What Nonprofits Can Learn from Nike’s $25 Billion Mistake

Nike’s recent $25 billion loss is a powerful reminder for nonprofits about the risks of relying too heavily on data without considering the bigger picture.

Nike, guided by a “data-driven” strategy, shifted its focus to digital sales and streamlined its operations. The idea was to become more efficient by using data to drive decisions. However, this approach led to a major misstep—Nike’s stock dropped, and the company lost billions in market value.

The core problem? Nike focused too much on data that was easy to collect, like sales from existing customers, and ignored the insights that are harder to measure but just as important. They lost sight of what their broader customer base wanted, leading to unsold products and missed opportunities.

For nonprofits, the takeaway is clear:

While data is important, it’s not the whole story. Nonprofits often use data to make decisions, whether it’s about fundraising, donor engagement, or program effectiveness. But if we only look at the data that’s easy to gather, we risk missing the full picture of the communities we serve.

To avoid this, nonprofits should balance data with real-world insights. This means going beyond the numbers to understand the needs and voices of those who may not be as visible. It could involve deeper community engagement, gathering qualitative feedback, or simply paying attention to the stories behind the statistics.

In the end, a successful strategy isn’t just about what the data tells you—it’s about understanding the people behind the numbers. By combining data with a deeper understanding of your community, nonprofits can make better decisions that truly serve their mission. Nike’s mistake is a reminder that data should guide us, but it shouldn’t be the only thing we rely on.

If you would like to talk about how we can help you learn from the communities you serve, give Spark Mill a call. Just Do It!