Product personalization is invading every facet of the digital and retail space. In the field of e-commerce, many digital retail outlets use big data to give their clients a customized shopping experience. The trend is increasing, with many consumers going for personalized gifts and products.
Research by Deloitte on product personalization revealed that 33% of consumers would like to personalize their products. This number is bound to increase with the Millennials generation in the equation. Members of this demographic segment are keen about portraying unique images of themselves, and a good number of them are in their prime purchasing years.
They buy personalized watches or send personalized gifts to their loved ones. With a growing culture of customization, there is a need for more personalized carry bags in Australia.
Regardless of the investment that comes with it, product personalization is a tremendous opportunity to conquer the untapped market. In addition to bringing a high rate of returns on investment, it leads to increased sales and reduced overhead costs.
Reasons for Product Personalization
All the same, these are not the only reasons for offering product customization. According to new research, many consumers expect, if not demand, highly personalized shopping experiences. Moreover, customers are willing to spend more on personalized products. However, even though customers are already expecting such products, many businesses are just reluctant to deliver.
Here are the top reasons for personalizing products, both from a consumer and a seller’s perspective:
Personalization motivates consumers to buy
About 49% of customers buy products they do not intend to buy simply because the products are personalized with their own messages or with a brand they love. For instance, leaving a shopping mall with their goodies in a branded carry bag motivates customers to keep coming and shop often. Besides, a personalized mug, watch, or any other item can motivate most customers to purchase products that pique their imagination.
Personalized products generate more revenue
This is a win for the seller who is willing to personalize products to suit his or her clients. According to a survey conducted by Segment, 40% of U.S. consumers confessed that they have spent more than they had planned to spend simply because a product was personalized. From the seller’s perspective, product personalization provides a suitable opportunity to generate more revenue.
Fewer personalized products are returned
The same survey by Segment revealed that only 5% of impulse buyers were not happy with their products. This means that a greater majority of the buyers were happy with what they bought.
Product personalization creates loyalty
As a customer, you are more likely to pledge loyalty to a provider with products that meet your needs. More than 40% of buyers of personalized products are likely to return to the seller for a more personalized shopping experience. Besides, they are more likely to pass the good news to their friends and friends of their friends.
The retail industry has a huge opportunity. According to research by eMarketer, retail sales are projected at $5.68 trillion by 2021.