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The LEGO Group recently earned a Forrester Research Outside In Award in the measurement category – thanks largely to its customer experience management solution from Medallia.
The award acknowledged the set of practices required to measure customer experience quality metrics on an ongoing basis, and the use of that data to drive continuous improvement. Michelle de Haaff, VP of Marketing for Medallia, told Loyalty 360 that a key strength of the Medallia’s customer experience management software is that the consumer experience is measured continuously.
“In LEGO’s case, insights are shared in real time and in regular meetings with a cross-functional team of both internal employees and external partners,” she said. “Everyone has a shared sense of ownership of the consumer experience. This daily monitoring and the weekly meetings to share and discuss results and consumer comments keep the consumers’ voices and their experiences top of mind.”
The Medallia-powered customer insights program has resulted in greater customer satisfaction, improved Net Promoter Scores (NPS), and increased revenue across brick-and-mortar and online LEGO stores.
According to de Haaff, this is how LEGO used of Medallia's software for tracking customer sentiment.
“The LEGO Consumer Metric Program partners with Medallia by using its feedback and analytics platform to drive measurement, understanding and action across the organization,” she explained. “Online and easy access to customer feedback and insights allows thousands of LEGO Group employees across multiple business areas to engage with the system and stay tuned-in to live customer feedback.”
With this feedback and insights, LEGO’s cross-functional team reviews and takes action according to the following schedule:
Daily: Business area owners have access to the live reporting tool to review consumer responses daily and close the loop immediately with consumers who ask to be contacted. Changes can involve updating a message on the website about product availability, notifying consumers of shipping delays due to weather, or ramping up staff in the distribution center to process orders faster.
Weekly: Cross functional meetings take place for further action: Order/delivery issues are reviewed, actions identified, and owners assigned. The owner shares the outcome of any action in the next week’s meeting; shipping partners receive notices about delayed deliveries for further investigation; and distribution centers receive data about damaged or missing items to determine if there is an issue with picking or packing.
Monthly: Insight “Deep Dive” is shared with more than 4,000 people across the LEGO organization as a part of the monthly Net Promoter Program Scorecard. Strategic decisions are made and the impact of changes is tracked over time.
LEGO continually uses consumer feedback via Medallia to understand customer sentiments and make changes, and de Haaff offered two examples:
In Europe, LEGO’s Consumer Insights Team noticed through Medallia data a steady decline in delivery timeliness scores. Armed with this cumulative data, LEGO instituted a major operational change: In June 2012, LEGO moved its shipping warehouse to a more central location, in Belgium. Consumers immediately started receiving orders up to 24 hours sooner on average, and LEGO’s Net Promoter Score (NPS) improved.
LEGO also made shipping changes in North America. The team noticed increasing complaints about late delivery times in certain areas of the country using a specific third-party service (a service that routes packages to local post offices for final delivery). LEGO stopped using this service in those areas, and NPS immediately jumped and the number of consumers who reported that their order arrived later than expected has declined by 40%.
“LEGO takes in consumer data across each touchpoint to gain a full picture of their experiences, to identify weak areas, and to make improvements in over 15 different ways,” de Haaff said. These areas include:
LEGO Products: A link to an online survey is printed on building instructions in nearly all LEGO sets. The information gathered through this channel helps drive product development, demand planning, and dictates immediate tactical action and communication.
LEGO Customer Services, Call Center: More than 1 million customers call LEGO’s contact centers each year. Representatives who field calls speak with children as well as adults, capture feedback, and escalate issues to the appropriate business areas.
LEGO Retail Stores: Store managers read every comment and contact any adult store visitor who leaves contact information, and regional managers access the information to improve larger store operations. Feedback is continually used to train store associates and improve experiences.
LEGO.com: Feedback is used to improve content and visitor experience.
“Medallia is thrilled that Forrester Research has recognized The LEGO Group for the quality of its customer experience program – specifically for how it measures, tracks and responds to customer feedback to boost customer satisfaction,” de Haaff said. “The LEGO Group’s commitment to continually improving the customer experience is evident in the passion and loyalty the company and its products inspire in its customers.”
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