Product bundles can be a great way to boost sales – and margins. If ever you’ve bought a Happy Meal rather than a cheeseburger, or the entire Microsoft Office suite rather than just Word, then you’ve bought into a bundling strategy.
Done right, bundling can give your business the edge over the competition. Here are our tips for product bundling success.
Bundled and individual
Product bundles are successful for a few reasons. One is convenience, and another is the perception of value. Customers want to know that they’re getting a better deal by purchasing the bundled products than they would if they were to purchase each item separately. To highlight the value of your bundle, make sure the products available in the bundle are also available for individual sale. You can even highlight the price difference on your site to make your bundle even more enticing – and throw in a freebie or extra to seal the deal.
Bundles that fill a need
Put some thought into how you build your product bundles. It can be tempting to throw in underselling products alongside best sellers to encourage your products to move, but this is a short-term strategy. Great product bundles solve a problem or fill a need. For example, gaming consoles such as X-Boxes are sold together with games, controllers and other accessories for a reason – they give a customer everything needed to get set up and start playing. Track your metrics to see what products customers are buying together, and use this data to help build your bundles.
Tailing your bundles to suit seasonal shoppers is a great way to boost sales. Put together bundles that make appealing gifts – even better if they’re beautifully packaged and contain extras such as a gift tag or card for the seller to fill in – and you’ll have a whole extra corner of the market covered. Seasonal bundles can also be a handy way of moving stock if you’re planning on updating your product offerings.
Some products are better suited to bundling than others. Be mindful that bundling large, bulky or heavy items can result in an increase in your shipping costs along with new packaging requirements. Margins are also something to consider: bulk out best selling products with small but high-margin extras, and watch your bottom line climb.
Be mindful of pricing
Bundling creates a sense of value, but customers will often have a knee-jerk reaction to certain pricing points. Buyers usually come to your shop with a price range in mind, which is why bundles work well – customer A is willing to pay a little more for an item they want if they get something additional with it, while customer B, who has a slightly higher price range, sees the bundle as a bargain.
That said, it pays to know these price points and to build your bundle accordingly. For example, even if your bundle offers great savings, a £1000 price tag is a lot for a customer to get their head around, especially if they haven’t shopped with you before. Consider offering bundles at various price tiers, and ensure that you highlight the savings and benefits of your bundle in your copy and product photography.
The next time you’re at a restaurant, buying a TV or contemplating a two-for-one offer, think about what influences your decision about your final purchase. If you come away with more than you intended to buy, you’ve been sold a successful bundle – and it’s the perfect moment to think about why and how, as well as how you can entice your own customers to do the same.