‘Mass customization’ is not a buzzword anymore among manufacturing industries. That being said, in reality, there aren’t many mass customization companies either. The term was popularized by a guy named Stan Davis in his book ‘Future Perfect.’ Since then, it has had its share of love and failure from big brands around the world.
It is a sandwich of two concepts:
- Create customized products to cater to each customer’s needs
- Produce products on a large scale, hence making them available at a lower price
The idea is remarkable, but not everyone can execute it. Back in the day’s companies like Levi Strauss and Dell have produced mass customized products and failed simply because it was too complicated and expensive to run.
But wait! There is something to ponder!
Why is it that big brands such as Hallmark, M&Ms, and Nike are enjoying a high return on their investment in customized products? Find out why are entrepreneurs focused on delivering customized products and even personalized services? You have found why do we see startups blooming like morning blossoms every day?
All thanks to today’s digital boom, which has opened many doors of opportunity, if not all, for mass customization companies. We are in an era where the environment is nourishing enough to promote its popularity. Many e-commerce businesses have come forward with customized products, all thanks to the World Wide Web.
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Today, mass customization is at the heart of marketing strategies. Here’s why…
- High Reach: Everybody loves customized products. When you give your target audience the option to BOYP (build your product), it garners a generous customer reach with little investment.
- Higher Price: Customers don’t want a one size fits all products. They want something that becomes a part of their daily life. But, the good news is, they are willing to pay more for personalized products. A study conducted by NDP Group reveals that customers would pay 25% extra for customized items. Hallmark did it with a Christmas card and had massive success by allowing online buyers to choose card sizes and personalized messages for their loved ones.
- Strong Online Presence: When you are offering personalized products to your customers, you are creating a much deeper relationship that lasts longer. More and more users would like to spend time on your website, eventually making your website rank higher.
- Simplified Market Research: When you are catering to your customers at a much deeper level, you get to know their likes and dislikes. This works like free market research on which you can cash it in later. Take a cue from Disney who realized that customization is necessary to thrive and made huge revenues just by rolling a new line of merchandise.
- More Repeat Sales: When customers create their product, they feel more connected to the brand. Not just that, as they have helped shape their product, they are less likely to return it, hence are more satisfied. When they are more confident with your-ish products, they are more likely to return for another purchase. They may even suggest their friends, and you may be going viral.
- Strong Brand Loyalty: Customers are more likely to stick to your brand. It is mostly because they get exactly what they want and when they wanted it. Now you have their trust, which is more precious than sales in the business world.
Impact on sales
- Higher Sales: This is the age of millennials who grew up using customized stuff. Which is why they expect to have it in every aspect of their life. When millennials are happy with your products, they are more likely to return. Because they have the most purchasing power, their recurring purchase will eventually generate more sales for you.
- Sell Directly to Customers: Set-up an online portal, and now you can sell it directly to customers. This way, you don’t have to bring retailers into the picture. Nike did it with NikeID. They became successful by enabling buyers to choose their material and color for their shoes.
- Simplified Order Process: When it comes to customization, traditional methods can be time-consuming and frustrating for both sellers and buyers. However, if you can employ a product customization software running in the background, you can simplify the process from the admin panel. Today, nearly all e-commerce businesses providing customized products use product customization software.
American marketing author and consultant Philip Kotler said – “Customer is the king in marketing, and in this new age business, Customization along with quality is the surest way to win over the King.”