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.
– Sales and Marketing Head, LEGO Certified Store
Our main goal for implementing the ZAP program was to really boost customer retention. Through the points and member only discounts, I would say that it was a success.
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.
- Ensured Lego’s brand remained central to every customer interaction
- 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
- 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.
- 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.
– Sales and Marketing Head, LEGO Certified Store
The integration itself went quite smoothly. We just had some minor customizations that took some time to implement, but overall it was quite quick and efficient. […]The customers were very happy to have the perks that came with the program.
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.
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