Customer Relationship Management Case Study: Nike's Approach

This case study delves into Nike's Customer Relationship Management (CRM) practices, evaluating the dynamic interplay between customer loyalty and the company's strategies. The analysis begins with an introduction to Nike's business model, encompassing its product lines and global presence. It critically assesses Nike's approach to customer experience, including the integration of technology through Nike Digital Sports and the Nike+ platform. The study examines areas of improvement within Nike's CRM, such as data security and website usability, and proposes solutions to enhance customer interaction and loyalty. It also highlights implementation challenges, particularly concerning data privacy and the integration of CSR initiatives. The assignment underscores the importance of CRM in fostering customer loyalty, supporting brand development, and driving business success in the competitive global market. The document provides a comprehensive overview of Nike's CRM strategies, challenges, and potential enhancements.

Running Head: CRM OF NIKE
CRM of Nike
Name of the student
Name of the University
Author note

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Introduction:
The aim of the paper is to analyze the dynamic nature of the relationship that exists
between the loyalty of the company towards their customer and the Customer relationship
management. The concern of the report in order critically evaluate nature of the Nike’s
management of their relationship with their customers and elucidate the areas where
development can be initiated. The concern of the report is to indulge in a discussion of the
challenges that are imperative to come across the ways of the company as they seek to
implement the measures required for the effective execution of their service. CRM or the
customer relationship management is a framework that guides the effectiveness of the
communication between the organization and their target customers. The concern of the
framework is extended towards the people coming from different background of customer
base. The goal of the CRM can be simplistically framed into the improvement that the
organization aspires to achieve in terms of the business relationship with their potential
customer group. The other benefits of the CRM includes the organization maintaining the
connection between the customers as well as streamline the process of communication with
the customers. As such, the end result of the CRM is reflected in the productivity of the
organization (Buttle, 2009).
The implication of the CRM is noted in the avenue that the process provides different
sector of the business to control the externalized mode of interaction of greater importance to
the communication that is capable of providing the organization with additional success.
CRM allows the business organization store information pertaining to greater importance to
the customers well as of benefits for the organization to guide their future course of action
from the prospect exhibited by the organization. It also allows the concerned organization to
manage their service and identify the issues of greater importance and identify the need of the
marketing campaign. It also enhances the visibility as well as accessibility to the data. Thus

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the contribution of the CRM can be noted in the ease that it provides the functioning of the
business with (Cendrowski, 2012).
The company in concern of the report is the Nike which is an American MNC to
begin with engaged in the development of the process of manufacturing and to the process of
footwear apparel and marketing on an international basis. The company is concerned with the
sales of the footwear along with the sales in the apparel, equipment and in the sector of the
services as well as in the accessories.
Critical evaluation:
The primary focus of the organization is in the production of the shoes for people of
all gender including the children. The company has diversified their business in terms of the
production of the athletic clothes including jackets, shirts, skirts and under garments. Along
with that, the organization has also included the wristband, balls, bags and socks. The
organization has been able to create their brand image in the mind of their potential
customers quite affectively by introducing their slogan ‘Just do it’ and with their Swoosh
symbol. The logo along with the symbol has assisted the organization in creating a solidify
ground in the mind of the customers regarding the brand. The brand is also recognized by
their products and the promotional approach the organization adopts on a worldwide basis.
The organization follows the opinion of Strokes in formulating their managerial goals.
This is reflective in the attempt of the organization to adopt the CRM in order to guide the
course of the business along a line that is meaningful and emphasizes on a long term goals
along with a short term one. The implication of the CRM in respect of Nike can be noted in
the attempt of the organization to begin a new division in their business under the title of the

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Nike Digital Sports. The objective of the Nike Digital Sport as a new venture in to the
business was to include the development of the technologies in their goals. The development
of the technology used was reflective in the service where the organization provides the
customers with the ability to track their performance on a personal basis. This attribute of the
technology also allowed the organization to collect as well as store the information pertaining
to the changes in demands of the customers along with the trend that is desired by them. The
data by reflecting the needs of the customers and their trends have allowed the organization
to communicate in a transparent way as well as bring about effectiveness in their dealing of
the needs of their customers. One step ahead of the initiative can be marked in the
autonomous social media platform of the organization under the name of the NIKE +. The
creation of the autonomous social media site has been aimed at creating the channel of
effective communication between the members of the organization and their potential
customers. The relationship had been built solely on the ground of the understanding of the
organization to the needs and the demand of the customers.
Areas of Improvement:
The CRM program as designed by the organization was strategic in nature as well as
operational. The implication of the CRM program is noted in the attempt of the organization
to build effective communication between the customers under the project titled as Nike Fuel.
The program allows the customers to record their progress by providing the information to
the Nike Plus device. The device then is used to provide the customers with the updates about
the latest product introduced by the company in the market. It also allows the organization to
communicate with the Nike. The impact of the program is noted in the introduction of the
Nike+ apps that allowed the customers to connect with data of the customers. The
introduction of the Nike + app has also allowed the organization to share the experience of
the customers with the product of Nike as well as their service.

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The implication of the CRM has been seen in the increase in the fan base of the
company, which has been on an increase on exponential rate. It has enhance the effectiveness
of the program by enhancing the response rate of the customer. The extensive use of the
shared data on a massive volumes of information that has been shared on an extensive
amount. It has alos allowed the organization to bring about innovation of the product on a
regular basis in order to cater to the differential need of the customer. It has also allowed the
organization to enhance the proximity of the brand to the customers. The effectiveness of the
CRM, has been noted in the collaboration of the organization the customer in order to drive
the process of the business. It has also allowed the organization to maximize the return that
they used to invest s well as attain a development of the brand (Rao, 2012).
The implication of the CRM and the participation of the customers in the process has
allowed the company to support their product as well as their customers in their business
venture. The usage of the website of the company has also allowed the organization to allow
the customers attain an access to the customer service related information and the policies
adopted by the company. The responses of the customers to the process is automated in order
to enhance their effectiveness (Bhat & Darzi, 2016).
Navigation
The search engine for the product, policies and the services of the organization are
made readily available to the customers to ensure their accountability to the customers. For
the customers who are loyal to the brand along with those who return to the product of the
organization on a frequent basis the website has proved to be potential base for the
organization in order to build effective relationship with the customers. The websites are
adorned with the advertisements about the launch of the new products in order to provide the
customers with updated information (Phelps, 2019).

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The business process of the organization is customer facing as it results in the
organization develop their course of product through the use of the information and the
feedback that the orgabziation receive from the potential market. The goal of the
porganziation from the context of the CRM can be noted in the ability of the organization to
create a combined experience of the consumers which in turn has allowed the organization to
shape the repose of the customers in order to cater to the evolving preferences of the
customers. Nike DS is aimed at creating digital projects that put the customers in their focus.
Designer for the products along with the marketer for the product works in conjugation in
order to find new avenues for the organization to cater to the changing customer preferences.
All the attempts of the organization is concentrated towards creating an effective
accumulation of the data pertaining to the issues of the customers so that the data crucial to
the organization in order to formulate their future course of their action can be developed.
The notice is given towards attaining crucial and accurate customer data that not only assisted
the organization in marketing strategy but at the same time had been fruitful for the
organization to bring about development in their product (Naveed, 2012).
Considering the case of Nike it can be suggested that the organization can being about
changes in terms of the CRM activities. As far the collection of the data of the customers are
concerned, it is suggested that the organization adopts certain precautionary measure in order
to safeguard the informations of the customers and thereby prebventing them from being
breeched in the hand of the cyber theft that is pre dominant in the global business era. The
organziation should take protective measures in this respect and thereby enhance their CRM
related initiatives. As far the CRM measures of the organization is concderned , it is
suggesdted that the organization pass on their CSR along the channel of the CMR
communication as both the areas of the strategic management are intrinsically linked to one
another and imoact each other in due course (NIKE, INC. 2014).

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The drawback of the Nike website whereby it inhibits the customers to undertake
multiple actions at a same time can be mitigated by Nike introducing parallel channel for the
communication within a same web tab. The multiplicity of the action would allow the
customers to experience a time effective practice for the organization in the market. The
organization can also move about to provide the customers with the direct links that would
redirect the customers to the aspect of their queries (Nesbitt, 2011).
Implementation Challenges:
With the advent of the globalization a changes in the communication scenario has
been experienced on an international basis. Undoubtedly the dependence on the technological
advances has increased the effectiveness of the communication and likewise it has
endangered the aspect of the privacy as the current time has experienced a lot of breeching of
the security of the public information. Since the entirety of the customer communication is
based on the technology, the organization should provide additional care in order to ensure
the safety of the customers as well as their information in the due course of the interaction
with the organization (Buttle & Maklan, 2019).
As far as the aspect of the corporate social responsibility of the organization is
concerned, it can be suggested that the organization run them in a parallel line in order to
bring out the maximum benefits of the both.
The suggestion regarding the implementation of certain technological modification in
the structure of the website of the organization can bring out effectiveness in the experience
of the customers with the website of the customer. However, the challenges that lie in the
way of such technological modification can be experienced in the terms of the cost that the
organization need to inculcate in order to bring about the modification in technological

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sphere. However, it can be suggested that the apparent hype in the cost would be fruitful for
the organization in the long run as it would increase the effectiveness of their participation.
The challenges also involve the competence of the different customer base with the
technical knowledge that is required in order to communicate with them effectively.
However, it can be suggested that keeping in concern the issues of the diverse customer base
the organization has used simplistic technical as well as language related approach in order to
enhance the effectiveness of the service received by the customers.
Conclusion
The customer responsibility management has experienced a shift in the associated
concern from being the managerial measure to attain the status of the strategic goals that is
important for the organization to take up in order to respond to the issues faced by the
customers. The organization in concern has exhibited immense in involvement in collecting
the information from the customers not as a form of feedback but as a form of the strategic
management that have allowed the organization to direct their future course of action in the
line of the response of the customers. The organization has reformed their actions and their
strategies time and again in order to collect the information about their customers so that they
can analyze the same in order to bring about improvement in their products as well as in their
service. However, since the entirety of the CMR of the organization is heavily reliant on the
technological advances that organization indulges in there might be the potentiality of the
threats that might be coming in path of the organization. The ease in the visibility as well as
on the access of the data has facilitated the enhancement in the productivity of the
organization that it is planning to achieve. As such the implication of the CMR for Nike has
been noted in the ability of the strategy to drive a growth in the business as it has been

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imperative in the case of Nike as the organization has experienced a regular surge in the
effective customer group with the effective communication that the organization extends
towards the people. As such the costly implementation of the multiple functioning website
along with the aligning of the CSR of the company with the CMR would provide added
benefits to the organization in their venture. The CMR and its contribution to the business of
any form can be understood in the clear overview about the customer that they provide.

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References
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of Bank Marketing.
Buttle, F. (2009). Customer Relationship Management: Concepts and Technologies (2nd ed.).
Burlington MA, USA: Butterworth-Heinemann.
Buttle, F., & Maklan, S. (2019). Customer relationship management: concepts and
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Cendrowski, S. (2012). Nike’s new marketing mojo. Fortune Magazine. Retrieved on June
17, 2014 from: http://fortune.com/2012/02/13/nikes-new-marketing-mojo/
Hassan, R. S., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship
management on customer satisfaction. Procedia economics and finance, 23(1), 563-
567.
Naveed, H. (2012). Nike, Inc. Website Analysis. Website Analysis. Retrieved on June 16,
2014 from: https://sites.google.com/a/email.vccs.edu/bus100hnaveed/home/website-
analysis.
Nesbitt, S. (2011). Measuring the ROI of Social CRM. Social Technology Review. Retrieved
on June 17, 2014 from: http://www.socialtechnologyreview.com/articles/measuring-
roi-social-crm
NIKE, INC. (2014). Business Overview. Nike Global Growth Strategy. Retrieved on June 17,
2014 from: http://nikeinc.com/news/nike-inc-introduces-2015-global-growth-
strategywww.nikeresponsibility.com/report/content/chapter/business-overview

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Phelps, G. R. (2019). Customer relationship management.
Rao, A.S. (2012). Digital Marketing at Nike: From Communication to Dialogue. IBS Center
for Management Research. PDF Document.