Have you ever scrolled through social media and been captivated by those perfectly curated examples of bundled products? A phone case with a complementary screen protector, a travel-sized skincare set promising a radiant glow, or maybe a “Grilling Master” bundle that has everything you need for a backyard barbecue – these enticing offers seem almost irresistible, don’t they?
But there’s more to product bundling than just a pretty presentation. It’s a strategic sales technique that can significantly boost your Shopify store’s success. Whether you’re a seasoned seller or just starting out, bundling can be a powerful tool in your arsenal.
Intrigued? Let’s crack open the secrets behind these captivating offers. We’ll explore the top 5 examples of successful bundled products, dissecting the strategies that make them work. From product selection to pricing tactics, you’ll gain valuable insights to create irresistible bundles that keep your customers clicking “add to cart” and your sales soaring.
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The Psychology Behind Product Bundling
Examples of Product Bundling are Everywhere
From the classic movie ticket and popcorn combo to the “build your own” smoothie with enticing add-ons, product bundling is a sales strategy as old as commerce itself. But what makes it so effective? The answer lies in a fascinating mix of psychology and understanding customer needs.
1. The Psychology Behind Product Bundling
Several psychological triggers contribute to the allure of product bundling:
The Decoy Effect
- When presented with multiple options, a strategically priced bundle can appear more attractive compared to individual items.
- Starbucks’ use of the Decoy Effect is subtle yet effective. Consider their drink sizes: a medium priced just below a large makes the latter seem like a bargain, subtly encouraging customers to upgrade.
The Fear of Missing Out (FOMO)
Limited-time bundles or “while supplies last” offers create a sense of urgency. Customers, worried they might miss a good deal, are more likely to purchase the bundle than risk losing the perceived value.
The Perception of Increased Value
Psychologically, people tend to value a bundle more than the sum of its individual parts. Even a small discount on a bundle creates the impression of a better deal, encouraging customers to buy more.
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Decision Fatigue and Simplification
Faced with a vast array of choices, customers can experience decision fatigue. Bundles offer a simplified solution, providing a curated selection of products that meet a specific need. This reduced cognitive load makes purchasing a bundle more appealing.
2. Meeting Customer Needs and Increasing Perceived Value
Beyond these psychological triggers, product bundling thrives by addressing customer desires:
Convenience
Bundles offer a one-stop shop for related products, saving customers time and effort in searching for individual items.
Complementary Products
Well-designed bundles group items that naturally go together, ensuring they’ll be used and enjoyed in combination.
Discovery
Bundles can introduce customers to new products they might not have considered on their own, potentially leading to future individual purchases
Incorporating these psychological factors and customer needs into your product bundling strategy can significantly increase sales and customer satisfaction. By offering enticing bundle deals that simplify choices and provide perceived value, you can turn casual browsers into loyal, high-spending fans!
Exploring Product Bundling Strategies with Big Brand Examples
In this section, we’ll delve into top 5 types of product bundling, each paired with an industry that it suits best. We’ll illustrate these bundling types with real-world examples from well-known brands, showcasing how they’ve successfully implemented these strategies to enhance their product offerings and appeal to their customers.
Note: You can head to the product bundle example references via each of the links included under the brand images.
1. Pure Bundling: Microsoft 365
Microsoft 365 bundles various productivity applications like Word, Excel, PowerPoint, Outlook, OneNote, OneDrive (cloud storage), and sometimes additional tools like Teams (communication platform) and Publisher (desktop publishing). Microsoft offers different subscription plans with varying tiers of features and storage capacity. However, you cannot purchase these applications individually. They are only available as part of the bundled Microsoft 365 package. This pure bundle would streamline the customer experience by providing a comprehensive suite of integrated productivity tools, eliminating the complexity of individual purchases. This approach would enhance collaboration across applications like Word, Excel, and Teams, while ensuring consistent updates and support, leading to a unified user experience and increased customer retention
Weakness
The inability to purchase these applications individually may deter customers who only need one or two specific tools, potentially leading to lost sales.
Suitability
Industries that require integrated software solutions, such as business services, education, and creative sectors.
2. Mixed Bundling: Koh® | Eco-Friendly Multipurpose Cleaning Products & Supplies
Koh® goes beyond just offering a variety of effective cleaning products. Their claim to fame is their starter kits, cleverly combining essential cleaning supplies like Universal Cleaner, Dish Soap, and Surface Cleaner.
Koh® masterfully employs a mixed bundling strategy by showcasing their Complete Starter Kit with strategic pricing and discounts:
- The inclusion of the “LIMITED OFFER – 40% OFF” badge on the complete Starter Kit suggests a potential strategy for driving sales through temporary price reductions.
- The presence of a pop-up offering “up to 15% off” hints at a multi-layered discount approach that could further incentivize purchases.
- Customer reviews (e.g., 905 reviews with 5-star ratings) displayed alongside the starter kits can serve as social proof, influencing buying decisions.
The brand cleverly incentivizes customers to increase their purchases by offering free shipping on orders over $99, a tactic that encourages buying in bulk. This strategy not only promotes their more extensive kits, which are already attractively priced and discounted, but also nudges customers to add more items to their carts to reach the free shipping threshold, enhancing the perceived value of their purchase and boosting overall sales.
Koh®’s Starter Kits page highlights eco-friendly and allergy-friendly credentials with a clean, minimalist design, emphasizing value through clear savings on kits.
Weakness
Limited choice within kits and product waste could deter eco-conscious buyers. Offering a wider variety of starter kits with clear refill options could mitigate these concerns.
Suitability
- Cosmetics & Beauty
Food & Beverage (e.g., coffee and tea samplers, snack variety packs) - Consumer Electronics (e.g., camera bundles with memory cards and cases)
- Software & Apps (e.g., design software suites with bundled plugins)
- Apparel & Accessories (e.g., outfit bundles, gift sets with scarves and gloves)
3. Buy-More-Pay-Less Bundling: Bulk Apothecary
Bulk Apothecary is a small business that specializes in selling raw materials for soap making, essential oils, and other DIY crafting supplies.
The core of their buy-more-pay-less strategy lies in offering significant price reductions per ounce for larger bottle sizes. For example, a 0.5ml vial of Lavender essential oil might cost $4,88, while a 16oz bottle costs $43.58. This translates to a much lower price per ounce for the larger size.
Bulk Apothecary also offers additional discounts based on the total quantity purchased. Their tiered pricing system incentivizes buying more bottles at once, regardless of size.
Order Over $250 – 15% Off: This additional layer of discount incentivizes customers to not only purchase larger bottle sizes but also to increase their overall order value.
Weakness
This strategy can sometimes lead to overstocking of products for customers, especially if the products have a short shelf life or if the customer doesn’t need them in large quantities. It can also potentially reduce the perceived value of individual products.
Suitability
Businesses with products that have a long shelf life or are used frequently
4. BOGO: Bombas
Bombas‘ core value proposition revolves around donating an item of clothing for every purchase a customer makes. This creates a “BOGO” effect where a customer receives their desired item and, essentially, gets a “free” donation made on their behalf. This approach aligns with their mission of social responsibility and can resonate with customers who value ethical business practices.
Occasionally, they run BOGO promotions where customers can buy one pair of socks and get another pair free, or at a discounted rate, which also doubles the donation
The color scheme is soft and inviting, creating a welcoming atmosphere for shoppers.
Weakness
- BOGO deals essentially mean selling half your inventory at a discount. This can significantly impact profit margins if not managed strategically.
- Carefully evaluate the discounted price point and ensure it still covers production, marketing, and other associated costs while maintaining a healthy profit margin
Suitability
businesses looking to quickly move inventory, introduce new products, or attract price-sensitive customers. It’s often used in the retail industry, particularly with clothing, accessories, and beauty products.
5. Subscription Bundling: Bean Box
Bean Box is launching a customizable coffee subscription service that allows you to tailor your brew to perfection. Choose your preferred grind, select from a variety of tasting experiences, and decide on the quantity—opt for a single bag or double up with each delivery. Set your preferred delivery frequency, and enjoy the added perk of free shipping.
Subscription models encourage long-term customer relationships. By providing a convenient way to discover new coffees, Bean Box increases the chances of customers remaining subscribed for extended periods, potentially leading to higher overall revenue per customer.
Weakness
Subscription fatigue can be a potential issue, as customers are increasingly being asked to manage and pay for numerous subscriptions. Additionally, if the product quality or selection isn’t consistently high, customers may feel that the subscription isn’t worth the cost.
Suitability
This strategy is ideal for businesses that offer products or services that can be delivered on a recurring basis. It’s commonly used by companies in the food and beverage industry, beauty and grooming products, and digital services like streaming platforms.
Beyond these top 5 bundling strategies, a treasure trove of other creative options awaits. To help you navigate this diverse landscape, let’s explore a table summarizing the suitability of various bundling techniques for different product types.
TYPES OF PRODUCT BUNDLING
SUITABILITY
Price Bundling
- Grocery stores: Combine frequently bought items (e.g., pasta and sauce) at a discounted price.
- Electronics stores: Offer gaming consoles bundled with games and controllers for a complete entertainment package.
- Beauty and skincare: Bundle complementary products like cleansers, toners, and moisturizers for a full skincare regimen.
DIY Bundling
- Computer hardware stores: Allow customers to build their own PC by selecting components such as CPU, GPU, and RAM.
- Craft stores: Create your own art kit with choices of paints, brushes, and canvases.
- Bookstores: Pick and mix bundles where readers can select a number of books from different genres to create a personalized reading collection.
Seasonal Bundling
- Home decor stores: Bundle holiday-themed decorations for occasions like Christmas or Halloween.
- Fashion retailers: Offer summer bundles with swimwear, beach towels, and sunscreen.
- Gardening centers: Provide spring planting bundles with seeds, soil, and gardening tools.
Clearance Bundling
- Furniture stores: Bundle last season’s models at a discount to make room for new collections.
- Toy stores: Offer bundles of last year’s toys at reduced prices to clear shelves before new arrivals.
- Sports equipment retailers: Sell last season’s sports gear in bundles to clear out for the upcoming season’s inventory.
Favorites Bundling
- Coffee shops: Bundle customer favorites like a signature blend with a popular pastry.
- Cosmetic brands: Offer bundles of top-selling lipsticks or eyeshadows.
- Gourmet food stores: Create bundles of best-selling cheeses and wines.
Gamify the Bundling Experience
- Online retailers: Implement a system where customers can “spin a wheel” to win a bundle deal.
- Subscription services: Offer a “mystery bundle” that customers can unlock after a certain number of purchases.
- Kids’ stores: Bundle toys with a treasure hunt game for added excitement.
Gift Box Bundling
- Gourmet food shops: Curate gift boxes with a selection of fine chocolates, cheeses, and wines.
- Jewelry stores: Offer a gift bundle with a necklace, earrings, and bracelet set.
- Bath and body stores: Create spa gift boxes with lotions, bath bombs, and scented candles.
Upsell and Cross-Selling Bundling
Upselling and Cross-Selling are highly suitable strategies for increasing your average order value. I’ve analyzed those in detail, using Cowboy’s Bike Theft Protection upsell and Tentree – Checkout Cross-Sell as examples.
⏭️⏭️⏭️ For a deep dive into a guide on upselling and cross-selling for Shopify stores, check out this resource from WizzCommerce here
Curating Bundles for Your Target Audience
1. What Products Should You Bundle?
Alright, you’re sold on product bundling – it’s time to pick your fighters! But which products should you actually throw into the ring together? Here’s a no-nonsense breakdown to help you create winning bundles:
Complementary Products
- Start by pinpointing products that naturally complement each other. For instance, pairing a smartphone with a protective case or headphones creates a more compelling offer than selling them separately.
- Highlight the convenience and added value that comes with purchasing complementary items together, such as saving time and effort for the customer.
Bestsellers and Hidden Gems
- Got a product that’s constantly selling out, like a popular workout shirt? Pair it with a newer item from your stock that hasn’t quite reached its full potential, like a pair of matching yoga leggings. This is a great way to get more eyes on the newcomer and boost its sales. Customers are drawn to the familiar bestseller, but in the process, they discover a hidden gem in your store
- Ensure that the less-known products are relevant to the bestseller to maintain the bundle’s appeal. For example, a popular kitchen gadget can be bundled with a specialized cookbook or accessory.
Let Data Be Your Guide
- Don’t sleep on your Shopify data! Dig into your customers’ buying habits and see what products they frequently purchase together. This gives you golden nuggets of insight into the natural pairings your customers crave. For instance, if you see a trend of face wash and moisturizer purchases happening together, a “Radiant Skin Starter Pack” becomes a clear winner. Data-driven bundling ensures you’re offering combinations your customers truly want.
2. Strategies for Creating Bundles That Resonate
Decide Which Bundle to Create
Now that you understand the core principles of product selection and bundle creation, let’s explore different strategies to guide you in deciding which bundle to create:
Bundling based on product sales performance
- Analyze your sales data to identify top-selling products and pair them with less popular items.
- Example: Pair a popular running shoe with matching athletic socks or a high-performance sports bra
Bundling based on seasonal trends
- Tailor your bundles to capitalize on current seasons or upcoming holidays.
- Create a “Summer Beach Essentials” bundle with sunscreen, sunglasses, and a beach towel.
Bundling based on sales channels
- Consider the specific platform or marketing channel where you’ll be promoting the bundle.
- Offer a “Mobile Office Starter Pack” with a portable charger, phone stand, and wireless earbuds specifically on your mobile app.
Bundling based on offers, discounts, or free shipping
- Use bundles to incentivize larger purchases and encourage customers to reach a minimum spending threshold for free shipping.
- Offer a “Grilling Master Bundle” with a discount if purchased together, including a grill brush, grilling utensils, and a meat thermometer.
Fix Your Goals, Then the Bundle Price
Setting clear goals is the first step in determining the pricing strategy for your product bundles. Your goals could range from increasing sales, moving slow-selling items, attracting new customers, or improving customer loyalty. Once you’ve defined your goals, they can guide your pricing decisions:
- If your goal is to increase sales volume or move slow-selling items, you might price your bundles competitively to encourage more purchases.
- If your goal is to attract new customers, you might offer an attractive introductory bundle price.
- If your goal is to improve customer loyalty, you might create exclusive bundles for loyal customers at a special price.
Think About Your Customers Before Naming Your Bundle
The name of your bundle is the first thing customers see, so it should resonate with them and clearly communicate the value of the bundle. Here are a few tips:
- Keep it simple and descriptive: The name should give customers an idea of what’s included in the bundle.
- Make it appealing: Use positive and enticing language that encourages customers to explore the bundle further.
- Tailor it to your audience: Consider your customers’ language, interests, and needs when naming your bundle.
Introduce a Product Bundle at Checkout
Customers who are already in the buying mindset might be more inclined to add a discounted bundle to their purchase. Ensure that the bundle is relevant to the items already in their cart to increase the likelihood of them adding it to their purchase.
Create Landing Pages for Promotional Bundles
Landing Pages for Promotions: Create dedicated landing pages to showcase your bundle’s value. Explain the features, savings, and benefits with high-quality visuals. Landing pages also allow you to easily track the promotion’s performance.
Bundle Only Relevant Freebies
Freebies can incentivize purchases, but choose wisely! Ensure they complement the bundle (e.g., travel bag with travel essentials) and maintain quality. Consider limited-time offers to create urgency.
Highlight the Savings for Customers
Clearly communicate the cost savings of bundles. Display the discounted bundle price alongside the total price of individual items. Highlight the percentage discount and emphasize the value proposition beyond just the price.
Highlight BNPL (Buy Now, Pay Later) Options to Compel Customers to Buy
Offering BNPL options can make high-value bundles more accessible. Target the right audience, ensure smooth integration, and communicate BNPL terms clearly to avoid confusion.
Display Promo Codes to Reinforce Bundle Shopping
Promo codes can incentivize customers to purchase a bundle by offering additional savings or benefits. Display these codes prominently and make it easy for customers to apply them at checkout to encourage bundle purchases.
Overcoming Common Bundling Challenges
Even the most strategic bundling plans can hit a few bumps in the road. Here’s how to tackle common challenges faced by Shopify merchants:
Managing Inventory
- Challenge: Keeping track of inventory levels for individual products within a bundle can be complex, especially if those products are also sold separately.
- Solution: Use an inventory management system that can handle bundled products. This will automatically adjust inventory levels for individual items when a bundle is sold. Regularly review your inventory data to ensure you have enough stock to fulfill bundle orders.
Take a look at these outstanding inventory management systems that are compatible with Shopify and adept at managing bundled products.
Understanding Customer Preferences
- Challenge: Determining which products to bundle together can be difficult without a clear understanding of your customers’ buying habits and preferences.
- Solution: Use data analytics to gain insights into your customers’ behavior. Look at past purchase data, product views, and customer reviews to identify products that are frequently bought together or complement each other. Regularly seek feedback from your customers to understand their needs and preferences.
Creating Bundle Variations
- Challenge: Offering too many bundle variations can overwhelm customers and complicate inventory management. However, too few variations may not adequately cater to different customer preferences.
- Solution: Strike a balance by offering a few carefully selected bundle variations that cater to different needs or preferences. Use data to identify popular product combinations and create bundles around these. Consider offering customizable bundles where customers can choose the products they want from a pre-selected range.
Pricing Bundles
- Challenge: Pricing bundles appropriately can be tricky. Price them too high, and customers won’t see the value; price them too low, and you could hurt your profit margins.
- Solution: Ensure your bundle pricing offers clear value to the customer while also covering your costs and providing a reasonable profit margin. Highlight the savings customers will make by purchasing the bundle instead of the individual products.
Promoting Bundles
- Challenge: Effectively promoting your bundles to reach the right customers at the right time can be challenging.
- Solution: Use a multi-channel marketing approach to promote your bundles. This could include email marketing, social media, on-site banners, and even packaging inserts. Tailor your promotional messages to highlight the benefits and value of your bundles.
Make Bundling Work for You!
This blog post has been your guide to unlocking the power of product bundling. We started by diving into real-world examples, showcasing how different companies across industries leverage bundling to boost sales and customer engagement.
Next, we unlocked the secrets of the “bundling brain,” understanding why customers gravitate towards these tempting packages. Knowing this psychology lets you craft bundles that are practically irresistible – a win-win for both you and your customers.
But wait, there’s more! We tackled those pesky inventory management challenges that can sometimes lurk around bundling. Fear not, these hurdles can be gracefully cleared with the right tools and strategies.
Now, the exciting part! You’re fully equipped to unleash the power of bundling in your own store. Experiment freely, explore different combinations, and keep a keen eye on how customers respond. Refine your approach as you go, finding the sweet spot that elevates sales and keeps customers coming back for more.
Think of bundling as more than just grouping products; it’s about crafting a strategic masterpiece, a customer-centric symphony that resonates with value and enhances the entire shopping experience. So, unleash your inner bundling maestro, explore the possibilities, and watch your business take flight!
FAQs
Bundling is a marketing strategy where multiple products or services are packaged together and sold as a single combined unit, often at a discounted price.
A bundle item refers to an individual product or service that is part of a larger bundle. For instance, in a skincare bundle, a cleanser could be a bundle item.
Examples of popular product bundles include Microsoft for pure bundling example, Koh® Mixed Bundling, Bulk Apothecary for Buy-More-Pay-Less Bundling, Bombas for BOGO and Bean Box for Subscription Bundling.
Product bundling is a sales strategy where businesses sell multiple products or services together as a package. It benefits businesses by increasing sales, enhancing customer value, and helping to move inventory more quickly.
