|Nike and Puma Running homepages|
The matter of the fact is that the traditional marketing funnel for these companies is almost identical, especially in the digital space. Everybody is doing the same things. Diversification is limited to art direction of the picture of the shoe and the clever tag line to support it.
Nike+ is one of the most over-hyped marketing innovations of… well… ever. Most of the praise has been, in my mind, about the wrong thing. As a stand-alone service it’s mediocre-to-ok’ish, but the reason it is fantastic is that, it shifted the battleground of digital from advertising to "the post purchase". We went beyond the funnel. It actually changed what you sell, not so much how. When selecting a pair of running shoes, instead of what shoe you want, you choose which ecosystem you subscribed to; and obviously being the first true end-to-end ecosystem out there, Nike+ had a significant first-mover advantage. Nike’s market share in running shoes bumped from 48% to 61% during the first two years after the introduction of Nike+ and analysts attribute a lot of that growth to the merit of the service.
|Domino's Pizza share-price past 2 years|
What to take away from this? Brands should stop and ask: how can "digital" make the experience of being my customer better. The point of monetization is not the finish line, but actually that’s where the real race starts.