How to Mass-Customize Your Product

The first task in treating different customers differently is to recognize and remember how they are different, both in terms of their value to you, and in terms of what they need from you.

But the next task is to render different “treatments” for different customers, and in order to scale this process economically you have to reduce the need for manual intervention or constant human oversight. The automated process for rendering different customer treatments is called “mass customization.”

I want to be careful not to minimize the complexity of this idea, and Joe Pine's classic 1993 book Mass Customization still represents the Gold Standard in outlining the process, but the actual mechanics of mass customization are much simpler than most people realize, because it’s not really “customization” at all.

Think of how you can break down your production or service delivery process into different components, or “modules,” each of which can be combined with other modules to make up an individual product or service offering. By pre-producing dozens, or hundreds, of modules to be combined into different offerings, you may be able to render thousands, or even billions, of possible product-service configurations.

It’s important, however, not to confront any single customer with thousands of possible product choices, because customers don't really like having to choose. A customer just wants her problem solved or her need met. Choices slow a customer down and generate friction in the customer experience. So to keep the customer’s experience as frictionless as possible, start with whatever customer insight you already have, and then walk the customer through as few additional choices as necessary to arrive at the correct offering for that individual.

In addition to a product’s physical attributes (size, color, etc.), there are many aspects of your overall product or service offering that can be tailored to an individual customer’s need, and they all provide opportunities for personalizing your treatment of a customer. Here are a few ideas you can use to brainstorm how your own company might be able to mass-customize its offering to meet the individual needs of individual customers:

  • Configuration: Without changing the physical product itself, perhaps you could pre-configure a system to your client’s needs. Acumen Vitamins, for instance, are offered in pre-configured daily assortments, often including a dozen pills or more, based on a health questionnaire and an analysis of a single strand of the customer’s hair. So maybe you could ship your new phones with the speed dials preset to the customer’s specs, or with the company directory already installed.
  • Packaging: How many variations of packaging make sense for different types of consumers or business customers? Would seniors want smaller, lighter packages with instructions in larger type? Would professionals like different or more detailed product information? Which customers would prefer multi-packs, or perhaps mini-packs?
  • Ancillary services: Should the equipment come with regular maintenance or calibration service? Should the new car come with quarterly detailing, biweekly wash-and-wax, or automatic pickup and delivery when it’s time for maintenance? Should the warranty for your device or product be tailored to the customer’s own intended use, perhaps in terms of copies-per-month, hours-per-day, or miles-per-quarter?
  • Additional products: What additional products contribute to meeting a particular type of customer’s need? This might involve accessories (story books with LEGO sets, insurance with automobiles, cages with hamsters, or sweat socks with sneakers). Or it could involve replenishable supplies (oil changes with automobiles, pet food with hamsters). Or consider offering high-volume customers a greater quantity than everyone else gets – a dozen bars of soap, five dozen golf balls, or a half truck-load of product instead of a single pallet.
  • Pre-authorizations: Some B2B companies help their customers enforce preset authorizations to fit different corporate approval systems. Vice-presidents are allowed to order leather desk sets and unlimited paper supplies, for instance, while secretaries are pre-authorized for routine purchases up to $200 per month.
  • Invoicing and payment terms: Are invoices sent at the convenience of the customer or at your own convenience? Are they developed in the most desirable format for a customer, or for ease of issuance by your accounting department? When you notify a customer by email that his bill is now available online, do you provide any other helpful information in the email (like total due, or due date), or do you make the customer log in to find this out? Do you anticipate cash discounts? Some buyers prefer smaller payments and longer terms, while others seek to forestall payment and are happy to pay the price.

When you’re considering how to treat different customers differently, think carefully about all the possible aspects of your product or service that can be customized. Think, also, about the mechanics of mass customization. You can do it manually for a while, to prove the value of the concept as a customer service, but in most businesses you’ll eventually need to modularize and automate the process in order to make it cost-efficient.

(Photo: http://www.theraddonreport.com/?p=549)

Renne Lupalo

Biomedical Engineer with a passion for leadership. Managed Equipment Services Expert, Entrepreneur, Solution Focused, Critical Thinker, Fitness Enthusiast, Empathetic Leader & Perpetual Student of life with an open mind

10y

This is what am practicing not talking about! However, it's not sinking at my work place with colleagues, hence slowing down my speed if not aiding in losing deals!

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✔️Jinisha Bhatt

AML & Crypto Fraud Investigator | Human Trafficking Researcher | Reflections on FinCrime, OSINT, Modern Day Slavery, and Blockchain Adoption.

10y

It is, indeed, the small things that make a big difference. I remember that story Don wrote about the woman in electronics packaging who would highlight the serial # at the bottom of the box so her client would not need to call in or look for it when installing the product.

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Ameya Patil

Strategic Head - Business Development and Cost Management. at Dixel

10y

Brilliant.... well , actually it is more of intelligent target segmentation... thanx

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Rob Goulty

Founder at One Step Marketing ltd

10y

Within the gift card market the addition of digital ecodes has allowed business's to individually personalise a digital gift card offering. This is a great addition to the market but has a huge impact on employee rewards. Customising products and services to a individuals needs is a great selling point where this article demonstrates ways to achieve this.

Like
Reply
Rob Goulty

Founder at One Step Marketing ltd

10y

Within the gift card market the addition of digital ecodes has allowed business's to individually personalise a digital gift card offering. This is a great addition to the market but has a huge impact on employee rewards. Customising products and services to a individuals needs is a great selling point where this article demonstrates ways to achieve this.

Like
Reply

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