Design-your-own initiatives have regularly featured on Springwise over the years, and recently we came upon another interesting example. Set in Spain, Crearmoda allows users to design their own clothing and then offer up those designs for voting and incorporation by others. READ MORE…
The combination of personalization and home delivery is an irresistible one in virtually any product category, and coffee is no exception. Aiming to provide java lovers with an alternative to the mass-market brands that dominate most supermarket shelves, EightPointNine is a UK company that lets consumers create their own custom blends and then have them shipped each week directly to their door. READ MORE…
I’ve quoted Pine and Gilmore in my blog post “Mass Customization as a Revolution in Production?” before on this: “…as new mass-produced items rolled off the lines, most consumers gladly sacrificed what they wanted exactly in order to simply obtain one.” (in the introduction of “Markets of One”)
Can we reverse that with mass customization? Can we make products available to consumers without making them sacrifice?
Yes, it’s possible. But to understand this sacrifice is crucial in determining what should be customized - and what not.As you’re devising a new mass customization business, focus your attention on that exact sacrifice. A good way to identify them is by observing “work arounds” of customers. Whenever someone takes a mass produced goods and adjusts it themselves to their own purposes, it’s an indicator that there are more out there that would prefer the adjusted item over the standard item. Not everyone might be as crafty to invent a work around. Take your friends that buy jeans and then take them to the tailor to get the hem shortened or let out. There’s customization potential.
The tricky part though is to identify what sacrifices most of the consumers make. In the case of pants, is it that it “looks ok, but not perfect?”, or the length, or the way it sits on the hip? Only market research and interaction with those customers can really give you an insight into that. Often, a personal experience is a great start, but be sure to back it up - it might be that you’re the only one making that sacrifice.
But beware of the sacrificing consumer who has gotten so used to his sacrifice that he doesn’t notice it anymore. As Pine and Gilmore write: “[E]xpectations are conditioned by years, indeed decades, of settling for something less (and sometimes something more) than what each customer wants exactly.” But as more an more companies offer mass customization, as innovators triumph over having obtained exactly what they needed, the increased value provided to consumers will become the norm, and everyone calls out “Why didn’t we think of that?”
Today I watched a movie - it was fantastic. Netflix just knows what kind of stuff I like to see, especially since they started collaborating with YouTube, Vimeo and Hulu. They know when I fast forward, they know what I watch twice, and all that data feeds into Netflix. Netflix knows I like amazing cinematography and they “borrowed” the idea from that site, whose name I don’t remember, where you could choose your music by picking a color (something like http://musicovery.com/, but that’s not who invented it).
So whenever I turn Netflix on, it asks me “How are you” and from there I can be sure that the three movies it suggests are those I like. It doesn’t take more than three, because I like all of them. At the same time, it feeds the data back if the movie industry just hasn’t made enough movies with great colors or surprising plots, and so they know what’s in demand.
Netflix isn’t the only company that recommends stuff. In fact, everything and everyone is collaboration (like, you know, and interNET), and they know me, if I let them. It all began with Hunch…
I’m on something like 15,793 questions answered with Hunch now. I answered most of those between 2010 and last year, because last year I gave Google permission to use StumbleUpon Data as well as my time spent on sites to analyze what I like and how I am, leveraging the data on Hunch of users like me. Of course Twitter and Facebook data is picked up on it as well, and via Foursquare it also knows what I like in the offline world. Sometimes I still like to answer some questions, it’s entertaining.
Recently, I bought a new trash can. Obviously, trash cans isn’t something I buy a lot, so there’s not much data on me and my trash can buying behavior. But Hunch knows my style, and Google knows I like to buy from sites that look great, unless I can get the same trash can cheaper elsewhere. Thus my Hunchoogle results are dramatically different than those from, say, 2010. I get max 5 results, and I know that I like ‘em. The internet has just become amazingly more simple. When I order on chocri, I only see the toppings that they know I like.
Sometimes I go anonymous on the internet. It’s fun to see what other people like. But there’s so much clutter!
I like new ideas for businesses, and my internet recommendation geniuses have totally picked up on that. Genius - good keyword. iTunes’ Genius is much more than music nowadays (especially after they bought Instinctiv and signed a partnership aggrement with Pandora)… whenever I like something, it conspires with Hunch and StumbleUpon (what do other users like me like) and Google (my past behavior), and analyzes what it probably is that I like about it. Then it analyzes everything (say, websites, books, music, video, product, you name it) to bring up other stuff I probably like. Say I want to go out to eat- thanks to Foursquare, it knows what I like, thanks to Foodspotting, it knows what to eat. So every time around lunch and dinner time, I get an email with a suggestion either what to make out of the groceries I bought recently (of course the store feeds that info into it), or where to go out to eat. No more yelping needed.
Privacy was everyone’s concern - for about four weeks. If I didn’t want it, I’d just turn it off! And my friends are now in something like ‘castes’ depending on how much I trust them and what I want them to know/ give them access to (think Facebook lists from way back). A positive side effect is that hardly anyone lies anymore- just so tough to keep up with that lie throughout all your systems!
The only thing I haven’t gotten used to is that it’s hard nowadays to meet someone who’s not just like me. Facebook keeps bringing people up who are, well, awesome, but exactly like me! I have to try hard (-> I have to go offline!) to meet someone who disagrees with me and doesn’t have the same trash can as me. Which, come to think of it, there haven’t been many new trash cans developed lately - where did innovation go?
Unilever just announced that they will practice what we call open innovation. The article now requires registration, but in short, Unilever plans to “integrate social media into product development”- to interact with its consumers to create products that are exactly what their customers want.
I salute Unilever’s move! While I’m sure that they are adept at using focus groups, interviews, surveys, and many other ways to research their consumer’s opinions, this takes it to a whole new level of interaction. We at chocri have been practicing open innovation from the very beginning, but that’s because interacting with our customers is inherent to our business model anyways. What Unilever is building here, could be the first step to not only listen to their consumers individual wishes, but who knows, maybe someday be able to react to it individually, too.
Innovation is inherent to mass customization. Every time a user creates one of the 10 billion different possible combinations on our site, that’s innovation. Compared to that, innovation at mass production companies (like Unilever, Kraft, you name it) is by the company, with comparatively very little consumer input. Which, witness me saying, is also a good thing! Many inventions and innovations most people never dared to dream up. Or maybe dared to dream, but not to demand. How many people did you hear say six years ago: “I’d like a website where I can tell everyone what I’m doing all the time, and put up my pictures so everyone of my friends can see them, and so I can see everyone’s pictures”? Even if you told them that you have this idea, many probably would have thought you’re crazy (btw, if you did, please talk to me, I want to benefit of your vision!). Today, more people spend time on Facebook than with Google. (Also read this article: http://entrepreneur.venturebeat.com/2010/02/11/bolt-peters-remote-research/)
So-called Breakthrough Innovation does not tend to come from consumers, it comes from creative, visionary individuals and teams, both within cooperations and as startups. On the other end, there’s customer innovation, which tends to be Incremental Innovation - I’d like to have copy & paste on my phone - bam, there it is a few months later. Both types of innovation are important!
Mass Customization/ Co-Creation spurs innovation for it has the incremental innovation built in (with every chocolate bar you make…), plus the company and the customer are already talking, so more incremental innovation ideas are being communicated, e.g. on the modules that are offered in the customization (in the case of chocri, e.g. those are the toppings). But that cannot be it. There has to be breakthrough innovation in the mass customization industry as well. Lots of it will come from new startups, but existing startups also need to be open to it. Whether it be new products that could be customized, or new concepts jumping off of mass customization. Take what Jana Eggers, CEO of Spreadshirt, said in this interview: “What I hope happens is that we take the industry and think about what the customers want from it”. Spreadshirt has taken the mass customization concept and expanded it with their “partnership concept” - now a much larger growth driver than mass customization alone.
At chocri, Franz and Micha’s breakthrough innovation was the idea of customized chocolate bar itself - prior to chocri, there was just no such thing. If you’d like to see some incremental innovation in terms of the chocolate bars created, check out the bars the bloggers made for the blog race: beautiful, delicious bars, everyone different from the other. Also, we practice what Unilever is getting into now - open innovation - take all the many surveys and quests for your input we throw at our dear customers regularly (thanks for throwing back!). Innovation makes us better, and we’d like to be the best we can be!