ExecutiveChronicles.com | Will Offering Customized Products Help Your Business? | With retail e-commerce on the rise, consumers now have access to an enormous amount of product options. This translates to greater purchasing opportunities. However, this opportunity can lead to the over saturation of different markets. Even if you think you developed a new product and introduced it to the market, chances are you will find out that several other businesses are already offering something similar. Discounts, membership packages, and free shipping may not grab your customers’ attention anymore. But there is always the customization route.
What does customization mean for your business?
Customization or, to be exact, mass customization is the process of providing wide-market products and services that are tailored to satisfy the specific needs of an individual customer. It is a manufacturing and marketing technique that allows business owners to combine the flexibility, appeal and personalization of custom-made goods with low unit costs that come with mass production.
Customization used to center around high-end products or cheap commercial products, with almost no middle ground. People would shell out hundreds to thousands of dollars just to get a tailored suit or a custom interior for their vehicle, or they would spend a few bucks for cheap but personalized products, such as pens with their names on it.
The benefits of customized products
A main cause of apprehension towards selling customized goods is all the work and resources that go into it, such as choosing a manufacturer for custom products and assembling the product yourself. Sourcing the materials is also painstaking. If your Salt Lake City business needs custom packaging, for example, you have to thoroughly search for the right commercial plastic containers in Utah.
However, the sales from your custom products will surely make up for all that extra trouble. According to study, customers are willing to pay around 20% more for customized products than ones bought off the shelf. So, instead of lowering your prices to get noticed in the market, customization allows you to charge premium prices to generate a desire to purchase among your audience.
Profitable market research
Market research is necessary when creating or launching a new product. However, this tends to be a meticulous process that does not immediately generate sales. By selling customized goods, you will be able to measure your customers’ needs while also profiting from the process. Keeping tabs of what your customers are creating can help you create new product lines. You can even offer discounts or develop creative resources that will further enhance customer experience.
Handling product replacement or return is always a sore spot for retailers. But when you sell custom-made goods, the likelihood of displeased customers returning your products will significantly dwindle.
Customers would be less likely to want to return a product if they were deeply involved in its creation. The attachment they develop for the custom product also makes them more likely to purchase from you again. If the customer gifted the product, the recipient will also feel more obligated to keep it instead of returning the item.
Finding out what your target audience likes is one of the most difficult aspects of running a business. By offering customized products, however, you allow your customers to tell you what they like, all while profiting greatly. Customers are always right, and allowing them to customize what they buy from you is definitely right for your business.