In the midst of the holiday season, retailers look for an advantage that will serve several purposes: boost sales, control inventory, and impress the customer to encourage loyalty and repeat purchases throughout the Q1 doldrums. Product bundling may be the solution to these mandates.
Bundling has been a strategy in retail for many decades. It involves the combination of products and services into a single sales unit. Bundling can take many forms, from same-product bundles — think multiple packs of tissue paper grouped into one larger order — to hardware and service bundling, where a subscription offer includes free or discounted hardware to entice the customer.
Retailers can tailor their bundles to meet different metrics or achieve specific goals. Bundling initiatives can be launched during the holidays to set the tone for future years.
Bundling can be used to generate new sales opportunities
Every year, the holiday shopping season gets longer. The holiday shopping season, which used to be a race between Thanksgiving and Christmas, now starts months before the holidays. Recent studies have shown that the race between Thanksgiving and Christmas has accelerated. McKinsey report According to a recent survey, 50 percent of consumers plan their holiday purchases for October or earlier in the year.
According to the report, however, price and promotions are the main factors that influence purchases. Akeneo’s research also revealed that offers, promotions and deals are the most important product information to consumers. They even rank higher than information about size, fit or dimensions.
The high value of the offers for retailers means that holiday shopping is no longer a three-week event. The impact of year-round discounts and targeted bundling during the months before the holidays is dramatic.
The most effective way to increase basket size is by bundling. Bundling works because it creates a single product, rather than disparate items.
Bundles are distinguished by their pre-selection and combination of products. This offers customers a curated selection and removes the guesswork in finding complementary items. This approach is different from merely suggesting items, because it simplifies selection for the customer.
Enhance Customer Value and Experience with Strategic Bundling
The bundle offers the customer not only a discount, but also an easier and more convenient solution. They don’t have to do any legwork. This bundle allows customers to discover new products by the same company, which they may have never tried before or didn’t even know existed.
The act of curating bundles can have multiple benefits for retailers. Retailers, as product experts can show their expertise by bundling complementary goods that a consumer may not put together. Retailers can also include products that need to be boosted in sales in a bundle. Combining products that perform well with products that underperform can help all boats.
Bundling offers a unique way to build year-round customers. You can offer incentives that go beyond free or discounted goods. monthly subscription plansRetailers can also create their own subscription boxes.
If a retailer sells soaps, candles or other items, they could offer different subscription boxes with different price points. This would help to build a customer base that is loyal all year round. These initiatives are best launched during the holidays, as subscription boxes make great gifts.
Bundling services and products gives retailers a creative outlet for promotion and merchandising.
Understanding your own product range and curating options that are tailored to customers shows a degree of detail and care which can translate into customer loyalty. It creates a platform for testing new artificial intelligence and Machine Learning technologies to build personalized algorithmically recommended bundles of products for individual consumers.
How bundling impacts inventory management and logistics
Bundling can provide brands and retailers with untapped new channels of sales. But it has other benefits, too: a better control over inventory and logistics.
This ability to combine products into single SKUs opens up new channels of distribution. This is particularly true when it comes to old or surplus stock.
Bundles that combine older and more recent products allow retailers to move less desirable stock faster, at a lower price. They can also offer a discount in exchange for the promise of a newer product. Bundling is a great way to move products quickly, especially seasonal products with a short shelf life.
Bundling is a dynamic and flexible solution for inventory management, which can reduce supply chain variance and risk. Bundling products from different vendors can add a layer of diversity, which will help to protect product reliability in the event of product shortages and delays.
Bundles can be dynamic and adapted to product availability, without compromising quality. Retailers benefit from this control of the timing and selection of products, as they are reduced to mere intermediaries.
In a world where retailers conduct more and more of their business online, bundling offers the ability to combine shipping for multiple items and handle them as one order. This is particularly true when it comes to omnichannel retail experiences.
Bundles are much easier to create when all channels of sales have uniform and comprehensive product information. This simple benefit can save an organization thousands of dollars per year.
Bundling Is Great for Customers, Too
Bundling is a great way to save money for retailers, but it can also be a good deal for consumers. Price is increasingly important to consumers, as we’ve seen. Finding the best deals, particularly during the holiday season, can be a major factor in determining what they buy.
Bundling offers not only the potential for deep discounts but also removes much of your guesswork when shopping for similar items. Brands and retailers are often viewed as experts on their own product lines, so a bundle of similar products can be a great way to save time and tap into this resource.
Bundling can be a great way to win for both retailers and customers. This is the perfect time to experiment with this innovative retail strategy. It can create lasting impressions and lead to sales in the future.
