As brands look for new ways to enhance their shopping experience, they are increasingly recognising the benefits of product personalisation to meet consumer demand for interesting and memorable interactions.
Now that almost all businesses have an online presence, the challenge is to stand out from the competition and deliver new experiences that create a closer relationship between the consumer and the brand.
Deloitte research shows that consumer demand for personalisation is there. In some categories more than 50% of consumers expressed interest in purchasing personalised products. And half said they were willing to wait longer for a personalised product. The majority of consumers would also be willing to pay more, particularly in more expensive categories.
As innovation in digital design tools, manufacturing processes, printing and fulfilment increases, product personalisation becomes more popular, more affordable and more easily accessible. Some brands centre their whole business around product personalisation, while others choose to use it on selected ranges or for one-off campaigns.
Benefits of Product Personalisation
From increased customer engagement to a boost in conversion rate, higher profit margin and added value for consumers, there are many benefits to product personalisation;
Brand Recognition and Engagement
People crave individuality, and product personalisation caters to that desire. Consumers are more likely to form a stronger connection with, and therefore retain, a product that displays some sort of personalisation, which heightens brand recall and recognition.
Customer Satisfaction and Value
By allowing customers to personalise features, colours, engraving, text or even create their own designs, you can meet the unique preferences of an individual. This helps the consumer feel valued as they have actively participated in shaping the final product.
Brand Loyalty
Brands who offer a memorable experience, for example product personalisation, can expect to gain a loyal following of engaged advocates, who are more likely to repeat purchase. Happy customers become brand advocates who spread positive word-of-mouth and generate referrals.
Differentiation in a Crowded Market
With countless purchasing options available in the market, standing out from the competition is a challenge. Product personalisation is a powerful differentiator that can catch a customer’s attention and set your brand apart.
Data Collection and Insight
When consumers personalise products, businesses are able to gather valuable information about their preferences and shopping patterns. This data can become insights that allow companies to discover trends and make data-driven decisions. By better understanding purchasing behaviour, brands can tailor marketing campaigns, product development and future personalisation options accordingly.
Sales and Profit
Personalised products are more likely to be purchased as gifts. This allows brands to capture sales from a whole new audience. Product personalisation can turn an ordinary item into a special gift and, as such, can command a higher price.
Research conducted by Deloitte found that 1 in 4 consumers are willing to pay more to receive a personalised product. Plus, 1 in 5 consumers who expressed an interest in personalised products were willing to pay a 20% premium.
Furthermore, the increased customer satisfaction that comes with product personalisation decreases the likelihood of returns and exchanges significantly, which saves on cost and enhances operational efficiency.
One of the Most Well-Known Product Personalisation Campaigns
Arguably, one of the most well-known product personalisation campaigns is Coca-Cola’s ‘Share a Coke’ campaign.
The brand commissioned the production of labels for the bottles with a range of names, which created a buzz amongst consumers who were keen to locate a bottle with their own name.
We’re biased because we were the agency behind the co-ordination and fulfilment of the project, but there’s no denying that the campaign created momentum and excitement across the masses.
To summarise, the benefits of product personalisation are endless. As technology continues to advance, the possibilities for personalisation grow. Now is the time for brands to embrace product personalisation and unlock its amazing potential, so the importance of choosing the right agency partner for your project cannot be understated.
We’re experts in product personalisation and have worked on campaigns for some of the world’s largest FMCG brands. Talk to us today about harnessing the power of product personalisation to enhance your customer experience.