How Can You Offer Customized Products Profitably?
Consumer choice has been increasing steadily, meaning customized products are sought after more and more. In some industries, customized products are expected, in fact they are even the norm.
Customization is changing, ‘individualized personlization’ is within reach but it has proved hard to achieve profitably at scale. McKinsey on Business Technologies has published an article looking at ‘How technology can drive the next wave of mass customization’.
The article explains that profitable mass customization requires success in two broad areas:
1. Identifying opportunities for customization that create value for the customer and provide smooth, swift and inexpensive transactions for both consumers and producers.
2. Achieving manageable cost structure and cost level for the producer even as manufacturing complexity increases
Companies that seize the opportunity to offer mass customization could build loyalty, increase revenue and gain a competitive advantage.
According to the research, seven technologies will help drive the shift to mass customization. One of these technologies is Online Configurators like those on ConfigureMyProduct.com. By providing a user friendly and speedy way to gather a consumer’s customization preferences, Online Configurators are now at the heart of mass customization.
The advances in product visualization and the increased speed and adaptiveness of configuration software have made product configuration engaging.
The article features an example of a company that found more sophisticated models of the customized product increased conversion rates online by up to 50%.
Read the article to find out more about how emerging technologies can help address economic barriers to responding to consumers’ exact needs in a more precise way.
Then have a look at ConfigureMyProduct.com to see live examples of how you can use an online configurator for SOLIDWORKS.
Download the complete article here - http://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/bto/pdf/mobt32_02-09_masscustom_r4.ashx