Bundling Up Your Sales: Best Practices for Product Bundles to Maximize Impact

Ellie Ho

October 15, 2024

•

3 min read

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Upselling and cross-selling through product bundles is a powerful strategy that consistently leads to revenue growth. A research by McKinsey has shown that these approaches can increase sales by 20% and profits by 30%. On the other hand, shoppers who use the eCommerce search function on your website are known to convert at a rate 2-3 times higher than those who don't.

Still, no solution allowed product bundles to appear directly within the predictive search dropdown until Boost AI Search & Discovery. With the introduction of our Predictive Bundles feature, merchants can now make bundles more visible and more personalized with the help of AI.

Keep reading to find out how to leverage Boost's Predictive Bundles to craft highly effective product bundles and automatically optimize your store's sales potential.

What Types of Product Bundles Should You Use?

There are several different types of product bundles you can implement:

Pre-defined Bundles or Manual Bundles: Merchants create pre-selected bundles by manually grouping products based on common customer preferences or product categories.

Good Ranchers offers a variety of fixed-kit subscription bundles centered around one or two types of meat.

Mix-and-Match Bundles: These bundles offer customers the flexibility to select products (usually within a collection or category) to create their own unique bundles based on their individual needs.

Protein Package allows customers to create their own custom bundles by selecting from a range of eligible products. Shoppers can "pick and mix" 10 or more individual items and receive up to 15% off their purchase.

AI-powered Bundles: Leveraging the latest technology and individual store data, AI-powered bundles automatically suggest frequently purchased together or related products and group them into bundles. This provides a personalized and data-driven approach to bundling, offering customers relevant suggestions based on their past purchases and browsing behavior.

AI-powered Predictive Bundles in Boost.

Boost's AI Predictive Bundles: A Game Changer

AI Predictive Bundles is a revolutionary feature that takes product bundling to the next level. It leverages advanced AI models to analyze vast amounts of data, including customer purchase history, browsing behavior, and product attributes, to create personalized bundle recommendations. This means that each customer receives unique bundle suggestions tailored to their specific needs and preferences.

Key Benefits of AI Predictive Bundles

Drive Sales & Increase Average Order Value (AOV)

Bundling encourages customers to spend more within a single purchase. By offering multiple related products together at a discounted price, you tap into the perception of added value, making the bundled items more appealing than purchasing each individually.

Moreover, AI Predictive Bundles significantly increase your conversion rates by offering highly relevant and personalized bundles. Customers are more likely to purchase when they feel they are getting a great deal and the products are tailored to their needs.

Enhanced Customer Experience

Personalized bundle recommendations pave the way for a more engaging and satisfying customer shopping experience. Shoppers feel they are being understood and valued, leading to increased customer loyalty.

Reduced Manual Effort

With the help of AI, you can automate the process of creating and managing bundles, saving you valuable time and resources. You no longer need to create and update bundles based on your assumptions manually. The AI does the heavy lifting for you.

Enhance Awareness of New Products

By pairing a new item with a popular existing product, you can leverage the familiarity of the established item to generate interest in the newcomer. This strategy can be particularly effective for launching new product lines or seasonal items, offering a more subtle and cost-effective approach compared to large-scale marketing campaigns.

Stay Competitive on Price

Product bundling offers a solution by allowing you to combine products and offer a discounted price without sacrificing your profit margins. This "buy more, pay less" approach provides perceived value to customers, making your products more appealing and helping you differentiate your brand from competitors.

Minimize Waste and Optimize Inventory

Strategic bundling allows you to combine fast-selling products with slower-moving inventory. This helps minimize waste by ensuring that less popular items are still sold, ultimately saving you money on promotion, distribution, and storage of unsold stock.

Also, AI Predictive Bundles help you optimize your inventory management by analyzing inventory levels and demand patterns. You can ensure you have enough stock of the most popular bundle components while minimizing waste.

Read more benefits at How Predictive Bundles Boost Your AOV.

AI-Powered Predictive Bundles in Action

Boost AI Search & Discovery's Predictive Bundles are designed to integrate seamlessly into your store's user experience. The AI-powered recommendations are displayed in several vital locations:

Product Page: When a customer views a product, Predictive Bundles will suggest relevant bundles featuring that product and other complementary items.
Instant Search Widget: As customers type their search query, our feature will suggest relevant bundles based on their input, enhancing their search experience and potentially leading to impulse purchases.
Search Results Page: Predictive Bundles will display personalized bundle recommendations within the search results, providing customers with a curated selection of products that align with their search intent.

A step-by-step guide to creating a bundle with Boost can be found here.

Best Practices for Implementing Product Bundles

To maximize the effectiveness of your product bundling strategy, consider the following best practices:

Tip 1: Identify the Right Products for Bundling

Analyze Data: Leverage your store's analytics to identify complementary products with high sales potential. Look for products that are frequently purchased together, or that belong to the same category.
Consider Customer Behavior: Analyze customer purchase history and browsing behavior to understand which products are most likely to be purchased together.
Focus on High Demand: Prioritize products with high demand and low inventory turnover. These products are likely to be popular and generate significant sales.

Tip 2: Create Compelling Bundle Names and Descriptions

Clear and Concise: Use clear and concise language that highlights the value proposition of the bundle.
Emphasize Benefits: Focus on the benefits of buying the bundle over individual products. Explain how the bundle offers a more convenient, cost-effective, or enhanced experience.
Persuasive Language: Use compelling language and strong calls to action to encourage customers to purchase the bundle.

Tip 3: Offer Attractive Discounts and Incentives

Discount Strategy: First, determine the net revenue from selling each product at its original price to calculate your gross margin. Once you have established the gross margin, you can then set an appropriate discount for your bundle pricing. It's advisable to keep discounts within the range of 5% to 20% of your gross margin to maintain profitability while still offering customers an attractive deal.

Boost's Predictive Bundles allow merchants to create various types of discounts.

Value-Added Perks: To sweeten the deal, consider offering free shipping, gift wrapping, or other value-added perks.
Limited-Time Offers: Use limited-time offers to create a sense of urgency and encourage customers to act quickly.

Tip 4: Showcase Bundles Prominently

Strategic Placement: Feature bundles prominently on your instant search widget, search results pages, product pages, category pages, and homepage.

Boost is the first in the market that helps you display bundles in the predictive search dropdown.

Eye-Catching Visuals: Use eye-catching visuals and compelling imagery to highlight the bundle and its contents.
Highlight Benefits: Emphasize the benefits of buying the bundle in product descriptions and recommendations.

Tip 5: Track and Analyze Bundle Performance

Monitor Key Metrics: Track conversion rates, average order value, and customer feedback to assess the performance of your bundles.
Data-Driven Optimization: Use data insights to refine your bundle offerings, adjust discounts, and optimize your bundling strategy.

Frequently Asked Questions about Predictive Bundles of Boost

Q: Do you offer a free trial for the Predictive Bundle feature?

A: Yes, we offer a 14-day free trial of Boost AI Search & Discovery, including access to the Predictive Bundles feature. This lets you experience the benefits firsthand before committing to a paid subscription. Still, trial users won't be able to create AI-powered bundles.

Q: How many bundles can I create with Boost's Predictive Bundles?

A: There is NO LIMIT in the number of bundles you can create with Boost!

Q: Does the Predictive Bundles feature use AI?

A: Our bundling feature combines both manual and AI-powered options. While the free plan and lower-tier packages offer access to regular manual bundles, higher-tier subscribers can take advantage of advanced AI algorithms. These algorithms analyze large amounts of data to create personalized bundle recommendations tailored to each customer.

Ready To Boost Your AOV?

Product bundling is a powerful strategy that can significantly boost your sales and improve your customer experience.

By leveraging AI-powered Predictive Bundles of Boost, you can automate the process of creating and managing bundles, personalize recommendations for each customer, and ultimately drive more sales and increase customer satisfaction.

Start your trial now and see your sales skyrocket!

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Ellie Ho

•

Content Marketing Specialist

October 15, 2024

•

3 min read

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