Conny Kalcher, VP of Consumer Experiences at LEGO Group, was the keynote speaker at our Recommended conference in London. This is her story on how LEGO has built great costumer experiences – and how you can, too.
Traditional Advertising is Dying
I’m a BIG believer in NPS and a big ambassador for it, as well. We have used NPS since 2005 in the LEGO group. What is NPS? NPS is when you ask a child or a mother if they would recommend LEGO or a LEGO experience to a friend or family member. They have to answer on a scale from 0-10. If they answer 9 or 10, they are promoters. They will go out and they will talk to others about your brand. If they answer between 0-6, they are detractors. They might talk negatively about you or they definitely won’t buy from you again. If they answer 7 or 8, they are passive customers.
We have measured satisfaction for many, many years and our satisfaction levels are normally around 95-97%. What can you use this number for? Absolutely nothing! What can you use NPS for, then?
When you have the score, you subtract the detractors from the promoters and the result is your Net Promoter Score. That means that, as a company, you focus not only on the people who love you for what you are, but you also focus on the ones you didn’t give a good experience to. If you’re then good at taking action with those that had a bad experience and turning detractors into passives and then into promoters, that gives you a very strong basis for sustaining your brand and your brand growth.
We measure this and, as I mentioned, have been doing so since 2005. We know that if we create a detractor – if someone has had a really bad experience – we can turn them around when they call our contact centre. We can say “We’re sorry about this, but we will immediately ship you some bricks for free.”
If we turn them around, they end up spending 20% more with us. If we can turn them into promoters, you can add 26% to that figure. It makes economical sense to deliver a good product and a good service. It isn’t just something that makes you feel good about your brand; it actually has economic value. As a person who has worked in marketing for many years, it’s nice to be able to speak a language that they understand in the financial department. It gives more weight to what you’re trying to achieve.
NPS is all about creating an emotional connection. If I see a company with a score of 25 and one with a score of 75, I know which company I would like to work for. It’s a much happier place that has much happier customers, and working for a company with a high score gives you more purpose.
We went to visit Ebay the other day, and the CEO said that NPS is “the love metric.” I love that. I think it’s brilliant. It is all about the love that you’re creating for your brand and the loyalty that you’re creating at the same time.
This is how we do “Live NPS.” Live NPS is something new. When customers shop in one of our brand stores, there is a URL on their receipt and we ask them to give us feedback. As soon as they give us feedback, it pops up on the store manager’s computer so s/he gets the feedback immediately. Here’s an example of what can happen. It’s an old example, but I still think it’s good:
There was a consumer who visited our store in Orlando. He gave us a score of 5, which, as you may remember, is a detractor score, so this is someone who had a really bad experience in our store. Then we asked him driver questions so we could understand why it wasn’t good. Then we could see that he gave us a 0 for check out efficiency. If we take a closer look, this was someone who wanted his product shipped, but the person at the till didn’t quite understand that, so the costumer had to go through the process twice, which is what he wrote in the comments section.
When there is a detractor, the manager gets an alert and he or she now has to take action within 24 hours (i.e. contacting the consumer and fixing the problem). If s/he doesn’t do that, the case escalates to the manager’s boss.
In this case, the alert came in at 11:11, and at 11:18 the manager emailed the customer and apologised for the bad experience. We will definitely look at the check-out process going forward in our training. The manager then found the store associate and used this example for training purposes. Now, they even do a daily huddle in the store where they discuss the comments they have had from the consumers.
When consumers get an email straight after they have complained, they get very surprised and in most cases, we will then be able to turn them from a detractor into at least a passive customer, if not into a promoter.
Reporting and Action
NPS reporting is also very important. It’s not about a score; it’s about a process. We report on a monthly basis and we have our KPIs up there, so a lot of people in the LEGO Group have our NPS as a KPI. If they work in the store, they see the store NPS and the Director will, for example, have the overall NPS, but we try to use the NPS score that is closest to them. We measure every week. The report shows if it is red, so they then if it isn’t good and they can also see what’s trending. If it’s green, then they are on track for the right KPI, but this isn’t the most important part.
The most important part is sitting down and discussing what kinds of actions to take for the next month. People can then click and read a more in-depth report of what the consumers are saying. This goes all the way up in our system. If you’re on red here, you’re not really that comfortable. You really need to fix this problem not just to get your bonus, but because there is probably a serious problem with the consumer. It’s all about the process and not the score.