Latest / The Retention Marketing Podcast with Fexingo: Email, SMS, and Loyalty for Repeat Customers / How Nike Uses the App to Drive Repeat Sneaker Purchases
Transcript
- Lucas: You know that feeling when you open an app and there's a countdown timer, and you're not sure if you'll actually get the thing you want before it vanishes? Luna: I mean, I've definitely been there. Usually for concert tickets or limited-edition drops. Lucas: Right. And that exact mechanic is one of the most powerful retention tools in marketing right now. Today I want to talk about how Nike uses that feeling — not to sell a one-time hype product, but to build a habit of checking their app every single day. Luna: So this is less about the shoes themselves and more about the system they built around them. Lucas: Exactly. The SNKRS app. It launched in 2015, and initially it was just a way to alert sneakerheads about new releases. But over time, Nike turned it into a full-on loyalty platform. Here's the key number: Nike's membership program, which includes SNKRS, has over 300 million members globally. And members spend significantly more than non-members — we're talking nearly 30 percent higher lifetime value. Luna: That's huge. And the interesting thing is, they're not doing it with points or traditional rewards. They're doing it with scarcity and exclusivity. Lucas: Right. The core mechanic is the 'drop'. A limited-edition sneaker releases at a specific time, and you have to be on the app, ready to enter a draw or buy immediately. The supply is intentionally limited. It creates that FOMO — fear of missing out. Luna: But how does that drive retention? If you miss out, doesn't that just frustrate people? Lucas: You'd think so. But the data shows the opposite. When you miss a drop, you're actually more likely to check the app tomorrow, because the next drop might be the one. It's like a slot machine. The intermittent reward schedule is incredibly addictive. Nike even has a feature called 'exclusive access' — if you've been active on the app, you get early access to certain drops before the general public. Luna: So it's like a VIP tier that's based on engagement, not spending. Lucas: Exactly. The more you interact — browsing, liking, sharing, watching live streams inside the app — the higher your 'access' level. And when you get that exclusive access notification, it feels like a reward. You feel special. That's way more powerful than a 10 percent off coupon. Luna: And they've layered in content too. There are stories about the designers, videos about the culture. It's not just a store — it's a media platform. Lucas: That's exactly right. The app has editorial content, athlete interviews, behind the scenes looks. It keeps people coming back even when there's no drop happening. The average SNKRS user opens the app something like eight times a week. That's daily engagement. Luna: So the retention strategy isn't about reminding people to buy. It's about making the app a destination. Lucas: And it works. Nike's digital sales have grown from about 10 percent of total revenue in 2015 to over 40 percent now. A huge chunk of that comes through the app. They've effectively turned a physical product — sneakers — into a digital experience that people want to check every day. Luna: And this is especially smart because sneaker drops have a natural scarcity. You can't fake that with, say, a t-shirt. But Nike has built the entire membership around that one high-stakes event. Lucas: Right. And other brands are trying to copy it. Adidas has the Confirmed app. But Nike's first-mover advantage and community building are hard to replicate. They've also integrated SNKRS with their main Nike app, so your activity in one feeds into the other. Luna: Let's talk about a specific example. The Travis Scott Air Jordan collaboration — those drops generate insane demand. Lucas: Yeah, those are the ones where you see people lining up virtually days in advance. Nike uses a 'draw' system for the most hyped releases. You enter a lottery within the app, and if you win, you get the chance to buy. That builds even more anticipation. And for the people who don't win? They're already looking at the next drop. Luna: So it's a constant cycle of anticipation, attempt, and either reward or deferral. And the deferral doesn't push people away — it pulls them back. Lucas: Psychologically, it's classic variable reward. The same mechanism that makes slot machines addictive. But Nike is using it ethically — it's for sneakers, not gambling. And it's completely transformed their customer retention. Luna: I think there's a lesson here for any brand that has a limited product or a seasonal drop. Even if you're selling something less exciting, you can create a similar anticipation cycle. Lucas: Absolutely. And if these kinds of marketing conversations have sparked something you've actually used in your own work, or just found interesting — a couple of dollars a month is genuinely what keeps these shows going. Buy me a coffee dot com slash fexingo, if you've gotten something out of them. Luna: Yeah, it really does make a difference. And it keeps us ad-free, which we love. Lucas: So back to Nike. One other thing they do that's brilliant: they use the app to gather data on what members are interested in. If you browse a certain shoe, they might send you a push notification when a similar colorway drops. It's hyper-personalized without feeling creepy. Luna: And that's the data goldmine that loyalty programs create. It's not just about points — it's about understanding preferences. Lucas: Right. And Nike uses that data to tailor the exclusive access offers. If you've been looking at running shoes, you might get early access to a new Pegasus release. It makes the offer feel relevant, not random. Luna: So the retention is happening on multiple levels: the daily habit of checking the app, the exclusive access reward, and the personalized recommendations. Lucas: Exactly. And all of it is tied to the membership. Nike doesn't just sell shoes — they sell membership in a club where the shoes are the prize. Luna: I can see why other brands are trying to emulate this. But it takes a lot of investment in technology and content. Lucas: It does. But the payoff is enormous. Nike's membership program now drives over half of their digital revenue. And members are far more likely to buy again within 30 days. It's the gold standard for app-based retention. Luna: So what's the one takeaway for a smaller brand listening to this? Lucas: I'd say: find your version of the 'drop'. It doesn't have to be a limited-edition sneaker. It could be a weekly live sale, a limited-run product, or a seasonal collection. Build anticipation around it, create a ritual, and reward your most engaged customers with early access. That cycle of anticipation and reward is what builds the habit. Luna: And don't forget the content. Nike's app isn't just transactional — it's a place people want to hang out. Lucas: Exactly. Make your app or your email list a destination, not just a store. That's how you turn a one-time buyer into a member for life.