What are the basic principles for efficient product bundling? How should merchants create their bundle offers to upsell or cross-sell more efficiently and increase their AOV (average order value)? If you’re not familiar with the basics of product bundling, this short article gives you essential notes about how to launch an efficient product bundling campaign.
It’s a 3 step process
When you want to create a product bundle, you must think of 2+1 key steps:
- Meaningful bundle creation
- Appropriate offer display
- Smart promotion
If you miss any of these three steps, you can’t be sure that you’re getting the most out of bundling.
Meaningful bundle creation
The first step of bundling is to decide which products to bundle and what discount to offer. To check if you’re creating a good bundle, ask yourself the following questions:
1. Does the combination of the items make sense?
Make sure that you are bundling items that can complete the shopping process of your customers. For example, when a customer is looking for a mobile phone, they will probably also look for a protection glass or case for it. So bundling a mobile phone and its accessories makes sense. Don’t bundle a mobile phone with a terrarium jar!
2. Is it worth buying it?
Please don’t be stingy when you are setting a discount for your bundle. The main point for a customer in buying a bundle is to get a remarkable discount compared to when they buy the items individually. If your offer is not attractive enough, then it is highly possible that your customer will leave your shop and look for the product in another shop.
Appropriate bundle display
The second key step is to specify how and where your customers come across the bundle offers. The bundles must be displayed in the right form at the right place to get the most clicks on its Add to Cart button.
The total number of clicks comes from the “total number of bundle impressions (shows)* CTR (click-through rate). So to earn the most clicks, you have to increase them both. The first parameter means that you must either show the bundles on your high-traffic spots or drive a high traffic through the places that are meant to display your bundles.
The second parameter (CTR) is dependent on the quality of the bundle widgets, the quality of the bundle itself (meaningful bundle), and how far the customer has progressed through the shopping journey. The closer the customer is to the checkout point, the more the CTR is likely to increase. The following table gives you a sense of how effective the different display options are in Fast Bundle. Please note that we assume that you are driving a normal distributed traffic to your shop.
|Display Type||Bundle impression (traffic)||CTR||Expected success|
|Home page||Very High**||Low||Medium|
|Cart popup||Low||Very High||High|
|Bundle Builder||Medium*||Very High||Very High|
* needs to be promoted on the main menu, via email marketing, etc.
** needs a little coding
Since Fast Bundle’s subscription plans are based on bundle impressions (bundle shows), you must pay attention to the fact that if you show the bundles all over your shop, you might reach the limit of your plan and will need to upgrade it. This may be a concern for small businesses but for big shops, it’s not a big deal and our Premium clients are happy because they are getting a great return on their investment.
The final step of a successful bundling strategy is to promote the right bundle at the right time on the right spot. We will write a comprehensive article around this subject but for instance, regarding the Bundles page, you must drive extra traffic to it. One popular trick is to add the Bundles page to the main menu. However, for the Bundle builder, it would be great if you promote it on your homepage with a banner. You can watch our tutorial video on this example.
Product bundling is a powerful and easy solution to increase the conversion and the average order value (AOV) of your shop. But in order to get the most out of it, make sure to consider the few general principles that we mentioned in this article. This article is not written by AI or some random digital marketing freelancers. We have written it based on a two-year, dedicated experience, collaborating with more than 5000 shops.
Good luck with your bundling experience and feel free to contact our support and onboarding team via the following email: [email protected]