A recent study from Statista revealed that U.S apparel and footwear is 358 billion dollar monster which is growing at an annual run rate of 3% and it’s about to reach 5% growth rate by 2025.
That said, it’s never going to be easy for average joe anticipating to get market share, but at the same time, there is a huge room for every aspiring entrepreneur to take a bite at the big pie.
This can be achieved taking unique strategies as foundations for the business. One such strategy, we suppose, that perhaps will do big is offering customers to personalize their own product. This in a way satisfies the customer to get hold of a product with a personal touch.
Here are few reasons for you to try selling customized/personalized products through your online store.
Upsell Existing Products:
We all know selling to an existing customer is much easier rather than to a new client. Same applies to upselling as well. As a retailer, you have easier opportunity to get more bucks from customers by providing simply the customization option.
A survey from Bain&Co shows that customers are ready to pay 20% more for customized products than regular products.
Build Loyal Fan Following:
Though customer survey shows that customers are highly interested in buying a personalized product, many retailers are not cashing on the opportunity.
Only a few bigger brands and very small percentage of online retailers are providing customization option. By proving personalization in your store, you could easily move ahead atop of the busy cutthroat competition.
And all the reports have clearly shown that customers are more engaged with an online store who provide product customization.
Understand Your Customers Better:
We can’t stress more than Steve Jobs on the importance of understanding customers. Allowing the end user to design and decide on product feature is like getting paid for understanding your OWN customers.
Everyone worships their movie star, sports idol, music A-lister, and business gurus. With the digital age and frenzy social media making more convenient and easier for their fans to access their idols, it’s pretty evident that fans don’t mind paying bucks extra to ascertain their love by buying a T-shirt with their favorite movie/music star on them.
Furthermore, as a retailer, you have a partnership opportunity to sell official merchandise products and get referrals traffic from their social accounts.
When it comes to apparel customization, many customers try to make a purchase on behalf of the friend groups or to support their favorite football team. That said, retailers can use this opportunity to increase their profit margin on bulk orders and bring more brand awareness.
Improve Conversion Rate:
When you allow your customers to design the products style, color, and other parameters based on their needs, it naturally moves the customers to make the purchase and reduce the sales cycle. This helps to improve your conversion rate and reduce cart abandon percentage.
It should be indeed overwhelming to quit from running the market-share race, time and again, when the world around is changing eternally. Instead of struggling to face the reality, it’s better to invest in smarter and more likable ideas that have the potential to change things upside down.