Product bundles group items as a package deal at a discounted price and it is an innovative strategy that businesses can leverage to maximise their success during single-day marketing campaigns, says Manju Bala.

In the ever-evolving landscape of e-commerce, businesses are constantly seeking innovative ways to stand out amidst the competition. One strategy that has proven to be particularly effective, especially during single-day marketing events, is the implementation of product bundle strategies. These bundles offer a multitude of benefits for both consumers and businesses, making them a valuable tool in the marketer's arsenal.

This article delves into the concept of product bundles and explores how businesses can leverage them to maximise their success during single-day marketing campaigns.

Understanding product bundles

Product bundling involves grouping together related or complementary items and offering them as a package deal at a discounted price. This strategy aims to encourage customers to purchase multiple items at once, providing them with added value and cost savings compared to buying each item individually.

Advantages of product bundles

  • Increased average order value (AOV)

One of the primary benefits of product bundles is their ability to boost the average order value. By offering a bundle at a slightly discounted rate, businesses can entice customers to spend more than they initially intended. This not only increases revenue per transaction but also enhances the overall profitability of the e-commerce store.

  • Enhanced customer experience

Bundles can create a more satisfying shopping experience for customers by simplifying their decision-making process. Instead of navigating through a plethora of individual products, customers can choose a curated bundle that meets their specific needs or preferences. This streamlined approach can lead to increased customer satisfaction and loyalty.

  • Inventory management

From a business perspective, product bundling can aid in inventory management. It allows businesses to strategically promote and sell slow-moving or excess inventory by incorporating these items into attractive bundles. This can help clear out stock while generating revenue.

Leveraging product bundles for single-day marketing

  1. Exclusive single-day bundles

Create a sense of urgency and exclusivity by offering special product bundles that are available only during the single-day marketing event. Highlighting limited-time offers can encourage customers to make a purchase decision swiftly, capitalising on the excitement of the event.

  1. Cross-sell and up-sell opportunities

Capitalise on cross-selling and up-selling opportunities by carefully curating bundles that include related or upgraded products. For example, pairing a smartphone with a matching case or offering a premium version of a product in a bundle can entice customers to upgrade their purchase.

  1. Strategic pricing

Set bundle prices strategically to maximise perceived value for customers. Offering a modest discount compared to individual product prices can motivate customers to opt for the bundle, while still ensuring profitability for the business.

  1. Bundle customisation

Allow customers to customise their own bundles based on their preferences. This level of personalisation not only engages customers but also ensures that they get exactly what they want, increasing the likelihood of purchase.

Real-time brand bundling examples in marketing strategies

Bundling involves combining products or services into packages to enhance value. This tactic boosts sales, introduces new products and enhances customer experiences, maximising revenue in a short time frame.

  1. Buy more pay less strategy

It offers two effective approaches to bundle marketing that can enhance your AOV, a critical metric in e-commerce:

  • Create bundles consisting of both high-priced and low-priced products. This strategy showcases a flagship product alongside additional items at reduced prices, enticing customers with the opportunity to save while increasing their AOV.
  • Bundle multiple products together and include a complimentary item or offer a discounted price. By presenting these products as a bundle, customers are incentivised to capitalise on the deal, as purchasing items separately would result in missing out on the savings. For example, Kerastase’s bundle strategy for Super Brand Day from 18-20 March 2024 (three days), offering free products with a bundle of two products.

Kerastase ad

Source: Shoppe.co.id

  • Twin-pack strategy
    By bundling two items together, businesses can encourage larger transactions, capitalise on economies of scale and enhance customer satisfaction by offering convenience and savings. For example, NIVEA selling two of the same products as a bundle at a discounted price under the twin-pack bundling strategy.

NIVEA MicellAir Pearl & White sale ad

  1. Boost sales of less popular items with Bogo bundle marketing

According to a survey conducted by AMG Strategic Advisors, 93% of customers show a preference for buy one get one (Bogo) bundle promotions.

Bogo bundle promotions often feature a multi-pack arrangement, where a popular product is offered at a discount alongside a less popular item provided at no additional cost. These promotions sometimes allow buyers to customise the quantity purchased.

Mixed Bogo bundles are particularly effective for cross-selling products within the same category. With this type of bundle, buyers receive a different additional product alongside their purchase of the primary item. Here is one more example of how two products are bundled together to increase their AOV.

Skintific deal ad

Source: Shoppe.co.id

  1. The importance of free shipping and AOV initiatives

By offering free shipping alongside bundled purchases or upon reaching a certain order value threshold, businesses not only incentivise customers to buy more but also enhance the overall perceived value of their purchases. This approach contributes to increased customer satisfaction and loyalty while effectively driving sales and boosting revenue.

Conclusion

Some popular online offers within the bundle strategy include buy-one-get-one-free deals, discounted multi-pack purchases and bundled packages combining complementary products. These strategies aim to entice customers with added value, encouraging larger purchases and enhancing overall shopping satisfaction.

Chart showing 93% of online offers are buy one get one free

In the ever-evolving landscape of e-commerce, a well-executed product bundle strategy can be a game-changer, especially during single-day marketing events. By understanding the advantages of product bundling and tailoring bundles to meet the unique demands of a one-day promotional campaign, businesses can drive sales, increase customer satisfaction and leave a lasting impact on their target audience.

As e-commerce continues to evolve, embracing innovative strategies like product bundling is key to staying ahead in the competitive market.