Boost AOV Using the First-Ever Predictive Product Bundles in Search

August 22, 2024

•

5 min read

To stay ahead in the competitive eCommerce landscape, boosting Average Order Value (AOV) is a key strategy for driving revenue growth. Product bundles present a powerful opportunity in the AOV-focused approach.

McKinsey estimated that a remarkable 35% of all Amazon purchases stem from recommendations, many of which qualify as bundles. Furthermore, in a Forrester’s report, recommendations, including bundles, boast a success rate of approximately 60%, demonstrating their significant impact on customer purchasing decisions.

Boost AI Search & Discovery has introduced a powerful feature that leverages Artificial Intelligence (AI) to create predictive product bundles. This feature removes the guesswork and allows eCommerce businesses to optimize their sales strategies with precision.

This blog will delve into how this innovative feature can be a game-changer for your business, enhancing customer satisfaction and the bottom line.

Understanding Product Bundling

What is Product Bundling?

Product bundling is a marketing strategy where multiple products are sold together as a single package, often at a discounted price. It's all about making customers feel like they're getting a great deal and encouraging them to treat themselves.

Product bundles group related products and sell them at a discounted price.

For example, an electronics retailer might bundle a laptop with a mouse, carrying case, and software, creating a comprehensive package that more fully meets the customer's needs than individual items might.

Why Should Online Merchants Use Bundling Products?

Bundling is a win-win for both merchants and customers.

Benefits for Merchants

Boost Bundle Visibility: Highlight your bundles in prime locations like instant search and key store areas, ensuring more customers see them.
Enhance Your Sales and Revenue: Our groundbreaking, high-converting feature helps you increase sales and revenue by showcasing irresistible product bundles directly in the search bar, results pages, and product pages.
Increase Your AOV: Showcasing irresistible product bundles directly in the search bar, results pages, and product pages can increase AOV by over 20%.
Capture High-Intent Shoppers: Reach more customers with search-driven bundles based on their search terms and behaviors, ensuring you capture their interest at the right moment.
Enhance the Shopping Experience: Offer dynamic, relevant bundles that improve customer satisfaction and simplify their journey, leading to a more enjoyable shopping experience.
Innovative Upselling & Cross-Selling: Easily create, manage, and monitor predictive bundles to drive higher conversion rates and sales and maximize your cross-selling potential.

Bundling is a proven strategy to increase revenue.

Moreover, Boost's AI-Powered Product Bundles, which will be launched in the next couple of weeks, are expected to handle merchants' complex tasks. The new upgrade will automatically recommend and optimize bundles based on real-time data, trends, and customer preferences, making bundling even more effective and efficient.

Benefits for Customers

Saved Cost: Bundles often offer a discounted price compared to buying individual items, providing customers with better value for their money.
Extra Convenience: Bundles offer a convenient way to purchase multiple items at once, saving time and effort.
Easy Discovery: Bundles can introduce customers to new products they might not have known about, expanding their purchasing options and potentially discovering new favorites.

How Predictive Product Bundles Work in Boost AI Search & Discovery

As this is an advanced feature of Boost, we have a few limitations:

To use our Predictive Product Bundles feature, you need to be on the Boost TURBO version.
Your Boost template version in the Shopify Integration must be 2.3.0 or higher.
Predictive Product Bundles are not available for Freemium users.

If you pass all the above requirements, let's create the first bundle with Boost!

How to Create a Product Bundle with Boost

Access the Feature: From your app admin, navigate to Recommendation > Predictive Bundles.
Add a New Bundle: Click Add New Bundle.
Bundle Settings:

Select Products: Choose 2-4 products to include in your bundle.
Set Discount: Determine the type and amount of discount you want to apply to the bundle.
Choose Placement: Select where you want the bundle to appear. Available placements are Instant Search Widget, Search Results Pages, and Product Pages.
Set Bundle Status: Choose Active to enable the discount and display the bundle or Paused to hide and disable the discount.

Note: Bundles will display based on search terms and product availability in the search results. Only one bundle will be displayed in each placement, prioritized by creation/update time. If multiple bundles are added to the cart, the bundle with the highest discount will be applied.

Customize Bundle Design:

Preview: See how the bundle will appear in the selected placements.
Name the Bundle: Enter a name in the Header field.
Button Text: Customize the "Add to Cart" button text.
Style Settings: Adjust the header and button styles.

Display Bundle in the Store:

Enable Boost Core: Click Enable Boost Core to integrate the core app embedded into your Shopify theme automatically.
Enable Instant Search: Click Enable Instant Search to display the instant search widget automatically.
I'm All Done: If you've already enabled these app embeds, click I'm All Done.

USP of Boost's Product Bundles: First-Ever Bundle in Search

A standout feature of Boost’s Product Bundles is the ability to display bundles directly within search results.

This "first-ever bundle in search" capability ensures that customers encounter relevant product combinations early in their shopping journey, significantly increasing the likelihood of a purchase. You can capture high-intent shoppers and drive impulse purchases by showcasing bundles in prime locations such as the search bar and results pages.

What to Expect Next With Boost's Bundles

The Predictive Product Bundles feature you see today is just the first step in our more extensive roadmap to help merchants multiply AOV.

We're already working on an upgraded version powered by AI/ML and our existing search data. This version will automate the bundling process and continuously optimize bundles based on real-time data. This means Boost AI will adapt to changes in customer behavior, ensuring your bundles are always aligned with their preferences. Successful bundles will be retained, while underperforming combinations will be adjusted or replaced, maximizing the effectiveness of your bundling strategy.

Personalized bundles are another improvement we are aiming at. AI/ML models can create bundles that cater to different customer segments' tastes, preferences, and purchasing habits by analyzing individual customer data. This level of personalization not only boosts sales but also enhances customer loyalty by providing a tailored shopping experience.

Strategies for Creating Effective Product Bundles

Identifying Complementary Products

Practical bundling is grounded in identifying products that naturally complement each other. For example, in the beauty industry, a skincare bundle might include a cleanser, moisturizer, and serum, creating a complete skincare routine.

To choose the perfect product combos, you can consider the following criteria:

Functional Compatibility: Do the products work together? For example, a coffee maker and a coffee grinder.
Lifestyle Compatibility: Do the products appeal to the same target audience? For example, a yoga mat and a yoga block.
Seasonal Relevance: Are the products relevant to a specific season or occasion? For example, a winter scarf and a pair of gloves.

Pricing Strategies for Bundles

A common strategy for making bundles successful is offering a small discount compared to purchasing individual items, creating a sense of value. However, the discount should be carefully considered to avoid sacrificing profit margins.

Value Pricing: Offer a significant discount on the bundle compared to buying individual items, highlighting the value proposition.
Competitive Pricing: Research your competitors' bundle pricing and offer a competitive price point to attract customers.
Tiered Pricing: Offer different bundle tiers with varying product combinations and price points to cater to various customer budgets.

Appealing to Different Customer Segments

Segmenting your customer base and creating bundles that cater to different needs, preferences, and price points can significantly boost your success. For example, a tech-savvy customer might be drawn to a high-end electronics bundle, while a budget-conscious shopper might prefer a basic but essential bundle.

There are a few customer groups you should take into account when crafting your product bundles:

New Customers: Offer introductory bundles with popular products to attract new customers and introduce them to your brand.
Loyal (or Returned) Customers: To reward loyal customers and encourage repeat purchases, create exclusive bundles with premium products or limited-edition items.
Specific Needs: Offer bundles tailored to specific needs, such as a "travel bundle" for frequent travelers or a "gift bundle" for gift-givers.

Long Story Short

Product bundling is a powerful strategy for eCommerce businesses looking to increase their AOV and improve customer satisfaction. With the introduction of Boost AI Search & Discovery’s Predictive Product Bundles feature, Shopify merchants can now easily optimize their bundling strategies.

Exciting News: You can now create and display bundles within your product pages, offering your customers these valuable packages with even more visibility.

Don't wait to unlock the potential of Predictive Bundles. Start using Boost AI Search & Discovery today and experience the difference it can make for your business.

Ellie Ho

•

Content Marketing Specialist

August 22, 2024

•

5 min read

There's More

Boost AOV Using the First-Ever Predictive Product Bundles in Search

Shopping shouldn’t feel like a chore

Related Posts

How To Maximize Email Conversion Rates With AI Product Recommendations

What is semantic search? How AI captures more sales through your search bar

Checkbox, dropdown or swatch? How to choose the right filter UI pattern for your Shopify store