It is always interesting to see how different organisations see the importance of data and customer connection and the strategies they adopt to connect with customers.
Under Armour is rapidly becoming a technology owner – acquiring MapMyFitness, MyFitnessPal, and Endomondo for a combined $710 million. A big number for a company that turns over $4 billion.
It’s a big bet by them on the importance of data and I’m sure it is a strategy to create a platform to build customer loyalty and secure additional revenue streams. Reportedly, Under Armour is developing its own tracker and new apps to interface with customers.
Under Armour is going after a strategy that Nike has abandoned – presumably because it was unsuccessful for Nike. Nike shut down its FuelBand fitness tracker line. Nike is now relying on alliances (an alternative and very legitimate strategy) for its data and ‘wearables’.
Maybe it’s not a fair fight with the might of Nike vs the smaller Under Armour – but it’s going to be interesting to watch and I like the level of importance that Under Armour is placing on trying to create a platform for customer connection.