THE LEGO GROUP: DIGGING OUT FRESH CUSTOMER INSIGHTS

 Even before designing forays of LEGO products, TLG did deep market research on how
children in the fast-moving world play. The company ditched traditional methods and
adopted innovative approaches using data analytics. It observed and interviewed children
along with their families for the “Aha! Moment.”

 Now, instead of keeping the designs simple, the company focused on more specialized and
structured Legos. From building basic square bricks, the company began manufacturing
crave-worthy products such as helicopters and ninja castles. It even collaborated and
developed customized products related to Star Wars, Disney Princesses, DC, and Marvel
Super Heroes. This move helped the company gain recognition among enthusiasts of the
popular shows and get onboard Adult LEGO fans who helped the brand co-create more
popular products through annual festivals.

 In addition, the company blended both physical and digital products into one and made it
possible for the children to build physical models by scanning their creations using a
smartphone application. The brand even ventured and made girl-specific products that
focused on role-playing, pink and purple accented LEGO Friends. All these combined helped
the brand gain popularity among the next generation of children.
 NETFLIX STREAM SUCCESS WITH BIG DATA AND MARKETING ANALYTICS

 Netflix's use of data analytics, which involves compiling information from its 151
million subscribers and utilizing data analytics models to understand consumer
behavior and purchasing patterns. After using this information, they would then
offer films and TV shows based on their members' tastes.
 Over 75% of viewer engagement, according to Netflix, is accounted for by
personalized recommendations. Netflix collects a multitude of data pieces to create
a complete picture of its users. In comparison to the identities created by
conventional marketing.
 Most importantly, Netflix compiles information on viewer involvement and reaction
to a TV episode. For instance, Netflix is aware of the user's device, the time and date
they watched a particular show, and if they resumed watching it after pausing it.
How long does it take a user to finish a show, do people watch entire TV shows, etc?
 The secret to Netflix's success is its ability to gather and use data. Netflix claims that because
the recommendation system accounts for more than 80% of the material streamed on the
network, they earn over a billion in user retention. Netflix also makes this decision on the
approval of original content using its big data and analytics technologies. In actuality, Netflix
approves original material based on several user-derived touch points, even though it may
appear to an outsider that they are just throwing money at whatever they can obtain.
 Netflix encourages customer input in addition to gathering information on user behavior.
One way of providing feedback is the thumbs-up/thumbs-down system that took the place
of their rating system. This approach significantly increased audience engagement and
allowed them to further customize the user's homepage. There are 33 million separate
Netflix variations, according to Joris Evers, director of global communications.

Nandini sharma
PGDM(SM)
2022-2024