Brick by Brick: Lego’s Loyalty Success Story

Lego is a global icon for toys that provide innovative fun for all ages. Even as digitalization pervades every aspect of our lives, as long as people continue to treasure the joy of physical play and the bonding it brings, Lego’s business will continue to thrive. 

However, in today’s ever-evolving business landscape, customers reign supreme. More than marketing or a remarkable product, the success (or downfall) of a business hinges on customer relationships. A study by Colloquy unveiled that 54% of Filipinos want personalized offers and recommendations from loyalty programs. As this pivotal shift in customer behavior became apparent, Lego rose to embrace the challenge.

Spoiler Alert: Lego chose to create their own loyalty program! The impact? An impressive 3,280% surge in the value of their loyalty transactions within just one year of partnering with ZAP! Read on to find out how they did it.

THE GOAL: ENHANCING CUSTOMER CONNECTION IN A DIGITAL AGE

Now Lego already has a strong connection with their customers, due to the interactive and nostalgia inducing factors of their product. But as a leading toy brand, they always strive to be the best. In this digital age, that meant aiming to engage customers on a deeper level and encourage their return visits. 

In this fast developing digital age, you need the right tool to do that. And as many studies have shown, loyalty programs are the best and most cost effective weapon in a business’ arsenal. Not only will it engage your current customers and increase retention exponentially, but it will also help solidify your brand’s image. That will then go a long way in building brand credibility and attracting new customers. 

SOLUTION: LEGO’S TRANSFORMATIVE LOYALTY PROGRAM

With their primary goal of boosting customer retention and the next step forward finalized – Lego created their own loyalty program with the help of ZAP. 

Opting for a white label loyalty program provider like ZAP came with many benefits.

1. Ensured Lego’s brand remained central to every customer interaction
   
2. Gave them full control over the direction and image of their loyalty program – allowed them to personalize the experience of their customers from end to end 
   
3. Less work and costs for Lego – since they didn’t have to start from scratch, all they had to do was work with ZAP to integrate their new loyalty program with their current operations. 
   
4. Faster setup, happier customers – the full support of ZAP’s team ensured the quick creation and launch of their loyalty program, which customers eagerly signed up for. 

RESULTS: A QUANTUM LEAP IN PERFORMANCE

The benefits of a loyalty program aren’t just qualitative – they undeniably have a positive quantitative effect on the business as well.

In Lego’s case, their loyalty program showcased astonishing results. Within the 1 year subscription that their initial investment secured, their visits skyrocketed by 3,691%, new members increased by 2,310%, and active engagement from members led to a monumental 3,280% increase in the value of their loyalty transactions.

Conclusion: The Building Blocks of Success

2023 continues to find Lego in a realm of ongoing growth. Through their ZAP-powered loyalty program, their business health flourished, marked by a 353% surge in visits and a 268% increase in new members from 2021 to 2023. A substantial 229% spike in total transactions further underscores their triumph.

Thus what started out as Lego’s goal to improve customer retention became one of their greatest strengths. Not only did it help them save costs, but it also increased their revenue tenfold whilst simultaneously strengthening their customer relationships through rewards. True to the nature of their product, Lego chose the best building blocks to create a win-win situation for everyone! 

Dive into the wealth of insights waiting for you on our user-friendly loyalty program dashboard. Lego’s triumph as a valued partner underscores the prowess of ZAP’s Loyalty Program in streamlining business operations.

Ready to unlock these benefits for your venture? Take action now – explore our products and click the links below to schedule a call with us today!

Reviving Your Brand: How Nature Republic Found Success through Customer Connection

An international makeup & skincare brand gets its own makeover! 

With the beauty industry thriving and growing locally, hundreds of brands are competing for the customer’s attention. After 10+ years in the industry, Nature Republic wanted to take the initiative to shake things up and find a way to better connect with their customers and establish themselves as the go-to brand. 

THE PROBLEM: COMPETITION & CUSTOMER CONNECTION

Connecting with customers can be challenging when there isn’t a clear definition of who they are. With no existing customer database, Nature Republic had to rely on transaction based data – focusing on product trends rather than customizing promotions for the customers themselves.

The lack of effective promotions coupled with weak customer relationships posed a significant weakness for Nature Republic, especially in a market where products and prices were similar across different brands.

THE SOLUTION: EMPOWERING LOYALTY WITH ZAP

Together with ZAP, Nature Republic was able to create a customized loyalty program complete with an easily accessible customer database along with other exciting features. Nature Republic then used the data to build a profile on which they could confidently base their promotions and communications on.

Beyond mere freebies, they could now give back to customers and cultivate a more meaningful relationship to inspire loyalty. They also gained a competitive advantage with their brand new loyalty program, as the points system meant the customers would save more by repurchasing and staying with Nature Republic. 

Nature Republic was also able to use the other features of the loyalty program to improve different aspects of their business. Some examples of their most used features include: 

THE RESULT: THRIVING IN A COMPETITIVE LANDSCAPE

Today, Nature Republic confidently holds its ground as a leading brand – even amidst the growing competition. With an easily accessible and updated dashboard, their team is able to swiftly identify weaknesses and craft effective promotions to address them. The improved visibility on branch health has allowed them to become more agile and responsive with their marketing strategies, quickly adjusting to help low performing stores and able to promote the right products at the right time. Creating communications has become a breeze for the team as well, thanks to the valuable customer and market insights at their fingertips.

With Nature Republic becoming more active, they saw a jump in transactions and customer loyalty. Since they partnered with ZAP, customer visits had increased by 109% and transaction amount had increased by 149%*. More customers were now interacting with their promos and even taking the initiative to reach out to them to learn more about the brand and any campaigns they were running. The ultimate success lies in their loyal customers becoming brand advocates, enthusiastically inviting others to experience the many benefits Nature Republic had to offer.

CONCLUSION: CONNECTING THE DOTS

By building personalized connections, Nature Republic turned customers into loyal customers, and loyal customers into brand advocates. In a market where loyalty can make or break a business, Nature Republic now thrives. With their newfound flexibility they have found the confidence to explore and execute bigger campaigns that are more in line with both the brand and the customer’s interests. 

To learn more about ZAP and how a fully branded and customized loyalty program can change your business for the better, reach out to us today!