Without bundling, sales of both software and hardware components decline, and customers who had previously bought bundles may put off purchases, lowering revenues.
By bundling goods and services at a discount, you can persuade clients to spend more money. Bundles are an excellent marketing approach for a business of any sort and size since they work with any product or service and in any industry imaginable. This is even better.

In this post, we’ll demonstrate how to use product bundling to tap into your customers’ latent buying power. Let’s focus on a few use cases to better understand how to adapt bundling for today’s financially smart consumers in 2022.

How does product bundling work?

Product bundling is a marketing strategy where multiple items or services are combined and sold as one unit, frequently at a discount. This strategy is frequently employed across many industries to encourage consumers to spend more money, move overstock merchandise, or boost sales of an item that isn’t as well-liked.

Think about fast-food restaurants as an example. The most well-known example of a bundle that produced outstanding sales results and is likely to be remembered as the most successful bundle in the extended history of bundles is McDonald’s Happy Meal.

What is the science behind product bundling?

Derdenger & Kumar looked at the effects of bundling on Nintendo sales outcomes in 2011. They provided a package that included a video game and a Nintendo console. Both parts were available in the bundle and separately as well. They reached the following results after testing many combinations for many months:

Bundling works best when customers are segmented dynamically because it allows retailers to push some purchases forward in time.
Selling pure components outperforms mixed bundling and pure bundling by a large margin. Sales were reduced by 20% as a result of pure bundling.

Product quality against pricing

Pure packaging without flexibility never works out well for your sales because subjective product value is the key culprit. Let’s revisit fast food joints and McDonald’s to better grasp this case.

Every time I go to a fast-food establishment like McDonald’s, I only get a sandwich. Even at very special prices, if I could only choose from a variety of product bundles, I would definitely go hungry and would for sure never place another order.

The same thing occurred during Kumar’s research. When the absence of components offered individually cost them numerous missed opportunities. Naturally, it couldn’t be as easy as selling a bundle and selling each of its parts separately.

10 product bundling methods and tips for 2022

The year 2021 has turned out to be another mini-apocalypse. Along with exposing flawed public health systems, unsafe public safety laws, and phoney media factories, it has also demonstrated that the digital change is inevitable and only a matter of “when,” not “if.” In the world of online retail, where competition is fierce, there is a great opportunity to experiment with smart bundles.

Remember the value of the product.

For the consumer, the package must be worth more than the sum of its parts (start with the most well-liked items and divide your audience based on their preferred goods/categories). Keeping that in mind, the bundle ought to cost less than the sum of the prices of the individual products.

Your initial inclination is probably to combine an expensive product with a cheap one, such as a high-end scent with a lipstick. However, it has been shown that this strategy is ineffective since when an incredibly cheap product is added to it, consumers would notice the bundle value. In the worst case scenario, they will feel victimised and completely lose interest in the bundle because it will seem too suspicious to them.

Pursuing simplicity

The package must be simple to grasp at first glance (always emphasise profits for a customer coming from bundling). If your bundle helps the customer or makes the process easier, it gains added power. It may include both a product and a related service (for example, a smartphone with a system configuration)

Remove the need for bundling.

Customers should have the option to purchase the products independently in addition to the bundle. Customers will easily turn to your competition if you restrict their options. Customers’ knowledge that buying the components of a bundle separately is a poor financial decision is frequently the attractiveness of bundling. If you don’t give clients access to costs for individual components, the bundle will become less desirable.

Offer brisk packages

Bundling must be dynamic and pique interest if it is to be successful in your sales approach. Think about using flash sales, weekly specials, or seasonal bundles to increase the sense of urgency and scarcity and encourage customers to complete the transaction.

You have a better chance of piqueing buyers’ interest by highlighting potential savings as a result of purchasing a package. Always draw attention to the lower price and avoid making clients figure out their savings on their own.