Originally published on MarketingLand
How crowdsourcing inventory helps companies cut costs associated with product design while keeping customers engaged.
As retail increasingly moves online and into mobile experiences, consumers are presented with ever-increasing purchasing choices, including fully customizable products that can be ordered on a whim.
Today’s consumers have become accustomed to increasingly accurate recommendations as they shop, and tomorrow’s consumers will expect increasing levels of personalization and customization for the products they buy. And not just because people want to buy things unique and specific them, but because the underlying personalized digital experiences will become increasingly commoditized.
To get ahead of this trend, attract new customers and keep current customers engaged, marketers can incorporate a radical new approach that crowdsources product designs and enables customers the opportunity to create and invent. It also guarantees a product will sell and dramatically reduces the risks and costs associated with internal product design.
According to the Journal of Marketing Research, companies are increasingly experimenting with crowdsourcing initiatives in which they invite their user communities to generate new product ideas.
The findings from two randomized field experiments reveal that labeling crowdsourced new products as such — that is, marketing the product as “customer-ideated” at the point of purchase versus not mentioning the specific source of design — increased the product’s actual market performance by up to 20 percent. Here is the experiment abstract (The report is behind a paywall):