Let’s face it – personalization is in every facet of the online and retail world. e-Commerce has recently been coined “me-Commerce” due to the fact that so much of the online retail community depends on big data to provide that ultimately customized shopping experience for each of their unique customers. If we look at product personalization specifically, Deloitte research found that at least 1-in-3 consumers want the ability to personalize their products, and this number is on the rise with Millennials (a generation obsessed with portraying an inimitable image of themselves) coming into their prime purchasing years.
Many businesses are taken aback by the fact that adding product personalization to their offering requires some investment for setup. However, it is important to note the tremendous opportunity behind the investment – offering customization is known to bring a high rate of ROI by significantly boosting sales and reducing the overhead costs of warehouse space/inventory. But these are not the only motives of offering product personalization – let’s dig a bit deeper to discover some more benefits…
Ability to apply price markups:
Personalization allows you to apply a price premium to your product offerings. It is worth noting that consumers are willing to pay about 20% more for customized products versus standard ones. Furthermore, if you choose to offer third-party licensed content as well, the price premiums can be even higher. Personalization is a powerful method in driving new revenues.
Access to valuable market research:
Product customization is one of the best tools to understand what your customers want. If we look at the Coca-Cola example, the company realized that finding your name on an iconic beverage bottle/can was an attractive incentive to purchase the drink. What started from a few hundred common names printed on a few cans led to the launch of an experiential website, then specially personalized bottles or cans, and today they offer personalization for parties and special occasions like weddings, birthdays, retirements and more. Coca-Cola has since been experiencing growth in sales after over a decade of steady decline.
The lesson: watching the trends around product personalization can help your business diversify its offering with the evolution of consumers’ needs and even look into reaching new markets with minimal tweaks to your business model.
Enjoy repeat sales and diminished rates of return:
The more involved a consumer is in the creation of the product, the more connected they are to it. What does this mean for your business? In a nutshell, the more they are feel linked to the products they create, the more likely they will complete the journey through the buying process. In fact, companies who offer product customization have experienced an increase in conversion rates by up to 200%.
Added to this, when customers can create a product the way they want, order returns are much more unlikely. As a business, you can take some extra steps to make returns closer to never – providing detailed product information including specs, color, finish, etc. can really help manage customer expectations. Providing previews, especially ones in-context, are also associated with diminished rates of complaints and returns particularly when it comes to large purchases like wall art and canvases.
A great way to solidify your online presence:
Offering customized products on your website is proven to increase web traffic; the ability to create their own products incentivizes shoppers to come to your website rather than shop at traditional stores, or even other online shops. As your web traffic increases, your SEO rankings begin to soar for related product searches. This, in turn, helps raise brand visibility, thus driving more and more traffic to your site. Finally, a welcomed “vicious” cycle!
Greater customer loyalty and an incredibly easy order process:
“Create-It-Yourself” (or CIY) options allows your business to give its consumers exactly what they want without incurring more overhead costs. When your business can meet each customer’s unique needs, they are more likely to stick with your brand. CIY also means that the consumer is in the driver’s seat of the creation process, eliminating the back and forth between designers and buyers and freeing up your creative minds to occupy themselves in concocting new designs to keep your selection fresh. And you guessed it…a refreshed selection (that’s still relevant to shoppers’ interests and needs, of course) will contribute further to keeping your customers coming back for more!
Mediaclip personalization software is the most flexible project creation tool on the market. With its delightful user experience, easy integration with any existing e-Commerce platform, content creation and management tools, advanced merchandising capabilities, and the market-leading in-context previews, the solution is focused at its core on helping our customers and partners continually generate higher revenue, stimulate brand recognition, and increase customer loyalty. Contact us for more information on how to add product personalization to your offerings.