Customization in CPG

An increasing number of brands are leveraging the latest in technology and data to offer customized products and services, but according to a recent survey, efforts don't always hit the mark.
 
A new Radius Global Market Research (Radius GMR) survey finds that success rates are low with consumers saying marketers' customization efforts “get it right” less than 30% of the time, on average.
 
The Radius GMR survey provides insight into how consumers currently view and value customization across a range of industries.
 
According to the survey, a majority of consumers (62%) are aware of customization and have a clear idea of potential benefits. Top on their list is being able to stay in the know about new products and services (46%). They also appreciate the convenience such as less time spent shopping and making fewer trips to the store (44%). Customization is also a way to reduce waste by receiving less of what they do not want or won't use (33%).

Marketers looking to customize the brand experience for consumers might look to loyalty programs as a place to start. Loyalty programs topped all other customization methods, in every category, based on a combined measure of consumer interest (70% on average) and utilization (61% on average). But customization is far from a one-size-fits-all proposition. After loyalty, the most popular customization methods and programs vary greatly by industry.
 
Men and women view relevancy of customization differently, according to the study. Women see the most value when it comes to skin and hair care (61%); followed by fashion and apparel (59%); and health and wellness (58%).  Men on the other hand want customized offerings in technology television/movie entertainment and banking services.
 
And age matters too. Consumers between 18-34 enjoyed the “element of surprise” and the “ability to achieve and support a particular image or lifestyle” while those 35 to 54 appreciated the “convenience of less time shopping” and “help with meeting the needs of their household.” And Consumers 55 and older, felt that being “introduced to new products/services” and “reducing waste” were most valuable.

“Radius GMR's survey shows that consumers are potentially very receptive to efforts to customize the brand experience,” said vice president Shira Horn. “But if marketers don't do the homework involved to provide and communicate highly relevant benefits to their specific audiences, they are unlikely to capitalize on the opportunity.”
 
“Marketers getting customization right strikes the delicate balance between offering enough choice and keeping the process from becoming complicated or time consuming,” added Radius GMR vice president Shari Aaron. “Having clarity around an audience, specifically around their degree of category-specific interest in customization, is key to building a winning strategy.”
 
Radius GMR said it surveyed consumers in the US and UK and covered a broad array of industries.