Nike, a world leader in sportswear and footwear, has led the way in incorporating state-of-the-art artificial intelligence (AI) technology into its products and customer service. Nike has updated its product offerings and its user interactions by integrating augmented reality (AR), data analytics, machine learning, and artificial intelligence (AI). Finding the Correct Fit and Using Data Mining to Customize the Customer Experience are two prominent use cases in this journey. These two developments show how Nike is using technology to address important problems, increase consumer happiness, and hold onto its market-leading position in the fiercely competitive sportswear industry.
Using AI to Solve the Sizing Issue
When purchasing shoes, one of the most frequent annoyances for buyers is determining the appropriate size. According to surveys, up to 60% of individuals may be wearing poorly fitting shoes, which can cause pain and increase the likelihood of returns. This size problem offered Nike a chance to leverage technology to improve consumer experience and lower return rate.
The Nike Fit Tool: A Game Changer for Sizing Accuracy
The Nike Fit tool, which is included into the Nike app, is Nike’s answer to the size issue. This cutting-edge function gives clients more precise shoe size suggestions by combining a number of cutting-edge technology.
The Nike Fit tool uses:
• Computer Vision: Nike Fit gathers multiple visual data points from smartphone cameras to determine the size and form of a customer’s foot. This enables the app to measure the proportions of the foot in real time and provide an accurate shoe size suggestion.
• Machine Learning: The program gradually enhances its size recommendations by continually learning from user preferences and input. With each usage, the Nike Fit algorithm becomes more intelligent and precise thanks to machine learning.
• Artificial intelligence and data science: The technology uses enormous volumes of data to cross-check measurements and offer tailored suggestions based on variables like preferred shoe fit, arch shape, and foot breadth.
• Recommender Models: Nike Fit uses AI-based recommender models to make sure consumers get the best product suggestions based on their profiles and previous purchases.
• Augmented Reality (AR): To improve the virtual buying experience and add an entertaining, interactive aspect, Nike Fit employs AR in addition to the conventional sizing method to picture how shoes would fit on the customer’s feet.
How Nike Fit Works: The Technology Behind the Scenes
Nike Fit uses a variety of cutting-edge technologies to make sure that customers can discover the ideal shoe fit both in-person and online. The first step is scanning technology, which does away with the need for conventional measuring instruments by using the smartphone’s camera to swiftly and effectively acquire accurate foot measurements and generate a digital profile. Users may retrieve their foot information for next purchases by using the Nike app, which stores the obtained data. In order to improve the whole shopping experience, Nike has also introduced portable devices in retail locations that use the same scanning technology. These devices allow sales representatives to instantly provide clients with correct sizing.
Customizing the Customer Experience Through Data Mining
Nike has made significant investments in data mining and AI-driven insights in addition to the Nike Fit tool in order to further customize and improve the consumer experience. Nike is able to develop highly customized shopping experiences that improve consumer engagement, sales, and operational efficiency by utilizing a range of data sources.
Data Sources: Supporting Nike’s AI Approach
Through the collection and analysis of enormous volumes of data from a variety of sources, Nike is able to forecast customer behavior, maximize inventory, and provide tailored suggestions.
Among the important data sources are:
• App Ecosystem: One of the main sources of consumer data is the Nike app, which offers details on past purchases, preferred products, and engagement trends.
• Enterprise Data: To develop more specialized tactics across several touchpoints, internal data from numerous corporate operations, including marketing, sales, and customer support, is utilized.
• Supply Chain Data: Nike use artificial intelligence (AI) to evaluate supply chain data in order to forecast demand and guarantee that the appropriate items are accessible at the appropriate times in the appropriate locations.
Utilizing this data has been made possible in large part by Nike’s Consumer Direct Offense strategy, which places a high priority on direct-to-consumer (DTC) sales. Nike may obtain comprehensive information that aid in improving its product offerings and marketing initiatives by interacting with customers directly.
Key Acquisitions to Strengthen AI Capabilities
Nike’s aggressive push to enhance its data capabilities is evident in its strategic acquisitions of several AI-driven firms:
1. Invertex (2018): Nike improved their shoe-sizing technology with the assistance of this Israeli computer vision startup, which subsequently served as the basis for Nike Fit.
2. Zodiac (2018): A consumer data analytics company that gives Nike in-depth knowledge of consumer behavior so the company can develop highly focused advertising campaigns and suggest products.
3. Select (2019): By more precisely predicting consumer demand, this demand-sensing and predictive analytics company assists Nike in optimizing inventory levels. This lowers the possibility of stockouts and helps Nike cut down on surplus inventory.
4. Datalogue: A machine learning business that specializes in gleaning insights from complicated, unstructured information in real time. Nike uses these information to boost customer service and supply chain efficiency.
Implementations and Benefits of Data-Driven Personalization
Nike has created a number of AI-powered solutions that greatly customize the consumer journey by utilizing the power of data. Data science teams are now more closely integrated with product design and logistics teams as a result of this emphasis on data-driven decision-making. Through internal reorganization, Nike is able to better match consumer demand with product development activities, guaranteeing that new items are created with the most up-to-date insights and produced effectively, thus improving the entire customer experience.
There are several advantages to using data mining to personalize the client experience. Nike is able to provide a customized shopping experience by recommending products and unique deals based on the tastes of each individual client thanks to enhanced customization. Predictive analytics-enabled inventory management improves operations by lowering the chance of overstocking or understocking. Additionally, Nike can enhance customer loyalty, improve conversions, and generate more money through focused marketing and product offers by better understanding client wants.
Nike’s AI Future
Nike is keeping ahead of the curve in a retail environment that is becoming more and more competitive thanks to its use of AI technology, which is evident in innovations like Nike Fit and data-driven consumer experiences. In addition to improving the consumer experience, Nike is increasing operational effectiveness, accelerating product development, and fostering long-term growth by utilizing AI and data mining. It will be interesting to watch how Nike builds on these developments when technology advances further to completely transform how customers engage with the brand.
