6 Ways Customization Increases Revenue & Loyalty
When a product or service is tailored to customers’ specific needs, it can be marketed effectively to generate loyalty in the long term. From designer handbag to hotel accommodation and even consumer goods, pretty much everything comes with a personal touch. Retailers are looking for ingenious ways to implement product customization for better conversion rates. A report by Infosys backs up the desire for customization and states that 59% of shoppers who experienced customization have significantly influenced what they purchased while 31% wished for a more personalized shopping experience. (Source)
Let us delve deeper into the realm of customization and find out 7 main benefits of following this approach –
- Enhances individuality – Basic psychology dictates that customers are likely to buy products or services that shouts, ‘this is me’. Customization facilitates individual expression and evokes a strong sense of ownership. As per a report by Segment, 44% of customers are more likely to repeat purchases after having a personalized shopping experience from a brand. (Source) By customizing every interaction, brands can expect enhanced loyalty and revenue.
- Increases conversion rates – When you customize services and offerings to target a specific set of audience depending on their shopping behavior, demographics, etc., it is more likely to make them convert. Especially, web or home page customization can have a big effect on customers. It not only improves conversion rates but also helps deepen customer relationships. As per a survey by Evergage conducted on 2016 digital marketers, 96% said that customization helped to advance customer relationships while 88% witnessed a measurable shift in revenue. (Source)
- Long-term and emotional loyalty – Customization is the key to building loyalty by influencing customers to prefer your brand over competitors. A range of customized offerings helps in fine-tuning your marketing strategy to build an emotional connect with frequent shoppers. Research by Gallup shows that personally-forge products hold emotional value and foster meaningful loyalty. These consumers are likely to have a positive emotional brand connection and will spend 46% more than those without emotional bonds. (Source)
- Superior customer experience – Brands are customizing webpages by incorporating AI and automation to maintain efficient customer engagement. Chatbots technology has gained a lot of interest as it can resolve common issues without the need to call or visit the store in person.
- Stimulates customer retention – Customized services offer a real opportunity to up your marketing game and re-engage customers. It is a well-known fact that acquiring a new customer is costlier than retaining an existing one. Customization of your services, discounts, points, and offerings can be a great way to entice customers. Additionally, you can offer freebies, upgrades, exclusive discount coupon on checkout, reward points for purchases and redeemable gift cards to name a few. In the long-run, rising conversion rates will yield client advocacy and retention.
- Transparency and user-friendliness – Product customization gives the customers an opportunity to design highly personalized experiences. Customers are willing to spend more on personalized offerings and significantly influence their purchase decisions. On the contrary, the lack of customization is frustrating and drives customers away. By providing a predictive touch of personal finesse, you can segment and cater to difference audiences accordingly to increase both revenue and customer base.
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