Monday, 1 April 2013

Nike+ and Gamification


What is Nike? Nike is a sports equipment company. What is it interested in? Well first of all it is interested in distinguishing itself from other sports companies in order to only not sell more, but more importantly to be able charge more for its products. The rule of thumb is that in order to be able to charge more, one needs to provide additional value to the customer. The extra value for tangible items may come in quality, brand image or the experiences associated with the product Let us take a look at how Nike did that provide that extra value applying the Gamification principles.

Nike had an array of sports metrics products ranging from GPS trackers, heart meters to simple accelerometers. What they did is they created a web platform where the data from these devices could be uploaded and this grew to be the Nike+ we have today. In its Nike+ platform, Nike integrated the following gaming tools:
·      Personal Goals and Challenges;
·      Personal achievements;
·      Progress statistics;
·      Mobile apps;
·      Group challenges and benchmarking.
And this is the whole new experience for the customer! You can motivate yourself by competing with your friends who are not physically present. You set goals, monitor your progress, earn achivements. You share your results with friends. All of this makes the borring routine of, say, morning jogging way more pleasurable.

And the strategic genius behind this is really amazing! Nike+ became a platform market with strong network externalities: you friends can compete with you only if they have Nike product and they may strongly feel inclined to when they see your social networks chatter. And very parties are the stakeholders of this other than the clients and Nike: Mobile phone hardware developer companies like Apple, game consoles developers, personal music equipment developers, web content developers, various NGOs, advertising and marketing companies… and the list goes on!
Check out Nike+! I am sure you’ll love it!

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