Wednesday, March 08, 2006

The Power of Customization

As a manufacturing engineer, an oft-repeated anecdote I hear (which probably isn't even true) is about Henry Ford telling a customer, "You can have the Model T in any colour, so long as it's Black."

Perhaps the days of large corporations monopolizing certain markets are not gone yet, and the anti-trust laws still have work to do. But certainly, companies can't get away with offering limited variety these days. You have to pay the price either in margins or in market share. Even at low-price, functional-product, semi-wholesale stores like WalMart, you can find a half dozen brands each with a dozen varieties, for any product you pick.

If you can keep a leash on Capitalism and give it some time, I guess the customer really does win. With all the cut-throat competition around, companies have to try to give the customer every thing he wants. Things haven't yet come to that stage in India, but in the US, you can see "The Customer is the King" written on the walls everywhere, and they have to mean it or they'll go out of business before you can count to Mississippi Three.

Take for instance, having a sandwich at Subway. The first time I did, I went up to the counter and ordered something I picked from the menu in front of me. Apparently that wasn't enough. I was peppered with questions one after another.... "What kind of bread?" "What kind of cheese?""Do you want it toasted?" "Sauces? Dressings?" "Which vegetables?" "Salt? Pepper? Oil? Oregano?"

By the time I was done ordering, my head was swimming. On that occasion, I thought, "These guys are professionals, they should be able to put together something tasty, right? I don't always know what I want!"

Only for a minute. I realized immediately that having the freedom to choose is far better than getting a pre-designed product. The next time I ordered a sub, I got every detail down to a pat and was really happy with what I'd ordered. Contrast this to what I had at the Subway in Chennai, when I let the guy behind the counter put the sub together the "regular" way, I thought it was just average-tasting. Score one for Customization.

In complete counter-example, I had a hair-cut yesterday and tried to tell the lady exactly what I wanted... and it was more or less a disaster. Believe me, you don't want to look at my head right now! It was so much better when I just let the professionals do their job. Darn it, how long will this hair take to grow back to normal? Score one for the people who say "The customer doesn't know what he wants, but we do."

Still, it feels so much better having the power to choose, and having the option to get exactly what you want if you know what you want, and still be able to say, "Do what you think is best."

Cheers,
Prashanth.

7 comments:

Anonymous said...

pacha, for the sub- southwest sauce rocks. no pickle, add oil, salt+pepper and mayo.

The indian customer is more familiar with his type of food. with the same dosa batter, u can have probably 30 different dosas. You have been eating a customized dosa all ur life! The americans do it more as they have a very limited menu.

ur hair has always been yuck however u wear it. the poor hairstylist dint have much to work with. I am still wating for u to upload some photos of ur apt/school/friends......... Sending mails has not helped, maybe posting a comment on ur blog would.

Anonymous said...

i like the way you think even ordering a sandwhich empowers u.. way to go, SP..

no mayo. mustard. parmesan.. damn, that feels good..

Tipsy Topsy said...

Subway sucks. I have never been able to finish a sandwich there. mebbe i need to learn ordering one.

and ur turn to surprise me..
I logged on to make a project on consumer protection and was just about to start with a "is customer really the king?" when i read ur post...whatta coincidence!

Prashanth said...

Anna,
Ah yes, blame it on my hair instead of the stylist! (sulks)

Nag,
See... if you said something as "trademark" you as "damn, that feels good" I would recognize you even in your anonymous comments.

Tipsy,
Well :) so whats the verdict? Is he King or not?

Kirthi said...

SP,

Can we have you post a pic of you in your new crop and one big goody two shoes smile? Pls pls pls...
I do remember when I walked into Starbucks for the first time and ordered coffee, the questions I was asked made me want to tell her I wanted filter kaapi nice and hot with lots of froth :)
Choices should be given to people who know how to choose. Otherwise the choser (is there a word like that?) is a loser.

Tipsy Topsy said...

not with widespread illiteracy, imperfect information, monopoly markets and general ignorance amongst consumers...as u rightly point out, they somtimes don't know what they need!

however, in a lot of areas they do continue to be king and they can increase the expanse by exercising their rights and fulfilling their responsibilities...

want me to list them sir? :P

Prashanth said...

Kirthi,
My picture? Er... I'll think about it :)

Tipsy,
Ok ok I'm sorry I asked! Go go write your loooong reports!

Intern,
Well... in capitalism, there is always a workaround. Did you know that you can order drugs online from Canadian stores at Canadian prices and legally have them delivered to your doorstep?

In the wake of Katrina, all construction-related businesses made record profits. Naturally the gas companies also did. Its probably a good thing too, if it helps keep the gas prices lower!

So see, if you keep trying to get the full picture on any of these things, it keeps expanding until you forget what you were arguing about in the first place...