Building LEGO Brand

Ambassadors
September 29, 2010
Conny Kalcher
Vice President Consumer Experiences

Peggy Conley
Director Consumer Insights

Medallia Confidential

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Medallia Confidential

The LEGO Group

Founded in 1932 by Ole Kirk
Christiansen

LEG GODT LEGO

Godtfred Kirk Christiansen
launches the first LEGO
brick in 1948

System in Play 1958

52 LEGO Bricks for every
person on earth

Largest tyre manufacturer in

the world

Kjeld Kirk Kristiansen, 3rd

Generation, Vice President

of the Board Thomas Kirk
Kristiansen 4th generation

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Medallia Confidenial

8,000 employees

One Brand Company

DKK Million

One Brand
Company

15000

One Industry
One mother Brand
with sub-brands

11250

One building System

One Brand
1960: Focus on plastics

7500

Toy
Industry
Wood &
Plastic

3750

Toy Industry
Wood Material
0
1932

1936

1940

1944

1948

1952

1956

1960

1964

1968

1972

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1976

1980

1984

1988

1992

1996

2000

Brand Mission: To Inspire and

Develop the Builders of Tomorrow

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The LEGO Group Mission

The LEGO Group Mission:

Inspiring and developing the builders of tomorrow

In CED, we do this through:

Personally relevant and enriched LEGO experiences

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Agenda

LEGO Company
Know Me and Show Me

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Medallia Confidential

Know Me and Show Me

1:1
Richard James - AFOL

537 hits on Google for Richard James, Lego

Spends 000s on LEGO annually
LEGO Inside Tour visitor
Contributor to the Brickish Association AFOL

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Segmenting LEGO Consumer

Groups by Affinity
Impacting

Involved

Engaged
beyond
the brick
Engaged
with
the toy
Still
interested?

Lead
Users

Define critical
high value
segments
in each layer
and differentiate
the experience

1:1
Community
Connected
Community
Active
Households

Covered
Households
All
Households

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Medallia Confidenial

Agenda

LEGO Company

LEGO
TouchPoints

Know Me and
Show Me

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Medallia Confidential

Many Touchpoints, Products,

Experiences
Shop@Home

Brand Shops
Consumer Service

LEGO
Club
Products

Kids Inner Circle

MMOG
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LEGO.com

From many Individual Experiences

to ONE LEGO Experience
From
LEGOLAND

LEGO.com

To
Brand
Retail

LEGOLAND

Parks

Parks
Stores

Community
Development

Consumer
Services

LEGO
Shop At Home

LEGO Education

silo, blind, inconsistent

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Merlin

Retailers

Consumer
Services

LEGO.com

Consumer
Insights
&
Systems

Community
Development

Brand
Retail
Stores

Retailers

LEGO
Shop At Home

LEGO Education

integrated, branded, premium

Medallia Confidenial

Agenda

LEGO Company
Know Me and Show Me
LEGO TouchPoints
NPS achievement so far

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Medallia Confidential

NPS is the tool to constantly

improve the Consumer Experience
Consumer
feedback
loop
Take
Action:
Consumer

Collect
data

Create
Insights

Learn
from
insights

Refine
Repair
Recall
&
Innovate

Consumer Service
Global Brand Retail
Shop@Home
LED
LCD
LEGO.Com
LEGO Club
LEGO Community
Events

BOOST
Consumer
Experience
&
Lifetime
Value

LEGO
feedback
loop

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Measure
Impact &
Satisfaction
(T.O. & NPS)

Sharing broadly & making people

accountable for actions

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Key metrics highlight areas

needing action plans
Online post purchase
survey with 4 questions

Changed
packing
materials

Working
with
fulfillment

C Target

Improved
availability &
communication

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CED NPS has increased 26%

since 2005

24

NPS is calculated by taking Promoters who are likely to recommend a product or experience to
their friends (% saying 9-10 on an 11-point scale from Extremely Likely to Not at All Likely) and
subtracting Detractors (% saying 0-6 on same scale).

Medallia Confidenial

Measuring Financial Impact

Extremely
likely

9-10

Promoters

Incremental spend 26%

(1:1 level)

7-8

Passive
Promoters

Incremental spend 20%

(1:1 level)

0-6

Detractors

Not at all
likely

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Mapping the LEGO Consumer

2009 Year End
G4 Markets = US, DE, UK, FR
Households

Active
2009 = 9,000
2008 = 5,700

Active
2009 = 3.9 mill
2008 = 3.3 mill

Active
2009 = 8.6 mill
2008 = 8.4 mill

Active
2009 = 19.0 mill
2008 = 17.0 mill

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As engagement
increases
NPS goes up
Spending
goes up

Agenda

LEGO Company
Know Me and Show Me
LEGO TouchPoints
NPS achievement so far
New NPS Initiatives

Live NPS in Brand

Stores

Product NPS

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Live Retail Store NPS

All consumers have the

opportunity to go online, enter the

website URL and complete the
survey leaving feedback and their
contact information

Managers are responsible for

viewing their results daily and

responding to any alerts; Closing
the loop with consumers

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Medallia Confidential

Receiving and Responding to Alerts

A consumer visited the Orlando Store and was not satisfied with
their experience:
Detractor
The Consumer
was upset with
the checkout
process

After this survey

response is submitted
the manager receives
this email alert

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Medallia Confidential

Receiving and Responding to Alerts

The alert came in at 11:11am. By 11:18am the Store

Manager had emailed the consumer thanking them for
their visit

The Manager apologized for not meeting the

consumers expectations regarding an efficient
checkout process and knowledgeable Store Associate

The Manager let the consumer know that more

emphasis would be put on checkout during training

The Manager printed the consumer comment and

shared it with Store Associates

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Medallia Confidential

Good experience impacts the bottom line

Average spending that day in the LEGO store

Likelihood to return to the LEGO store

9.8

tell 6
more
people

Detractor

Passive

8.3
5.6

Promoter

Detractor

Passive

Promoter

* On an 11-point scale where 10 is Extremely likely and 0 is

Not at all likely

Not only do promoters spend more that day in the LEGO

store, they also recommend the LEGO store to another 6

people on average.

Converting passives to promoters can improve the

spending.

Detractors are not likely to return to

the store.

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Measuring LEGO Product NPS

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Product NPS program works

on 3 horizons
End user builds & plays
with LEGO set
k

Feedback into Medallia online survey

Instantaneous, LIVE reporting

Corrective
Action
Short term
Correct quality issues
2-way dialogue

e k
th c
g ba
in ed
os fe p
Cl O loo
G
LE

e c
th dba
ng fee
i
s
lo r p
C me oo
l
u
s
on

Scorecard

Accumulated
Knowledge

Mid term
Business & demand
planning

Product development &

innovation

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Long term

Agenda

LEGO Company
Know Me and Show Me
LEGO TouchPoints
NPS achievement so far
New NPS Initiatives

Live NPS in Brand

Stores

Product NPS

Building Lead User

Advocacy & Brand
Ambassadors

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LEGO Lead Users & Fans know

our product ( better than us!)
Regular Consumer

LEGO Fan/Lead User

Source: Yun Mi Antorini

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53 million LEGO hits on

www.google.com

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664,000 Brickfilms on YouTube,

some are blockbusters!

21mio
views
yesterday!

11mio
views
yesterday!

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760,000 creative Pictures on Flickr

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Community Events have 1.6 Million

yearly Visitors !!

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The Worlds biggest subscription

based Club for boys: 3.5 mio
On-line Club
Club Jr
Club TV

Club House

BrickMaster
Magazine
Max shares his
enthusiasm and
inspires Club members.

Meetings
at Retail
LEGOLAND
Club Weekends
and VIP
treatment

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Club
Email
Newsletters
Brand
Store
Events

Some Lead Users create their

own LEGO Business

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Lead User Involvement &

Co-creation

Co-developed LEGO published

LEGO developed LEGO published

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The ultimate signal of loyalty

But the company that is
perhaps most successful in
embedding its goods into a
total experience is HarleyDavidson. How many other
company logos do you find
tattooed on users bodies?
Source: The Experience Economy, B. Joseph Pine II, James H. Gilmore

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Shared Identity
BUILD A GROUP MODEL
BUILD A SHARED UNDERSTANDING
OF THE IDEAL IAF CONFERENCE
EXPERIENCE
YOU HAVE 40 MINUTES TO BUILD
PRACTICE YOUR STORY
SHARE YOUR STORIES BETWEEN
THE GROUPS

Thank You!
Conny.Kalcher@lego.com
Margaret.Conley@lego.com
Medallia Confidential

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Medallia Confidential