In today’s technological society, the right kind of experience is no longer necessary as it is required. But there’s often confusion between two key strategies: personal and customization. Even though using these two terms might seem almost identical their methods of improving users’ satisfaction level are quite different. Learn more about each to figure out how to best incorporate them into your business and please your customers.
What is personalization ?
Personalization is implicit: occurs with some sort of inherent mechanism without calling for it specifically from the users. In other words, the company (or more likely its data and algorithm) control and fine tune for the user.
Examples of Personalization:
Well, Spotify has really given themselves someday the reputation for being able to finer cast. In particular, those songs they have chosen for each user have been received very big by their users. The users’ home page is therefore segmented into areas such as last played, listen more and if you like this.
This makes Spotify to look like the customers own music streaming site despite the fact that the competitors have also downloaded it. This smoothening of interface not only increases satisfaction of the users, but it allows them to get a view of the whole content related to them.
What is Customization ?
Customization is explicit: are prevalent and are operated by the user themselves hence making them explicit. People are deliberately invited to make decisions on what could interest them most.
Examples of Customization:
Nike are no new comer to the world of retailers, but have also taken one of their largest risks with the flagship store. They stepped it up with NikeID, consumers were able to design products for themselves and in a sense make them one of a kind.
It is because of this, while the price is considerably higher compared to the regular models of the sneakers, the customers take an opportunity to design a pair to their liking. This feature is relatively popular and inherent to the Nike brand since it just lets the customers modify what they want about a specific product.
Difference between Personalization vs Customization
| Aspect | Personalization | Customization |
| Definition | Personalization refers to the process where companies tailor their services or products automatically based on the data collected about the user. | Customization is the method by which a user modifies or builds a service or product to their specific preferences. |
| Control | In personalization, the control is primarily with the system, which uses algorithms to adjust the content or experience based on user data such as previous behavior, purchase history, etc. | Customization is driven by the user, allowing them to make choices about the aspects they want to change or adjust. |
| Implementation | This approach requires sophisticated algorithms and data analysis tools to predict user preferences and behavior. The process is mostly invisible to the user. | Customization requires providing users with interfaces or tools that allow them to make their own choices, such as customizable forms or settings. |
| User Interaction | Minimal user interaction is required as the system automatically adapts to the user. | High user interaction is necessary as the user actively makes decisions about the customization aspects. |
| Example | A streaming service like Netflix suggests movies and TV shows based on your viewing history. | A car manufacturer allows customers to choose various features like color, interior materials, and additional accessories. |
| Benefits | Personalization can lead to increased customer satisfaction as the user experiences a service that appears to understand their needs and preferences without active input. | Customization gives users a sense of control and satisfaction from designing a product or service that fits their exact needs. |
| Challenges | Requires gathering and analyzing large amounts of data which can raise privacy concerns among users. | Can be resource-intensive for businesses to maintain support for wide-ranging custom options. |
| Outcome | Often results in higher engagement and customer loyalty because the service continuously evolves with the user’s changing preferences. | Leads to customer satisfaction as users receive a product or service that meets their specific requirements. |
| Scalability | Personalization scales effectively as it leverages automated systems to adapt to a large number of users without significant incremental cost per user. | Customization can be less scalable, as increasing user options often require more complex support systems and infrastructure. |
| Data Reliance | Heavily reliant on data; the quality of personalization is directly linked to the quantity and quality of data collected about a user’s preferences and behavior. | Less dependent on data for individual user decisions but may need data to understand which customization options to offer broadly. |
