Last Updated on August 31, 2023 by Tanvi
Harvard Business Review (HBR) says businesses that help customers feel “psychological ownership” encourage them to buy more products and pay more. They may also suggest their friends buy these products as well.
A product Personalization process can fulfill psychological ownership criteria. Nowadays, customers are more attracted to personalized products than brands. In the early stages, product customization was limited to mugs, t-shirts, and mobile cages. Still, you can now customize your car and shoes, such as Tesla and Nike.
But why is product personalization gaining so much popularity? The quick answer is the whole thing makes customer satisfaction, and it improves the sales of a Shopify business.
This article will discuss why Product Personalization at Shopify is beneficial.
Why Is Customization In Products Important?
A customized product can fulfill the demands of a customer. Still, we are discussing an e-commerce business here, so hand-made customized products are not our main concern. Our focus should be on how you will satisfy your customers online.
For instance, you sell customized products on Shopify to simplify the task. You can use a product customization app in your Shopify store. This will make your customers more engaged and interested in your products and services.
Shopify shoppers feel more comfortable than ever because they now have the power of product customization, even in bulk. According to a Deloitte consumer review, 50% of customers want customized items in most product categories.
Here are some statistics about product customization according to Invesp:
- On customized e-commerce websites, 59% of online shoppers say the customization process is easier to discover new products.
- Personalizing the purchasing experience is seen as a valuable service by 53% of online customers.
- 57% of Shopify customers are fine with sharing personal information with online merchants.
But what about the businessmen? What do they think about product customization?
- 61% of online marketers know the necessity of personalizing online shopping, but just 51% know how to implement it.
- For marketers who customized their online storefronts, 59% of them received good ROI.
Product Customization Increases Sales And Brand Value: In Shopify
Now the thing is, how does it help? Here are some ways it helps a businessman to increase their sales and brand value:
- Customization Product is Now in high demand
- Build customer loyalty
- Improve the Understanding with Clients
- It will move your online business forward by one step
- Give your business a push during the holiday season
- Lower refund rates
- Increases revenue and maintains the supply chain
Reason 1- Customization Product is Now in High Demand
Since customers love customizing their goods, launching a product personalization business has become more beneficial than ever.
The special fact about product personalization is customer can add their touch to a product that they want to customize. There is satisfaction associated with a product when clients design their own. It can be for themselves or can be a gift item.
Customers enjoy the concept of personalization, which gives brands the great potential to succeed in Shopify.
Reason 2- Build Customer Loyalty
The trust of a customer can be increased with product personalization. Offering customers complete control over the design of their products is the best way of gaining their loyalty.
Customer happiness is the major driver of brand loyalty. Moreover, customers are more likely to choose your brand over your competitors if you offer them various personalization features and possibilities.
Additionally, product personalization builds a closer relationship between a company and its customers, resulting in higher customer loyalty.
Reason 3- Improve the Understanding with Clients
Customizing your product lets you learn much about your customers and their expectations. To increase customer happiness and loyalty, you might identify and integrate popular features of your product.
Plan to make changes to your development or pricing strategy. This information might be precious to you as an owner.
According to McKinsey’s study, successful personalization programs result in more satisfied customers and increased profits. 10 to 15% profit increase in sales conversion because of customers’ favorable experiences.
Not only that, but product personalization also allows you to understand your competitors better. It will allow you to take a position in the marketplace, despite many organizations adopting product configurators and customization ideas. Unfortunately, many of them need help to take full advantage of them.
By knowing about the advantages of product customization. you can start up a successful business to mark yourself safe from the crowd of Shopify and WooCommerce competitors.
Reason 4- It Will Moves Your Online Business Forward By One Step
When it comes to product customization, you are already making your business different from other basic businessmen. Because where everyone is attracted to selling ready-made products, here you are offering customization opportunities to your customers.
A product customization opportunity increases sales and customer happiness and encourages customers to spend more money on a product. According to smart insight, customers are less likely to buy from companies that don’t offer personalized service. The percentage is around 63%.
As you can see, most buyers are ready to customize their products. Suppose customers are particularly pleased with a product they purchased. In that case, they will promote the store they shopped at in customer reviews and other places.
For instance, delighted consumers may share their purchases on social media and recommend their friends to shop at the same store, effective social media marketing at no cost. This way, product customization will take your business to the next level.
Reason 5- Give Your Business A Push During The Holiday Season
Customized product demands increase during any holiday season. Because on such days, people want to make their special people happy with a personalized product. For instance, many people search for customized gifts on Valentine’s, Christmas, and Mother’s Day.
According to news vista print, 62% of Americans choose gifts that touch their emotions and have a personal touch during the holidays.
So, if you are new to this type of business, follow the proper strategy and use a professional third-party product customization app to grow your business during the holidays. When you make your customers happy, they will promote your business, positively impacting your sales and brand value.
Reason 6- Lower Refund Rates
Every business owner hates the possibility of a customer returning a product because it decreases profits. Because of this, they might charge higher shipping expenses and resources.
Since personalized products are more likely to keep customers satisfied, and the return product percentage is also relatively low in such cases, most customers have no complaints against product customization because they have designed the product according to their choices.
Reason 7- Increases Revenue And Maintains The Supply Chain
When you are offering product customization features, you can charge more. Your customers already know about it, so they are willing to pay. It increases revenue.
On the other hand, customization combines your company model with a digital production flow. The entire supply chain is connected by sophisticated software technologies, from the configurator to the manufacturer.
The digital flow maximizes productivity because the order file is automatically generated and forwarded to production when an order is placed. The procedure is simplified and accelerated, resulting in reduced delivery time.
In addition, a digital approach is more flexible than a traditional one. It is flexible enough for any business. Customization based on a digital manufacturing process opens up the possibility of mass production at a larger scale when manual labor is divided across multiple locations.
Therefore, errors in a logistic system occur less frequently when the production process is digitalized.
How to offer Product Personalization?
If you are new to the product customization business, you may become puzzled about how you will start. No need to become worried because doing a successful business is not a matter of overnight.
First, open a store on your desired platform, for instance, Shopify. Then install a third-party product personalizer in your Web-to-print store. Start with basic products, then go to the advanced level. For example, you can offer your customer engraved or other configurable product options. Lastly, offer a quantity discount at the beginning of your business.
Bottom Line
To conclude, drop your concern about how product customization can improve your Shopify store sales & establish brand value because we have already discussed the key points of this issue.
Hopefully, you will get the maximum success rate after knowing the importance and implementing these steps into your product customization.
FAQ
What is the importance of customization in creating value?
Customization is a great way to run a business because it satisfies customers, and happy customers are more likely to buy from you again.
What is a customized product means?
When customers customize a product, they can choose features like color, design, functionality, extra parts, and other options that make it more unique than other mass-produced items.
What is product personalization?
Product personalization is making sure that customers get the goods and services they want and need.
