For example, Nike customers configure their own shoes, Carolina Herrera customers now design their makeup accessories and Gucci allows women to create their own Zumi bag.
According to a Bain & Company survey, customers who had customized a product online engaged more with the company. They visited its website more frequently, stayed on its webpage page longer and were more loyal to the brand. Further details show that in footwear, for instance, customers who designed their own shoes gave companies a 50% higher Net Promoter ScoreSM (NPS®) than customers who bought regular products from the same manufacturer. Higher NPS typically translates to higher sales, referrals, and lifetime customer value.
Enabling customization is also a way to attract the new generation of consumers. Generation Z is looking for more personalized product to build up its own unique identity. Consequently, fast fashion is losing in popularity and high quality unique personalised products are on the rise.
As consumers design their own products, it is also a way for brands to gain insights on their target audience preferred styles. Information acquired this way are a lot more valuable than insights from focus groups. Indeed, in an interview, Brooks Brothers shared that what they learn from their customers in one season thanks to their customization offer is systematically used to deliver the next season’s product line. SmartPixels constantly provides analytics to its clients to best optimize learnings from their personalization offer.
Figure 1: Brand approach to customization, depending on life cycle and desired impact of offering