The terms “personalization” and “customization” are sometimes used interchangeably by retailers. However, for both in-store and online, these terms give radically different advantages to the user experience.

While both words benefit the company (repeat business, greater sales, etc.) and the customer (control over what they buy, exclusive deals, etc.), it's crucial to distinguish between the two to determine what should be emphasized to help boost your brand's bottom line. So, what differentiates customization and personalization, and what benefits do they provide e-commerce retailers?

Customization

Customers are requesting a more engaging purchasing experience at an increasing rate. Customization allows customers to take on the role of creator, allowing them to have complete control over what they want to buy, from altering the color pallets of shoes to monogramming a bag or customizing the design of a couch to match their living rooms. What would your living room look like with that couch? Is it better to have gold or silver zippers on the bag you're buying? Is it possible to have too many bespoke colors for your new sneakers?

Visual customization options give customers an immersive and one-of-a-kind buying experience, allowing them to better predict how their purchase will appear, lowering the likelihood of returning it after purchasing it from the retailer. In addition, customers may interact physically with the product by utilizing technology to make visualizations and necessary changes.

Personalization

When it comes to personalization, it's all about making the consumer feel special by providing a one-of-a-kind experience based on learning more about them. Whether they purchase online or in-person, consumers want to feel appreciated by the companies; therefore, retailers must assess what matters most to their consumers to provide a more personalized shopping experience. Is it providing a discount on a pair of jeans that you know X consumer buys all the time? Or is it promoting certain things to go along with Y's recent purchase?

Personalization creates a one-of-a-kind buying experience that encourages return visits and purchases. According to a Deloitte survey, 36% of customers reported a strong desire to purchase customized items. Consider the last time you signed in to your Amazon account; everything from product suggestions to deals on the site results from Amazon's AI technology allowing the app to become more personalized for each consumer.

Final Words

According to studies, gaps between customer expectations and the product's images on the website accounts for 23% of product returns.

Companies may thus boost customer trust in online shopping by integrating customization and personalization technologies, which can help lower returns and encourage repeat visits.

Stay Tuned with EXIMA

Want to stay informed on international trade updates and learn how to do business across the globe? Join EXIMA today!

#EXIMA #personalization #customization #eCommerce #sales