By Siva Balakrishnan
In the realm of AI, businesses are continually seeking ways to stand out from competitors and capture consumer attention. Despite the advancements in services, achieving this goal has become increasingly complex. From offering multi-channel experiences to loyalty programs and 24/7 customer service, organisations strive to provide customers with top-notch experiences. Amidst these trends, one feature gaining traction in the e-commerce landscape is customisation.
Customisation goes beyond merely selecting items from a catalog; it involves empowering customers to personalise their purchases and services. This approach fosters a sense of pride and loyalty towards the brand, bridging the gap between businesses and consumers. With AI, companies can take customization to the next level by leveraging data-driven insights to tailor offerings to individual preferences, ultimately enhancing the overall customer experience.
One of the primary drivers behind the rise of customisation is today’s changing consumer mindset. They seek products and services that reflect their personalities and tastes and represent them as a person. As businesses, we can leverage this desire for personalisation by providing our users with a variety of customisable options. These choices help subtly generate a bond between the consumer with their potential purchase, one that can translate into a satisfying purchase.
A few ways that customization makes customers happier:
- Product Fit: Customisation lets customers make goods that are exactly what they want and need. Customers like things that are made just for them, like a suit that fits perfectly or a skincare routine that is made just for them.
- Emotional Connection: A stronger emotional link is made between a brand and its customers when they can customize their purchases. Because of this link, customers are happier and more likely to buy from them again.
- Reduced Decision Regret: Customisation makes it less likely for customers to feel bad about their decisions. Customers are less likely to regret buying something when they have input into how it looks and what benefits it has.
- Sense of Identity: Customised items let buyers show off their unique style and personality. More than that, this sense of personality makes customers happier and more loyal.
However, the question remains: can product customization drive sales growth?
Research consistently shows that customisation has a positive impact on sales. According to a study conducted by Deloitte, 36% of consumers are willing to pay a premium price for personalized products. Furthermore, 48% of consumers are more likely to purchase a brand that offers customization options.
Let’s explore some examples of businesses that have successfully leveraged customization to drive sales:
1. Nike: Nike, a global leader in athletic footwear and apparel, has embraced customization through its NikeID platform. Customers can design their shoes by selecting colors and materials and even adding personalised text or graphics. This customisation option has been a game-changer for Nike, driving significant sales and customer engagement.
2. Coca-Cola: Coca-Cola launched its “Share a Coke” campaign, where customers could personalise Coke bottles with their names or particular messages. This campaign not only increased sales but also generated a massive social media buzz as customers shared pictures of their personalised bottles. The campaign’s success led to a 2% increase in sales in the United States.
3. Dell: Dell, a leading computer manufacturer, offers customisation options for its laptops and desktops. Customers can choose specifications such as processor, memory, storage, and graphics card to create a computer that meets their needs. This customisation strategy has helped Dell maintain a competitive edge in the market.
Customization can change the game for e-commerce – Thanks to Technology.
Today pure E-commerce brands are not shying away from customisation, thanks to the various revolutions across the tech sphere. These advancements, ranging from virtual try-on tools to personalised recommendations, improve customer satisfaction while also streamlining the production process. Any business in the e-commerce sphere must understand the importance of staying ahead of the curve, and they must embrace this revolution at the earliest, lest they get left behind.
Another major factor in changing the digital landscape is artificial intelligence, or AI. Businesses are now able to provide highly personalised experiences by using AI algorithms to analyze large datasets of customer preferences, behaviors, and interactions. AI improves the users’ digital journeys by recommending tailored products and predicting individualized content preferences. This is already visible across various e-commerce giants like Amazon, Flipkart, BlinkIt and many others, which even recommend products before an order is placed. Furthermore, AI-enabled chatbots and virtual assistants interact with clients in real time, offering prompt assistance and assisting them with customized product customisation procedures. AI and personalisation work together to simplify the digital experience and enable companies to give customers exactly what they want.
Well, let’s not forget about the data generated through customisation features. It has proven to offer extremely valuable insights into your consumers’ behavior and preferences. A proper analysis of this data helps businesses refine their products and offerings, modify their marketing strategies, and improve their overall customer experience. When customers have a say in the appearance and features of a product, they are less likely to regret their purchase.
E-commerce companies need to understand that customisation goes beyond tangible goods. Individual needs can also be satisfied when tailoring digital products and services. Whether it is personalised recommendations, user interfaces, or subscription plans, the ability to customise the digital experience adds another layer of value for customers. E-commerce giants like Amazon, Zomato, and many others keep track of their consumers’ preferences and recommend similar products when they open their homepage, a feature that has helped engage and retain many users.
Companies must adjust to and welcome this customisation revolution as it continues to gather steam. This represents a paradigm shift in the e-commerce landscape, one that can be extremely profitable and engaging for both businesses and consumers. We must commit ourselves and navigate this revolution. Customisation is more than a fad; it is a strategic requirement for modern e-commerce success.
The author is founder and CEO, Vserve
