Showing posts with label Nike. Show all posts
Showing posts with label Nike. Show all posts

Wednesday, August 7, 2019

Cause marketing costs less than good customer service.


A few years back, someone noted the proliferation of similar products and predicted that as the differences between various alternative options shrunk, companies would be forced to compete by providing superior customer service.  Sadly they couldn't have been more wrong.

These days complaint letters go unanswered - unless they are public tweets, customer service reps give conflicting information, and companies don't care about losing customers until they have already gone.  Apparently aided by software they can now predict your "breakpoint" and are determined to push you right to it. (Terlep, 2019)

How foolish can you be?  Any company seeking a long term relationship with their customers should consider the fact that pissing people off is not a good strategy. 

So which is worse -  endless stupid prompts, or reps from foreign countries who barely speak English?  Hard to say.  But both are better than simply being expected to interact with a poorly designed website.  Especially when the companies don't bother to test them to see if they actually function correctly.

But companies have decided that they don't need to worry about customer service because they can get more customers by aligning with customer values.  And they are probably right.

According to Nike, "Two-thirds of their consumers (66 percent) say it's important for brands to take public stands on social and political issues." (Stillman, 2018)

Wow.  That's impressive.  And clearly acting upon that data and partnering with Colin Kaepernick is a winning move for the company as revenue was up +4% (+10% versus year ago) in the last quarter.

But would it work for Verizon Fios?  According to the American Consumer Satisfaction Index, subscription television services, internet service providers, VOD, fixed-line telephone services and Internet social media are the five worst industries for customer service (Terlep, 2019)

But that may not matter, because all decisions are emotional. So if they could align themselves with a cause their customers care about they might be successful.   

But if I were them, I'd worry more about customer service.  When an interaction leaves you feeling ripped off, it's unlikely that you'll continue to be a customer for much longer, and with cord cutting accelerating, replacement customers could be difficult to find. 

On the other hand I will give a free shout out to two companies that I deal with that have made superior customer service part of their DNA - B&H and Bloomingdales.  Kudos to you both.  It's one of the reasons that I have been a loyal customer for over 40 years.

Such a shame the list is so short.  Perhaps we should start outing the companies who don't do right by their customers on social media.  As I noted in this blog, people do pay attention to online reviews.



Terlep, S. (2019, August 3)  Everybody Hates Customer Service. This Is Why. wsj.com.  Retrieved August 7, 2019, from https://www.wsj.com/articles/everyone-hates-customer-service-this-is-why-11564804882

Stillman, J. (2018, September 5)  Here's the Data That Proves Nike's Colin Kaepernick Ad Is Seriously Smart Marketing.  inc.com.  Retrieved August 6, 2019, from

Thomas, L. (2019, June 27)  Nike misses on earnings, but beats on revenues as customers buy more sneakers and sports gear.  cnbc.com.  Retrieved August 6, 2019, from https://www.cnbc.com/2019/06/27/nike-reports-fiscal-4q-2019-earnings.html

Wednesday, December 13, 2017

Behold the Power of the Boycott - Part 2



I read recently that boycotts don't work because people forget about them fairly quickly and revert back to their original behavior before too long.  Since Myers-Briggs tells us that 70% of people live in the moment that makes sense.

But those of us old enough to remember the civil rights movement and the Montgomery bus boycott know that sometimes boycotts do work.  It just depends on how passionate their supporters are. 

Grab your wallet is a case in point.  As I noted last summer, thanks in part to its over 2 million followers, 22 companies have dropped the Trump brand, the Manufacturing Council disbanded and Mar-a-Lago and other Trump properties experienced multiple event cancellations. (Kramer, Paletta & McGregor, Dangremond, 2017)

Now it's time for a fall update.

In November, Trump Soho became the second hotel to drop the Trump name, after first closing its restaurant and then dropping room rates.  Government records show that losses have more than doubled at the two Trump golf courses in Scotland, and business is down at the courses in Los Angeles and NYC.  (Associated Press, 2017)

Last week, Nike - Trump's biggest and most lucrative tenant, announced that they were breaking their lease on their flagship Niketown store and moving to a new location down the block.  (Green, 2017)  Perhaps their decision was influenced by the 72,000 people who signed a petition from Courage Campaign asking them to do so. (Dua, 2017),  

And today, CityRealty released a report showing that the average price for Trump-branded condos is $2.6 million, below the Manhattan wide average of $3.1 million, for the first time. (Trangle, 2017)

Clearly some boycotts do work.  And brands need to take note.

Here's a link to the previous blog...


Kramer, M. (2017, June 4) Grab your wallet, boycott Trump and participate in “A sprawling landscape of resistance” salon.com  Retrieved August 19, 2017, from http://www.salon.com/2017/06/04/boycott-trump_partner/

Paletta, D. & McGregor, J. (2017, August 16)  Trump’s business advisory councils disband as CEOs abandon president over Charlottesville views. washingtonpost.com  Retrieved August 19, 2017, from

Dangremond, S. (2017, August 18)  Eight Charities Have Canceled Their Mar-a-Lago Galas This Week.  townandcountry.com.  Retrieved August 19, 2017, from http://www.townandcountrymag.com/society/politics/a12033310/mar-a-lago-charity-fundraisers-canceled/
Associated Press. (2017, November 22)  Trump SoHo hotel to drop 'Trump' name amid reports of slow business.  foxnews.com.  Retrieved December 13, 2017, from

Green, D. (2017, December 7)  Nike is leaving its iconic Niketown property — and the fact that Trump owns it is reportedly a factor. scmp.com.  Retrieved December 13, 2017, from

Dua, T. (2017, August 17)  Nike is under fire for 'supporting' Trump.  businessinsider.com.  Retrieved December 13, 2017, from

Trangle, S. (2017, December 13)  'Trump effect' on condo prices?  amNewYork. p A5.



Wednesday, September 27, 2017

Will Golden State Warrior fans buy Nike sneakers to go along with their team jerseys?



Last night we discussed how the need to belong to the tribe is a driving force for all of us.  After all, no one wants to get eaten by a bear. 

Marketers have discovered that they can use the need to belong to persuade people to buy, among other things, clothing that proclaims their allegiance to the tribe.  But the question is whether that allegiance can be extended to include products that are not directly linked to the tribe.

The NBA has announced that this season they will allow teams to wear 2.5 x 2.5 inch Nike swoosh patches on their uniforms.  The costs of the three year deals with the teams ranges from $24 million to $60 million.  Sounds like a good deal for the teams.  But what about Nike?

According to NASCAR, their alliance with key sponsor Monster Energy has provided Monster Energy with numerous marketing opportunities and opened up new channels of fan activation for NASCAR.  A win win for both. (Janoff, 2017)

But buying a $2.50 drink at a sporting event is a far cry from making a special trip to the store to spend upwards of $60 on a pair of sneakers.  

Meanwhile, Nike just announced that their revenue was flat this quarter versus year ago, with sales up +9% in China, but down -3% in the U.S.  (Thomas, 2017)  They also announced in June that they will begin selling direct on Amazon for the first time.  So perhaps they are gearing up for more NBA fans from China?

So, what do you think?  Will the tribe buy in?  Will wearing Nike along with team jerseys become the new norm?  If you are an NBA fan, will the patches move you to buy?  Have you ever bought something endorsed by your tribe that wasn't specifically designed to show your allegiance to them?  If so, what did you buy?


Janoff, B. (2017, September 26)  Nascar Advice To NBA: No Such Thing As Too Many Logos.  mediapost.com.  Retrieved September 27, 2017, from https://www.mediapost.com/publications/article/307840/nascar-advice-to-nba-no-such-thing-as-too-many-lo.html
  
Thomas, L. (2017, September 26) Nike's China sales are booming, as demand wanes in North America. cnbc.com.  retrieved September 27, 2017, from  https://www.cnbc.com/2017/09/26/nike-q1-2018-earnings.html

Friday, July 15, 2016

You go girls!



The Olympics are rapidly approaching, and marketers are ready.  Word has it that the women will be winning most of the American medals.  And sales to women are driving the profits of sportswear companies, so it's no surprise that they are mounting a major effort for the event.

Here's Simone Biles for Nike...




Ronda Rousey for Reebok...




And, Allison Schmitt for Adidas...



So, what do you think?  Do any of them make you want to buy something?  Will they make anyone else want to?  Which one?  Why?


Mahoney, S. (2016, July 13)  Reebok, Nike, Adidas Unleash Mighty Women.  mediapost.com.  Retrieved July 14, 2016, from
http://www.mediapost.com/publications/article/280178/reebok-nike-adidas-unleash-mighty-women.html?utm_source=newsletter&utm_medium=email&utm_content=headline&utm_campaign=94626