In today’s competitive world, Businesses have to constantly sought for the unique strategy that stands out and innovative ideas to satisfy customer’s needs and value for their money. In that case, one of the most effective and beneficial tactics to draw attention is ‘product bundling’.
Businesses can bring a myriad of the benefits in their revenue and also build a strong relationship between their customers, by strategically combining complementary products and services. We will be exploring more power of product bundling strategies and some delightful tips for the businesses to boost their sales and delight customers.
What is Product Bundling?
Product bundling involves combining individual products or incorporating complementary items to form a new product that offers enhanced value to customers. In simpler words it is called a ‘Combo packages’. Product bundling is an effective marketing strategy that can help the businesses to increase their sales and drive revenue, improve customer satisfaction and bring competitive edge in the market.
There are types for the product bundling:
- Pure bundling: Pure Bundling allows two or more products are sold together ad one package. In pure bundling, the products are only available as one package and cannot bought separately.
- Mixed Bundling: In Mixed Bundling companies offers products or services together in a package but also allows customers to choose product separately within the package.
- Mix and Match Bundling: In Mix and Match Bundling companies allows customers to choose from variety of products and services to create their own customised package/bundle according to their choices at very effective prices.
- Add-on/Cross-selling Bundling: It is gaining a lot of attention in recent years. It offers customers a complementary products and service at the discounted price when they purchase a single product.
- Gift bundling: In these types of bundle companies offers you a complementary product as a gift with your purchase. It will help companies to promote their new product to customers and gathering the traffic on that product.
- BOGO (Buy-One-Get-One) bundling: with the use of buy one get one bundle companies offer one complementary product or a free product on the purchase. It will bring more traffic for the companies and they will improve their sales as customers will get encourage to add more product in their cart with lesser value.
Benefits of the product bundling (combo sales) for companies:
- Increase average order value (AOV)
There is a various strategy to increase sales in the companies and add into their Profit. Product bundling can increase sale and order value of individual product over time. Customers also prefer bundle/package offering than to purchase individual product as better deals.
- Inventory management
By product packaging/bundling help to reduce over stocking into the individual product or dead stock and improve inventory management to the companies. Companies can also reduce the inventory costs and improve in profitability by bundling that item with more popular products
- decreases marketing and distribution costs
By packaging different item together for selling will be effective move for the marketing and postage costs. It will be easy to apply marketing on packages as a single product instead of doing it on every single product and it will also decrease marketing costs.
Also, bundling will help you to manage more warehouse space and reduce the effort of finding every single product. It will decrease companies’ postage costs and warehouse maintenance costs as bundling helps you to ship orders in fewer boxes.
- Enhance Customer experience
Bundling helps customers to find a different product they need within one package deal. It will be easy for the customer instead of navigating through a various product option. It will also reduce the customer’s time on product search and finding perfect product as per their needs.
Benefits of the product bundling (combo sales) for Customers:
- Get multiple products at discounted price
Every customer thought they would get their desire products at discounted price. This way they will also save some budget. And customers will be elated to find multiple products for the price they would want to pay for them.
- Access seasonal discount and exclusive package
Customers stands to get benefits from getting exclusive deals on packages and seasonal products. It provides shoppers more beneficiary deal for their seasonal shopping and add more products to their cart for the better prices.
- Buy at your convenience
Product bundling provide customers pick products with their preferable price-point and provide customer useful package for their product.
Product bundling To Boost Revenue
As we move forward to generate more revenue and add a profitability in the companies, product bundling help a lot with its own benefit and effective tactic of it. Companies would grow more and reach hights with each level with increasing their AOV. Companies can also manage their dead stock or overstock inventory and increase more traffic on their product. By providing a package and product bundling offers they can motivate people to buy more product and improve their customer experience.