What Is Product Customization? (Benefits and Importance)

Max 7min read
Product Customization

Definition of Product Customization: 

Product customization provides several designs or details for a single product, tailored to a buyer’s preferences, thanks to technological advancements and production methods.

What Is Product Customization?

Do you know why Froyo is so famous? Because you can have it however you like. 

People love products that match their preferences and needs. Imagine if Netflix started suggesting shows from genres you hate? 

Well, thankfully, that’s not the case. That’s because Netflix understands product customization. You will see different suggestions on different screens of the same account. 

In this article, let’s understand product customization and how it can benefit you. 

So, what is product customization? 

Product customization, also known as product personalization, provides customers with tailored goods and services based on their needs and desires. 

Customers can either ask a business to have certain adjustments made to a product, or they can customize the products themselves. 

Customers can modify products online in the latter case, which online businesses provide.

Product customization earned a name for itself in the eCommerce business and quickly piqued online merchants’ interest.

Product customization allows customers to choose elements such as color, design, functionality, add-on components, and other alternatives to create a more unique item than a bulk one. 

For example, customers can create and order one-of-a-kind sneakers from a shoe company’s web portal.

Product customization has spread across practically every business and is now a standard tool for encouraging customers to buy.

If you can have things your way, why wouldn’t you want it? 

Why Is Product Customization Important?

Product customization is finding growing importance in every industry. Well, the reasons seem pretty valid. 

Businesses prosper when they can give their customers exactly what they want. And customization accomplishes this by asking about the preferences of the customers. 

Product customization allows customers to choose their preferred color, style, or design with only a few clicks, allowing them to put a personal touch on their product.

There are plenty of reasons why product customization is essential. 

First, it can help you appeal to a broader audience by allowing them to choose the features and options they care about most. 

Second, it can help you set your product apart from the competition. 

And third, it can help you build customer loyalty by giving customers a sense of ownership and involvement in the product.

Product customization is essential because it allows customers to feel like a part of the product development process. They can choose the features they want, the color they want, and even the style of the product. 

This makes them feel like they are getting something special for them.

In addition, product customization helps businesses learn more about their customers. 

By understanding what customers want and need, businesses can create products that are more likely to sell. Customization also helps companies target specific markets and demographics.

Well, not convinced why product customization is essential? Let’s take a look at its benefits then.

What Are the Benefits of Product Customization?

Here are just a few of the benefits that businesses can enjoy when they offer product customization:

Customers Love It!

This is an obvious benefit, isn’t it? It’s pretty straightforward. 

Product managers spend their entire process trying to implement customer ideas into their roadmap. Irrespective of which product roadmap tools you use, you may never get it right for some users. 

That’s when product customization comes into play. Product customization gives the product a personal feel. 

When buyers create it, the finished product becomes more than just a product; it becomes an emotion, whether they are doing it for themselves or someone else.

Customers adore the idea of personalization. Thus it gives brands a great chance to succeed in the eCommerce industry.

Customer Loyalty

Customer loyalty is one of the significant benefits of product personalization. And there’s no better way to earn a customer’s loyalty than to give them complete control over the product’s design. 

Customer success is the most crucial factor in gaining that loyalty.

In addition to consumer loyalty, it boosts brand loyalty. Product customization creates a bond between customers and brands and significantly increases customer retention.

If you give your customers a lot of alternatives for personalization, they’ll be more drawn to your brand and choose it over your competitors for future purchases.

Higher Sales

The number of sales is the only thing that matters in the end. Sales aren’t going anywhere if you’ve got your customers devoted to your brand.

Customers are willing to spend more for a personalized item because they regard it as more than simply a product; it is something unique to them. 

We can back this up with a Deloitte study claiming that one out of every five consumers would be willing to spend 20% more on an exclusive product.

Product customization may also help you improve your market penetration strategy.

Word-of-Mouth Marketing

According to the Harvard Business Review, buyers who can customize their products buy more and are more inclined to suggest the brand to their friends.

People tend to notice something that stands out. Thus unique products are a fantastic conversation starter.

If customers are loyal and satisfied with your products, they’ll probably tell others about them, resulting in more people buying them.

Better Customer Insights

Purchasing a personalized product gives you more information about your consumer base’s likes, interests, and perceptions than buying generic ones. 

You can better understand your customer and use the data for future marketing.

Efficient research and development help you gain a competitive advantage.

Customer retention

Finally, product customization can help you retain your customers.

When customers can create a product they love, they’re less likely to shop around and compare your brand to others.

Well, we are sure that has convinced you! Now that you know the importance and benefits of product customization, let’s look at some practical examples.

What Are the Examples of Product Customization?

Let’s look at how some famous companies offer product customization to their customers: 


Nike sells shoes, as we all know. 

When they needed to expand their Direct to Consumer sales channel, they came up with the concept of offering the end-user customizable shoes.

 Nike sold the customizable shoes for $170. Nike not only raised sales but also gained a lot of press for its shoe-industry innovation.


Nutella, for example, incorporated product customization into its marketing strategy by allowing customers to write their names on the container. 

People flocked to it when it first launched in the market. 

Customers began to share the products with their names, resulting in a massive social media buzz for Nutella.


In 2016, Snapchat released Bitmoji, an app that allows users to create cartoon avatars that they can use as their Snapchat profile photo and, if permitted, on the Snap Map.

Since then, Snapchat also introduced “Bitmoji Stories,” an automatically generated Story in its Discover feed.

When you open a Bitmoji Story, you’ll see a sequence of comic-style graphics that depict the story of your Bitmoji avatar. 

This is an excellent example of offering low-cost innovative product customization and increasing engagement. 


And finally, none of us are strangers to the personalization experience that Netflix offers. 

Netflix’s whole business model stands on data and advanced AI algorithms. 

The corporation is constantly developing and testing new ideas to ensure that whatever they share on its platform corresponds to its consumers’ thought processes. And the results of its efforts are rather noticeable.

Using methods such as A/B testing, Netflix stays on top of its product customization game.

After looking at some practical examples, it’s time for you to get familiar with some product customization softwares that you can use.

What Are the Best Product Customization Softwares?

Here are three of the best product customization software platforms:


DecoNetwork is a comprehensive, all-in-one solution for businesses of all sizes. It offers a powerful design tool, an easy-to-use order management system, and customization options.


CustomCat is a popular choice for businesses that want to offer a wide range of customization options. It has a user-friendly interface and a wide range of customization options, making it an excellent choice for businesses.


Printful is an excellent choice for businesses that want to focus on print-on-demand products. It offers a wide range of customization options and a user-friendly interface.

No matter your needs, there’s a product customization software platform that’s right for you.

Suppose you’re just starting and don’t think investing in a product customization software is feasible. In that case, we suggest product management softwares like Chisel

Chisel offers tools for product feedback and team alignment, which can help gain insights into your customer needs. 

Click here to start your free-forever membership access today!


What Is the Difference Between Product Customization and Personalization?

The difference between personalization and customization depends on the source of adjustments. Personalization is the process of customizing an item based on consumer data to satisfy the demands of a specific person. When a consumer makes manual alterations to a product to match their needs or expectations, this is known as product customization.

Why Do Merchants Want to Customize Products?

Merchants may want to customize products due to the benefits of product customization, including the ability to charge higher prices, drive more sales, customer loyalty, and retention, and diversify product portfolio.

Crafting great product requires great tools. Try Chisel today, it's free forever.