Product bundles are a great way of boosting sales. Also known as “package deals” they are a great sales technique of selling more products, and boosting conversions. As with any other sales technique though, there is an art to the practice. Let’s take a closer look.
What Are Product Bundles?
Product bundles is a strategy that creates and sells a curated selection of products. These products naturally go together; for example, a bath-set bundle could include soap, bubble bath, towels, bath salts and an eye mask. Rather than selling each of these items individually, meaning that shoppers might not take them all, a bundle allows them to be grouped together at a discounted price.
This helps the merchant as they ultimately sell more products, and helps the shopper as they have a discount on a group of items. The bundle strategy can work on both casual browsers, and high-intent shoppers. If the items in the bundle are appealing enough, this strategy can have a great result.
Cross-sell and Upsell
Cross-sell and upsell merchandising are examples of bundling. Cross-selling suggests items that complement the item already bought. For example, if a shopper bought a bicycle helmet, cross-sell suggestions could consist of bicycle lights, lycra and gloves.
Upsell suggestions are prompting a potential upgrade. For example, instead of buying a vacuum cleaner on the lower end of the price scale, you could offer a superior and more expensive model. This might tempt the shopper to go for the higher ticket option.
Examples Of Bundles
There are different ways that you can create bundles. These depend on business goals and products that your store sells, but in reality there is no limit. Be as imaginative as you want when it comes to putting them together. If you hit the right chord, they can fly off the shelves.
Gift Bundles
Especially relevant as the holiday season is approaching; gift bundles make your shoppers lives’ easier. Rather than having to create a gift by picking their own products, gift bundles create these for them.
For example, “Gifts For Her” or “Gifts For The Football Fan”, or “Winter Warmer Gifts”. These could be as broad or specific as you feel is right for your business. Creating these bundles should be coordinated with the merchandising strategy of your business. If bundles are placed on the front page of the website, or at the front of your store, this can encourage sales.
Subscription Bundles
Subscription models are a great way of taking potential decision fatigue out of the shoppers buying process. Rather than having to buy just one bottle of wine, for example, when there are several they would like, subscriptions offer an alternative. They can buy the bundle of several wines, and then they can be sent as subscription orders over a period of time.
Related Product Bundles
If someone is buying their first pet, vehicle or skincare item, there’s a good chance they don’t have any previous products of this sort. Offering a bundle in this situation is a great way to boost customer satisfaction, as well as boosting sales.
For example if someone has just bought their first dog, a petshop could offer a bundle including:
- Food
- Leash
- Bed
- Food and water bowls
- Toys
- Bag carriers
These could be very popular with first time customers. These could also be popular with other customers who are looking to renew old products. Simply offering boosts your chance of making more sales.
Build Your Own Bundles
Some customers may want the freedom to choose their own bundles. This operates on a ‘Mix-and-Match’ formula. You can steer the process by offering certain groups of products they can choose from to create a bundle. For example, a candle company may offer a bundle of one big candle, two small ones and an accessory for a certain set price.
This gives the shopper the freedom to choose what they want to buy, whilst still gaining the benefits of using a bundle. This can greatly boost AOV.
Inventory Clearance Bundle
As you come to the inventory you want to clear, bundles can be a great way to get rid of the last remaining products that need to go. You may also have overstocked some products that are not excess inventory. Alternatively, if you have some slow moving items that you want to push, bundles are a great idea. In any of these situations, bundling has the potential to move the products you want to see get gone.
Benefits Of Bundles
Bundles can bring many great benefits to your business such as boosted sales and AOV. It also has the potential to include upsell potential within the bundles, actually meaning you can sell higher-ticket items. It can also increase product awareness, demonstrating the range of products you sell to customers that otherwise might not have known. When done well, it can boost customer loyalty and increase lifetime customer potential.
Conclusion
Using bundles in your sales strategy is a great way to see benefits in your business. The more creative you are in assembling, naming and merchandising your bundles, the better. Decide what form of bundles works best with your brand’s image and goals, then see how much your customers appreciate your offering.