JC Lupis | Marketing Charts | Thu, 28 Jul 2016 13:00:38 +0000

More than 6 in 10 US consumers are aware of companies customizing product and services to individual preferences, with this awareness higher among younger than older adults, a new study has found. Based on a survey of 1,300 consumers in the US and UK, the Radius Global Market Research report indicates that while there are various ways to customize, some are more desirable than others.RadiusGMR-Popular-Customization-Methods-Jul2016

The top area for customization is the loyalty program, with this of interest to 70% of respondents and used by 61%. A majority of respondents also claim interest in a range of other customization methods, from build-your-own (58%) to recommendations based on past purchases (60%) or location (54%).

Loyalty programs are the only customization method used by a majority of consumers, though, though almost half (47%) have used recommendations from past purchases. There seems to be high interest but low use of methods including build-your-own and mix-and-match, while traditional and curated subscription services/boxes are on the lowest spectrum of both interest and usage. (That’s an interesting finding in light of separate data from Hitwise, a division of Connexity, showing a huge increase in visitors to subscription box industry sites.)

While the most desired customization initiatives are fairly standard across industries, some are more ripe for efforts in this area than others. Based on a mix of relevance, success stories and consumer desire, the study finds that the technology industry stands to benefit most from customization, followed by TV/movie entertainment and health and wellness.

It’s also worth keeping in mind that different age groups ascribe different benefits to customization. For example, while the element of surprise and the ability to achieve a certain image are important to youth (18-34), Gen Xers (35-54) are more drawn to the convenience of less time shopping and helping meet the needs of the entire household. And for the oldest group (55+) – who are the least likely to be aware of customization – introduction to new products and services is a key benefits, as is the ability for these efforts to keep them up to date.

Among various other recommendations, Radius reminds marketers to avoid over-complicating things for consumers, noting separately that 2 in 5 consumers feel that they already have too many options.

About the Data: The study is based on a survey of 1,300 consumers in the US (800) and UK (500) covering 16 industries.