The mindset of consumers on Black Friday/Cyber Monday (BFCM) is to score the best deals and discounts and come away with lots of savings. Consumers typically love purchasing package deals, known in retail speak as "product bundles".

Consumers want to purchase more for less. But poorly conceived product bundles can be bad for business, even if it triggers customer satisfaction. The cut into your margins can result in losses.

Instead, you need to make product bundling a win-win so that it drives revenues. At the same time, customers must perceive value, and their experience must inspire them to be repeat customers.

In this blog, we explore the benefits of well-curated product bundles and how to curate them right during the BFCM weekend, which is coming up on November 25 and November 28.

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Benefits of Product Bundles

Product bundle pricing is a marketing technique where brands combine two or more products and sell them at a price that is lower than if the customer purchased each of them individually.

The most popular example is when a customer opts to buy a popular meal - a burger, a drink, and fries - instead of purchasing each of them individually.

Customers perceive more value in intuitively curated product bundles. Here's a snapshot of the key business drivers of this trend:

• Companies always seek to increase average order value without incurring higher transaction costs. Product bundling is one approach to accomplish this goal.

• Online shopping enables customers to quickly check for discounted prices across multiple platforms and choose the cheapest one. But product bundling offers more value without a direct discount advantage because the package is unique.

• By combining products from diverse categories, brands can introduce customers to new products.

• This is another technique to increase customer lifetime value by increasing the monetary value of a customer's purchases at any given time.

Enhanced customer loyalty and a bump in product sales are its by-products.

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Smart Product Bundling Techniques

One of the most important approaches to contemporary product bundling is to leverage customer data to curate the right products together.

A mix of research, communication, and marketing will help you run an innovative product bundling campaign. Here is a snapshot of product bundles that are ideal for your BFCM strategy:

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1. Buy One, Get One (BOGO) Free

This is one of the most popular product bundles because who doesn't love to get stuff for free?! In terms of revenues, this offer works instead of offering a 50% discount.

The key is to identify the right item fit for BOGO. Prioritize older inventory that you are looking to get rid of or inventory that is expensive to maintain.

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2. The Gift Product Bundle

Many consumers tend to buy gifts during sales, especially in anticipation of the upcoming holiday season. A gift bundle usually combines four products or more. You can get creative with categories such as beauty, electronics, gourmet food, wine, and handcrafted items.

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3. The Mix-and-Match Bundle

Customers love to have more and more control over their buying options. A mix-and-match bundle allows consumers to match a large number of options on their own.

For instance, they can match a blanket with cushions or a pair of shoes and socks. The trick is to give them as many options as possible. The perception of choice builds customer delight and loyalty.

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4. The Bulk Bundle

Some customers prefer to buy certain items in bulk. These are items that they continually use, ranging from food items, detergents, and skin products to pet food and ice cream.

Offering two or more of the same products at a slight discount also enables you to move inventory with an expiration date.

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5. Curate Themed Bundles

Consumers have a wide range of personas and interests. Based on consumer data, you can curate themed bundles which cater to gaming aficionados, DIY crafts, readers, hobbyists, and designers.

Personalized bundles can appeal to customers and delight them.

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6. Bundle Complementary Products

Consumers often tend to buy complementary products together.

A consumer may purchase brand-new headphones along with a case. A pet owner might buy a leash and collar together.

Reviewing consumer data will give you an idea of how to create complementary product bundles relevant to your brand.

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Don't Forget to Market Your Bundles!

Marketing your product bundles is as important as strategic bundling itself.

• Market your campaign across all channels, including social media, messaging apps, and email.

• Run an active campaign rather than a passive one by recommending relevant product bundle recommendations via chatbots, messaging apps, and social media messengers.

• Make sure that the bundles have visual appeal and attractive product descriptions.

• Emphasizing the level of saving in your campaigns is an effective strategy to help consumers make quick buying decisions.

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The Takeaway

The shopping experience generates several emotions - excitement, stress, and delight. The prospects of so many discounts trigger an adrenaline rush in customers and, at times, a cognitive overload.

Curating innovative, relevant, value-elevated product bundles enables brands to deliver an uncluttered consumer experience that reduces fatigue, not adds to it.

By partnering with the right AI-driven personalization platform partner, you can leverage data-driven insights and tech-enabled solutions to build a high-value product bundling campaign in the run-up to BFCM.

on how we can help your brand create a hyper-personalized retail experience for your consumers, attract more traffic and boost sales and profitability.