Experts of Experience Podcast - Episode #60: Storytelling 101 with Luis Giagrande, CMO of LG Electronics
Overview
In Episode #60 of Experts of Experience, hosted by Lauren Wood and presented by Salesforce Customer Success, Luis Giagrande, the Chief Marketing Officer of LG Electronics USA, delves into the transformative strategies LG is employing to enhance customer experience (CX). The conversation navigates through LG's brand reinvention, the pivotal role of storytelling, leveraging advanced technologies like AI, and expanding into new markets. Giagrande shares insightful anecdotes, strategic initiatives, and concrete outcomes that highlight LG's commitment to exceeding customer expectations in an increasingly competitive landscape.
Reinventing the Brand Through Storytelling
Understanding the Need for Brand Reinvention
Luis Giagrande opens the discussion by addressing the critical need for LG to redefine its brand narrative. He emphasizes that while LG has historically been recognized for reliable products like refrigerators, washers, and TVs, there was a growing demand to clarify what the company stands for beyond just product functionality.
"Reinventing the brand, committing to telling the brand story has been a big part of our development of where we're going in the last two years." [00:00]
Philosophy Behind the New Brand Story
Giagrande explains that LG's shift from a hardware-centric company to a solutions-based entity necessitated a comprehensive overhaul of its brand identity. By redefining the brand, LG aims to foster a deeper emotional connection with consumers, ensuring that the brand embodies positivity and optimism in both personal and professional spheres.
"We're going to commit to telling the brand story has been a big part of our development of where we're going in the last two years." [15:11]
This strategic pivot resulted in significant recognition, including a 40% increase in brand value as reported by Interbrand and placement within the Interbrand Top 100 Brands globally.
Voice of Customer (VOC) Program: Harnessing Data for Insightful Actions
Evolution of the VOC Program
Giagrande highlights the evolution of LG's Voice of Customer (VOC) program, transforming it from a data collection initiative to a robust platform that aggregates multiple data sources to derive actionable insights. This shift ensures that LG moves beyond merely collecting data to implementing meaningful changes based on consumer feedback.
"Now you're almost struggling with what to do with all the data that's available." [04:40]
Implementing Comprehensive Data Integration
The VOC platform integrates data from product reviews, social listening, call centers, and various interaction points, enabling LG to understand and anticipate consumer needs proactively. This comprehensive approach allows the company to address issues swiftly and innovate based on real-time feedback.
"There's no more like guessing. It's like, oh, this is what the majority of consumers are saying, that's what we'll do." [04:39]
Impact on Product Innovation
A prime example discussed is LG's introduction of a dishwasher with a one-hour wash and dry cycle that operates quietly. This innovation directly addresses consumer pain points identified through the VOC program, showcasing LG's commitment to user-centric product development.
"We could have done something fancier, but just hitting on the innovations that really are consumer driven is very key to us." [02:16]
Cross-Functional Collaboration: Bridging Marketing and Support
Integrating Teams for Enhanced CX
Giagrande stresses the importance of aligning marketing and customer support teams to create a unified customer experience. By fostering collaboration between these departments, LG ensures that customer feedback directly informs marketing strategies and product development.
"If you're not marrying up marketing and support at this point, you're falling behind because like you said, it's just so integrated." [08:03]
Overcoming Organizational Challenges
One significant challenge highlighted is breaking down silos within the organization, especially given LG's geographically dispersed teams. However, strong executive alignment, particularly from the CEO, has been instrumental in driving this integration.
"Breaking down the walls between groups within companies. ... Alignment all the way up to our CEO." [09:14]
Practical Steps Towards Collaboration
Regular interactions, such as daily conversations between marketing and support teams and integrated training sessions, have been pivotal in ensuring a consistent brand voice and cohesive customer experience across all touchpoints.
"We have people within our marketing team that's having daily conversations in the support center and regularly pulling it in." [08:03]
Leveraging Technology: Affectionate Intelligence and Smart Life Solutions
Affectionate Intelligence vs. Artificial Intelligence
LG distinguishes its AI initiatives by referring to them as "affectionate intelligence," emphasizing a balanced approach that proactively supports customers without overstepping boundaries. This philosophy ensures that technology enhances daily life seamlessly and respectfully.
"We refer to it more as affectionate intelligence versus artificial intelligence." [13:31]
Smart Life Solutions Vision
Under Giagrande's leadership, LG is transitioning into a "Smart Life Solutions" company. This vision focuses on integrating LG's vast product portfolio into interconnected smart homes, ensuring that each device contributes to a harmonious and efficient living environment.
"Going from the simplest way to explain this is going from a singular transaction ... to a customer experience that's happening on a day to day basis." [11:35]
Innovative Product Designs
The discussion highlights LG's cutting-edge products, including rollable and transparent OLED TVs, which exemplify the company's commitment to blending technology with everyday life. These innovations not only enhance aesthetics but also provide functional benefits, such as space-saving designs and immersive viewing experiences.
"We have a transparent OLED screen ... it could look like a regular shelving unit and all of a sudden it becomes a beautiful TV." [29:09]
Expanding into New Markets: B2B Focus
Strategic B2B Initiatives
Giagrande outlines LG's strategic expansion into the B2B sector, targeting diverse verticals such as home building, commercial displays, and sports arenas. This diversification aims to capture untapped revenue streams and strengthen LG's market presence beyond consumer electronics.
"B2B for us is a lot of different things ... like the official TV of the Dallas Cowboys and the New York Yankees." [32:20]
Aligning B2B with Customer Experience
Even as LG grows its B2B segment, maintaining a consistent brand and customer-centric approach remains paramount. The integration of customer experience best practices across both B2C and B2B operations ensures that LG delivers exceptional value regardless of the market segment.
"You have the right message to the people at the right time ... delivering a very comforting experience." [32:34]
Overcoming Industry Challenges
Post-COVID Demand Shifts
LG faces significant industry challenges, notably the aftermath of the COVID-19 pandemic, which altered consumer purchasing behaviors. Initially, non-essential demand surged as consumers invested in home improvements. However, as economic conditions normalized, purchases shifted towards necessary replacements, reducing overall demand.
"Demand is down across the board ... we're stealing share and grabbing share from others." [35:02]
Combatting TV Commoditization
Another pressing challenge is the commoditization of televisions, where price wars and mass-market affordability threaten LG's premium positioning. In response, LG enhances its TVs with exclusive features like LG Channels, offering 300 free channels and unique content partnerships, thereby differentiating its products from cheaper alternatives.
"LG smart TVs come with something called LG channels, which is 300 free channels." [37:10]
"We're bringing content play into our hardware ... unique content on ourselves for that channel." [40:49]
Fostering Innovation: LG Nova
Innovation Incubator
LG Nova serves as LG's innovation incubator, collaborating with startups, entrepreneurs, and investors to explore future-focused technologies and solutions. This initiative underscores LG's belief that innovation can emerge from any source and not just internal R&D teams.
"Innovation can come from anywhere. It does not have to go through the process that we've gone through in developing our products in the past." [26:50]
Supporting External Innovation
Through NG Nova, LG empowers external innovators to bring fresh ideas to the table, fostering a culture of continuous improvement and adaptability. Regular interactions, such as presentations at summits, highlight the synergy between LG and emerging talents.
"It's a pretty cool group ... aligned to what the LG brand is standing for." [27:31]
Best Practices in Customer Experience Leadership
Emphasizing Collaboration
Giagrande advises that customer experience leaders prioritize collaboration above all. Bringing together team members who excel at fostering relationships and uniting departments is crucial for breaking down silos and driving cohesive strategies.
"Collaboration is the most important talent ... it's the most important talents when it comes to this." [43:13]
Developing Collaborative Teams
He underscores the necessity of having collaborative leaders, even if some team members excel in their roles without being naturally collaborative. Ensuring that the team dynamics support cooperative efforts is essential for successful CX initiatives.
"You have to put them in a corner and still leverage what they do. But that has to be a priority." [43:13]
Encouraging Story Sharing
Regularly sharing customer stories and feedback within the organization fosters a customer-centric mindset. Giagrande mentions practices like monthly recap meetings where key consumer insights are discussed, ensuring that every department understands and acts upon customer needs.
"Monthly sort of recap on our Voice of Consumer tool ... pulling the data, drawing out insights and then the actions ..." [25:10]
Notable Quotes
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Brand Reinvention
"We're going to commit to telling the brand story ... looking at the sentiment of like 40,000 people in the last two weeks." [15:11]
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Voice of Customer
"There's no more like guessing. It's like, oh, this is what the majority of consumers are saying, that's what we'll do." [04:39]
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Collaboration Importance
"Collaboration is the most important talents when it comes to this." [43:13]
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Innovation Philosophy
"We refer to it more as affectionate intelligence versus artificial intelligence." [13:31]
Conclusion
Luis Giagrande's insights in this episode shed light on LG Electronics' strategic pivot towards a more integrated, customer-centric approach. By harnessing data, fostering cross-functional collaboration, leveraging advanced technologies, and expanding into new markets, LG is positioning itself not just as a leading hardware manufacturer but as a comprehensive smart life solutions provider. The emphasis on storytelling and brand communication further strengthens LG's connection with consumers, ensuring sustained growth and brand loyalty in a dynamic marketplace.
For those seeking to elevate their customer experience strategies, Giagrande's experiences and practices offer valuable lessons in innovation, collaboration, and the power of a well-told brand story.