Social Media Brings Nike 'Closer Than Ever'

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Calling the results “remarkable,” Nike Inc. says its fiscal second-quarter revenues climbed 18% to $5.7 billion, from $4.8 billion in the same period last year. Net income rose 3% to $469 million, compared with $457 million in the year-ago period. Sales in North America were particularly strong, up 21%, with double-digit gains in stores and online on Thanksgiving weekend.

The results beat investor expectations, and Nike executives say the strong performance is a result of steady gains in both its basketball and running divisions, as well as its continued digital transformation. “We’re using digital to change everything about the product creation process,” Mark Parker, president/CEO, says in a conference call that was also webcast. Not only has that sped up its manufacturing, beginning with design and moving into factories, it’s also been a game-changer in its marketing approach.

“Social media is helping us unite and expand,” he says. “We have never been closer to our consumers, as they connect more with each other, their heroes and their favorite teams.”

Great to see digital at the center of product creation. 

For all the talk of Social Media being hard to measure Nike is able to come up with some very clear figures. If you're having difficulty measuring the middle but see the end result, do the results still count?

Have a great Christmas everyone!

 

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People don't want to use Social Media for Customer Service.

Bottom line (and feel free to show me this answer if I am proven wrong, which I doubt): customers don't use Facebook to seek help en masse, nor to purchase through it.

Facebook is to enjoy strong relationships with friends and familly - at least for those people that are not in the social echo chamber.

Close your eyes. Imagine your favorite sports team. They're at the finals of their respective sports greatest cup/bowl/tournament. They're about to be winners. Remembered forever.

They lose.

How did that feel?

When I read this comment (see above) on the Forrester blog I felt that pang in my heart. Hard to explain why, but I did. And this is what I responded.

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"Customers dont use Facebook today for sales or service"

I'm going to focus just on the service part (not the sales) and split that up into two separate issues:

-- Customers don't want customer service. --

Forget about Facebook. Customers don't want customer service all together. They want simple, easy to understand, easy to use products that don't crash, that don't fail. Customers want products that don't require customer service.

-- Customers want customer service - wherever they communicate. --

A lot of this will echo what has been said before. The idea that customer don't want to use a specific channel for customer service is unthinkable. Customer want to choose where they communicate and the emergence of different media had made communication lines around us ubiquitous and even more integrated. When consumers start a conversation on Twitter, they want to pick it up on linked in, continue it on Facebook and finish it with a Youtube Video. It's not about the medium, it's about the message.

When consumers purchase a product or service they want it to function. And if they need to talk to someone about it, they'll do it on their terms. As agencies and brands we need to realize that the piramid is upside down, the funnel is a circle, and earned PR is the only PR out there.

Now let's go build great brand communities and have them spread our brand message!

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Engage your customer with an emotional experience.

Asics tie-in with the New York city marathon
Marathon runners often complain about hitting ‘the wall’ a certain distance through the marathon. Asics tried to help prevent this with a genius idea where the runners had RFID tags in their shoes, and when they passed readers at specific points on the course, they would then get a message of encouragement from their loved ones. As the video below shows, it worked really well.

This is great. A customer experiences a brand through static, interactive, and human touchpoints. Asics did a great job by infusing human emotion into a scalable interactive touchpoint.

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Be a farmer and spread your brand seeds

When a customer comes into contact with your brand they take away a part of it in the form of a seed. Is this seed remarkable, the message will spread. Is the customer a close connection to your brand, the message will spread.

Riceinhand

I just re-stumbled over a note by Scott over at Scottgould.me. I have always liked Scott's approach and am always spurred to think differently when reading his posts. Definitely read his writings. A few months ago Scott wrote a piece following the likeminds conference about the spreadability of situations, concepts, anything  basically.  

1. There will be failure. I can’t tell you how many times I’ve tweeted something with the #likeminds hashtag, expecting it to get taken up, only for it to fail. I’ve wrote blog posts I thought would capture the hearts of readers that get no comments. I have gone from having a massive event to running the followup which has been poorly attended. You have to factor in and expect a percentage of failure.

 2. You need to prepare the soil. You have greater chance with your seed with good soil. You soil is your community, your network, your brand, your reputation, your customers, etc – and the more connected you are with them, the greater chance your spreadability seeds have. (But of course, still expect some to fail.)

 3. There are always unknown variables. Like inclement weather and unforeseen circumstances, there are always variables that you don’t know. This isn’t necessarily bad – because an unknown variable can be what rockets you to success. If anyone has read Malcolm Gladwell’s The Tipping Point, you’ll understand that this is the law of context - which is made up of so many variables that can you never be 100% sure.

 4. You don’t know what will succeed. The above three points should help us understand that we actually don’t know what will succeed, for sure. Now I know that, yes, we can be certain about somethings, but let me illustrate with the #likeminds hashtag example again. When I put something out on that hashtag, I never know if it’ll take. Sometimes the things I think are best, get no mentions, and sometimes the worst things do. Even worse is when other people seem to always have their stuff on the hashtag retweeted when mine arent’! Knowing this, I then follow this final fundamental:

 5. You have to keep scattering. Spreadability is accumulative. As you build upon your network, your failures at the least add to the soil – teaching you lessons and at least keeping your network nurtured.

 

These are great points and very applicable to experience creation. When structuring the physical engagement points with your customers keep a particularly keen eye on point two and five. 

 

Prepare the soil. 

Soil

Think about your current customers, and strengthen your current relationship with them. The closer you are to your current customer the more willing they are to share and spread your message. 

 

Keep scattering. 

Seedsfly

When creating your brand experience, think of your touch points as the seed scatterers. Every time you come into contact with a customer/prospect you give them a seed. Give these contacts a remarkable seed and they will share it with others. Think of how Cold Stone Creamery took the touch point of the waiting customer and created a remarkable moment

 

Do you prepare the soil? Do you keep scattering?

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