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How to boost your sales with product personalization?
Why personalization matters ?
For the luxury industry, product personalization has always represented a considerable challenge. Brands’ trust and clients’ imagination are not enough today to keep pace with customers’ increasing expectations.
The global pandemic changed consumer behavior like never before. Customers expect brands to interact with them on a personal level, to let them co-create, and provide tailored offerings. Therefore, personalized customer experiences are mandatory for businesses these days.
Shoppers are increasingly seeking tailor-made solutions: to illustrate, 52% of them acknowledge that their satisfaction increases as brands offer more customized digital experiences [1].
SmartPixels’ 3D product personalized platform provides a wide variety of customizable product combinations. Therefore, consumers are empowered to personalize their items in every variation and make their products unique. Since they are able to craft the item on their own, they will be more likely to proceed with the purchase.
3 ways product personalization boosts sales
1) Shoppers are willing to pay a premium price for customized creations
Research has confirmed a direct correlation between higher prices and one-of-a-kind items. To illustrate, according to consulting firm Bain & Company, clients are eager to spend 20% more on personalized products.
Luxury is growing more youthful. Gen Z is the most interesting generation of luxury shoppers in terms of purchasing power and values. 78% of them feel that a company’s commitment to technology is a key factor in deciding whether to make a purchase [1]. Furthermore, 68% of Gen Z strives for uniqueness as a way to stand out from the crowd.
How can you win their attention? By implementing an interactive 3D configurator, you will be able to address this double need.
On the one hand, through a 3D web configurator, they can personalize each variation of their items in real-time, previewing objects that do not exist in real life yet. On the other hand, 3D technology will empower them to interact with brands in a captivating way.
Furthermore, these youngsters are forecasted to be the generation with the highest spending power. For them, personalization is crucial: 1 in 4 is ready to pay a premium price for personalized offerings [2].
2) Decreased return rates
Example of a 3D web customizer by SmartPixels
Approximately, 20 to 30% of e-commerce luxury purchases are returned. These returned goods contributed to the 10,000 tonnes of waste ending up in landfills each year. Moreover, luxury brands, when dealing with unsold inventories, have only two options: throw them away, or sell them off.
The luxury industry is characterized by a divergence between what consumers see on the website and the appearance of the actual product. This discrepancy between expectations and reality can make brands suffer from a drastic contraction in sales.
On the contrary, with a 3D e-commerce product configurator, customers will have the chance to see in an ultra-realistic way how the product will turn out once manufactured.
They have real-time access to photorealistic 3D models of their items. Additionally, users can alter the shape, color, and material of the object using the dynamic 3D product customizer. Hence, discrepancies regarding a product’s appearance are zeroed. Consequently, consumers are more confident in their purchases.
By optimizing made-to-order manufacturing, the number of returns, and the related waste, are minimized. Thanks to our 3D product configurator, our clients performed an average 40% decrease in returns, and revenues upsurge.
3) Increased loyalty with a seamless experience
Customer satisfaction sees a sharp rise when offerings and experiences are tailored to their own tastes. By involving clients in the development of the brand’s universe and its products, brands foster an emotional connection with their target audience. Therefore, the ability to attract and retain customers will translate into higher earnings.
Being able to deliver a customized and unique experience at each touchpoint of the customer journey is the key to establishing strong relationships with them. Moreover, they will be more likely to repurchase.
Product personalization could represent the turning point. Businesses that tailor their offerings stand to generate more revenue than those that don’t. To exemplify, in 2021, 60% of consumers reported being keener on repurchasing from a brand after having received a custom experience [1].
At SmartPixels, we are experts in delivering personalized solutions online and in-store. Thanks to our 3D web configurator, clients can tailor the object of their dreams across all the channels. Both in-store and on e-commerce, our photo realistic customizable 3D assets boost engagement and conversions.
With our technology, shoppers have the chance to navigate within the available spectrum of the product’s combinations in a simple, seamless, and engaging way.
Boost sales with product personalization: the case of Berluti
Conscious of our expertise in product personalization, Berluti relied on our 3D configuration solution. The brand was seeking to offer its clients a unique customization experience. Every single pair of shoes is characterized by a variety of possible shoe combinations: ranging from the leather material to the possibility to add tattoos and engravings.
The main challenges our client was facing were:
• The possibility to show clients the spectrum of all available options.
• Providing end clients with a meaningful and immersive customization experience in-store.
We delivered a custom-made personalization experience in-store: we combined augmented reality and video mapping to create digital and interactive products.
Berluti personalization in-store experience developed by SmartPixels
SmartPixels Sales App, enabling immediate product customization, allowed the sales team to guide the customer on their personalization journey. The projected reality created by SmartPixels made it possible to completely immerse oneself in Berluti’s world.
The outcome of this initiative was ground-breaking. On the whole, it obtained a higher level of attention from clients.
Moreover, it raised the company’s sales and enhanced user-generated content. To exemplify, our product customizer solution increased by 3 times sales of personalized products. Moreover, Berluti experienced a 40% rise in its Net Promoter Score, as well as 2 times augmentation in cross-selling opportunities.
*Sources:
[1] The State of Personalization 2021 – State-of-personalization-report_reduced.pdf (segment.com)
[2] McKinsey & Company
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