a redesign of marketing from the customers’ perspective
e.g.,
Dell, establish custom websites (called premier pages) for their business customers, whose employees can then order computer configurations that have already been approved by their companies.
transforming the practice of marketing from being seller-centric to being buyer-centric
From Mass Customization to Customerization
Customerization encompasses more activities and functions than mass customization of products.
Mass customization — step toward realizing customized marketing, production side 실현하기 위한 수단
“Using flexible processes and organizational structures to produce varied and often individually customized products and services at the price of standardized mass-produced alternatives.”
Mass customization is just a step toward realizing customized marketing
Customerization = Mass Customization ← Customized Marketing; Marketing Side
How do these companies translate this ability to produce numerous product options into customized shopping, purchasing, and consumption experiences for their customers
Combines mass customization with customized marketing.
e.g., customerization
garden.com
does not own any nurseries nor does it take delivery of the plants, that is, it does not own a manufacturing process.
Yet this company is able to create a customized product and a unique shopping and purchasing experience for each of its customers.
Customerization = marketing is buyer-centric
Thus, customerization is more than just mass customization—it is a business strategy to recast a company’s marketing and customer interfaces to be buyer-centric.
IT-intensive — MC = production side vs Customerization = marketing side
mass customization is IT-intensive on the production side,
whereas customerization is IT-intensive on the marketing side.
Can frame the choice options
companies can still decisively influence customer decision making and choice processes by framing the choice options — which aspects of the product and service can the consumer customize and which are given—by providing relevant information and education, and by making it easier, more engaging and cheaper for customers to deal with them than with competing firms.
Customerization versus One-to-One Marketing and Personalization.
Customerization is also an enhancement to one-to-one marketing and personalization.
One-to-one marketing 회사가 알아서 소비자를 predict
“marketing based on the idea of an enterprise knowing its customer. Through interactions with that customer the enterprise can learn how he or she wants to be treated. The enterprise is then able to treat this customer differently than other customers.”
Typically initiated by the firm
e.g., offering a smoke-free hotel room based on past preferences indicated by a customer
Based on trying to predict what customers want,
Personalization 회사나 소비자 둘다 initiate 가능 Peppers and Rogers
“customizing some feature of a product or service so that the customer enjoys more convenience, lower cost, or some other benefit.”
Personalization can be initiated by the
customer
(e.g., customizing the look and contents of a home page as in NetCenter or Yahoo!) or
by the firm
(e.g., a real estate agent determining the set of houses to show to a customer; greeting a customer by name when the customer calls a support line). #sentence — intiated! one-to-one marketing도 보기
Customerization: under the control of customers and initiated by them.
help customers to better identify or define for themselves what they want
Exhibit1. Differences between Personalization, One-to-One Marketing, and Customerization
Customer Needs: Focusing on (Un)articulated Needs 또렷하지 않은
Customerization focuses on both the articulated and unarticulated needs by guiding the customer through a design and discovery process.
For example, companies have been notoriously inept at trying to figure out what customers want in interactive television
Tailoring the Offering - Customized segments and “segments of one."
tailor individual offerings and products to increase customer loyalty, dollar volume of purchases, and repeat purchases
New Products: The Real World Is the Laboratory!
customers are creating their own products—from customized vitamins, to configuring computers, to building their own CDs
All Prices Are Negotiable: The Global Bazaar
Online prices can be tailored to specific users and raised or lowered instantly for assessing price elasticity at different prices.
From Broadcast Advertising to Interactive Edutainment
A growing number of companies are recognizing that the online medium provides an unprecedented opportunity to “mix what they know with what they have to offer” to provide true incremental value to their customers.
Taking Distribution Off the Shelf
Many Distribution Channels
However, as more customers go online and become more active participants in creating their products and services, it is becoming critical for firms to offer a direct channel to its customers.
Branding: The Consumer Name as a Brand
"personalized branding"
increasing the perceived customization of the product and services offering and the consumer ability to identify the resulting products and services as his or her product.
Competitive Advantage: The Power of Finesse
success depends much more on finesse—ability to deploy effort into areas that generate higher customer value than the added cost of providing that value. 능숙하게 처리하다
Given the direct channels for reaching customers, the increasing number of strategic options available, and the increased acceptance of co-marketing and other forms of strategic alliances and outsourcing, finesse is more important than brute strength.
III. INTEGRATING MARKETING STRATEGIES
As we explore the dynamics of customerization, it is important to understand that customerization, mass customization, and personalization and even standardization will exist side-by-side.
Customerization is not a strategy that replaces traditional mass marketing, but rather it offers additional competitive options in developing an overall marketing strategy
EXHIBIT 6 The Path to Customerization Acumin회사의 예시
There are alternative ways to bring customers through the process
Some companies will get the customer to enter through mass marketing, others will communicate through direct marketing to target segments and still others will create an ongoing relationship through interactive customized marketing.
Acumin's Strategy
Regardless of how they come in, however, the company’s goal is to move the customer into an interactive relationship as quickly as possible (the star) through communications by phone or Internet. The company also delivers its product and services through interactive customized marketing. Although most of Acumin’s customers buy customized products, about 10% still buy off the shelf.
The Challenges of Customerization
Information — obtaining information from customers,
Identifying Factors — the identification of the intangible factors that can make or break an offering,
Enhanced customer expectations,
Choice boards — the need for limiting the complexity of options,
Pricing — pricing issues related to customized offerings,
Required Changes — and the required changes to the entire marketing and business strategy of the firm. We discuss each of these in turn.
IV. IMPLICATIONS AND CONCLUSION
Two critical aspects that management should consider
Increase the digital content of everything the company does.
Position the firm to become the customerizer of its entire industry new exchange process에 디지털 관점을 넣어 주도할 기회
The opportunity that firm could play a central role in digitally focusing the forces of supply and demand to create a new exchange process for customers.
EXHIBIT 7 Customerization in the Auto Industry: Edmunds.com
Edmunds.com brings together the varied functions performed by the different players in the auto industry and delivers a complete shopping/purchasing experience for the customer.
Conclusion
Business strategies that ignore the opportunities associated with customerization are unlikely to be aligned well with the demands of the marketplaces of tomorrow.
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