Who doesn’t love a good bargain? Regardless of how many zeroes your bank account may or may not have, every single one of us can appreciate getting a little more for a little less. When companies implement buy-one-get-one (BOGO) offers, sales see a sharp increase. Bundling products is a simple concept that rests on the calculated combination of efficient inventory management and smart pricing methods.
Again, people love free. Free time, free services, and most definitely free things! Studies show customers prefer BOGO deals over any other sales tactic 66% of the time. With 93% of people reporting having made at least one BOGO purchase, selling 2-for-1 is without a doubt among the most effective sales strategies.
Here at Zobrist, we believe the key to staying ahead of potential competitors in the eCommerce era is to market products on your customers’ terms, rather than your own. The people have spoken; they want great deals, and they want them without sacrificing quality. Anywhere from 10% – 30% of business revenue is a direct result of product bundle offerings. That is billions of dollars. If your company isn’t utilizing the game-changing marketing strategy of bundling products, you are leaving money on the table.
What Is Meant by Bundling Products?
Successfully bundling products relies on the assumption that buying in bulk is cheaper. Businesses want customers to leave with fuller carts every bit as much as customers want more bang for their buck. Bundling products, like offering a free third air freshener if you buy two instead of one, works to satisfy both of these desires. Incentivizing the customer to buy more than originally intended to get the deal results in 1) them leaving with a sense of satisfaction and 2) the business profiting more than they would have if that customer had only bought one air freshener. A win-win, no doubt.
There are two main types of product bundling: pure and mixed.
Pure bundling refers to only selling products in bulk packages, rather than individually. In mixed bundling, the items can be bought individually–but must be bought in a pack to receive the discount. Knowing how to properly utilize each type of bundling is a crucial part of bundle management.
Effective Inventory and Bundle Management With Smart Merchandiser
These marketing strategies can only be successfully implemented with the right type of inventory management systems. Software solutions like Smart Merchandiser allow you to seamlessly bundle products with deals suitable for your business.
Smart Merchandiser provides a one-stop-shop for bundle management:
- Create/Update/Delete bundles
- Bundles may contain one or more products/SKUs
- Sequence products/SKUs within a bundle
With Smart Merchandiser, you can uniquely tailor any bundle to meet your business's needs.
Tips for Effectively Bundling Products
Despite what you may be inclined to believe, it is absolutely possible for businesses to give their customers great deals without jeopardizing profits.
For example, BOGO inherently equals a 50% discount. However, if the offer is to buy one to get 40% off the second, this still entices customers similarly to a BOGO deal. But, in reality, the total discount is still only 30% off between the fully paid and discounted product.
Crunching numbers is an important part of bundle management. Still, there are other ways that you can make BOGO deals work in your favor.
Pair Weak/New Items With Established Bestsellers
Some items sell themselves. Most don’t. An easy solution for this is to bundle the strongest selling products with those that tend to sit on shelves longer. Pairing an unnecessary toilet seat cover with a much-needed toilet brush may just encourage a customer to finally commit to the remodeling project they’ve been pondering for years.
Provide Personalization Options
When video game producer, Nintendo, started to offer mixed bundling promotions, sales skyrocketed. Their customers loved the opportunity to choose exactly what they want without having to pay full price. Bundling products in this manner gives customers the power of customization. This is where Zobrist’s Smart Merchandiser shines!
Leverage Gift Ideas for Bundles
When the inevitable chaos of the holidays erupts, buying many gifts at once is incredibly convenient. Gift baskets are an example of bundled products working exceptionally well. They are great opportunities to push seasonal items (that will otherwise sit in a warehouse for the next calendar year) at a discount to the customer. Again, a win-win, if you ask us.
Bundle “Main” Items With Related Accessories
It’s also smart to bundle items that are frequently bought together. In the market for a guitar? Perhaps you’d like to amplify your music career with say… an amplifier? A wide selection of picks and straps? Bundling together related accessories gives businesses ample opportunity to sell far beyond the customer’s initial intended purchase.
From lipstick and concealer to paper towels and dish soap, there are endless product bundling configurations to make company profits and customer satisfaction soar.
Use the “Customers Also Buy” Trick
In the age of information, analytics is among the most useful tools for forward-thinking eCommerce business owners. It’s human nature to look to others for guidance. We’re willing to bet your eyes have also been swayed to the “Customers Also Buy” section that appears after you’ve added a product to your online shopping cart. Scanning online shopping carts and suggesting items that are commonly bought together is a simple way to drive sales.
Using inventory management software–like Smart Merchandiser–to leverage data for your company is an integral part of bundling products. Being aware of consumer behavior trends and knowing how to leverage them is the name of the eCommerce game.
Implement Strategic Bundling Products With Smart Merchandiser
Ensuring your stock consistently flies off the shelves is no easy task. It requires superior inventory management skills and creative sales tactics, like product bundling. While it can be overwhelming to juggle inventory, pricing, and consumer behavior all at once, Zobrist’s Smart Merchandiser has you covered!
Use Smart Merchandiser to create bundles that will have customers excited to open their wallets. Schedule a demo to see how Zobrist improves eCommerce operations across the nation today!