Nike Revamps Its Loyalty Program

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Nike customers using the Nike Plus mobile app are not only loyal but are big spenders, laying down 40% more than other customers, leading it to test some extra perks, according to the New York Post.

This includes vending machines that give away free stuff, Cathy Sparks, Nike’s global vice president of direct stores told attendees at the WWD Retail 2030 Conference. Nike’s Melrose, CA store is testing machines that reward loyal members with free gifts every two weeks.

Nike found that 50% of its transactions at its two flagship stores in New York and Shanghai were coming from customers using the app, Sparks said.

The app already offers early access to new products, free shipping and VIP treatment in its stores, including a separate entrance to the Manhattan store.

The Post reported that Nike is also making large investments in technology to let employees use the app to look at customers’ past purchases, favorite sports and other information to offer them personalized service.

The changes come as Nike aims to gain better control of its customer relationships by limiting the number of retailers selling its products. For example, it was reported that Nike is pulling 25% of its products from retail outlets currently selling it.

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