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What is a product bundle?
Product bundling is a marketing strategy meant to offer customers a combination of complementary items in a single discounted package, making it appealing to them. This strategy is designed to enhance your customers' shopping experience while driving sales and revenue growth.
Essentially, product bundling can be summarized as "purchase these products together and save money." This approach motivates customers to purchase a higher quantity of products by offering them an attractive discount, thus increasing sales.
Main types of product bundles
Numerous product bundle types exist, such as pure bundles, add-on bundles, BOGO (Buy one, get one), and frequently bought together bundles. Let's explore each of them individually.
Pure bundle
With this bundling approach, customers must buy the entire bundle in order to obtain a specific product, as the individual items within the bundle are not available for separate purchase. This strategy encourages customers to acquire a complete package of complementary items while preventing them from picking and choosing single products from the bundle.
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Add-on bundle
Customers have the option to add extra products to their primary product at a discounted price. These add-on products typically complement the primary product, making it more appealing for customers to consider acquiring them due to the offered discount.
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BOGO (Buy One, Get One)
Offer your customers an extra product for free or at a discounted price when they’re buying a product. This bundle method aims at encouraging customers to buy more products while providing them with additional value, ultimately boosting sales, customer satisfaction and loyalty.
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Frequently bought together
That’s a bundling strategy aiming at combining products that are often purchased together. In this case, the seller identifies the complementary products and offers them as a bundle at a slightly discounted price. The seller is therefore encouraging customers to purchase secondary products that they did not consider at first.
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Why you should use product bundles on your Shopify store
Product bundling is a sales strategy you absolutely must know about if you want to benefit from its many advantages, which will propel your ecommerce store to new heights. Here are its main advantages:
Increase average order value: With a bundle strategy, you sell more products to your customers increasing the average order value since they tend to buy more products in a single transaction. For example, DTC dog food brand Maev implemented bundles to its sales and saw a 15% increase in average order value and unit per transaction is up 20% on bundles.
Boost sales: Buying items separately typically leads to a greater overall expense for customers compared to a bundled deal. As a result, they tend to buy extra items to benefit from promotional discounts. Such cost-saving opportunities are greatly appreciated by customers, leading to a boost in sales.
Increase customers’ satisfaction: The perception of the added value of a promotion enhances customer satisfaction and strengthens brand loyalty. Indeed, consumers love to receive free products and discounts when they make a purchase, and leveraging this sentiment is crucial for businesses in fostering long-term. Using a bundling strategy can be 68% more effective than trying to attract a new customer. Customer retention is crucial for an ecommerce business, as a study by Frederick Reichheld of Bain & Company reveals that a 5% increase in customer retention can lead to a profit growth of 25% to 95%.
Inventory management: By implementing a bundling strategy, you can pair slower-selling products with high-demand ones to effectively clear excess inventory of slower-selling products and improve overall sales.
*** Kickflip's Inventory Management feature for custom products is now in available! We invite you to experience a revolutionary way of managing your inventory for custom products. Here's to smoother operations and happier customers!
Product bundling tips
To maximize the benefits of product bundling, consider these tips that can enhance your bundled offerings.
Conduct consumer research: To implement product bundles that resonate with your customers, it's crucial to understand their purchasing habits and preferences. This will allow you to create bundles that are tailored to your target audience, ensuring a higher likelihood of success.
Product bundling should be optional: Allow your customers the flexibility to purchase products individually, as removing this option may drive them towards your competitors.
Promotional bundling: Consider introducing promotional offers or special holiday bundles to encourage customers to complete their purchases, driven by a sense of urgency and the perception of scarce availability.
Pair less popular items with best-selling products: This approach can be useful for depleting inventory of less popular products while also altering customers' perception of those products by creating the impression that they are equally sought after by other consumers.
Show off the savings made: Offering discounts is an effective method to motivate customers to make purchases.This will appeal to the most cost-conscious consumers. By clearly demonstrating the value they receive through purchasing the bundled products, customers can easily see the financial advantages of choosing the bundle over individual items. This not only attracts those who prioritize saving money but also encourages impulse purchases from customers who may not have considered buying multiple products otherwise.
Choose where to place your product bundles: You can either showcase your bundles as frequently purchased together or add-on bundles at checkout, motivating customers to buy more items. Alternatively, you can feature your bundle as a standalone product in your catalog or create a dedicated page for your bundles and promotional offers.
Build your bundling plan
With those tips in mind, it’s time to devise your product bundling strategy!
1. Identify the target audience and their preferences
To offer bundles that meet your customers’ needs and interests, it’s essential to conduct a research on your customer base, their preferences and buying habits.
2. Determine which products to bundle
To offer bundles that meet your customers’ needs and interests, it’s essential to conduct a research on your customer base, their preferences and buying habits.
3. Pricing strategy
Develop a pricing strategy for your bundles that presents customers with a visible discount or increased value compared to purchasing the items separately. This will enhance the bundle's appeal and persuade customers to choose it over individual products.
4. Create visual bundles
Design your bundles to be visually appealing, with clear images and descriptions of the products included. This will make it easier for customers to understand the value proposition of the bundle and make informed purchasing decisions.
5. Determine the optimal timing to launch your bundles
Refrain from presenting numerous bundles simultaneously, as it may lead to unfavorable impressions among customers. You can nonetheless provide seasonal bundles tailored to specific occasions throughout the year, such as Christmas, Halloween, Valentine's Day, and Mother's Day, etc.
6. Promote your bundles
Implement your bundling strategy across your website. Showcase top deals on the homepage, employ pop-ups or banners on product pages to exhibit recommended items as well as present limited-time bundle deals on the checkout page. You can also promote your bundles via social media and email campaigns.
7. Track performance
Measure your ecommerce’s performance in terms of sales, average order value and customer satisfaction to identify the most successful bundle deals for your business.
Best product bundling examples
SWAG
Swag developed highly distinctive bundle variations. They leveraged Kickflip’s technology to create a super visual and interactive shopping experience. Customers have the option to create a T-shirt bundle by including their desired items (such as a hoodie, notepad, etc.). As they add products to the bundle, the items are displayed within a vibrant theme. When customers adjust the bundle, the rectangles transform into product images, resulting in an attractive 'collage' effect.
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If you're looking for a way to increase sales, product bundles are a great option. As you can see, Swag offers the option to add even more products to your bundle. In this example, the customer can add the gameday bag for an extra $75 to $100.
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EVOLVE PC
The Evolve PC customizer, made with Kickflip, allows customers to select every element of their computer as add-ons. Customers can visualize in real time the rendering of their choices, as well as any price changes. For example, customers can choose from a range of processors of different prices.
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Product bundling apps on Shopify
Creating product bundles on Shopify is easily achievable, you just need the right app to make it happen!
Shopify bundles (coming soon): Shopify is soon launching its own bundles app, accessible directly from the Shopify admin. You'll have the ability to select the products and variants you'd like to bundle, and an inventory feature will be incorporated to avoid overselling.
Bundler: Bundler is a widely-used Shopify app that boasts an easy-to-use interface, versatile pricing and bundles choices, personalized images, and instant inventory updates.
Frequently bought together: The Frequently Bought Together bundling app focuses on selling complementary products. It works effectively and can manage multiple orders at once. Additionally, you have the flexibility to customize product suggestions for each item based on your preferences or goals.
Kickflip: Kickflip enables you to design eye-catching visual product bundles to captivate your customers. Besides facilitating add-on and pure bundles creation, Kickflip offers a wide range of product customization features, including adding text, images, and logos. It also includes dynamic pricing, allowing customers to see immediate bundle price updates, and much more! Try it for free.
How to create product bundles using Kickflip
Discover the process of creating an add-on bundle with Kickflip through these simple steps.
Step 1: Sign up for Kickflip
Create a free Kickflip account and connect it with your Shopify store in just a few clicks.
Step 2: Create your first product
Upload your images and create your product in Kickflip.
Step 3: Add extra options or products
Time to add the extra products or add-ons you wish to include in the bundle.
Step 4: Add personalisation (optional)
In today's world, personalized products are highly popular. Kickflip allows you to create a bundle featuring customized items. While this step is not mandatory, if you're interested in exploring the realm of personalization, Kickflip is the right choice for you.
Step 5: Update the bundle’s pricing
Navigate to the pricing tab of your product, where you can effortlessly update the price for each individual add-ons or extra products you want to offer.
Step 6: Keep it fresh!
Kickflip allows you to easily update your product bundle offerings to keep your brand fresh and exciting, and keep up with the latest fashion trends, seasons, and special events.
Conclusion
Product bundling is a proven marketing strategy that offers numerous benefits for your Shopify ecommerce. With thoughtfully crafted product bundles, you can enhance customer satisfaction, optimize inventory management, and ultimately boost your sales.
Ready to get started? Explore Kickflip to easily create and manage visual product bundles on your Shopify store.
Don’t hesitate to reach out to us if you have any questions about product bundling at help@gokickflip.com , we’d be delighted to assist you in creating the perfect custom product bundle!
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