Why is customization fundamental to delivering tailored customer experiences?  Personalization is crucial to enhance customer loyalty and experience, according to Mastercard’s Vice President in North America, Les Mathews (2023). Companies that invest in a tailored customer experience are more likely to stay relevant in the long run.

Let’s take the example of @amlivingfurniture. Even at the beginning of their journey in 1962, they offered a customization service that allowed customers to create a piece that was unique, matched their space and personality, and was well constructed. Due to personalization and pristine service, they were able to retain customers for decades.

This highlights why offering a customization service is beneficial for your business, if you want to stay relevant and position yourself in a luxury segment. But why is delivering a tailored service so important for both the customer and for brands and businesses in general?

1.    Unique Designs

Customers nowadays are well informed and aware of their needs and desires. It is only natural that something generic and accessible to all less is appealing than something tailored to their tastes and preferences. Most customers search for one-of-a-kind designs that reflect their personality and uniqueness. Brands like Gucci, Bottega Veneta, Chanel or Hermès offer a great deal of customization because they recognize that luxury and exclusivity go hand in hand. And if you think that seeking unique items only benefits your customers, think again. Made-to-order products are an opportunity to reduce inventory costs and have a higher perceived value.  

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2.    Specialized Service

When you offer a specialized service, you are also making sure that your offerings meet your audience’s needs perfectly. By addressing customer needs, you are not only assuring that your products will attain the level of functionality and beauty they desire, but also increasing customer satisfaction. According to Hubspot (2022), customer satisfaction is linked to product availability, the ease of your purchasing process, after-purchase service and the overall responsiveness of your team when addressing an issue.

You are never selling solely a product, there is always a service attached to it and the quality, availability and excellence of your service will definitely impact the way your product and brand are perceived. Therefore, if you are aiming to reach a certain level of brand visibility and high-end positioning, invest not only in the quality of your product, but also in your specialized services, such as customization and after-purchase care.  Taking in the example of AM Living, you can explore their work process and learn how they integrate customization and customer care in their overall services here.

3.    Competitive Advantage

In the words of Alexandra Twin (2024), competitive advantage refers to the factors that allow a company to produce goods or services better or more cheaply than their competitors. In the luxury segment, competitive advantage is linked to factors like branding, the quality of the products and services you offer, intellectual property, distribution network, and customer service.

Another aspect of customization that wasn’t thoroughly mentioned in the definition above is the ability to differentiate your product from your competitors.  While customization is essential to deliver a tailored experience to your customers, it also serves as a great way to reinforce your competitive advantage. If you offer customization services that competitors within the same segment do not, you are one step ahead.

4.    Increased Customer Satisfaction

Customers who receive products or services that fully meet their needs are naturally more satisfied. Satisfied customers are more likely to repeat purchases and establish long-term relationships with your brand. Customer satisfaction ultimately leads to customer loyalty, which should be the ultimate goal of a brand. Customer loyalty implies repeat purchases, preference for your brand over competitors and cost effectiveness, as it is cheaper to retain existing customers than acquiring new ones (Outbound Engine, 2022).

To sum up, customization is a powerful tool that enhances customer experience and leads to business success, increasing your competitive advantage and overall customer satisfaction and reducing inventory costs.  What’s your experience with customization? Do you seek it as a customer? Do you offer it as a brand or manufacturer?