
public. Example of this is the commercials on women empowerment, breaking the
stereotypical notions on the image of women within the society. Personification of the
products on social networking sites like Instagram, results in the brand promotion. However,
complying with the advertising legislations and directives is assistance in terms of gaining
trust, loyalty and dependence from the customers (Choudhury & Harrigan, 2014).
Introduction of blogs and feedbacks can help the personnel in gaining an insight into
the specific needs, demands and requirements of the clients. Moreover, it would enhance the
stability in the relationship with the clients. Within this, introduction of the online payment
systems and securing them assures the clients of the quality services, which would be
provided by Nike. Emails can be one of the ways, through which the partnership can be
maintained. Apart from this, portals can be created where the stakeholders can bid for the
products. Privacy cookies within the portals would secure the personal belongings of the
clients and the customers (Kumar & Reinartz, 2018).

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References
Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new
technologies into customer relationship management. Journal of Strategic
Marketing, 22(2), 149-176.
Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy,
and tools. Springer.
Nike.com (2018), Just Do It, Retrieved 21sy July 2018 from https://www.nike.com/ca/en_gb/
Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A
moderated mediation model of customer relationship management quality and brand
image. Journal of Retailing and Consumer Services, 30, 262-270.