Should All Brands Offer Personalization Options for Their Products?

M&M’S, a brand under Mars Incorporated, has launched a new initiative offering personalized products for family vacations and weddings. Available exclusively at the brand's four retail stores and online at MMS.com, the customization options include a variety of products, such as Wedding Ring Party Favors and Just Married Wedding Favor Tins. Couples can choose from over 20 colors and personalize M&M’S with messages, names, or photos to add a unique touch to their celebrations.

M&M'S, and other brands like it, have begun to focus more on personalized and custom products to cater to the growing consumer demand for individuality. Whether it’s customizing items for special events or tailoring everyday essentials to personal needs, these options allow consumers to express their unique preferences and enhance their experiences.

According to Forbes, "When identifying ways to stand out, customization is king. It has boundless potential for both brands and customers." Grand View Research reports that the e-commerce market is expected to rise to $83.26 trillion by 2030, with a CAGR of 18.9% from 2024 to 2030. With this growth in mind, Forbes predicted that "custom products are the future of small and medium-sized businesses."

However, big brands can also benefit from this strategy. As reported by Phys.org, personalization at scale can "reduce customer acquisition costs and increase revenues. Personalizing experiences, when offered to millions of customers, make it difficult for competitors to imitate, especially when brands use proprietary technology."

Per a study by McKinsey & Company, Gen Zers have especially been seeking out personalization for many years now. "The core of Gen Z is the idea of manifesting individual identity. Consumption therefore becomes a means of self-expression — as opposed, for example, to buying or wearing brands to fit in with the norms of groups," the study reported. This trend, driven by both Gen Z and millennials, is spreading across generations, with consumers increasingly seeking personalized products that reflect their individuality.

In general, personalization and customization can help brands engage their customers and increase awareness. As reported by Forbes, data from Boston Consulting Group showed that “companies that master personalization can increase their growth rates by 6% to 10%.”

Additionally, a Deloitte study likewise revealed that customization plays a crucial role in driving significant business growth and enhancing customer retention. In an era where consumers' attention spans are shrinking, the study found that offering personalized and tailored experiences can yield five to eight times the return on marketing investments and boost sales by 10% or more.

One retailer that has been offering customized products for years is Lids, which provides a variety of customizable hats from different brands. When perusing through the options, there are multiple base hat shapes to choose from, followed by a plethora of color options, and finally, the ability to have almost any type of text or graphic digitized and embroidered.

But personalized products go beyond the typical custom engravings and made-to-order items that have existed for quite some time. Some brands have innovated their product lines in ways that are unique to their offerings and customers.

Software company Salsify identified three of these such retailers:

• Care/of: This company enhances its direct-to-consumer model with personalized vitamin packs tailored to individual health needs. Customers start by taking an online quiz with 48 questions, and Care/of then recommends specific vitamins, delivered in monthly, colorful packs. Since its 2016 launch, Care/of has grown significantly. In 2020, Bayer acquired a 70% stake in the company, valuing it at $225 million.
• Skin Inc: This Singapore-based skincare brand uses a Skin ID Quiz and a database of over 1 million skin profiles to offer personalized skincare solutions. The brand experienced a 400% growth during the COVID-19 pandemic and operates in over 78 cities with more than 200 retail locations, including Sephora and Nordstrom.
• Shoenvious: This brand offers a luxury footwear experience with a 3D online designer tool that allows women to customize shoes with 100 colors and materials and over 300 styles. During the pandemic, the brand focused on personalized bridal shoes, boosting site traffic by 30% and increasing conversions. Shoenvious is now available in over 80 countries.

As the demand for individuality grows, retailers are responding by expanding their offerings with personalized and custom products. This trend not only enhances customer satisfaction by allowing for unique expressions of personal style but also strengthens brand loyalty. By embracing customization, retailers are positioning themselves to better meet the evolving expectations of today’s consumers.