Research Analysis
The objective of the research was to examine how customers interact with Nike Inc.’s products across several touch points. The analysis sought to explore the attitudes current customers and prospects hold towards the company’s footwear, apparel, equipment, accessories and services as well as shopping. Furthermore, the research intended to establish the level of customer satisfaction with the corporation’s products and services. Moreover, the investigation aimed to explore the nature of customer experience in relation to Nike’s offering. For instance, participants were asked to state whether they feel valued by Nike and highlight describe reasons why they use the company’s products. Responses to these questions helped gain insight into customers’ experience. Lastly, the analysis attempted to learn the customers’ purchase intentions. Peppers et al. (2011) and Osterwalder et al. (2014) agree that analysing aspects such purchase and buying habits, clickstream date, interactions with the company, and patterns of product consumption helped to identify a company’s target clients. Such analyses help companies to generate valuable insights for establishing and sustaining closer, profitable relationships with customers. These aims guided the investigation by outlining the specific actions that were carried out in the research project.
CEM Concepts/Theories
Identify, Differentiate, Interact and Customise (IDIC) Model
The IDIC model can inform a nuanced, critical analysis of Nike’s customer relationship management and help the corporation delivery compelling customer experience. First, Nike needs to identify its target customer as unique, addressable individuals (Peppers et al., 2011). At this point, Nike should consider current clients and prospects as the most vital component of their business. Second, gathering customer-identifying information such as purchase age, gender, purchase behaviors, and other nuances can help develop a full picture of each customer or segment in terms of their needs, wants, and purchase behaviors. After analysing and categorizing customers, the corporation should consider developing customized interactions for their most valued clients by offering them tailored loyalty benefits or rewards to retain them and encourage to continue spending. Nike’s most valuable clients include males and the sports category. Prioritizing its customer relationship efforts on most valuable clients such as males and sports category and customizing its products, services, and interactions to best fit each niche can help the company achieve optimal profitability.
Right First Time (DIRFT) Model
The DIRFT model is widely used to enhance efficiency and reduce waste in production and other operational processes in an organization. It is designed to achieve perfection by enabling managers to deliver what they promise. The model aims to “provide an end-to-end customer experience that delivers value without any unpleasant surprises” (Goodman, 2010 p. 35). Implementing and evaluating metrics across the eight steps to DIRFT can help Nike identify problems and opportunities in each phase. For example, Nike scrutinizing customer complaints can help identify areas of improvement. Customer surveys and staff input can be useful in identifying customer needs, expectations, and purchase behaviors. For example, these insights may enable the management to understand how Nike compares with its competitors such as Adidas, Puma, and Under Armour, whether current customers intend to continue buying goods from Nike, and what can be improved to enhance customer experience, loyalty, and profitability.
Customer Feedback
Considering the Voice of the Customer (VOC) and customer feedback obtained from the survey coupled with secondary research, Nike delivers excellent customer experience. The VOC refers to customer expectations, and manifest in Nike’s strong brand recognition and positive evaluation (Johnson, 2016). In this case, the majority of Nike’s target customers who participated in the survey indicated that they feel valued at Nike. Consistent with Goodman (2014), an in-depth understanding of changes in customer tastes and preferences enables the multinational corporation to deliver products that meet their clients’ needs, thus making them loyal to their brands. The clients exhibited unique preferences in relation to product category, pricing, design, and materials. For example, sports and footwear are the most preferred products among Nike customers. Lastly, the majority of the customers are likely to buy Nike products again. Positive customer experience manifests in the stronger customer loyalty to Nike products.
References
Goodman, J. (2014). Customer experience 3.0: High-profit strategies in the age of techno service. American Management Association.
Johnson, J. (2017). Voice of the customer: Definition, benefits and tips. Tallyfy. Web.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want. John Wiley & Sons.
Peppers, D., & Rogers, M. (2016). Managing customer experience and relationships: A strategic framework (2nd ed.). John Wiley & Sons.