18 Jul 2019
Is bundled selling a way to maximize revenue and deliver a great and relevant customer experience to buyers? Sure is. And besides, who doesn’t love a good deal? Whether it’s the holiday season, shopping for an upcoming birthday celebration, or Amazon Prime Day, consumers love a bundled deal at a great price point. Taking advantage of a packaged product offering is a win-win for both the business and the buyer. And, with summer sales underway or back to school just around the corner, there are plenty of bundles and packaged deals waiting to be scooped up. So marketing teams need to prepare.
Let’s talk about how retailers and B2B teams can make the most out of bundled selling.
The main benefit of bundling or guided selling is that add-on options are easily available for the consumer. Retailers and marketers must work together to find the right mix of products by knowing what their customers’ perception is of the true value of the proposed offering. In additon, they must deliver a seamless experience. If the customer can validate a use for the paired items, the chances they will purchase the packaged deal versus buying the item individually increases. And rightfully so. The items should complement each other and offer a value delivering a postive experience.
It’s a simple idea. It’s context, plus relevancy of product, and value all mapped to meet buyer needs. It’s what the best marketing and merchandising teams strive to do with every engagement. Bundled selling isn’t only for the retail market.
According to research from Forrester, it’s just as important in B2B sales due to its complexity and the need to get the customer experience right and guide buyers in their buying process.
*Image via Forrester The Complexities of B2B Sales Require Thinking Beyond Today’s CPQ
Marketers who are tasked with which items to bundle should use customer data to inform decisions. Analyze product performance data to understand buying behaviors and uncover frequently purchased items to see how the company can better pair items and products together.
Maximized bundling enables:
- Ideation: gives the customer ideas on how to use the products in different ways
- Additional savings: shows the consumer savings in percentage or in dollar value
- Fast sales: promotes items which allow for a quick yes or no purchase
- Inventory reduction: helps move stock that has become stagnant
- Marketing simplicity: takes advantage of selling a single bundled product versus three individual products
- Value: ties back to customer value perception, not an additional spend
Bundling is not anything new or earth-shattering. It’s been around for decades and continues to prove it’s worth, time and again. It’s a tried and true marketing strategy that when executed properly, can generate and turn a large profit for a business. Who doesn’t need a camera strap or an additional lens to go with the purchase of a new camera?
Amazon Prime Day is a ‘Prime’ example on how a large e-tailer does bundling extremely well. In fact, Amazon does it so well, that competitors have jumped on the deal bandwagon to give grab a portion of revenue with Target’s Deal Days and Macy’s July Black Friday two-day sales.
But, it doesn’t stop there. Bundled selling can be used across different industries. Fast-food chains like McDonald’s and Burger King can be considered master bundlers. Value meals, anyone? Subscription boxes like Barkbox or Newleaf are perfect examples bundles too. Or, think about your cable company. It’s not uncommon when you move to a new cable provider for them to offer you not only one bundled option but, they are famously known to provide customers with a few different bundles to choose from. Triple play or free premium channels for a year? You name it and the concept of guided selling works for just about any industry or vertical.
Bundles have made quite an impact on how companies can better sell their products to their target buyers. By using analytics solutions like Profitero or even Google to help determine the best selling items and product content performance, organizations gain a deeper understanding of their core audience’s buying behaviors.
As a result, marketers, and retailers can arm themselves with the data needed to put that perfect bundle together. Performance data paired with knowing what your customer’s needs are is key to guided selling. After all, the reason why consumers are purchasing your items is to satisfy a need of their own. Make it easy for them to buy more and they will reward you more purchases.
Happy customers mean repeat buyers and that is better for everyone.
To learn more about how inRiver PIM can help build better customer experiences, read the free eBook, “Five Secrets for Improving Customer Experience via Better Product Content.” Happy reading,