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EON SMART MOVE: NIKE

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CREATING ABUNDANT SCARCITYCREATING ABUNDANT SCARCITYCREATING ABUNDANT SCARCITYCREATING ABUNDANT SCARCITYCREATING ABUNDANT SCARCITYFUTURES ACADE MY SMARTMOVES

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FUTURES READY BY CREATING ABUNDANT SCARCITY

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OUTCOME-DRIVEN INNOVATION Going moonlight, an unconventional move PRODUCT. STORY. EXPERIENCE. Selling an emotion more than a product FAN(ATIC) USERS Feeding the ‘hypebeast’ A 100% DIGITAL APPROACH Re-imagine the game SHOPPERS ARE PLAYERS Yes! Got ’em. 24153NIKE’S SMART MOVES

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FOUNDED AS BLUE RIBBON SPORTS, IMPORTING A JAPANESE SHOEEXPERIMENT WITH RUBBER IN WAFFLE IRON 19641970CHANGING NAME INTO NIKE1971FIRST WAFFLE-SHOE WITH SWOOSH IS INTRODUCED 1972198019821988199019911993AIR FORCE ONE INTRODUCTION JUST DO IT!CAMPAIGN STARTSSTART PASSION PROJECT VALIANT LATER SNKRSNIKE DIGITAL REVENUES GROWS TO 30%NIKE DIVERSIFIES THROUGH ACQUISITIONS: HURLEY, CONVERSE, BAUER, UMBRO OPENING UP OF NIKETOWN FLAGSHIP STORENIKE inc. The world's largest athletic apparel company,! Nike! is best known for its!footwear, apparel,! and equipment.! It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight.! Nike! is now one of the most valuable brands in the world.!Nike's business strategy is to engage in community brand creation through emotional marketing and sports star endorsements, to manufacture market-leading technology and products, and to acquire leading companies in new market segments.19991999200620122017202020212023NIKE ID ENABLES USERS TO CUSTOMIZE SHOESNIKE BECOMES CENTER OF SWEATSHOP SCANDALINTRODUCTION NIKE+ CONNECTING SHOE TO PHONE VIA GPS LAUNCH NIKELAND IN ROBLOX METAVERSEFIRST ONLINE STORERE-USE SHOE PROGRAM STARTLIFETIME DEAL WITH MICHAEL JORDANNIKE ACQUIRES RTFKT AND STARTS NIKE DIGITAL 1984LAUNCH SNKRS APP

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318SOCIAL MEDIA ACCOUNTS170MIL46BILBACKLINKS TO NIKE.COMSNKRS MEMBERS TODAY AND COUNTING32CHARACTERS IN AN EVERAGE NIKE MESSAGEWEBSITE VISITORS PER MONTH 20200MILDIGITAL REVENUE 750$ MILLION VIA SNKRS-APP

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SNKRS: More personal at scale?CHALLENGEWATCH INTRODUCTION VIDEO

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When it comes to revenue, profitability, market cap, number of employees, and other similar metrics, Nike is an absolute market leader in athletic shoes and sports apparel. Its revenue is more than the revenues generated by Adidas, Puma,!Reebok, and Under Armour combined. The company's success is highly boosted by the brand popularity. Forecasts are good as the definition of sports is expanding and a growing focus on!health, wellness, and comfort is creating a bigger market. At the same time, large competitors are dropping prices, stockpiles remain!a big!constraint!on capital, and numerous niche players are!taking a shot at specific audience groups. This!demands Nike to keep moving. Yet, Nike rarely starts innovating from scratch or spending millions of dollars on R&D. Nike prefers to look for new revenue streams by following or acquiring already successful initiatives. Once profitable, the company invests heavily in creating!strong brand differentiators and overall customer experience.! The recent years, Nike has made a strategic move into a direct-business model.!This new strategic initiative, called the Consumer Direct Offense, is fuelled by a Triple Double Strategy (2X Innovation, 2X Speed & 2X Direct connections with consumers). This demands greater focus on cultivating direct relationships with customers through various digital portals such as!apps, websites, and official stores around the world. Per Andy Campion (Nike COO):!'Our vision is to!create direct, unbreakable relationships with our consumers. And we know the most direct connection is through the mobile device they carry with them everywhere they go.'! The goal of what is now called 'Consumer Direct Acceleration' is to be able to target key markets, allow for more-direct relationships with the consumer, and deliver products faster than ever. As part of this new focus, Nike has been revamping their business model by tightening wholesale accounts while focusing more and more on in-house digital sales and direct-to-consumer revenue. The aim is to build a marketplace!for the future that is transparent and much more relational with consumers, allowing for more specific targeting, all tightly integrated to accelerate digital transformation.! Digital communities, NIKE ID and the SNKRS mobile app play a central part of that strategy. SNKRS, an app to explore, buy and unlock the best of Nike sneakers, has become an absolute star performer in Nike's digital profile. It provides inside access to the latest launches, hottest events, and exclusive releases that Nike has to offer, creating scarcity and urgency, combined with the idea of giving sneakerheads the opportunity to show-off their knowhow. To increase engagement, the Nike experience is extending into digital communities and even virtual reality. Hence the new credo, 'All our shoppers will be gamers.'

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DOUBLE DOWN ON DIGITAL DIRECTWATCH INSTRUCTION VIDEO

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What would your Triple Double strategy look like? 2x 2x 2x If you treat your clients as if it were gamers, what would be different? How could you scale a more personal relation with the customer (using digital or an app)?

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11Going moonlight, an unconventional moveOFF THE BEATEN OUTSIDE ‘THE BERM’ There's an internal saying at Nike: To make something unique, you have to think outside the 'berm' – which is what employees call the perimeter of Nike's 286-acre campus in Oregon. The successful Nike SNKRS app started that way. The development of the SNKRS app represented a strategic decision by Nike to fully invest in its!digital!and!direct-to-consumer!capabilities. But getting leadership on board3behind this particular idea was difficult. It was up to a small team of creatives, developers!and (junior) designers to go 'unconventional',!bring the new idea to life, and convince Nike leadership to invest. THE POWER OFF SCRAPPY, FAST TEAM - AND A PASSION PROJECT An assortment of Nike employees from digital, commerce, marketing, and other categories were brought together to work on SNKRS as a side project.!The project started out at a co-working space in San Francisco, hundreds of miles from Nike campus.!The team referred to this approach as moonlighting.!This kind of 'skunk innovation' defined the SNKRS project from day one. The team was an extremely diverse mix of Nike employees and some outside contractors who had previously worked for!tech scale-ups such as Dropbox.!One key factor united them all: a genuine passion for sneaker culture and community. All team members had the same goal in mind: 'We were like, we need to level up how we romanticise sneakers, and then we have to figure out how we do that at scale.' SHOW THEM SOMETHING DIGITAL In 2012, SNKRS was just a concept, a 'bullet point on a slide'.!The atmosphere within Nike was ready for change as!direct-to-consumer!and!digital!were important buzzwords.!At the same time, sneaker culture was getting hotter.!A proof of concept, a working prototype, would be the key to get the board behind the project.!The project was dubbed 'Project Valiant', in reference to!Nike's founder Phil Knight, who famously closed Nike's first sales from the back of his Plymouth Valiant. The SNKRS team was aiming for a similarly intimate, direct-to-consumer feel, but in the realm of the digital age.!One of the initial sketches of the app was called 'Nike Pulse', referring to the user's ability to stay on top of the pulse of everything Nike, from products to content.!By June 2013, the team had a first working prototype and were ready to sell the whole concept back to Nike. The app was boosted in 2019, after the!acquisition of Mega Virgin and the launch of the NY-based Nike Digital Studio.!.!

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UNCONVENTIONAL TRACKNIKE DIGITAL STUDIO 23NYC The project moved into the new Nike Digital Studio, a start-up with 24 digital veterans working out of the old Converse offices, S23NYC. 'This is our lab, we drop something in the piranha tank and see how fast the piranhas swarm around it.' SNKRS features like the app's feed structure – including special drops, limited editions, and collabs – would change the game. Despite the initial team wishes, other concepts, including a community-building feature that would allow users to chat with other sneakerheads, never made it past the idea generation. New Nike digital officeSNKRS startup office

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1OUTSIDE THE 'BERM'WATCH VIDEO

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What off-the-beaten-track topics are colleagues or clients passionate about? What 'bullet-point idea' would you like to test with a (working) prototype? Where is the 'berm' in your organisation?

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2Selling an emotion more than a product Co-founder Phil Knight has said, 'Ultimately, we wanted Nike to be the world's best sports and fitness company. Once you say that, you have a focus. You don't end up making wingtips or sponsoring the!next Rolling Stones world tour.'!Nike is about bringing inspiration and innovation to every athlete. For Nike, it's clear that ‘If you have a body, you're an athlete.'!Therefore, Nike caters to all athletes, making no!distinction!anymore between pro and amateur.! Nike motivates people!of diverse backgrounds and lifestyles!to chase after their dreams and discover their maximum!potential.!Which is why Nike!decided to place the customer in the centre court of the brand.! Recognising the emotional aspect of their business, and using the!latest tech to enhance those feelings,!Nike decided to integrate digital marketing into their entire operations, thus placing the customer at the centre of the brand and communication. TELLING STORIES, NOT PRODUCTS Apart from promoting ease of use and innovation, Nike always empowers and motivates consumers in their campaigns. Nike's higher purpose is helping their consumers become better!athletes to stay healthy and fit. Through this benefit-driven goal, they communicate, make sales, and have become one of the most loved top-10 brands. With e-commerce now becoming the main!focus of Nike's consumer strategy, all communication is also shifting towards a digital approach, with everything designed for virality. With a powerful #message, appealing to a social vibe and!consisting of a mix of stories and!shared across Nike's different platforms and networks.! OUTCOME DRIVEN Such outcome-based marketing shows the user benefits of a product's features rather than directly advocating the function or features.!It promotes the application factor of the product, so!consumers understand how the product will help them grow. Combined with a powerful message relayed through an impactful storyline. Whether the campaign is 'What are girls made of', 'Find your greatness' or!'Dream crazy', Nike always spotlights self-limiting beliefs that bring us down. When you think, 'I can't do it,' Nike assures, 'Just do it.' ALL USERS ARE INFLUENCERS Marketing with real people and authenticity has proved one of the more-effective tactics of the social-media era, and Nike sees these groups

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as a means to stoke engagement among its hundreds of!millions of more casual, style-seeking shoppers. Nike targets smaller communities by using fewer professional models and, instead, featuring more real Nike customers who have joined its Nike ID!membership programme.! MARKETING IS A CONVERSATION Nike's strategy is based on running multiple social accounts. This way, the brand is able to target the audiences of different social campfires (e.g., with!interests such as football, basketball, yoga, etc.). In these so-called!tribes, classically 20% of a community are leaders, 80% are followers.!But in Nike's view, the latest generation of social media is less about anonymous followers (like Facebook) and far more about smaller pods with deeper!engagement (such as TikTok, Snapchat or Instagram). The Nike approach is that everybody can be an influencer in their own micro-environment. Because you want to show-off a new product, have a story to share, or!experienced something special. Nike can trigger such an experience by offering all people the opportunity to unlock special gifts or access exclusive drops. Nike leads by letting users tell their own stories, by leveraging!all kinds of user-generated content, and also by partaking and engaging in customer conversations. DIGITAL CONNECTION TO GET AUTHENTIC FEEDBACK Nike has a bunch of mobile apps, including Run Club, Training Club, Nike+ and its shopping-centric retail app, which is simply called Nike.!Most of these apps are free, but they!also provide crucial data and insights into!the desires of the digital consumer.!These features aren't just about marketing. Nike uses them to collect data: it can see which photos members linger on, which sneakers or clothing items they zoom in!on, and what they skip over. The data lets Nike serve them with products they're more likely to want and, of course, to buy. It can also use the data when creating new products.!A!very effective!strategy to figure out how to serve customers better.!This social listening further allows Nike to create targeted campaigns and products directly powered by social conversations with customers.VIDEO: https://www.nike.com/nl/en/launch/t/outside-the-box-sneakerhead-story

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2BENEFIT-DRIVEN COMMUNICATION2WATCH VIDEO

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What is the true outcome of people using your product? What do you help them become? What emotion might your product trigger? How can you get more into social conversation with the real user of your product? What #socialevent might be interesting to associate your brand or product with?

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3Feading the hypebeastFAN(ATIC) USERSNike!sponsors!top athletes in many sports to use their products and endorse!Nike's technology and design,!due to their significant!influence on fashion and pop culture. This!ties into Nike's growing emphasis on lifestyle!and culture.!Nike has chosen a!strategy!of pioneering product design and slowly building a strong product portfolio that is so much more than just running shoes. The company has only been able to grow its market presence by!gathering market knowledge obtained through!constant testing, surveys, face-to-face conversations, etc. This enabled Nike to nurture their growth engines!and fit the right design and message to the right audience via the right channels and influencers. A key aspect is finding the!right superfans in each domain. LEARN FROM A NARROW SEGMENT: SUPERUSERS If you only buy a pair of Nike shoes every other year, the SNKRS app is not for you.!It is specifically designed with the superfan in mind. SNKRS-app users receive notifications about limited-release sneakers, limited editions, and special drops so that they!don't miss out. Limited release drops compromise only 5% of the sneaker market. Nike decided to target this very small segment of its large customer base with the SNKRS project.! LET THEM PEACOCK THEIR PASSION AND KNOWHOW Extreme users – like your superfans – tend to be the most-vocal brand advocates, so this narrow segment of customers can create a!network effect!that draws attention to the brand as a whole.!That group of maximum 10-20% of the community usually consists of super-engaged, hardcore members; the remaining 80% of the community is usually far more casual.!The goal is to take those that are the most-engaged and give them the tools to share their knowhow, passion, emotion and stories in a way that lets the less-engaged discover and connect to the other fans, the!brand,!the product. OUTSIDE THE (SHOE)BBOX Superusers are an interesting segment, but misconceptions exist that might cause you to miss out on an!opportunity: 1. My product does not have superusers. 2. They aren't normal – they're either wealthy or just weird. 3. They're impossible to find. 4. They already buy so much – they can't possibly buy more.

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How can you replace flying? High speed train? Digital? XR? Super-users as content https://www.nike.com/nl/en/launch/t/outside-the-box-sneakerhead-story

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How can you replace flying? High speed train? Digital? XR?

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FAN(ATIC) USERSCREATING SCARCITYNike took all the learnings from interacting with the superfan base – as the most-critical!audience Nike has – to create a playbook that is now applied throughout the broader Nike ecosystem. For example, the!innovative way of shooting sneakers for the SNKRS app became the design language for all digital outings of Nike. YEAH, FOUND ‘EM One of the ways to engage the superfan community is to fuel their passion, energy and!urgency with limited!editions or exclusive collabs. The experience of how you get the shoe is sometimes as important as the shoe itself. It is!no!longer just a matter of writing a cheque (Pay to win), that special effort also counts (Play to win). For example, being!right on time when, during the Super Bowl performance of Justin Timberlake wearing a new sneaker, a sudden drop is announced on the app. Or visiting a!special store or concert to 'unlock' an opportunity to!obtain an exclusive pair… And then to share the story! OTHER PEOPLES NETWORK (OTN) Nike has partnered with a wide variety of other brands, artists, and influencers to reach audiences outside their typical customer base. Collaborations, among other with Apple, Burberry, Beats and Ben & Jerry, have allowed Nike to grow a new!fanbase!they wouldn't't have been able to reach on their own. NEW PLAYERS IN ECOSYSTEM The SNKRS app and all the exclusive!collabs and limited!edition drops also fuel a lively secondary marketplace that's benefiting!from the surrounding hype. The resale of popular models has become a multibillion-dollar industry in itself. Four out of five shoes sold on these secondary market platforms!are!of either the Nike or Jordan brand. This trend gives space to new!players in the ecosystem, varying from blogs tailored to helping people to get!access to special 'drops' or sources for how to determine the right market value of a!certain model (varying from a!few hundred up to thousands of dollars) and to get the!authentication that it's a real, verified Nike. A!famous app providing the last service is StockX,!a company valued at over $3.8 billion. It's!been a steady!rumour that Nike might start its own secondary!marketplace to better serve the user and, more importantly, to leverage the data about what models are popular in what group and why!

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How can you replace flying? High speed train? Digital? XR? What could be the role in the ecosystem of future mobility?What is the timeline and impact of new fuel, solar or eco-fuel?

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3TEAMPLAYWATCH VIDEO

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Who are your superusers? And how do you 'listen' to them? In what way could you create more scarcity? Who could be an interesting!collab for your brand? What other networks might it allow you to use?

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4Reimagine the game Nike is pushing the boundaries of sports into the digital realm so it can serve the next generation of players.!In 2006, Nike entered the tech arena by introducing a Nike + iPod sports kit. The smart gadget, which measured the distance and speed of a!run or walk, was the most technologically advanced portable device for athletes. A small chip, serving as a wireless sensor for the iPod, was inserted in the shoe. This smart product evolved into a band, later into a watch (in cooperation with TomTom), and is now a!running application on your iPhone that uses the phone's accelerometer to track routes and instant results.! Since then, Nike has been pioneering how 'to sell the lifestyle' can work just as effectively in the digital world as it does in the real world. Social media, mobile communications, e-commerce and in-store!experiential technology have been integral to Nike's strategy for many years. More recently, it has moved into the excitement around new concepts such as the metaverse, NFTs, web3 and Artificial!intelligence (AI).! With these new technologies, Nike is able to!continuously create an unbelievable experience and, in turn, accrue an ever-deeper understanding of its customers' wants and needs, no matter what!sub-culture, moment or!niche. A DEVOTED TEAM FOR DIGITAL PRODUCTS & SPACES More and more,!Nike is starting to refer to itself as a tech-driven company.!In 2016, Nike purchased Virgin Mega to start its own!in-house!digital!agency under the name!S23NYC.!Having a!devoted team with these new digital skills helps Nike to better cater to creators at the intersection of sports, creativity, and gaming culture. The goal of this team is to!boost Nike's digital transformation!by means of cutting-edge digital initiatives, as well as to launch an aggressive direct-to-consumer strategy.!The SNKRS app was one of their!initial!projects,!and!it has grown exponentially since it was launched.!Slowly, the digital!team has been growing due to the acquisition of!different start-ups!(such as the!Tel Aviv-based!Intervex, with its augmented reality solution to measure body!metrics).

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100% DIGITAL APPROACH

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VIRTUAL THINGS UNLOCK REAL EXPERIENCES A!more recent acquisition was RTFKT (pronounced!‘artifact’). This digital studio leverages technologies like gaming engines, blockchain, augmented reality and next generation NFT!collectibles!(nonfungible!tokens). You can't wear these sneakers in real life or show them off in games like Fortnite. You can use a SnapchatAR filter to see what they would look like on your feet. The popularity reached the!boundaries of the!virtual as the!blockchain seemed not fast enough to process all changes at the moment of buying. 100% VIRTUAL APPROACH In a first experiment, they managed to!sell!600 pairs of Nike!Air Force One NFTs!in just seven minutes for a total of $3.1 million. A more-recent initiative is the!CryptoKicks Dunk Genesis: after users get a pair, they can customise their sneakers using 'skin vials'. This allows you to collect, evolve and breed sneaker skins. The average price for some of these rare sneakers is around $7,500, but some sell for well over 100k.

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A DIGITAL SHOE IS NOT A SHOE?! Ownership of a virtual sneaker is not the same as owning a physical shoe or vital product. It's more like a service, or a set of corresponding unique utilities. Something that leads you to a special access, a pre-order of a physical shoe, or maybe even to a special event in a token-gated community or the voting power on certain designs for physical shoes. CONNECTING REAL, DIGITAL AND VIRTUAL Nike does not look at digital as just channel-by-channel (omnichannel). Instead, it architects specific power moments in the customer journey. Of course!the Nike app unlocks special services in its flagship stores for members. But why would someone with a phone walk into!a store? Nike!aims to provide the best experience where the most connected customers are. If people are shopping in the app, they don't need a!store there. Or when seeing an ad on TV, or on the road, or while visiting an augmented-reality experience – but a!custom!store can pop-up!anytime, anywhere. METAVERSE: SPORTS MEETS GAMING Nike is!experimenting!with extending its reach into a metaverse called Roblox, a global online (gaming) platform that reaches nearly 50 million daily active users. Nikeland is free to access, stocked with minigames (some of which make use of your smartphone's accelerometer), and offers opportunities to win even more products and rewards. DREAM IT. BUILD IT, PLAY IT. Nikeland allows fans to play, meet, socialise, take part in promotions, and engage with a whole range of brand experiences. Users!can buy exclusive digital products to decorate their avatars, or visit!digital events with real celebrities such as LeBron James.!Each visitor to Nikeland also becomes a steward of their own!'yard' (called 'My Playground'), a personal space within Nikeland that can be used as a 'home'!to show collectibles and digital personality, and invite others. SWOOSH: SERVICING PLAYERS & CREATORS Nike's most recent metaverse venture is DotSwoosh, a Web3-based platform (using a!Polygon chain) where people can buy and trade virtual!footwear, fashion apparel and accessories.!By launching Swoosh, Nike has created its own virtual world (metaverse) that doesn't need to rely on other platforms.!The initial focus of the platform is on community building!and presenting members with 'challenges' so as to learn of what people want and expect.!Without doubt, Nike is!experimenting its way into finding!contemporary revue streams.!For example, Nike plans to tap into the rising creator-economy and let people design and sell sneakers for the metaverse.

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4THE REAL VIRTUALWATCH VIDEO

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What power-moments can create!unique experiences in the customer!journey? What would be a!natural new thing to do with!your brand or product to leverage the power of mobile devices, social media, or the metaverse? Who initiates experiments to explore future!revenue models in your!organisation?

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15Yes. Got ’em! MULTIPLE ENTRYPOINTS INTO NIKE’S DIGITAL STORYWORLD Got 'Em! is a much-appreciated screen message in the Nike app. It pops up upon a successful check-out.!Nike has become a master in providing unique and unforgettable experiences.! The brand is like a portal, and one can unravel a deeper story as you tap into it.!Especially by!embedding more and!more!digital services, you can be invited into the Nike world via diverse entry points and!micro-narratives. Nike calls this approach a hybrid model bridging the standard shopping experience with 'big story moments'. WRITING A NEW PLAYBOOK BEST WAY TO UNDERSTAND BY NIKE realm is by looking at it!through the lens of game design. There is a certain storyline inviting you to come and play within a specific arena (shop, app, social media, metaverse), you are!identified as a player, and there is an!underlying rulebook!triggering engagement between the story and the players. The Nike realm uses game mechanics like collecting credits, ranking, time-pressure, lotteries, limited access, etc. These underlying rules and!algorithms learn!continuously from every interaction, and feed users new stories and challenges,!triggering!ever-more!engagement with the product, community, and Nike brand.

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FLOW: CREATING ABUNDANT SCARCITIES Like the brand story, as a whole, empowers people to overcome!challenges, Nike's storyworld is full of activities!that manage the right challenge level to the corresponding commitment level of a user/player. A superfan might travel to a certain geo-fenced area to uplift chances of a!special sneaker drop, while a casual jogger might aim more towards keeping track of kilometres and pace. Every!interaction is designed to connect, inspire, and activate the user with an abundance of Nike created!scarcities. Game on! LEVEL UP ENGAGEMENT The chances of!ultimate success are low, but people do win in Nike's world. You can win as an athlete, as a!sneakerhead seeking a!special pair, or as a regular fan praying to meet LeBron James.!This fact is what drives people to come back for more after every unsuccessful attempt – especially knowing that the algorithm improves their chances after a 'loss'.!Keeping the dream alive that!it is still possible.! DESIGN DRIVEN BY DATA In e-commerce, you can only grow if you!understand the underlying drivers of your users and their!needs, wants, triggers and journeys.!Data is king in e-commerce. So it's no surprise that Nike has invested heavily in data analytics and AI.!Reaching niche groups demands a more-personal digital environment based on an!integrated!data infrastructure and dynamic frontends. The ED&A team at Nike is!especially keen on taking a!step towards more predictive!data, such as purchase patterns or social trends,!so as to anticipate customer!needs, create better products, and improve business processes!such as pricing, overstock prevention, or even personalisation.

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5HOW TO SET EACH OTHER UP FOR SUCCESS?WATCH VIDEO

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What kind of data would you love to have, to boost your value proposition to a customer? Translate your vision, mission, slogan or a marketing message into 32 characters (max). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Create rules that turn users into players. If __________________ then __________________ If __________________ then __________________ If __________________ then __________________ How could you create a new scarcity and invite customers to engage?

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Ron Faris Nike vice president Global SNKRS App

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All our future shoppers we need to!treat as gamers.

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Viewing users or shoppers as gamers does not mean turning every interaction into a game; above all, it implies a different approach towards designing for autonomy, interaction and engagement. A new language for a new generation Games have become a widespread phenomenon, and are the language of a new generation of users. Nowadays, games are a 'living' service with continuous updates impacting hundreds of millions of users. Gamification!is a strategic attempt to enhance systems, services, organisations and activities by creating experiences similar to those experienced when playing games in order to motivate and engage users. This is generally accomplished through the application of game-design elements and game principles (dynamics and mechanics) in non-game contexts. A magic circle In game-design thinking, it's all about the art and science of engaging customers on a compelling path to mastery. Gamified experiences are constructed by the interrelation of four basic elements:!game mechanics, story, arena, and player(s). The experience that emerges is referred to as the 'magic circle'. Embrace your user: They are the experts of their own experience In game design, bringing an experience to life is called 'finding the fun'. And what that really means is to build engagement from the inside out. In other words: don't start with your onboarding journey, or your mastery flow; start with the core bit of value, that core bit of fun. Playtesting one learning loop and activity Then, build a prototype around your one core learning loop to find a repeatable, pleasurable activity that people are going to spend time on. If you build something simple that people can get better at, you're on the path to driving intrinsic engagement. WHEN IN NEED FOR

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How to use this model? How to start game-design thinking? A.Define your typical player type: Hunter, socialiser, achiever or explorer. B.Map a road towards mastery: How can a player become better in five steps? C.Design the feedback loops so the user gets feedback on his actions. D.Focus on why it's fun and what the purpose/goal of your game is – and playtest! For an explanation and some facilitator notes on how to use this model in your team, check our short course on Game-Design Thinking at futuresacademy.nlWHEN IN NEED FOR GAME DESIGN THINKING

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PATTERN: ENGAGEMENT

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ENGAGEMEMT From transactional towards relational Engagement is a core design principle of the Nike approach. The maxim 'all shoppers are gamers' refers to the level of attention, interest and involvement that a user has with a product, service or experience. The goal of designing for engagement is to create a user experience that is compelling, enjoyable, meaningful, and encourages the user to continue using or interacting with the product to gain mastery. There are many ways to design for such a level of intrinsic motivation, depending on the type of product or service. Some common strategies include: •PURPOSE: Providing a clear reason to use the product or service, something that helps the user to become and/or to contribute to a higher purpose. •RELATEDNESS: Designing for social interaction and collaboration, allowing users to connect and engage with each other. •IMMERSION: Using a storyworld and a storytelling narrative to create an emotional connection with the user. •MASTERY: Providing feedback and opportunities for exploration and discovery, encouraging users to learn and grow. •AUTONOMY: Offering a personalised choice architecture that caters to the user's individual preferences, wants and needs.

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PATAGONIA Patagonia started as cash cow to provide funding for the high-quality gear it was making. With its outdoor DNA and extreme focus on craftsmanship, it became the epitome of a sustainable business, advertising not to buy and starting a non-extractive ownership model. SCHIPHOL In order to reach its ambitious zer0-emission goal, Schiphol turned towards open invitation: calling all innovators. The airport will engage in co-creation to find new breakthrough solutions together, which they will then share and roll-out globally.KLARNA 'Buy now, pay later' – a business model that was said to be doomed to fail. Klarna embedded this backend payment service into the checkouts of numerous online stores. And then it turned the tables to become one of the largest e-commerce front-ends for the Insta-generation.NORMORM The Skype cofounder views all business through the lens of unit economics: when an element reaches near-zero additional cost, digitally scale and disrupt an entire industry. His most recent scale-up is forcing the furniture industry into a circular service model. SLACK A former game company turned itself into the largest team-communication platform in the world. Slack approached the future of work as a team-of-teams and built a platform and organisation to turn everything into a dynamic conversation. POLESTAR Volvo made an unconventional move by spinning off its performance division, Polestar, to not only design an entirely new electronic, climate-neutral car but to also create an entirely new organisation and vision of what a 'car' is. BECOME A

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BECOME A SMART MOVE MEMBERCOLOPHONResearch, artwork and texts by Arjan Postma, Jeroen Boschma, Bryin Abraham & Jefta Bade Many thanks to Nike and especially Ron Faris for our dialogue and inspiration. Special thanks to Kesso Postma for introducing us to Nike’s digital experience. All images are courtesy of Nike. For more information contact smartmoves@FuturesAcademy.nl www.Futuresacademy.nlThe Futures Academy is a research collective challenging organizations, teams and individuals to grow a Future-Ready mindset, skillset and toolset, anticipating 21st century transitions, and igniting positive impact, together. Smart Moves is a monthly publication intended to challenge your thinking and way of work so that you can become more future ready. Each issue spotlights several next practices from a company already pioneering with its purpose, organizational design and future business models. Challenge yourself and your team with the included thought-provoking questions – because before you can make a difference, you need to see the difference.ACCESS TO MORE SMART MOVES

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SEE THE DIFFERENCE TO MAKE A DIFFERENCEWe are a research collective challenging organizations, teams and individuals to grow a Futures-Ready mindset, skillset and toolset, anticipating 21st century transitions, and igniting positive impact, together.THEFUTURES ACADEMYFUTURES ACADEMYFU TURES ACA DEMY