Forrester Wave Report
Leslie Stretch, Medallia CEO, and Borge Hald, Medallia Founder, Reflect on Being Named A Leader by Forrester in The Forrester Wave™ Customer Feedback Management Platforms, Q4 2018 Elena:...
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The LEGO Group Wins Forrester’s Prestigious Outside In Award for Its Superior CX Measurement and Improvement Practices
A customer shops at a LEGO store. After tapping her foot for far too long in the checkout line—“how long should it take to make a purchase?”—she receives and fills out a post-purchase survey. Unsurprisingly, she complains about the long wait. Within seven minutes, the store manager receives the survey, reads it, and calls the customer to thank her for the feedback and promise to improve the checkout process. The customer is floored. Talk about the powerful mix of real-time feedback and frontline empowerment — and it’s an incredibly effective way to create customers for life, one experience at a time.
But as impressive as this story is, it happens to be business as usual at The LEGO Group. In fact, The LEGO Group is just brimming with such CX legends, which appear across its entire business—identifying a faulty part in a rocket ship and proactively mailing the replacement part to each customer (true story); changing shipping carriers and relocating a distribution center based on increasing customer reports of delayed online orders (also true); increasing production of a particular line in response to the product’s overwhelming customer popularity (you got it—true).
The LEGO Group understands that an overall experience with a company is the sum of multiple interactions. Rather than thinking of each touchpoint simply as a transaction that needs to be completed, LEGO treats each part of its business as another opportunity to engage, to transform, to improve overall experience and create customers for life.
This rigorous approach to customer experience improvement is a big reason why Forrester has recently awarded The LEGO Group the “Outside In” Award for its outstanding customer experience measurement practices and results. Forrester chose winners for the inaugural Outside In Awards based on five criteria: clarity of approach, business value to the organization, positive impact on customer experience, innovation, and potential for other companies to replicate the practice.
Consistently engaging customers and improving their experiences throughout a massive organization is not easy. It takes serious operationalized CX measurement practices, sophisticated analytics, and organizational discipline. The LEGO Group collects feedback and measures NPS and other key experience metrics across its entire global business, including:
This feedback is then routed to the right group, which is empowered to make change. Each group continually monitors its performance, which enables it to identify seasonal trends or issues that need immediate action. For example, the decision to move the company’s European distribution center resulted from scrutinizing year-over-year data that indicated declines in delivery timeliness, independent of seasonal trends. After the shipping center moved, timeliness immediately rose, and LEGO Shop at Home’s customer satisfaction results not only improved, but the group was also better prepared for the busy season.
This approach works. With NPS as a KPI, each year The LEGO Group sets a company-wide target NPS number based on internal benchmarks. In the spirit of The LEGO Group founder’s motto, “only the best is good enough,” the NPS bar continues to rise, especially in critical areas that need greater focus. It should come as no surprise that with its dramatic increase in NPS over the past few years, The LEGO Group has also experienced phenomenal financial growth. Global consumer sales increased 24.6% from 2010 to 2011 alone. Revenue increased 25% from 2011 to 2012, and 232% from 2005 to 2012.
It’s not easy putting the customer at the center of everything you do. As any of us who have had less than stellar experiences as customers can attest, too many businesses don’t seem interested in asking for your feedback; or, if you do offer it, those businesses rarely are able to do anything about it. What’s most impressive about The LEGO Group is that the company demonstrates the power of both actively soliciting feedback, and empowering everyone in their entire organization to drive improvement based on what they learn. The LEGO Group’s recent success is a testament to the power of its relentless organizational-wide commitment to customer experience excellence. Medallia is happy to be the solution that helps The LEGO Group to embed the customer in everything they do and drive the right actions to create great customer experiences. Congratulations!