Customization. It’s a term thrown around “the industry” quite often, but what does it mean? How do you use customization to your advantage in the digital economy? And why is customization more important than ever for entrepreneurs?
This article will dive into the three main reasons why customization is key to your success in digital products and services while also delving into some of the struggles you may face with customization as an entrepreneur. So let’s start at the beginning. What exactly is customization?
Customization definition: The process by which a product or service is changed to meet a specific customer’s request.
A Product or Service Built for the Customer (or the Consumer)
Customization is when you build a product or service that caters to and fits the customer. This means if someone goes into your store to buy spaghetti, they will have two options: one size and one flavor. The spaghetti you are selling is one-size-fits-all and has only one flavor.
However, if you were to add customization into the mix, your customer could choose how long they want the noodles (i.e., short or long) and what flavor sauce they want their spaghetti in (i.e., red or white). This is the biggest advantage of customization. It allows your customer to have total control over what they want.
Customers are becoming more and more demanding with their products and services, which means that if you don’t accommodate them, then someone else will. If you cannot provide solutions from within, you must learn from your competitors and adapt.
Customization is key for both current and future competitive advantage, allowing your business to grow more rapidly than it would if you were stuck in the one-size-fits-all mold. If you want to be successful as an entrepreneur, customization will be crucial to that success.
The One-Size-Fits-All Mentality is Becoming Obsolete in the Digital Economy
It seems to be an era of consumerism and customization. Customers are having more control over what they buy, which has led to companies offering customized choices. In fact, according to Statista, a whopping 86% of online shoppers believe that customization options make online shopping more interesting.
It’s not just customers who are demanding customized choices. Businesses and entrepreneurs alike are looking to trade one-size-fits-all for a better fit with their customer base by offering them the ability to customize. Companies like Tesla even offer customers, via an upgrade package, the option of adding self-driving capabilities to their vehicles (at a price).
The benefit here is obvious: if you, as an entrepreneur/business owner, can customize your product or service to add more value for your customer which they won’t be able to get anywhere else, then you will be able to compete in the digital economy on a different level from your competitors. More importantly, however, you will be able to gain a competitive advantage over your competitors by building a product or service that perfectly fits your customer’s needs.
The Struggle With Customization as an Entrepreneur
This brings us back to why customization is important: it allows entrepreneurs and businesses alike to build products and services that fit into what customers want, which means more profit for them. The problem that comes with this is that customization isn’t always easy to do; it can be expensive and time-consuming.
It gets even more complex with digital products and services because the product or service you are creating exists not just in a physical place but also in an abstract one. Think about all of the different kinds of people who exist online — what they want, how to serve them, which niche fits into their needs best, etc. It really makes your head spin if you think too much about it…but that’s where innovation comes in handy!
Innovation is key for entrepreneurs, allowing them to stay competitive in the digital age by helping them create unique products and services that fit the needs of their customers (and the customers of their competitors).
The concept of customization is exactly what drives innovation, helping entrepreneurs create products and services that fit into how their customer’s wants and need. This helps them stand out from their competitors by giving them more control over what they do with their business — which is really exciting for anyone trying to start something independently!
