Help centerEnterprise3-minute tourLog in
Blog

Loyalty software that keeps customers coming back

Book a demo

Why the LEGO loyalty program gets incentivization spot on

Last updated:

February 23, 2026
Lego Insiders

Share this article

  • URL copied to clipboard

Contents

    Get loyalty insights, straight to your inbox

    It’s tough to find anyone who’s not a LEGO fan.

    Loyalty to the Brick has been passed down through generations. The product is a category of its own. There’s little worry that customers will purchase LEGO once and never again.

    However, like any brand, LEGO wants to protect its DTC. The LEGO Insiders program is designed to bring people back to their own website and their stores – whilst also acknowledging the way people shop for toys today.

    It’s a smart program, but we’d also recommend some tweaks.

    So, let’s break it down – brick by brick.

    Image

    The more members play, the more they’re rewarded

    The above tagline from the LEGO site really exemplifies how members earn points and redeem rewards in the LEGO loyalty program. Here’s an explainer:

    • Purchase online = points (500 per $1 spent, in the US)
    • Purchase in-store = points
    • Register your LEGO set = points

    Points can only be spent on the brand’s website or at their official stores. Either you can:

    • Redeem them directly at checkout for money off your order
    • Redeem them for free product rewards 
    • Redeem them for entry to sweepstakes

    It’s an easy-to-understand program, represented clearly on their stylish website.

    What we can learn

    Crucially, they’ve got great points equivalency of 5% in every region. This means that customers accumulate points at a rate that unlocks rewards relatively quickly, but not so quickly that it damages LEGO’s margins. 

    There are 3 things in particular we love about the LEGO loyalty program set-up. Let’s explore them.

    Screenshot 2026 02 23 At 16.09.19

    1. Redeem points directly at checkout

    Famously, points mean prizes. But often, consumers are keen for something even simpler – money off their next order.

    LEGO gets that right by offering seamless redemption of points for money off at checkout. At the same time, it also offers a host of other exciting ways to engage with the program. 

    Together, it’s a strong balance, avoiding training consumers to seek discounts alone, whilst increasing the proportion of members that are redeeming.

    That’s important because redeemers tend to have much higher lifetime values (CLVs) than non-redeemers – just look at the difference in HOLY’s loyalty program: redeeming members have a 5.1x higher CLV. This means that revenue contributed by these actions can build quickly; over a fifth (21%) of HOLY’s revenue comes from the loyalty program.

    What we can learn

    Give customers a really easy way to use their points – but balance that with other fun incentives, so you increase both redemption and program engagement

    2. Limited-time gifts available with selected sets

    Giving away free products may seem like an unwise move for some brands, but LEGO understands the huge revenue potential to be gained from this.

    Their offer of free gifts that can be redeemed for points proves this: 

    • LEGO can direct people towards purchasing a particular product by putting a loyalty incentive on it
    • The gifts that are offered as free products can also be strategic. Perhaps they’re old stock that needs shifting, or new toys that they want to test
    • The limited time frame means consumers might make an urgent repeat purchase prior to getting the gift, in order to build up enough points to redeem in time

    What we can learn

    Free gifting should never be mere generosity; with the right loyalty structures, it works for both the consumer and the brand. You can encourage repeat purchases that grow a customer’s lifetime value, and thus grow your brand.

    3. Registering LEGO sets to receive points

    The opportunity to earn points by registering LEGO sets proves this program really understands its audience.

    Each LEGO set comes with a QR code in the build instructions. Customers can scan this using the LEGO Builder app to receive points that go into their LEGO Insider account. 

    This process acknowledges three things:

    • That LEGO is a great gift – meaning true fans may not purchase their own sets 
    • That lots of customers may purchase LEGO from other retailers like Amazon
    • That customers will happily download an app to receive points (no surprise – our research shows 73% of people would do this, with Millennials the most likely)

    The opportunity to get points even when you haven’t purchased directly feels like a bonus for the consumer. But crucially, points can only be redeemed directly with LEGO. It means that customers are always funnelled back to their DTC and stores, helping increase the proportion of repeat purchases that are happening directly with the brand.

    Plus, once the LEGO Builder app is downloaded, there’s yet another touchpoint the brand can use to keep their DTC top of mind, with customers able to scan it to receive points in a flash in LEGO stores.

    What we can learn

    Understand how consumers purchase your products, and then consider how your loyalty program can reward that whilst funnelling them back to your own website or stores for their next purchase.

    Screenshot 2026 02 23 At 16.14.08

    What would our experts recommend?

    The LEGO loyalty program gets a lot of things right. However, there are always improvements that can make loyalty programs more impactful, more incentivizing, and easier for staff to manage.

    Here’s a big one our experts would suggest:

    Dynamically discount rewards to boost revenue – using AI

    There’s no evidence that LEGO smartly discounts the number of points a customer needs to redeem certain rewards or unlock discounts at checkout.

    However, brands are finding that dynamic discounting for specific cohorts nudges repeat purchases sooner, getting a customer familiar with redemption, and increasing their lifetime value more quickly. Thus, your revenue grows faster.

    Here’s what LEGO could do: 

    Leverage AI to spot which customers are close to being able to redeem a reward, and smartly discount it (say, from 1000 points to 950 points) for a short period of time. Then, notify those customers using your email integration, push notifications, and loyalty page. The customers will want to make a repeat purchase more quickly to take you up on the limited-time offer – and boom: you’ve increased your revenue, and your proportion of redeeming members.

    Brands using these AI Campaigns are already seeing a 20% increase in revenue from members while the campaign is running. It’s a no-brainer – and runs in the click of a button. Why not explore it today?

    Lego Insiders

    Get loyalty insights, straight to your inbox