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Product bundling: Strategies, examples, and best practices

By Stacy Kimbell

December 20, 2023

Product bundling is a great strategy that benefits both sellers and buyers.

It involves selling multiple products or services as a single package. This often comes at a discounted price compared to buying each item individually.

Naturally, product bundling encourages customers to save money and explore new products. It helps store owners raise Average Order Value (AOV) and cut marketing costs. It also keeps less popular products in circulation.

In this article, we’ll provide a detailed rundown of product bundling. We’ll also share nine top product bundling examples and best practices for success.

Let’s get started.

Understanding product bundling

Today, nearly every brand provides customized packages to match customer preferences. The goal is to elevate customer value, boost sales, and establish a competitive edge.

Here are the key aspects of product bundling:

  • Sales stimulus: The prospect of getting multiple items at a bundled price often entices customers. They might make a more significant purchase, contributing to increased revenue.
  • Strategic pricing: Bundled offers usually come with a discount compared to buying items separately. However, businesses need to consider the competitiveness of the pricing strategy carefully.
  • Inventory management: It offers advantages in inventory management. Businesses can optimize stock levels, reduce excess inventory, and manage product turnover better. Over time, this leads to improved operational efficiency.
  • Market differentiation: Product bundling allows companies to showcase a range of product offerings. They can stand out in a crowded market by providing a unique and attractive solution.

That said, product bundling may not be suitable in every situation.

It’s best to avoid it when products lack natural complements. Seasonal or regulatory constraints are also scenarios where bundling may not be ideal.

Exploring product bundling pricing strategies

Effective pricing is crucial for the appeal of bundle products. Consider the following points to guarantee the right pricing strategy.

Pricing models

Determining the suitable pricing model for your product bundles is crucial. Two main pricing strategies exist for bundling products:

Pure bundling

Pure bundling is a strategy in which businesses exclusively sell particular items together. It works best with slow-moving items. Typically, these products aren’t available for individual purchase. Also, in this category, there are different kits.

This motivates consumers interested in a single item in the bundle to buy the entire package. It’s a great way to boost profits for your business.

Image source: soldejaneiro.com

Mixed bundling

In comparison, mixed bundling is more flexible. It lets customers choose between the entire bundle or individual items.

This strategy caters to a broader range of customer preferences and budget considerations. Thus, businesses can respond to shifts in demand and market dynamics more effectively.

Maximizing profit

Strategic pricing should not only appeal to customers but also boost overall profitability.

Start by analyzing the cost structure of your bundled products. This should include production, packaging, and any additional services.

Here are some great tactics to maximize profits on bundle products:

  • Bundle complementary items: This involves marketing additional products with a primary product. For instance, you can offer a case or headphones with a smartphone purchase.
  • Introduce tiered pricing: This involves offering bundles at different price points. Each comes with varying levels of features or products. Tiered pricing allows businesses to cater to different customer preferences.
  • Leverage “Buy One Get One”: This encourages consumers to buy one full-priced item to get another at a discount or for free. It is commonly used for big-ticket or one-off purchases.

Image source: barkbox.com

Customer perception

Perceived value plays a significant role in the success of product bundling. Customers should feel they are getting a deal by opting for the bundled package.

Effective communication of the benefits of the bundle is key. Use clear messaging to highlight advantages such as cost savings and convenience.

Additionally, consider conducting some market research. This could help you understand how your target audience perceives different pricing structures. You can then adjust and optimize your strategies accordingly.

Showcasing nine best product bundle examples

There are numerous methods for bundling products. Here are nine of the best product bundle examples from leading brands. While their approaches vary, they all share a common objective: enhancing sales.

1. Dinnerly

Meal kit company Dinnerly illustrates the concept of pure product bundling.

The brand offers personalized packages based on customer preferences and quantity. Larger orders enjoy reduced costs per meal, encouraging customers to make substantial purchases.

Image via Dinnerly

Key takeaway: By offering customizable product bundling, you can offer your customers the freedom to choose. Tiered pricing also provides a perceivable increase in value.

2. American Tourister

American Tourister offers a prime example of mixed product bundling.

Three suitcases are bundled for a discount, but each can also be bought separately. The emphasis is on clear savings.

Image via American Tourister

Key takeaway: Mixed bundling enhances customer satisfaction through increased flexibility and savings.

3. M&Ms

M&Ms addresses the challenge of finding the perfect gift by offering a range of gift boxes.

Customers can personalize M&Ms with special messages or photos with four lid color options. This personalization adds significant value to the gift.

Image via M&Ms

Key takeaway: Smart product bundles solve common customer issues. For instance, you can make it easy for customers to give a curated gift without them putting in the effort.

4. Amazon

Amazon bundles products through a “Customers who bought X also bought” section in the cart. This section highlights items related to the primary purchase, like an iPhone case.

Image via Amazon

Key takeaway: Capitalize on cross-selling by offering related or complementary products in a bundle.

5. Kylie Cosmetics

Kylie Cosmetics owes much of its success to its personality and lip kits. This is one of the best product bundling examples.

The brand presents different “looks” for customers to choose their preferred style. Once chosen, visitors can explore individual products or opt for the complete bundle.

Image via Kylie Cosmetics

Key takeaway: Strategic product promotion can steer customers to opt for the complete bundle. This reveals the impact of thoughtful bundling.

6. Reebook

Reebok exemplifies volume-based product bundle pricing. This means that it offers discounts tied to the quantity purchased.

The deal is simple: enjoy a 20% discount on $50+ purchases, 30% on $100+, and so forth. Reebok cleverly adds urgency by setting a deadline, creating a sense of FOMO.

Image via Reebok

Key takeaway: Volume bundles are perceived as valuable by customers. This is because they’re generally more cost-effective.

7. TULA Skincare

TULA Skincare has a smart offering for travelers with its skincare travel kit bundle. This provides customers with a convenient opportunity to try multiple products. Moreover, the compact bottles make them travel-friendly.

Image via TULA Skincare

Additionally, by curating product bundles, the brand tackles a common pain point—the confusion tied to choosing skincare products.

Key takeaway: Creating value in bundles involves addressing various customer pain points. The more pain points a bundle targets, the more effective and appealing it becomes.

8. Supplement City

Supplement City demonstrates the effectiveness of “buy one, get one” bundling.

In the supplement industry, purchases are relatively infrequent. Thus, a 50% discount on a second product is a great strategy to boost sales.

Image via Supplement City

Key takeaway: BOGO deals are highly effective for clearing excess inventory. This approach is valuable in industries with sporadic purchasing behavior.

9. Clean Beautique

The final mention in our top product bundling examples is Clean Beautique. This brand’s approach is somewhat different from the rest of the list.

Their “Clean Beauty Roulette Box” is a monthly subscription. It features a variety of beauty products. The catch is that you won’t know what’s in it until you receive it.

 

Image via Clean Beautique

Key takeaway: Incorporating a mystery element into your product bundles sparks curiosity, potentially boosting sales.

Leveraging product bundle in email marketing

Through email marketing, you can entice customers to benefit from your bundle deals.

Consider the following tips to enhance your product bundle email strategy.

Email campaign strategies

Successful email campaigns leveraging product bundles begin with a well-defined strategy. Here are a few tactics worth considering:

  • Segmentation: Start by segmenting your audience based on preferences or past purchases. This way, you can personalize content to resonate with each segment. Done right, this will boost conversation rates, positively impacting your bottom line.
  • Interactive elements: Make your emails more interactive and immersive to boost engagement. For instance, you can Incorporate elements like polls, surveys, quizzes, and GIFs.
  • Optimal email timing: Create a schedule to ensure the timely delivery of emails. To do this, take note of peak engagement times. Then, align your emails to optimize open and click-through rates.

Engagement techniques

Engaging recipients is paramount to the success of product bundle email marketing.

Crafting compelling subject lines is the initial step in this process. Next, leverage a straightforward design for your email. This will encourage subscribers to read through your entire email.

Use visuals to showcase the bundle products, savings, or unique features. This is because many recipients lack time for text-heavy emails.

You can also implement interactive elements like call-to-action buttons. These should lead recipients to a dedicated landing page or the online store.

Lastly, consider ways to build trust in your brand. Including customer testimonials in emails is one way to achieve this.

Conversion metrics

Monitoring conversion metrics provides insights into the effectiveness of email campaigns. Here are some metrics worth tracking:

  • Open rates: This will help you gauge initial engagement and adjust subject lines or content accordingly.
  • Click-through rates: This indicates the level of interest generated by your email. You may need to alter your email’s content if rates are low. It could also mean that your bundle offer itself isn’t enticing enough.
  • Conversion rates: This will reveal the percentage of recipients that made a purchase. Naturally, this is a crucial metric for measuring the campaign’s success.

Marketing bundle packages effectively

Marketing a bundle package effectively requires a thoughtful approach. Here are key strategies to maximize customer appeal and drive sales:

1. Understanding customer needs

Begin by understanding your target audience and their preferences. Identify complementary products or services that fulfill everyday needs or desires.

2. Articulating value clearly

Clearly communicate the value customers receive from purchasing the bundle. Highlight cost savings, convenience, or exclusive items that come with the package.

3. Personalizing bundles

Personalization enhances the customer experience and increases perceived value. If possible, allow customers to customize their bundles to some extent. For instance, you could let them choose products from a menu of options.

4. Offering limited-time deals

Introduce a sense of urgency by making the bundle packages available for a limited time. This creates a feeling of exclusivity, encouraging customers to make a prompt decision.

5. Using various promotional channels

Consider using various marketing channels to promote bundle packages. Leverage social media, email marketing, and your website to do so. You can also collaborate with influencers or run targeted ads to boost reach.

6. Feedback-driven improvements

Pay attention to customer feedback on bundle packages. Use this information to refine and improve your offerings over time. Customer insights can guide adjustments to pricing, content, or the composition of bundles.

Designing attractive bundle packages

Designing packages or bundles doesn’t have a one-size-fits-all formula. But there are general principles and steps that you can consider and apply.

  • Design and layout: Focus on your package or bundle’s overall design and layout. Ensure it aligns with your brand image and resonates with your target audience.
  • Visual elements: Incorporate clear visuals and fonts to make your presentation digestible. Well-designed graphics are typically a great way to convey information.
  • Labeling: Use consistent and descriptive names for the bundles to get clarity. Clearly articulate the savings and exclusive items included in the bundle.
  • Testimonials and reviews: Word-of-mouth marketing is one of the most effective strategies. Showcase testimonials and reviews to highlight the quality of your packages.
  • Calls to action and urgency: Include compelling calls to action and motivate clients to take immediate action.

Product bundling examples: Wrap up

Product bundling covers various upselling and cross-selling approaches. That said, the ultimate goal is typically the same. It revolves around increasing product sales and boosting the average order value.

Select the right bundling strategy and items based on your needs to achieve this. Also, analyze top and bottom-selling items, SKU profitability, and trending profitability.

Finally, ensure you invest time and effort in promoting your product bundle. This article’s nine product bundling examples can serve as your starting point. 

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