What is Customerization? - Definition & Example

Instructor: Endya Perry

Endya has taught corporate training courses and led seminars in various business topics. She has a master’s degree in business administration.

What is customerization? Is it different than customization? What value does customerization bring to the company? What value does it bring to the customer? Find answers to these questions by taking this exciting course.

Customerization Defined

Customerization is a strategy by which an organization's products or services are individualized through personal engagement and dialogue with its customers. In contrast, customization is a modification made to a product or service to suit a specific purpose. There is a difference between customerization and customization. A company can customize products to fit a customer's specifications. In this case, the company creates the product value. But, customerization results in a co-created value. In a customerization strategy both the company and the consumer contribute to the resulting product value.

Example of Customerization

To explore this difference a little further, let's look at an example. There are two floral shops located across the street from one another. One shop, named Flowers by Us, offers customized floral arrangements to fit consumer's seasonal and holiday needs. Flowers By Us has different pre-arranged floral bouquets based on holiday and seasonal themes. Customers can customize their product by selecting either a teddy bear or box of chocolates to complement the pre-arranged floral bouquet.

Across the street, things work differently. The shop across the street, named Flowers by You, employs a customerization strategy. Upon entering Flowers by You, a customer is greeted and escorted to the greenhouse where they can pick their own flowers to include in the product. The customer then sits with a floral designer and together they create a design for the arrangement. The designer then creates the agreed upon floral arrangement.

Customerization Strategy Considerations

In order to implement a customerization strategy, organizations must first determine the processes, people, and technology required to be able to sufficiently answer the following questions:

• What inputs do we need from our customers?

• How will we obtain the necessary inputs from our customers?

• How will we ensure quality with such a broad range of options?

• How will we manage our customers' increased level of expectation?

• How will we develop an accurate and repeatable pricing model?

These things must be considered in order to successfully implement a customerization strategy.

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