Nike: Direct Relationships & Digital Penetration

In 2017, Nike announced a corporate initiative called “Consumer Direct Offense”. The idea was to invest in their direct-to-consumer capabilities.

And while these touch points seem like nice-to-haves on their own, the data shows that the LTV of a customer is 4x if they connect with Nike on two or more platforms.

Their goal at the time was to have 30% of their business be digital by 2023. They hit that goal in 2020, three years ahead of schedule.

Interestingly, Nike has been pulling out of what it calls “undifferentiated retail”: stores that are too broad in their target customer. One example of this is when they pulled their products out of Amazon.