Is Product Customization Increasing in Importance?

Most e-commerce websites are starting to offer product customization to their customers, and yes, it is gaining in importance. It’s no longer a ‘fancy option’ or a luxury you can offer your customers – it’s a must. Here are a few reasons why it’s gaining in importance and how your business can benefit.

Interested in talking to someone about product customization? Request a demo.

Why is It Gaining in Importance?

So why is product customization increasing in importance? There is a simple answer: your customers want it. In fact, they expect it at this point. By offering custom products, you offer a wide range of variations, allowing your customers to choose different sizes, colors, and features depending on their wants, needs, and taste.

Not all customers are the same, but you also don’t want to offer every combination under the sun. You’ll be overwhelmed if you attempt this, as will your audience. Looking at your top purchases will help you select the best custom products for your customers.

It’s important to note that product customization has become the norm for businesses and consumers, and can be found on Amazon, Shopify, and other e-commerce websites in addition to companies’ own websites and shops. Custom apparel is also starting to gain in popularity as consumers want to stand out by wearing unique items. And imagine how you’d stand out by offering the option of personalized gifts!

Why You Need to Offer Product Customization

So your customers are looking for this option for their purchases, and there are a number of benefits to offering different variations to your products. A few to note include:

More Sales

The bottom line when it comes to offering product customization is that it will get you more sales. Offering a jacket in both navy blue and black will attract customers who prefer navy blue. Without that selection, if they had their heart set on that color, you could very well lose out on that sale to a competitor. Your customers want more options. If you’re offering the bare minimum, your sales will suffer.

More Profits

Of course, more sales will get you more profits, but there’s another reason you’ll see an increase in numbers: Your customers are also looking for personalized gifts or items and will pay extra for it. In fact, a study by Deloitte has found that 20% of customers will pay 20% extra for your exclusive products. You will also see an increase in marketing ROI by taking this route.

More Knowledge About Your Customers

By offering product customization, you get a better idea of what your customers actually want. Over time, you’ll be able to drop those undesired or under-performing items and funnel more money into the things your customers are buying.

You can also develop new product lines based on what they’re purchasing – inspired by custom apparel. You may find a whole new niche with the data that is uncovered here. This information will help you create user personas, allowing you to create more detailed marketing and sales campaigns.

Customer Retention

Since you’re providing your customers with what they want, they will keep coming back to your store, especially if your competitors aren’t offering product customization just yet. Customer loyalty can be difficult to come by, but by tailoring things to their taste, you can gain it quickly and improve customer retention as well. Increased customer retention will lower your marketing costs as it’s often much more expensive to market to a new client than it is to previous ones.

Customer loyalty also equals more word of mouth marketing. They will recommend it to their friends and family. One study showed that offering product customization will increase “perceived service quality, customer satisfaction, customer trust, and ultimately customer loyalty toward a service provider.” That’s another reason to provide custom products.

Money Saved

You may think that more options equals more required inventory. However, you can actually better target what you will need to purchase for your inventory thanks to product customization. For instance, you won’t accidentally order too many red purses when you sell more black. You can also avoid the opposite where you order too few of a popular product.

As mentioned before, personalized and customized options will also help you create more detailed and specific marketing campaigns. You can cut back on costs by using the data created from custom products to skip guessing games.

Product Customization by a woman applying tags

It’s no longer an option when it comes to whether or not to offer product customization. Your sales and bottom line could only benefit by offering more choices to your customers – and they will benefit too.

Are you curious about how to offer product customization to your customers? Or which e-commerce websites are best for offering custom products?
We can help. Simply get in touch.

Did you like this article? Then read about the main benefits of product customization on online selling.

 

Make to Order Manufacturing vs. Make to Stock: 3 Reasons Why You Need to Change the Way You Produce

Companies are producing more than they sell, and this is especially the case in the fashion industry. That’s the Make to Stock way of production. But what happens when excess clothes are tossed in landfills if never sold? On top of being bad for the environment, overproduction means shelving products and selling them at a discount – in other words, losing money. It’s clear that something needs to change. That’s where Make to Order manufacturing comes into play – i.e only produce what’s ordered. 

Curious to know more about Make to Order? 

Download our whitepaper around footwear and e-commerce. 

Engage Consumers

While Make to Stock starts with the manufacturer producing with an estimation, Make to Order starts with the consumer. When consumers configure products on your e-commerce platform, choosing from colors and features, they feel engaged. What’s more is that with 3D configuration they’re able to interact with products, seeing them as close to reality as possible. And when you include personalization options – that’s the cherry on top.

In fact, research shows that 77% of consumers have chosen, recommended, or paid more for a brand that provided a personalized experience. And when consumers receive their customized and/or personalized product, there’s a much smaller chance that they’ll make a return – part of the Make to Order strategy.

Faster Time From Factory to Consumer 

As soon as the consumer makes an order, manufacturers get paid immediately, and in full. At this point, the product-to-consumer journey is faster and shorter – known as Direct-to-Consumer (D2C). The manufacturer produces to order, using only the necessary resources, as indicated by a Bill of Materials (BOM) received automatically in the process.

This saves on costs and is good for the environment too. And since the product is manufactured specifically for the consumer (Make to Order manufacturing), it’s never shelved in a warehouse. In fact, it also doesn’t need a huge marketing spend and a strategy. It’s sent directly to the consumer. What’s more is that with Make to Order, products aren’t discounted over time as a means to get rid of them.     

Reduce Cost in Supply Chain

So how do you reduce costs with Make to Order manufacturing? To start with, by using 3D models, you eliminate sample production costs, as well as air freight costs included in the sampling process. That is to say, fewer products are physically sent back and forth – both bad for the environment and your budget too.

Next, you only use what you need with the Make to Order strategy, meaning your budget is used smartly. Finally, you eliminate warehouse costs by sending products directly to consumers. That includes eliminating equipment, utility bills and overhead costs that you could be spending on things that matter more like innovation and quality. And finally, with Make to Order, your consumers are less likely (if at all) to return products – and that’s fewer logistics you’d otherwise need to spend on.  

make to order manufacturing

If it’s clear to you that Make to Order manufacturing is the way to go, but you have no idea where to start, read our latest whitepaper. We tell you how a 3D product configurator is exactly what you need. 

Download our whitepaper around footwear and e-commerce. 

Did you like this article on Make to Order Manufacturing? Then read all about how you can make the best out of your online selling business right here.