Customer Co-Creation: The Lego Story - Part 1

Since I was a young child, I have loved LEGOs. I recall sitting with my cousins and creating characters and models out of LEGO, then inventing our own stories based on the models we created. With a sizable consumer base and more than 50 years of customer loyalty, LEGO is a well-known brand. The fact that LEGO has a co-creation approach in place is its strongest feature. I'm ecstatic that so many LEGO fans can create an idea, build it, and share it in a public place. This co-creation platform is just what LEGO fans and customers need to show their creativity while also assisting their favorite company in developing better LEGO sets and designs. I believe LEGO management made a wise decision in building this co-creation platform to raise the value of their brand, increase revenue, and expand their community. Let's discuss some aspects of co-creation in LEGO.

What type of Co-Creation is LEGO using in this platform?

LEGO is utilizing a "submitting" form of co-creation. Customers or ordinary people are challenged to invent and conceptualize an idea. They are then invited to create a design for the manifested idea and submit it to an open forum. Their submission will be visible to the public in the open forum. They would gain supporters as a result of their concept, inventiveness, and innovativeness. Finally, if a person receives more than 10,000 backers, LEGO will shortlist them, and the winner will have his or her invention included in actual LEGO items. Aside from that, the winner will be officially acknowledged and referenced, as well as get cash awards. When there is a lack of ideas or a lack of public acceptance in a firm like LEGO, using such a co-creation strategy in the form of submission can considerably enhance sales, extend the network and customers, and ultimately make the product more relevant.

What is Lego's broader strategy?

Lego's tactics include the following:

1. Leverage digital marketing to increase product popularity through contests.

2. Encourage individuals to submit creative ideas, and then capture these ideas to build appealing and original products and become a market leader in the toy manufacturing business.

3. Use the existing loyal consumer base to spread the brand further by developing a community relevant to the industry by soliciting user identities.

4. Maintaining the existing consumer base by acknowledging and rewarding their contributions through the forum.

5. To obtain a pulse on the present generation and to stay relevant in the industry by soliciting ideas from users.

For instance: Early LEGO users are no longer playing with LEGO because they are rather elderly by this point, and people's preferences change with each passing generation. While today's millennial youngsters would choose Lego sets themed on anime or BTS, people who lived in the 1990s would have liked Thomas Engine or Noddy. Customer feedback is important to get to stay relevant in the industry. As contributors work to create the things they like, this forum inadvertently acts as a channel for feedback.

6. Lastly, but certainly not least, it is more geared toward adjusting to the digital world, where children and adults prefer the digital version of LEGO over the hard blocks.

Challenges in Co-creation & Mitigation Steps

The "fuzzy front end" refers to the initial phase of the product development process, where the idea for a new product is conceived and evaluated. This stage is characterized by ambiguity, uncertainty, and a lack of structure, making it challenging to determine the feasibility and potential of the proposed product. The fuzzy front end is significant in consumer co-creation because it is where consumers can play a crucial role in shaping the direction of the product. By involving consumers in the ideation process, companies like LEGO can gain valuable insights into their customer’s needs and preferences and co-create products that are more likely to be successful in the market. This strategy can raise the brand value, increase revenue, and expand the community.

However, there are some concerns associated with this including customers feeling that their individuality is not being valued, and the risk of backlash if the ad fails to meet expectations. These concerns can also apply to the product development process, where customers may feel that their opinions are being diluted if too many voices are involved. To address this, LEGO could limit the number of participants in the co-creation activities and ensure that the feedback is carefully curated and analyzed to ensure that all voices are heard.

What should be the Next Step?

One aspect of consumer co-creation that I feel could be relevant to creating a great product for LEGO's customers is gamification. LEGO could create games or challenges that encourage customers to participate in the co-creation process and reward them for their contributions. By gamifying the co-creation process, LEGO can increase engagement, build loyalty, and create a sense of ownership among its customers.

Conclusion

In conclusion, involving consumers in the product development process can be highly beneficial for companies like LEGO. By leveraging various co-development methods, partnering with marketing research agencies, and gamifying the process, LEGO can ensure that their customers' voices are heard and that they create products that meet their needs and preferences. While there are potential concerns with involving too many customers in the process, careful curation of feedback and limiting the number of participants can help mitigate these risks.