Phone companies do it, cable tv networks do it, even banks do it. But are you doing this simple product strategy to increase sales and benefit your customers in your retail store?
Bundling is used by many companies. Quite simply, it’s when you put a group of products together to provide a product or service with greater value.
You may already do this to an extent, when you put together gift baskets. But is it an overall product strategy in your store?
Here are three ways that you could start bundling today and increasing your store revenue.
Bundle a brand together
If you have a popular brand that sells well, bundle the products together to provide a one-stop purchase for your customer.
This allows a customer to try out different products in the range that they may not have purchased separately, because they didn’t know they existed, or didn’t know they even needed them
Bundle complimentary products together
Shampoo, conditioner, a hairbrush a volumising spray. You’ve seen those packs in the hair salon. It’s a easy choice – everything you need, bundled together. Item don’t have to be brand specific, they just need to work well together to solve the customers problem. It could be matching earrings with a belt for the style challenged, or putting together 3 cushions that work together. Remember, your customer comes to you because you’re the expert. They don’t necessarily see the things that go together, or the process that you should work through. It’s your job to show them how.
Bundle popular products with new or less recognised products
If you’ve got a product that you think really works, but for some reason doesn’t seem to be moving, bundle it together with a high turnover, or better recognised, complimentary product. The key here is to make sure it’s clear why those products have been put together.
Add in a service, guide or tutorial
If you’re constantly getting questions about how to use a product, consider making a video tutorial, or create a downloadable guide on how the product works, and add that into the bundle. Once it’s created, you can use it again and again, and it sets you apart from other retailers.
Despite the advertising from big business about saving money when you bundle products together, A bundle doesn’t have to be offered at a discount if the combined products or services save someone time or provide an added value. Think of gift baskets. They are often sold at a premium because they are ready to go. Bundled products can work the same way,
Why bundling is good for your store
It increases your turnover.
Quite simply, a bundle of products will increase your average order value, so successful bundles will increase your revenue.
Instead of scanning individual items, you only have one sku.
It saves your customer time
It’s also quicker for your customer, they don’t need to hunt around for the products that they may need.
It allows you to offer products that are a benefit to your customer
Bundling products and services opens your customers up to products they may not have thought to use previously.
Makes your store stand out from others
Other stores probably aren’t bundling, so this can be a point of difference for your store. As customers tell each other how easy it is to buy from you, it’s going to put you higher up the ‘word of mouth’ list.
You may be able to negotiate a discount with suppliers
If you are consistently ordering a higher volume of products, you may be able to negotiate a discount, or exclusivity for certain products
It’s upselling without all the extra work
Upselling takes time, and not all customers are necessarily open to spending more. However, if a bundle of products solves all of the problems they want fixed, it’s easy for them to justify the purchase to themselves.
There’s less confusion
Having a bundle available takes the guesswork out of a purchase. The customer trusts that when you’ve put together the package, it’s going to be for their benefit.
Now, not every customer is going to want a bundle of products. They may like to try the products separately, so make sure that at lease some of the range is available to purchase separately.
Here are my top 3 tips to make bundling work for your customer
- Bundled products should be for the benefit of the customer
- Run the numbers – not all bundled products will sell well. Make sure you analyse bundled versus separate product sales
- Have a follow up process – whether it’s an automated series of emails that show the customer how the product works, an instore workshop or a simple follow up phone call, bundled products have the ability to significantly increase your cash flow, and you should be thanking your customers for that, by making sure they’re getting the most out of their purchase.
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