Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How Nike Marketing Funnel Runs on Sneaker Drops
Transcript
- Lucas: If you've ever tried to buy a pair of limited-edition Nike sneakers on the SNKRS app, you know the drill: you open the app, you see a countdown, you wait, you enter a draw, and then—almost always—you get the 'Sorry, not this time' message. Luna: Yeah, I've been on the losing end of that more times than I can count. But even the losses keep me coming back. Lucas: That's exactly the point. Nike has turned every sneaker drop into a miniature marketing funnel—Awareness, Interest, Decision, Action—and it's incredibly effective. Today I want to walk through how that funnel works, using a specific example: the Travis Scott Air Jordan 1 Low drop from December 2024. Luna: That one was chaos. I remember the app crashed for a few minutes. Lucas: It did, and that's part of the story. But let's start at the top of the funnel: Awareness. Nike doesn't just announce drops randomly. They build anticipation weeks in advance through teasers on social media, influencer posts, and sometimes even cryptic videos. For the Travis Scott drop, they released a 30-second clip showing the shoe in a desert setting—no release date, just a vibe. Luna: So the awareness stage is all about creating intrigue. They're not saying 'buy this shoe,' they're saying 'something is coming.' Lucas: Exactly. And that curiosity drives people to the SNKRS app, where they can set reminders. That's the interest stage. Once you set a reminder, Nike has your attention. They also push exclusive content—behind the scenes photos, designer interviews—to deepen that interest. For the Travis Scott drop, they had a short documentary about the design inspiration. Luna: And all of that is free content that keeps you engaged without a hard sell. Smart. Lucas: Right. Then comes the decision stage. This is where Nike uses scarcity and FOMO to push you toward action. The shoes are only available for a limited time—often just a few minutes—and the supply is deliberately low. For the Travis Scott drop, Nike only released about 50,000 pairs globally. Luna: Which sounds like a lot, but when you consider that millions of people are trying to buy them, it's incredibly scarce. That scarcity forces a decision: either you try now or you miss out forever. Lucas: And the action stage is the draw itself. You enter your payment details, you submit, and then you wait. The app tells you if you 'won' or 'lost.' That language is key—it makes you feel like you're part of a game, not just a transaction. Luna: And if you lose, which most people do, Nike still has your data. They know you're interested, they know your size, they know what you're willing to spend. That's valuable for future drops. Lucas: Exactly. The funnel doesn't end with a loss. It loops back to awareness for the next drop. Nike keeps you in the ecosystem through push notifications, emails, and in-app content. They're constantly moving you through the funnel again and again. Luna: So the real product isn't just the shoe—it's the experience of trying to get the shoe. And that experience builds a community. Lucas: That's a really important point. Nike has cultivated a community of 'sneakerheads' who share release calendars, discuss drops on forums, and even trade shoes after the fact. That community drives organic awareness—people talk about drops without Nike spending a dime on advertising. Luna: And that community also feeds the interest stage. If you're on Twitter or Reddit, you see people excited about a drop, and you want to be part of it. Lucas: Exactly. Now, let's talk numbers. Nike's SNKRS app has over 20 million monthly active users. And each drop generates massive engagement. For the Travis Scott drop, the app saw over 5 million entries in the first hour. Luna: Five million entries for 50,000 pairs. That's a 1% success rate. But people still try because the perceived value is so high. Lucas: And that perceived value is partly driven by resale prices. On StockX, those Travis Scott Jordans were trading for over $1,000 within days of the drop. So even if you don't wear them, you can flip them for a profit. That adds a financial incentive to the decision stage. Luna: Which is interesting because Nike doesn't officially endorse resale, but they certainly benefit from the buzz it creates. A shoe that resells for three times retail feels more valuable, and that makes people want it even more. Lucas: Right. And Nike has also experimented with different drop formats to keep the funnel fresh. Sometimes it's a raffle, sometimes it's first-come-first-served, sometimes it's a 'shock drop' with no warning. Each format creates a different dynamic in the decision stage. Luna: Shock drops are brutal. You're just scrolling and suddenly a notification pops up: 'Available now.' You have maybe 60 seconds to decide. Lucas: And that forces an almost instantaneous decision. It's the ultimate test of the funnel—have you built enough interest and desire that someone will click 'buy' within seconds? For Nike, the answer is almost always yes. Luna: But I wonder: can this model work for smaller brands? Most companies don't have Nike's brand power or community. Lucas: It's harder, but not impossible. Some smaller sneaker brands like New Balance and ASICS have adopted limited drops successfully. The key is to build a genuine community first, then introduce scarcity. If you just limit supply without any community, it feels gimmicky. Luna: That makes sense. You need people who care enough to act fast. And that caring comes from the earlier stages of the funnel—awareness and interest. Lucas: And one more thing: Nike's funnel doesn't just end with the purchase. After you get the shoes, you're encouraged to share photos on social media with hashtags like #Nike or #SNKRS. That user-generated content becomes free awareness for the next drop. Luna: So the action stage feeds back into the awareness stage. It's a virtuous cycle. Lucas: Exactly. And that's why Nike's marketing funnel is so powerful. It's not a linear path from awareness to action. It's a loop that keeps customers engaged indefinitely. Luna: Speaking of loops, I want to mention that conversations like this—breaking down how a brand builds that loop—are exactly why we keep doing this show. And a couple of dollars a month at buy me a coffee dot com slash fexingo genuinely helps keep these episodes ad-free. If you've ever used something from an episode, it makes a real difference. Lucas: Yeah, it's a small way to support something you get value from. No pressure, but it helps us keep the focus on the content, not the ads. Luna: So back to Nike. One last thought: do you think the 'drop' model will spread beyond sneakers and streetwear? I've seen some brands try it with electronics and even coffee. Lucas: It's already happening. Supreme started it, Nike perfected it, and now you see it in everything from watches to hot sauce. The key is whether the brand can create genuine desire and community. If it's just artificial scarcity, people catch on and the funnel collapses. Luna: So the lesson for marketers is: build the community first, then the funnel. Because without that interest, no amount of scarcity will drive action. Lucas: Exactly. And that's a good note to end on. Thanks for listening, and we'll be back next week with another episode.