Jeff Bennett's Blog

Several corporations have attempted to launch social networks to support their brands. Problem is in most cases these corporations have tried to apply “old school” brand marketing to a vastly different opportunity. Coke and General Motors are probably the biggest examples of failures. Nike is showing us the way with a very innovative and engaging initiative called Nike+.

I contend that there is enormous opportunity to connect consumers with companies through social networking. You have to look at this differently though. The company must view this through the lense of the targeted market and deliver information, tools, activities and value to achieve the engagement. Only after all of this is there an opportunity to get a sale.

Nike has a two year effort going with Nike+. It has not all been easy but Nike has made great strides on this initiative and it is paying off. What did Nike do that Coke, General Motors, and several other large corporations did not do?

First, Nike gave the platform to allow connectivity and interactivity between the company and users. Using a device within the running shoes themselves, members can track every run they do and keep accurate records of how well they are doing. This in itself has an appeal to those who are serious about running.

Second, Nike gave rise to a community by allowing users to connect to other users that joined Nike+ all over the globe. Nike+ took it a step further by allowing users to communicate with other runners around the globe. The mutual interest that can often be called a passion gave the network the “legs” to bring people in and keep them coming back.

Third, Nike gave purpose to the network. Through events that could only be coordinated online do to logistical challenges of multiple-locations worldwide, Nike+ made itself into a hub for runners to participate with distant peers towards common goals. Earlier this year, nearly a million users logged on and signed up to run a 10K race. It was sponsored by Nike simultaneously in 25 cities or whereever you happened to be on race day. My nephew, Ron Bialobrzeski, joined Nike+ as an aid to his training and ran in this race along with his friend, Trevor Dean.  Trevor was not using Nike+ but has since joined.  Together both Ron and Trevor have several friends who have since joined.  The family got in on the fun as well creating a support group and a rolling fan van during the race.

Fourth, participating on the site and in the events gave the users a reason to become customers buying running shoes. Revenues derived from this social networking initiative are measured over $50 million. This is small when compared to Nike’s overall revenues but this does not tell the whole story. But when you compare this to the low cpm and untargeted ads that run on most horizontal social networks this is a tremendous case study.  I am not sure how much Ron, Trevor and friends have spent but they are surely buying Nike to support their passion and network.  I can also point to three new pairs of Nike running shoes that our family has purchased all in part to this initiative and we did not even run in the race or join Nike+.

I believe the connection that the participants, buyers and larger audience who is now aware of this very cool initiative established via Nike+ is much more powerful than any type of TV, Billboard, Print Advertisement  or Internet Banner campaign that Nike has ever invested in.  When I was involved in sports marketing the buzz was goal was to create “activation” of the sponsors product.  Nike+ is activation with a case of energy drink all over the world and growing like a weed.  Time will tell on the life time value of these customers but if Nike can keep them engaged I would say it would be thousand fold (and I mean the plural of thousand).

Companies don’t have to build their own social networks to accomplish this either. Strategic relationships with established vertical networks can replicate this success connecting company with passionate enthusiasts in many categories like photography, crafts, gardening, cycling, autos, home improvement and so many more.

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