The Deloitte
Consumer Review
Made-to-order: The riseof mass personalisation

Contents

Foreword
Executive summary
Up close and personal: The future of consumer engagement
Made-to-order: Investing in the right capabilities to move from mass
production to mass personalisation
Delivering personalised experiences
Appendix: Consumer research findings
Endnotes
Contacts

1
2
4
10
12
13
19
20

About this research
The research is based on a consumer survey carried out by independent market research agency, YouGov. Thissurvey was conducted online with a nationally representative sample of 1,560 GB adults aged 16 and over. The
fieldwork was undertaken between 29th May and 1st June 2015.
Please visit http://www.deloitte.com/view/consumerreview for additional content related to the Consumer
Business industry.

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 1

Foreword

Welcome to the 11th edition of the Deloitte Consumer Review. This latest edition
focuses on the growth of personalisation. While personalisation is at the heart ofserving consumers in many niche businesses, mass personalisation is finally becoming areality. Businesses have not only developed the capabilities to measure specifically what
each individual consumer wants, they are now also in a position to link their processes
and resources to provide it.
In this report we explore consumer attitudes and behaviours to personalisation andhow businesses are adapting their operations to respond. We look at the enablers
from a technology perspective and how processes are changing to offer cost-efficientpersonalisation at scale. We also consider how demand for personalisation runs counterto the dominant model of providing high-volume products or services through mass
distribution or generic service suppliers, and how some product categories and services
are better positioned to offer more customised offerings than others.
We hope this report gives you the insight and data to enhance your understanding of
the opportunities and challenges in your sector, and welcome your feedback.

Nigel Wixcey
Lead Partner, Consumer Business
Deloitte LLP

2 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Executive summary

Empowered by social networks and their digital devices,
consumers are increasingly dictating what they want,when and where they want it. They have become bothcritics and creators, demanding a more personalised
service and expecting to be given the opportunity toshape the products and services they consume. Deloitte
research shows that in some categories more than 50
per cent of consumers expressed interest in purchasing
customised products or services. Moreover, not only
would the majority of consumers be willing to pay more
for a customised product or service, they would also liketo be actively involved in the process.
In the future, businesses that do not incorporate anelement of personalisation into their offering risk losing
revenue and customer loyalty. However for manybusinesses, demand for personalisation runs counter tothe dominant model of providing high-volume products
or services through mass distribution or generic service
suppliers. The move from mass production to mass
personalisation can have big cost implications, so there
must be a net benefit to the business to pursue thismodel. The challenge is to determine how many options
are necessary for a product or a service to feel uniquewhile still being profitable.
Mass personalisation is finally becoming a reality.
Businesses have not only developed the capabilities tomeasure specifically what each individual consumer
wants, they are now also in a position to link theirprocesses and resources to provide it. This has been madepossible by advances in manufacturing and distribution
technologies. For example flexible manufacturing and
3D printing enable mass personalisation at lower costs
and allow manufacturers to rethink their supply chainsradically. Businesses are now postponing production until
the latest point possible to allow individual customisation.
Beyond the ability to provide more customised products,
postponing production in this way can help reduceinventory levels and ultimately increase plant efficiency.
Besides investing in the technologies to deliver customised
products, businesses also need to consider their analytics
capabilities. The growing use of analytics means that
product and service providers are getting better at
knowing what consumers want – and do not want – andare adapting their operations to respond accordingly.
Depending on the degree of personalisation offered,analytics tools are critical in matching the right consumer
to the right outcome.

Delivering personalised products and experiences canprovide benefits for both the business and the consumer.
Offering mass personalisation gives businesses theopportunity to demonstrate the value consumers getfrom their personal data being used. At the same timebusinesses gain deeper insight into consumer behaviour. It
also allows businesses to simplify their product and service
range which means lower marketing and production costs
while creating more predictable demand. In addition it
makes it easier for consumers to understand the offer
while getting better value for money.
Offering personalisation might require a rethink ofbusiness operations including adapting strategy andoperating models and changing core processes such as
manufacturing, distribution, marketing and customer
service. Introducing an element of design and co-creation
will also impact the talent strategy and will require a newdata governance process that gives consumers control
over how their data is used.
Businesses that embrace personalisation have an
opportunity to create a differentiated proposition that
may command a price premium, and improve consumer
traffic and conversion. Personalisation could also help
improve efficiency and reduce costs, and offer a path tosustainable growth.

Price isn’t
the barrier

1 in 5 consumers who expressed
an interest in personalised products

willing to pay
a 20% premium.

or services are

Where would
you even start?
42% of consumers who are interested

in customised products or services would still

led by brands

rather be
and choose from a selection of options.

The great dataexchange

22% of consumers are
happy to sharesome data in return fora more personalised customer
service or product.

Self-expression
at every age

over 55s are more likely
to buy a personalised
holiday than the 16-24s.
The4 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Up close and personal:
The future of consumer engagement
In the era of all things digital, consumers have higher expectations: theywant their interactions with businesses and the products and services theybuy from them to be personalised.
Personalisation rose to prominence with the adventof digital, and modern manufacturing processes andtechnology. Businesses have not only developed thecapabilities to measure specifically what each individual
consumer wants, they can now also link their processes
and resources to provide it. However, the origins of
personalisation go back much further to before theIndustrial Revolution when, in the absence of factories ormass production, everything was personalised. From theend of World War II to the 1960s, the focus moved to
the globalisation of consumer brands and economies ofscale in manufacturing. This saw the rise of mass market
products and mass consumerism. While the former
focused on mass-produced, homogenised and massmarketed goods, the latter was the natural response to
the former, i.e. a society where the majority enjoys thebenefits of increased productivity and constantly expands
the range of goods they consume. But that focus started
to shift between the 1960s and the 1980s, when theindividual became all important.1
The definition of ‘personalisation’ continues to change.
For some time personalisation signified exclusivity:
personalised products were status symbols, a way ofmaking consumers feel special, enabling them to standout from the crowd. While exclusivity has traditionallybeen expensive, rapid developments in technology have
now made personalised communications, products andservices more affordable and accessible. Today, consumers
are able to put their own mark on a product, perhaps by
selecting a specific flavour of crisps or by being part of themarketing campaign through user-generated content.
From personalised marketing to personalised
experience
Businesses started to personalise marketing
communications by using consumer segmentation anddata about consumer behaviours in an effort to target
them better. This was first done in the form of directcommunication through the post. With the emergence of
the internet, consumers started browsing the web to findout more about products and services, and in the processbusinesses started to collate more personal information

about their consumers including their email addresses andphone numbers. As a result businesses started to contact
their consumers via emails or texts instead of using thepost. When consumers started to buy goods online,
they shared not only more of their personal information
but also their purchasing history. Digital marketing ande-commerce offered businesses advantages over shoppingin traditional bricks-and-mortar channels, including theability to target consumers with personalised offers basedon their online shopping and browsing data.
In recent years, businesses have invested heavily indeveloping advanced marketing capabilities. These
include personalising email, social media communications
and campaigns, geographical personalisation, Internet
Protocol (IP) address customisation, account customisation
and related content personalisation (see adjacent box).
While these investments have helped to achieve improved
response rates from consumers, there is still more that canbe done to capture a consumer’s attention and increase
his or her spending and loyalty.
With the advent of social media, personalisedcommunication moved from businesses ‘pushing’ content
towards consumers to consumers ‘pulling’ content
themselves. Consumers started to become content
creators and curators. The rapid growth of social curation
communities like Pinterest, where consumers curate theirown collections of products, provides businesses withaccess to deeper insights in near real time, somethingthat traditional market research simply could not compete
with.
These new channels created an explosion of data whichmeant managing that data became more complex.
The priority for many businesses was to connect the dots
between multiple platforms and devices so that a morecomprehensive view of their consumer profiles could be
developed. The single view of the consumer through all
the different touch points he or she has with a businessallows that business to personalise the shopping
experience further.

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 5

Be relevant or be forgotten
The digital era has also handed additional power to theconsumer, including more choice and increased accessto information. Empowered by social networks and theirdigital devices, consumers are increasingly dictating
what they want, when and where they want it. They
have become both critics and creators, demanding amore personalised service and expecting to be given
the opportunity to shape the products and services
they consume.

As the competition for consumers’ attention intensifies, it
has never been more difficult for businesses to engage with
their consumers. This is in part due to the overwhelming
number of unsolicited messages consumers receive which
could ultimately result in damage to the brand.

Different degrees of marketing personalisation
Email and social media personalisation
In this context consumers tend to identify themselves to a business by signing up for someform of notification such as a newsletter or following the business on social media. As aresult they will provide information about themselves and their preferences. This allows
targeted communication using segmentation based on the data the consumer provided. For
example this might occur through targeted email campaigns or Facebook advertising.

Campaign personalisation
Campaign personalisation describes website content personalised to support online andoffline campaigns. This typically involves the creation of a custom landing page to support
the campaign. These pages would include a call to action such as making a donation orsigning up for an event.

Geographical personalisation
Geographical personalisation customises content based on the consumer’s geographicallocation. For example, users from the UK landing on a US website might be redirected to apage specifically designed for a UK audience. Another example is geolocation where adevice such as a beacon picks up signals sent by mobile phones, allowing a store to track
consumers’ movements both within and outside a store. The technology can also send consumers
geo-located messages about special offers, unique offers, or discounts at shops close-by.

Internet Protocol address customisation
IP customisation attempts to identify the user through their IP address. Knowing where auser comes from allows the customisation of content to reflect their needs. Typically this might
involve changing homepage content to provide quick links to content of specific interest tothat consumer.

Account customisation
The most common form of personalisation is when consumers can personalise content once
they have created an account. By logging in the consumer identifies himself and so content
can then be tailored around his needs. This typically involves adding or removing content
and customising quick links to content they regularly access. It is possible to do accountcustomisation without a consumer logging in by relying on cookies.

Related content personalisation
Related content personalisation is used by Amazon. It refers to recommendations based onwhat content a consumer has previously viewed and the behaviour of other consumers.

6 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

According to a recent survey, three in four consumers
said they receive too many emails from brands, andone-fifth said they could not handle the current volume.
As a result over half of consumers are avoiding brands
that contact them with poorly targeted communications
and 69 per cent have ‘unfollowed’ brands on social
media, closed their accounts or cancelled subscriptions.
Another 59 per cent have been forced to block numbers
to curb nuisance texts and calls. Only one in five of thosesurveyed said they received very relevant information fromsupermarket brands, while even fewer said the same aboutcommunications from banks (13 per cent), food and drink
brands (11 per cent) or technology brands (12 per cent).2
In an era where a consumer’s attention span is declining
rapidly, seemingly in inverse proportion to the amount of
information he or she is exposed to, developing the ability
to offer consumers relevance is critical. When the rightcontent is offered at the right time to the right consumer,
he or she is likely to respond positively and is more
likely to want to repeat the experience. Well-executed
personalisation can deliver five to eight times the returnon investment on marketing spend and lift sales byten per cent or more.3

Many businesses could take their current personalisation
activities a step further. Depending on the maturity
and depth of their consumer data, the more maturebusinesses will want to combine contextual data from
unstructured data sources, such as social media or otherbehavioural data, with existing personal consumer data
to engage with consumers in the most relevant way
possible, and ideally in real time. Other businesses, whose
data collection is less advanced, could start with simply
creating a unique customer ID across their separate
repositories of transactional data allowing them to trackand measure an individual’s purchasing journey better.
Businesses need to do more to convince consumers topart with their data. Our research shows that only one
in five consumers is happy for businesses to use theirpersonal information to offer them more personalised
products or services. Among the 16 to 24 year olds thisgoes up to more than one in four (see Appendix, Figure 6).

Our research shows that only

one in five consumers
is happy for businesses to use theirpersonal information to offer them more
personalised products or services.

Among the 16 to 24 year olds thisgoes up to

more than
one in fourThe Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 7

Given how consumers’ trust is highly correlated withloyalty and advocacy, nurturing that trust is very important.
To grow and retain consumers’ trust, businesses need todemonstrate that the data consumers share with them isused to serve them better by offering them more relevant
and tailored products or services. Businesses also need toreassure consumers that they take consumer data privacy
seriously and that they have the governance in place toprotect it.
From personalised experience to customisation of
products and services
As systems become integrated and share a single
view of the consumer across different channels andplatforms, personalisation is moving out of the digitalspace into the physical world. A business is now able tofollow a consumer’s journey not solely through his or
her digital footprint, but also through his or her faceto-face interactions with the business. A year ago, only
21 per cent of businesses had a complete view of eachconsumer’s behaviour across all channels, or a single
customer view (SCV), but many are catching up and
57 per cent expect to achieve this capability within thenext year.4

Consumer technologies such as smartphones and tablets
have also played a key role in businesses engaging more
personally with consumers beyond the digital space. For
example, consumers use their devices while on the moveand in particular while in the store. The long-held dream ofbeing able to target shoppers in real time, with relevant andpersonalised location-based offers took a big step forwardwith the launch of technologies such as beacons whichallow precise, low-cost indoor tracking in stores. Each ofthese steps, from targeted communications to personalised
experiences, are slowly moving businesses closer to offering
mass personalisation of products and services.
As society becomes more affluent, the demand for
personalised products and services will continue toincrease as manufacturers seek to satisfy consumers.
Deloitte research shows that the demand for
personalisation is there: in some categories more than
50 per cent of consumers expressed interest in purchasing
personalised products or services and half said they
were willing to wait longer for a personalised product orservice. The majority of consumers would also be willingto pay more, particularly in the more expensive or fashion
related categories (see Appendix, Figures 3 & 7).

36 per cent

On averageof consumers expressed an interest inpurchasing personalised products or services

48 per cent said they werewilling to wait
longer for a personalised

product or service.

8 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

In our view there are three distinct degrees of product andservice personalisation:
Mass personalisation: Products are mass produced but
can be modified by the business to meet consumer
preferences identified through existing data about
the individual. This process does not involve any
input from the consumer besides allowing the use of
their purchasing or profile data. A perfect example
is Amazon’s personalised recommendations that
display as pop ups showing suggestions of purchases
consumers might like to make based on their previous
purchase history.

Mass customisation: Products are mass produced
but the consumer is offered some limited options tocustomise the product or service. For example Dellgives consumers the option to customise the computer
they order.
Bespoke: The consumer is involved from the beginningto the end of the process to create a unique productor service. An example is A Suit That Fits, a suittailoring business, which simplified tailoring to offer
the experience of a local tailor more widely. Since they
started, the business has created over 50,000 bespoke
garments and has 34 studios, across the UK, Irelandand the US.

Personalisation of products and services

Standard
productMasspersonalisationMasscustomisation

BespokeThe Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 9

New business models
While bespoke or custom-made products have existed
since the Industrial Revolution, for example in theautomotive, niche and luxury sectors, more recently new
business models have embraced customisation and areoffering it across a wider set of categories and at more
affordable prices. Gift products are often seen as suitablefor personalisation. Deloitte research shows that one in
two consumers feels that customised products can makegreat gifts. Moonpig, which built a successful greetingcards business and has since expanded into other areas,
is a good example. Its online, template-driven offering
keeps the cost of personalisation comparatively low,while making the product more attractive and relevant
to consumers.

Another example has been the launch of NikeID. It
brought together a brand popular with the millennials,
with the ability to tailor a pair of trainers to theconsumer’s own design.

Case study – Absolut vodka
The vodka brand Absolut took an inventive step
towards personalised packaging with Absolut Uniqueby producing four million bottles, each with a slightly
different design. This was achieved by re-engineering
its production plant so that splash guns and colourgenerating machines could coat the bottles in a nearlyendless sequence of combinations. This maintained
Absolut’s brand values while injecting variety into thedesign making each bottle unique.

Case study – Kennedy City Bicycles
James Kennedy, the one-man operation behind
Kennedy City Bicycles, builds made-to-order urban
bikes from his London workshop while the design
is done primarily by the consumer from thebusiness’s website.

Traditional consumer goods businesses are beginning toprovide customised offerings of their different ranges.
For example, from pasta to soft drinks manufacturers
are investing in personalised packaging. Whether thisis true personalisation, it is certainly interesting to see
brands experimenting with mass personalisation. Anotherexample is Interflora which developed an online service
where consumers can design their own bouquet by‘dragging and dropping’ more than 70 flower andfoliage options.

Without a physical retail store for consumers tovisit, Kennedy focuses his attention on creating
a completely seamless online experience frompersonalisation to purchase. Consumers go througha ‘decision tree’ from the beginning, helping to
immerse them in the experience of creating the
product. When asked whether the business neededa physical space, Kennedy explained that he engages
a slightly younger generation for whom online isfamiliar. This model is flexible enough for Kennedy
City Bicycles to operate as a retailer.5

10 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Made-to-order: Investing in the right capabilities
to move from mass production to mass
personalisation
Innovations and technologies, such as digital commerce and content,
artificial intelligence and 3D printing, are all making personalised product andservice offerings more cost efficient.
Enabling personalisation
Beyond enticing the right consumer with the rightcontent, Deloitte research shows that there is also realconsumer appetite for more personalisation of products
and services. However, the number of consumers
purchasing personalised products or services remains
low with only one in six having ever purchased any(see Appendix, Figure 2). The challenge for consumer
businesses is how to convert consumer interest in
customised products and services into profitable sales.
The merging of offline products with online platforms
means consumers can now co-create and truly take partin the manufacturing process. For example, Apple’s offthe-shelf devices can be highly customised after purchase,
either in the digital world by downloading apps or in thephysical world by choosing a different cover or colour forthe phone.
This has been made possible by advances in manufacturing
and distribution technologies. For example, flexible
manufacturing and 3D printing enable mass customisation
at lower costs and allow manufacturers to rethink their
supply chains radically. Businesses are now postponing
production until the latest point possible to allow
individual customisation. Beyond the ability to provide
more customised products, postponing production inthis way can help reduce inventory levels and ultimately
increase plant efficiency.
Manufacturing solutions that can be combined with adigital design tool are driving the dramatic increase inmass customisation of products and services. For example
Argos, the retailer, is running a 3D printing trial that lets
shoppers customise jewellery. A dedicated site allows
consumers to design and order a range of 3D-printed
bangles, rings, earrings and pendants.6

Besides investing in the technologies to deliver customised
products, businesses also need to consider their analytics
capabilities. The growing use of analytics means that
product and service providers are getting better at
knowing what consumers want – and do not want – andare adapting their operations to respond accordingly.
Depending on the degree of personalisation offered,analytics tools are critical in matching the right consumer
to the right outcome. True personalisation requires
businesses to rethink their consumer engagement andsegmentation approaches. This requires the mining ofdata collated from multiple consumer touch points.
Businesses have access to a multitude of tools whichcollectively provide much richer insight on consumer
behaviours. These include their customer relationshipmanagement systems (CRM), the amount of data collated
through cookies on websites or loyalty schemes in-store.
However, businesses need to do more to demonstrate
the value they are offering consumers from gathering
data about their interactions with them. Our researchshows that two-thirds of consumers (66 per cent) areconcerned about the amount of information businesses
hold about them, and currently only one in five (22 percent) is happy for businesses to use their information tooffer them personalised products or services (see Appendix,
Figure 6). Therefore, the vital component in any successful
personalisation initiative must be trust, both in the waythat personal data is handled and in the motivations for
its use. There are three core building blocks required
to achieve this: transparency, personalised benefits
and control.7

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 11

Managing the personalisation process
The move from mass production to mass customisation
can have big cost implications, so there must be a
net benefit to the business to pursue this model.
The challenge is to determine how many options arenecessary for a product or a service to feel unique.
Because consumer interaction can be costly and timeconsuming, some businesses do not invest in developing
personalisation capabilities. However, as the pressure
for profits grows, businesses will need to collaborate
increasingly with their consumers. Otherwise they run
the risk of lost sales, missed innovation opportunities andexcessive inventory.

There is a clear case for businesses to develop customised
product and service options that improve the experiencefor consumers and engage them in a dialogue. With
consumers prepared to pay a premium for a customised
product or experience, it is more profitable for businesses
to offer low volume products or one-off services.
There are a number of advantages for businesses offering
mass customisation as highlighted in the following table.

Commercial and consumer benefits of adopting a personalisation process
Key criteria for successful personalisation

Consumer benefits

Commercial benefits

Demonstrate the value of using personal data

• Personalised offers• Personalised products and services• Deeper insight into consumer
behaviour and purchasing

Simplify the product or the service range• Easier to understand the offer• Better value for money• Improved availability• Lower marketing spend due toreduced complexity• Lower cost of production
through scale• Create more predictable demand• Lower supply chain costs• Better forecasting and businessintelligence

Increase configurability (without increasing
the number of products in the range)• More flexibility• More likely to get the productthey want• Differentiated product offers• Increase consumer loyalty andsatisfaction

Invest in the right technologies e.g. design
software, 3D printing, flexible manufacturing,new platforms and fulfilment solutions• Ease of customisation• Better user experience• Consumers trading up• Enhance consumer loyalty

Source: Deloitte analysis

12 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Delivering personalised experiences

Delivering personalised products and experiences can provide benefits forboth the business and the consumer.

While businesses should benefit from increased
conversion levels, consumers trading up and increased
loyalty, the consumer receiving a personalised experience
will feel more valued and recognised.
Our research has highlighted not only consumers’
willingness to pay more for personalised products andservices, but also their desire to be actively involved in thisprocess (see Appendix - Figure 4). In the future, businesses
that do not incorporate an element of personalisation into
their offering risk losing revenue and customer loyalty.
For businesses that embrace personalisation, there is an
opportunity to create a differentiated proposition that
may command a price premium and improve consumer
traffic and conversion. Personalisation could also help
improve efficiency and reduce costs, offering a path tosustainable growth.

In some instances, offering personalisation may require aradical rethink of how the business operates. For example
a business will need to consider how their strategy andoperating model will need to adapt. Core processes
such as manufacturing, distribution, marketing andcustomer service may also need to change to deliver amore personalised experience. Introducing an elementof design and co-creation will require different skills andcapabilities that will impact their talent strategy. The useof customer data for both personalised marketing andthe development of customised products and services will
require a new data governance process and frameworkthat gives consumers control over how their data isused. Finally, offering personalisation will require an
investment in technology both to facilitate the design andmanufacture of customised products and the execution of
personalised marketing campaigns.

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 13

Appendix:
Consumer research findings

14 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Appendix:
Consumer research findings
Methodology
To understand consumer attitudes to personalisation
better, Deloitte commissioned an online consumer survey
carried out by an independent market research agency.
The survey was conducted with a nationally representative
sample of 1,560 adults aged 16 and over in England,
Scotland and Wales.

Level of awareness and experience of
personalisation
Beyond enticing the right consumer with the rightcontent, Deloitte’s research shows that there is also realconsumer appetite for more personalisation of products
and services. Businesses are starting to realise the valueof letting consumers create their own unique products
or services.
The research also shows that while the majority of
consumers are aware that customisation exists, only
one in six on average (16 per cent) has ever purchased acustomised product or service (see Figures 1 & 2).

Figure 1. Consumers’ awareness of product or service
customisation by category

Figure 2. Consumers who have purchased a customised
product or service in the past by category

73%

Holidays

25%

Holidays64%

Clothing

19%

Furniture,
homeware & DIY

63%

Furniture,
homeware & DIY

18%

Fashion accessories& jewellery

61%

Flights

18%

Clothing

Footwear

56%

Restaurants

18%

Flights

54%

Food & groceries

17%

Hotels51%
43%

Restaurants

Footwear

15%

Electrical products

15%

Food & groceries

37%

Fashion accessories& jewellery

14%Electrical products

37%

Hotels14%

Health & Wellness

34%

Books, music &entertainment

13%

Beauty products

34%Soft drinks

12%

Books, music &entertainment

32%

Beers, wines & spirits

12%

Beers, wines & spirits

29%

Beauty productsSoft drinks

23%

Health & Wellness

10%8%None of these
Don’t know
/can’t recall
Base: All GB adults 16+ (n=1,560)
Source: Deloitte research (June 2015)

33%
14%

Base: All GB adults 16+ (n=1,560)
Source: Deloitte research (June 2015)

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 15

Level of interest for personalised products
and services
While our analysis shows some clear distinctions in
the level of interest between different categories, it isimportant to note that consumers’ opinions are based onwhat they have experienced. Products and services where
there is less interest should not be considered less suited
to personalisation but businesses could benefit fromfirst-mover advantage by offering personalisation in
those categories.

According to Deloitte research, entertainment and leisurecategories such as holidays, hotels and flights, are the mostpopular for personalisation among consumers followed by
big-ticket items such as furniture and homeware. Consumers
aged 55+ are more likely to be interested in personalisationin these categories compared to the rest of the population.
Clothing and footwear are also popular categories especiallyamong the younger age groups. Preferences by age grouptend to be correlated to life stages (see Figure 3).

Figure 3. Consumer interest in personalised products or services by categories and age groups
53%

Holidays
Hotels

43%
44%
44%

Flights

37%

Furniture,
homeware & DIY

35%

45%

41%
42%
43%
40%

55%

50%

41%

Clothing

50%

38%

32%

39%

Restaurants

46%

35%

29%

37%

Footwear

45%

34%

28%

35%

Electrical products

45%

30%

25%

34%

Food & groceries

38%

33%

41%

31%

23%

32%

Books, music &entertainment

22%

29%
21%
22%

14%
18%

Soft drinks

7%
Total

Base: GB consumers 16+ (n=1,560)
Source: Deloitte research (June 2015)

16-24

27%
29%

17%
25-39

40-54

35%

27%
25%

Beers, wines & spirits

37%

28%

20%

Health & Wellness

40%

27%
30%

Beauty products

55+

36%
35%

48%

48%

48%

29%
27%

Fashion accessories& jewellery

40%

39%

57%

48%
50%
47%
50%
52%

45%

46%

53%

51%

61%

16 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Different levels of personalisation by category
Deloitte research shows that some products and services
offer better customisation opportunities for businesses
than others. These are likely to be in categories where
consumers can justify a price premium to achievedifferentiation, such as luxury holidays, specialised foodproducts (particularly those that meet special dietaryrequirements) or high-end fashion goods. In othercategories, where the nature of the product or service
is more commoditised, customisation will be morechallenging from a manufacturing and cost structure
perspective.
To obtain a better understanding of consumers’ attitudes
to personalisation, they were asked to rank different
categories based on two measures. For the first measure,ranking was based on the consumer’s preferred level ofinvolvement in the personalisation process. The ranking
criteria extended from ‘active’, where the consumer
wants to play an active role in customising the productor service, to ‘passive’, where the consumer prefers
the company to do the customising for them basedon data the company already holds. For the second
measure, categories were ranked by preferred degree of
personalisation, from ‘mass personalisation’, where theconsumer can choose to customise a product or a service
from a limited selection of options, to ‘bespoke’, where
the consumer receives an entirely custom-made productor service (see Figure 4).

Categories were then grouped according to thefollowing criteria:
1. Bespoke with active consumer participation in the
personalisation process
2. Mass customisation with active consumer participationin the personalisation process
3. Mass customisation with limited consumer participationin the personalisation process.
Deloitte analysis shows that consumers want to be actively
contributing to the personalisation process in categories
where the item is more expensive, such as holidays or
furniture, or where they would like to add a personal
touch such as in fashion accessorises or clothing.
Categories where consumers want to play an activerole, but are happy to choose from a set of more limited
options, include flights, hotels or electrical goods where
there is less room for personalisation.
Consumers are happy to play a less active role incategories that are more commoditised, such as softor alcoholic drinks, although they would still like somelevel of personalisation. These are categories wherebusinesses can use data they hold about their consumers
to make recommendations or provide some more
limited automated personalisation based on consumers’
preferences or consumption habits.

Figure 4. Demand for personalisation: Level of involvement vs level of personalisation
Activeconsumer

1. Active consumer involvement/Bespoke

2. Active consumer involvement/Mass personalisation

Flights

HotelsHolidays
Furniture,
homeware & DIY

Food &
groceries

Clothing
Restaurants

Electrical products
Books, music &entertainment

Footwear

Fashion accessories& jewellery

Beauty productsSoft drinks
Beers, wines & spirits
Passiveconsumer

Health & Wellness

3. Passive consumer involvement/Mass personalisation

Mass personalisation
Base: All GB adults 16+ (n=1,560)
Source: Deloitte research (June 2015)

BespokeThe Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 17

Attitudes to personalisation
According to Deloitte’s research, one in three consumers
who are interested in customisation (34 per cent) feltthat standard products or services do not meet their
expectations. Moreover, more than half of consumers(51 per cent) did not think businesses can design products
or services that they would buy without the need tocustomise them first (see Figures 5 & 6).

Figure 5. Reasons why consumers want personalisation
Customised
products can makegreat gifts

50%

I like to buy
something thatis unique41%

Usually standard
products or services
do not offer exactly
what I want

34%

Designingsomethingyourself is fun

32%

I like to buy
something that
expresses mypersonality
I like the idea of
sharing my custom
designs online (e.g.
on social media like
Pinterest or
Facebook etc.)
None of these

28%

7%

Figure 6. Attitudes to personalisation
I am concerned about theamount of informationcompanies have about me

66%
10%

I would be willing to
wait longer to receive
a customised product orservice, over one that is not
I trust companies to design
products or services that
I will like without the needto customise
products /services

48%
24%
39%
15%

I already have too muchchoice when shopping
without being offered thechance to customise
products/services

33%
22%

I am more likely torecommend a productor service if it canbe customised

32%
24%

I would like to have moreof a say in how companies
design their products
or services

31%
21%

I am happy forcompanies to use myinformation to offer me
personalised products

22%
46%
Agree
Disagree

Base: All GB adults 16+ (n=1,560)
Source: Deloitte research (June 2015)10%

Don’t know 4%
Base: All GB adults 16+ interested in customised products
and/or services
Source: Deloitte research (June 2015)

18 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Upselling opportunities
Deloitte research shows that the demand for
personalisation is there: in some categories more than 50
per cent of consumers expressed interest in purchasing
customised products or services and half said they werewilling to wait longer for a customised product or service.
Moreover, the majority of consumers would be willing to
pay more for a customised product or service, particularlyin the more expensive or fashion related categories(see Figures 3 & 7).

Figure 7. The premium consumers are prepared to pay for a customised product or service by category
Clothing

12%

31%

Footwear

14%

Furniture,
homeware & DIY

15%

Fashion accessories& jewellery

16%

Holidays

25%

27%
28%
29%

19%

11% 5%

9%

7%

24%

12% 5%

11%

7%

22%

12% 4%

10%

9%

9%

7%

20%
32%

14% 5%
23%
18%

11% 4% 6%

5%

12% 3% 5%8%8% 5% 6%

7%

Beauty products

21%

33%

Health & Wellness

21%

33%

20%

Electrical products

22%

32%

21% 7%

5% 4%

9%

2%2%

Food & groceries

22%

38%

Flights

23%

36%

Hotels24%

35%

Beers, wines & spirits

25%

21%

36%

9%

6%

18%

9% 3% 5%6%19%

8% 3% 4%7%17%

6% 4% 4%

8%

2%

Restaurants
Books, music &entertainment
Soft drinks

26%

36%
31%
34%

19%

34%
33%

0% more (i.e. nothing) – I wouldn’t be willing to spend any extra for customised product10% more (i.e. a tenth) – e.g. £22 instead of £20
20% more (i.e. a fifth) – e.g. £24 instead of £20
30% more (i.e. just under a third) – e.g. £26 instead of £20
40% more (i.e. two-fifths) – e.g. £28 instead of £20
Over 50% more
Don’t know

All GB adults 16+ interested in customised products and/or services
Source: Deloitte research (June 2015)7%3%

15% 3%4% 5%
10%

7% 3%3%

7%
8%
10 %

The Deloitte Consumer Review Made-to-order: The rise of mass personalisation | 19

Endnotes

1. Getting personal: how much further can the trend go? Marketing, October 2013.
See also: http://www.marketingmagazine.co.uk/article/1214152/getting-personal-further-trend-go
2. Irrelevant Marketing from Brands Gives Rise to the ‘Deletist’, AIMIA, March 2015. See also:
Consumer’https://www.aimia.com/en/media-center/news-releases/viewer.html/en/irrelevant-marketingfrombrands
givesrisetothedeletistconsumer
3. Big Data, Analytics And The Future Of Marketing And Sales, Forbes, July 2013. See also: http://www.forbes.com/sites/mckinsey/2013/07/22/bigdata-analytics-and-the-future-of-marketing-sales/
4. Marketing analytics becomes a priority, The Wise Marketer, July 2014. See also: http://www.thewisemarketer.com/news/read.
asp?lc=v12637hx4279zv
5. One-Man Manufacturer Explains Why Personalization is Key to Small Business, PSFK, June 2015.
See also: http://www.psfk.com/2015/06/independent-retail-sol-local-heroes-campaign-kennedy-city-bicycles.html?utm_
source=PSFK+Newsletter&utm_campaign=7bb290e8ee-Retail%3A+%2A%7CRSSITEM%3ADATE%7C%2A&utm_medium=email&utm_
term=0_16a14e1b11-7bb290e8ee-426430369
6. The Deloitte Consumer Review – Digital predictions 2015, Deloitte, March 2015. See also: http://www2.deloitte.com/uk/en/pages/consumerbusiness/articles/digital-predictions-2015.html
7. Data Nation 2014 – Putting customers first, Deloitte 2014. See also: http://www2.deloitte.com/content/dam/Deloitte/uk/Documents/deloitteanalytics/deloitte-uk-data-nation-2014.pdf

20 | The Deloitte Consumer Review Made-to-order: The rise of mass personalisation

Contacts

Consumer Business Leadership teamContributors

Nigel Wixcey
Partner, Consumer Business Industry Leader+44 (0)20 7303 5007
nigelwixcey@deloitte.co.uk

Colin Jeffrey
Partner, Deloitte Digital, Consumer Business+44 (0)20 7007 0194
cjeffrey@deloitte.co.uk

Ian Geddes
Partner, Retail Lead
+44 (0)20 7303 6519
igeddes@deloitte.co.uk

Oliver Vernon-Harcourt
Director, Consulting+44 (0)20 7007 1628
overnonharcourt@deloitte.co.uk

Graham Pickett
Partner, Travel, Hospitality & Leisure Lead
+44 (0)1293 761232
gcpickett@deloitte.co.uk

Harvey Lewis
Head of Research, Analytics+44 (0)20 7303 6805
harveylewis@deloitte.co.uk

Authors

Céline Fenech
Research Manager, Consumer Business+44 (0)20 7303 2064
cfenech@deloitte.co.uk
Ben Perkins
Head of Research, Consumer Business+44 (0)20 7307 2207
beperkins@deloitte.co.uk

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, and its
network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a
detailed description of the legal structure of DTTL and its member firms.
Deloitte LLP is the United Kingdom member firm of DTTL.
This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of theprinciples set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice
before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers
on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or
liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.
© 2019 Deloitte LLP. All rights reserved.