At the Customer Innovation Network we are often asked by clients about what shapes consumer behavior and demand today and in the future. In response, we often discuss 'Individualism and Personalization.' While these concepts are not brand-new, we see emerging technologies and new practices that make it more feasible for retailers today than just a few years ago.
As exemplified by Generation Y, younger consumers really value their individuality. They celebrate it and are looking to retailers, service providers and marketers to help them express their individuality and cater to their distinctive preferences.
We also find consumers may not consider shopping an easy task. In a recent Accenture U.S. consumer survey, 86 percent of respondents said shopping today is either "about the same" or "more difficult" than shopping two years ago. Individualism and Personalization may be highly valued to these shoppers as it enables them to filter through an over-abundance of marketing messages, products and choices and only focus on what's most relevant to their own needs and preferences.
We see established companies and brand new ones jumping into this arena attracting attention and customers. Since we get the question so often at the Customer Innovation Network I thought I'd share some examples with you… and please send back comments on others you've found and used, what you like, and what you think is here to stay and what will fade away.
Personal Expression
Phenomenon like YouTube and MySpace give young consumers a stage for voicing their opinions and showing off their social lives and it's influencing how they shop. Some companies are reacting by offering customers avenues for personal expression, like personalizing a Heinz Ketchup bottle or Kleenex box with personal slogans and pictures.
More sustainable ideas include MyTwinn.com that produces dolls that are exact replicas of real girls, allowing them to celebrate their identity through their toys. And, for an extra charge, you can get specific freckles or birthmarks painted on the dolls.
A company called Reactee takes personal expression via t-shirts and adds the power of text messaging with t-shirts that literally "text back." Anyone interested in knowing more about the t-shirt's slogan or its owner can text a keyword and get an immediate response set by the owner, who also receives the message with the sender's cell phone number.
Not Custom-Made…Customer-Made
Some companies have gone beyond custom-made and are putting customers to work by involving them from ideation to selling. Staples' InventionQuest and Kraft's Innovation Challenge incent shoppers to submit ideas for new products. These companies then produce the best ideas. Now a company's product development department is not limited to the people who work for the company but could include the whole world.
Companies now get customers involved by letting shoppers design products. Nike has shoppers customize running shoes and some cereal companies let consumers create their own cereal combos and flavors.
Zlio.com uses social networking and allows everyday people to essentially open up their own on-line shop and receive commissions from the products they sell. Major retailers like PetSmart, eBay and Sony are paying the commissions.
A grocer in Europe – Albert Heijn – literally involved the entire town in the design of a new store. The town chose everything from location to layout and even the experiential elements of the store. These retailers understand that today's shoppers are easily connected to one another, are most influenced by their social group and are looking to one another to be the editor of assortments. It's assortment optimization completely redefined!
Tailored Offerings
Tailored offerings are taken to a new level at MyShape.com, which has developed a formula that takes a woman's measurements and aligns them to one of seven distinct body types. Each MyShape customer gets their own home page with products that fit their shape as well as their style and fit preferences.
At the Customer Innovation Network a prototype from a company called VideoMining shows how we can tailor in-store media with advanced video insight that alters content on a digital screen in real-time to tailor to the demographics (age, gender and ethnicity) of the audience in front of the screen. If you are a teenage girl, you will see information and video that fits your demographic. If the next person to walk by is your Dad, the screen will change to fit his demographics.
Consumers will continue to evolve – and at increasing speed – and we believe companies must evolve with them. A shopper is no longer limited by what's at the mall and retailers are similarly not limited by what's in their inventory today. Technology is a common engine for change on both sides but so is imagination, creativity and individuality.
And, if you didn't get enough of the examples of 'Individualism and Personalization,' check out trendwatching.com. |