Looking for a way to simplify the shopping experience for your customers?
Product bundling is one easy way to streamline options for your customers while increasing average order value (AOV) and customer lifetime value (LTV). In other words, there are benefits for both you and your customers.
Whether you decide to offer curated, pre-set bundles or give customers the option to build their own subscription boxes, product bundling can bring your customer experience to the next level.
Key takeaways
The power of product bundling is evident: merchants who use product bundles have 2.7x higher LTV than merchants who don’t. But why is it so successful? Well, by offering a group of products at a discounted price, customers are more likely to purchase more products at once, helping to boost key metrics like AOV and LTV.
Additional benefits of product bundling include:
Plus, there’s an ease associated with product bundles. Complementary products are offered together, making the shopping experience that much easier for customers. There are three main types of product bundles, including:
To get a better understanding of the power of a great product bundling strategy, we’ll cover a few product bundling examples below from Recharge merchants. No matter which direction you go with your product bundling, offering multiple products at a reduced price can help you boost sales and customer satisfaction.
Instead of limiting customers to just pure bundling, Crafty Ramen offers both build-a-box bundles and curated bundles. We’ll dive into both models below.
Giving customers the opportunity to create their own product bundle is the ultimate move—especially for those merchants in the food and beverage industry. Customers want to be able to choose the flavors and meal options they like best, which is why building their own bundles is so key.
Crafty Ramen does this well with their Crafty Box option, a mix-and-match bundle where customers can customize how many items they receive and save money at the same time.
Crafty Ramen doesn’t just stop there with their subscription bundles. They also offer Crafty Bundles, which are their response to a curated bundle for “the perfect at-home ramen experience.” With four different curated options, customers can choose the option that appeals the most to them.
Whether it’s a bundle for date night or a fun family night at home making ramen together, customers can expect a great bundle discount and the ease of all the items they need being included in one box.
Tsuno is a brand that goes beyond their products—they donate 50% of their profits to help fund girls’ education. So, it only makes sense that their mixed product bundle also includes a donation element. As customers create product bundles, they have the opportunity to donate a box of pads to someone in need.
As opposed to the mixed bundling examples above, pure bundles are when products are sold only as a bundle—or rather, they aren’t sold individually. By bundling products and not offering them separately, customers have to purchase the bundle to access the products.
One great product bundling example for this type of pure bundle comes from Blume. Their Blume Babies are travel-sized bottles of their most popular skincare products. But, none of them are sold separately in the smaller size. So, Blume has created a combined package that motivates customers to buy three products (instead of just one potentially) and has the opportunity even to introduce customers to new products.
Online retailers who offer and promote bundles can expect increased customer lifetime value, along with all the other benefits of offering bundles.
Product bundling can help customers discover new products and make their shopping experience seamless and easy. Online stores can take inspiration from these Recharge merchants and their successful bundle offerings today to get started on their own bundles.
