Mass Customization And Personalization Case Study

Era of change from Mass customization to personalization Receiving an email with your name at the top instead of a generic subject line or salutation was primarily the start of the first mass customization marketing campaign. This email campaign in its initial days was a success because people felt connected. Hearing or reading their name enticed them, as different parts of their brain light up giving them a sensation of belongingness. It was a time when personalization was synonymous with luxury.
Before moving forward, first we need to define what is mass customization and personalization.
Mass customization: It is the use of flexible computer-aided service and manufacturing system which produces custom outputs while keeping the costs
When the distribution channel involved clearance agent, distributor, wholesaler and retailer, Dell moved forward with a business model bypassing all the mediators. They allowed the customers to custom build their laptops according to their needs. Directly shipping the product from the inventory of the company to the house of customer, gave Dell a cost advantage in the industry. They were able to maintain less inventory thus lowering holding cost, aiding them to have low inventory turnover ratio. In the end, mass customization not only helped them to gain satisfy the needs of the customers but also helped them gain competitive
For many businesses, mass personalization is the act of developing campaigns targeted towards specific customer with the motive to boost the sales. It is a race to make Minority Report a reality. Amazon

is a perfect example of personalizing the journey of customers. They tailor offers that are based on customer’s past purchases, interests, demographic profile and location. Amazon uses this method frequently, and with this technique, they can earn 35 percent of their total revenue from products they recommend. If someone has kids, they will see some children’s book as well as stuff on sales. Apart from Amazon, Netflix also uses mass personalization. They recommend movies to their users based on what they have seen in past, what are their essential interests and their demographics.
Conclusion
Henry Ford's assembly line technique gave birth to the mass production, exceptionally lowering down the cost of cars. Then came Dell, giving customers the option to customize their products. Now, again the time has come to change the gears. Likes of Henkel and Amazon are moving forward with the mass personalization and soon it will have bandwagon effect which will fuel this paradigm shift. The story does not end here. When people are busy digesting the concept of personalization, some are working on the idea of bespoke, involving customers from the beginning of the