Spending more money appears to contradict the goal of generating more profits. However, when you’re looking for ways to increase your profits long-term, spending money is usually required.
One of the most effective ways to increase profits is to offer product customization. Doing so will create an additional expense, but the end result is a higher-end, more profitable product.
If your goal is to secure a long-term increase in profits, here’s why you should consider product customization.
Consumers want customized products
People love customization. However, customized products aren’t just personalized pens or backpacks. Customized products can include products that use customized components for a smooth user experience.
For example, if your company produces hooks for hanging things on the wall, you need to make sure the double-sided foam sticky pad that comes with your product is an exact fit for your hook.
You don’t want to drop some mass-produced sticky pads in the box and let your customers figure out how to cut them to the right size. Ideally, you’ll want to order die cut sticky pads specifically cut to fit the back of your hook perfectly.
How does customization support larger profits?
When your product components are a perfect fit with your product, your customers will give you good reviews and recommend your products to others. This is important because word of mouth advertising is the most effective form of advertising around.
Customized products also reinforce your brand image and contribute to building your company’s reputation. People become attached to personalized aspects of a product, and that attachment becomes part of the reason for their loyalty.
For example, have you ever noticed that Red Bull energy drinks have customized tabs? Some tabs are colored with a cutout of a bull at the top.
When Red Bull fans see and interact with those customized tabs over time, they become attached to the design as part of their experience. They might enjoy other energy drinks, but after a while, they’ll prefer opening a Red Bull can because of the tab.
The top 3 reasons to use product customization
Customized products sell better, hands down. It doesn’t matter what industry you’re in – there are customized products in every product category. For example, you can find customized socks, food, and even appliances.
No matter what your products are, you can add customizations your customers will appreciate. Here are the top 3 reasons to make this happen.
1. Customers won’t have to work hard to use your product
People want ease and simplicity. They want to take a product out of the box and begin using it right away. Sometimes assembly is required and there’s nothing wrong with that. However, customized components will make the assembly process much smoother.
When you customize the components required to use your product, you prevent your customers from having to work harder just to use your product.
2. You can distinguish your brand through customization
Some customizations are strictly aesthetic, and that’s worth plenty. People are visual by nature and will be drawn to buy products that are aesthetically pleasing. That’s why jelly beans are shaped like beans and not blobs. The importance of aesthetics is a simple distinction, yet extremely powerful.
In fact, aesthetics can even increase usability, not just function. For example, shaping a handle in a specific way can immediately tell users how and where to hold your product.
3. You can create an experience your customers will prefer
Just like Red Bull and their customized tabs, you can use customization to create an experience your customers will prefer over your competitors. If you can find out what your customers want, what they enjoy, and what makes their life easier, you can create a superior experience.
Whatever you need to customize to create the ultimate user experience is worth the investment. In the long run, your products will be preferred.
If you want large returns, you’ll need to invest in customization
You’ve heard people say, “it takes money to make money,” and you’ve probably also heard people say that’s not always true. Of course, you can make money without spending money, but your return will be minimal. To generate larger returns, you really do need to spend money.
Product customization is one of the best investments you’ll ever make for your business. No matter what products you sell, customize the details that matter and you’ll see bigger returns.