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Loyalty360 Award Recap: A Q&A with Jason Whiting on the LEGO Group’s Multiple Award Recognitions · Leaders in Customer Loyalty, Powered by Loyalty360

• 0:05
  Mark Johnson: Good afternoon and good morning.
• 0:06
  Mark Johnson: This is Mark Johnson from Loyalty 360.
• 0:08
  Mark Johnson: I hope everyone's happy, safe and well.
• 0:10
  Mark Johnson: I want to welcome you back to our Loyalty 360 award recap series.
• 0:14
  Mark Johnson: In this series, we hear from award finalists that were part of the 2023 Loyalty Expo in Orlando, Florida.
• 0:20
  Mark Johnson: The LEGO Group was a finalist in the customer analytics insight metrics category, as well as the offer, incentive and award category.
• 0:29
  Mark Johnson: They both received the Platinum Award, which is the highest award for each category, and as part of that, they were also recognized as a 360 degree award winner, achieving gold in that category.
• 0:43
  Mark Johnson: Today, we have the pleasure of speaking with Jason Whiting.
• 0:46
  Mark Johnson: He's the director of membership at the LEGO Group.
• 0:49
  Mark Johnson: Jason, how are you today doing?
• 1:15
  Jason Whiting: .
• 1:15
  Jason Whiting: So, at the LEGO Group our rewards category is extensive and it's very much targeted at all of our users across passion points, themes, age, price range, etc.
• 1:26
  Jason Whiting: And there's a lot of work that we had to do to prove the value of those rewards and using some industry metrics.
• 1:35
  Jason Whiting: That said, if we can get somebody to redeem, we should be able to increase lifetime value by 30%.
• 1:39
  Jason Whiting: That's part of the reason why we changed the program.
• 1:43
  Jason Whiting: So then in the insights and metrics category, our focus really was we were presenting our engagement scoring piece, and the engagement scoring is really how we created some of the proof of concept behind a lot of the rewards and benefits that we created.
• 1:58
  Jason Whiting: So we actually took an approach of starting with what are the aspects of our program that would really drive engagement, not sales specifically, and we got lots of agreement within the organization that the mechanics that we in different benefits that we were looking at were indicators of high levels of engagement.
• 2:19
  Jason Whiting: Then we created an entire scoring model that rated all of our users on a scale from 0 to 50 and we used that to indicate whether they were low, medium, high or very highly engaged.
• 2:29
  Jason Whiting: And once we got all very much aligned on that we then applied that model to understand the value of those members as they moved through that and really that was the proof into the work that we were doing that what we saw is, while average order value might be lower between low engaged and medium engaged, so medium would have a lower average order value what we also saw is that group had a much higher lifetime value and it showed that the different engaged mechanics really moved people through that and actually the number one mechanic that moved people up that ladder was reward redemption.
• 3:06
  Jason Whiting: So it's not only how we identify what are the right rewards and what they can do to move the needle on the level of engagement.
• 3:14
  Jason Whiting: It's also to show that there's real value to the company behind that and we're really proud of that work.
• 3:20
  Mark Johnson: Aside from numerous awards that you have received as part of the LEGO group, what are one or two things that you are most proud of when it comes to your brand's customer loyalty program and the program efforts?
• 3:32
  Jason Whiting: Yeah, thanks, I would say.
• 3:33
  Jason Whiting: First, it's been the monumental shift in our strategy that we laid out in 2019 and moving from a very transactional program to a more engagement and reward this program.
• 3:50
  Jason Whiting: And there was a risk in there and it wasn't really smooth sailing but, as I shared, it was really paid off.
• 3:56
  Jason Whiting: Recruitment, engagement and redemption are way higher than projected and it's had a significant business impact, I would say.
• 4:05
  Jason Whiting: The second part is really how much we've expanded our offering in line with our brand values.
• 4:10
  Jason Whiting: So we're an emotional brand and we need to provide the benefits that are beyond that transactional nature.
• 4:16
  Jason Whiting: So we've worked across the entire company and directly with our users to identify what are the things that really resonate with them beyond, like I said, that, transactional money off experience and, I think, really being able to build that and get the rest of the company company behind it.
• 4:35
  Jason Whiting: It's been really powerful and really inspiring for me and the entire team.
• 4:40
  Mark Johnson: And is there a piece of advice you would share with a similar brand or someone within our brand who's looking to redo or enhance their customer loyalty efforts, their customer loyalty strategy, especially when it comes to having the right offer, incentive and reward approach?
• 4:55
  Jason Whiting: Yeah, so I think this is a good one.
• 4:56
  Jason Whiting: I've said this in a lot of these conversations with Loyalty 360 plus in other places too, so anybody's ever either read something that I've quoted or been in heard one of these interviews.
• 5:09
  Jason Whiting: I pretty much say the same thing.
• 5:10
  Jason Whiting: I'm a huge advocate for making sure your programs have strong brand alignment.
• 5:15
  Jason Whiting: Our businesses are based on that brand foundation and customers.
• 5:22
  Jason Whiting: They come to us not because of our loyalty programs, but because it's something that resonates with that brand, whether it's a convenience, price, quality carrying, inclusivity or, like us, you know, fun and creativity that brings people in.
• 5:36
  Jason Whiting: And if we don't have programs that reflect that and create rewards and benefits that really embrace that, we're going to be misaligned with those values.
• 5:43
  Jason Whiting: And our job is to strengthen the relationship with our users and I think making sure that we have that type of brand alignment and then building on those foundations of our brands are really important to the success of any of our programs.
• 5:57
  Mark Johnson: Now, briefly, what is next?
• 5:59
  Mark Johnson: What is the next new exciting thing for the LEGO group when it comes to strengthening their customer loyalty program?
• 6:06
  Jason Whiting: So it's a really great question and one I'm not quite ready to answer at this moment.
• 6:10
  Jason Whiting: All I can say is loyalty is more important to our brand than ever and we understand especially coming out of COVID and changes in shopper behavior and economic a macroeconomic issue changes that loyalty plays a massive role.
• 6:28
  Jason Whiting: Our company has headed into its 100th anniversary in 10 years from now and we know how important it is to build lasting relationships with our fans that actually even span generations.
• 6:40
  Jason Whiting: So I can't really reveal everything that's going on, but I would just say keep an eye on this space over the next year or two and you'll see some big changes coming.
• 6:49
  Mark Johnson: Jason, thank you very much for taking time to talk with us today.
• 6:52
  Mark Johnson: Congratulations to you and the LEGO group for all your success at the 2023 loyalty 360 awards.
• 6:58
  Mark Johnson: You're looking forward to hearing more from you and your program in 2023.
• 7:03
  Mark Johnson: Fantastic, thank you, and thank you, everyone, for listening.
• 7:06
  Mark Johnson: Make sure you join us again for another one of our loyalty recap series coming up soon.
• 7:10
  Mark Johnson: Have a wonderful day.