Let's shift our attention to LEGO, one of the most successful game brands in marketing history. Founded in 1932 in Billund, Denmark, they began manufacturing the interlocking toy bricks in 1949. Films, games competitions, and eight Legoland amusement parks have since been developed under the brand. And as of July 2015, 600 billion Lego parts had been produced.
So, how did LEGO become so successful? Here are 10 things we have identified that business owners can learn from this LEGO case study:
The "compare at" price is the product's original price that appears on the product's listing when it is on sale. Customers will see this price crossed out next to its discounted price. This is an effective way to help customers visualize the difference between the current and original prices, and to demonstrate how much they can save. It is also a useful tactic for increasing profits.
Here's a video on how to do it:
A study has found that using "charm pricing" can boost sales by an average of 4% compared to using “rounded” price points. Charm pricing involves using figures that end in an odd number, like five, seven, or nine, which are believed to sell better than other numbers.
Want to implement Charm Pricing tactic on your Shopify Store? Use Konigle's Charm Pricing Seller Tool and enable charm pricing on your store within 5 minutes!
The LEGO VIP is a membership program where LEGO customers and fans can receive exclusive perks. There are many benefits of joining the LEGO VIP Family such as earn and redeem points, early access to the newest, most desirable sets, unlock gifts and rewards, get the latest news in the VIP newsletter.
This is a successful loyalty strategy that stores should adopt. It not only creates a sense of exclusivity and community among members but also gives them an incentive to keep purchasing. All of these factors contribute to and strengthen brand loyalty.
Wondering how you can steal this loyalty building tactic? Do so by rewarding your loyal customers when you create customer based price rules with Konigle's Customer Based Pricing tool!
Find out more on how you can do it here.
A Coming Soon page is a landing page employed to drive excitement for a product or store that is about to launch. LEGO's coming soon page announces what the product is and when it will be available for preorder.
You too can inform your subscribers of an upcoming launch with the Konigle's Bulk Price Editor tool. Simply schedule draft products to become active at a designated time then create email + sms outreach campaigns.
LEGO has a dedicated Sales collection page that quickly highlights products being sold at a discounted price for bargain buyers. This is a good way to boost sales from people looking for an easy way to get discounted toys.
If you would like to implement this on your Shopify Store, you can use Konigle's Bulk Price Editor tool to add tags on discounted products as you edit prices and show them on the Sales Collection Page.
Here's a video on how you can use the Konigle Bulk Price Editor:
LEGO has a "Last chance to buy” clearance collection on their website dedicated to selling soon to be retired products at attractive discounts. This is a great marketing strategy for when businesses want to boost sales and prevent dead stock as it creates FOMO amongst avid collectors.
If you want to adopt this tactic, you can simply implement the ‘run flash sale’ tactic (one of the many tactics Konigle provides) under the pricing power strategy or use the Konigle's bulk price editor tool to edit selling prices, add tags on discounted products and show them on the Clearance Collection Page.
Here are some videos on how you can run a sale using the Konigle Bulk Price Editor tool:
Backordering is the process of allowing customers to place orders for an out-of-stock product that is expected to be restocked by a certain date. There are benefits to allowing customers to backorder as it not only reduces overstocking problems and warehouse costs, but also can be used as a marketing tactic. It can increase the value of the product in customers’ eyes, where high number of backorders indicate that the strategy helps to increase customers’ curiosity and desire to buy.
However, one thing to take note is that for backordering to be effective, inventory management needs to be strong. Konigle's Inventory Management tool can help you manage inventory easily and efficiently.
Here is a video on how you can make use of the tool effectively:
An alternative to dealing with out of stock is implementing Back in Stock alerts so that interested customers can subscribe to be notified when items are back via Email or SMS. This is an alternative way to boost sales and grow your subscription list.
Do so with Konigle's Back in Stock Alert tool! Here's how:
A wishlist allows shoppers to create personalised collections of products they want to buy and save them in their user account for future reference. It signifies a customer's interest in a product without an immediate purchase intent.
Wishlists are important to eCommerce stores because they provide strategic value to online retailers. For example, businesses can use wishlists to measure the effectiveness of their marketing campaigns and pinpoint which tactics are working best.
The wishlist feature can be a great tool for minimising losses due to out-of-stock products. By offering customers the option to save out-of-stock products to their wishlist, you can alert them via email or in-app notification once the product is back in stock.
Additionally, wishlists are a great way to inform customers about sales. Notifying customers that items in their wishlist have gone on sale can entice them back and convince them to complete their purchase.
LEGO allows shoppers to save items to their wishlist and even provide the option to add all items into cart at once which is convenient for shoppers and improves the overall shopping experience.
Gift with Purchase (GWP) is a sales promotion technique in which a customer is offered a second product free upon meeting a specific condition set by the store.
LEGO makes their terms & conditions explicit, under what conditions the GWP is valid.
Want to steal this tactic for your own use? Update your product listings automatically using Konigle's Bulk Price Editor and manage the GWP.
After adding a product to cart, LEGO provides recommendations of similar products as an attempt to cross-sell and hence increase Average Order Value (AOV). This might work better for when the items sold are of the same theme or collection.