How many times have you bought a hamburger and fries combo from your favorite fast-food chain? Probably too many to count, right?
You might not realize it, but that is the textbook definition of bundling—when you group several products together and sell them as a single unit, usually at a lower price than the total of each product if you had bought them separately. Product bundling is an extremely effective technique to create more sales. That’s why companies have been doing it for so long—not just restaurants!
Let’s look at some numbers.
This Harvard Business School study proves just how effective product bundling can be as a means of boosting your sales. In the study, researchers analyzed the strategies of one of the world’s biggest gaming brands, Nintendo, in selling gaming consoles and video games.
When Nintendo bundled these two products together and presented it as an option, it resulted in 100,000 more hardware units sold and more than a million-unit increase in software video game sales.
That’s a remarkable difference, right? But in case you’re still not sold on the idea, we’re here to give you three reasons why you should sell your products in bundles.
Let’s get started, shall we?
Bundling Enhances Your Customer's Overall Experience
Product bundling can make your customers’ shopping experience much more efficient and hassle-free, while also helping you establish rapport indirectly!
How? By packaging together several of your products and/or services, your customers have fewer decisions to make. All they have to do is choose the bundle that meets most of their needs instead of hunting down each product in your catalog. Simple!
That way, you’re subconsciously letting them know that your main goal is to fulfill their needs and that you’re willing to make it as easy as possible for them to get what they want.
Bundling is Perceived as Cost-Effective
When you buy products in bundles, you probably feel like you’ve gotten more bang for your buck, right?
That is true, but it also doesn’t change the fact that customers are still forking over a higher amount than they usually would in one single purchase. Surprisingly, this makes them more invested in the decision-making process because they had to think harder about whether or not to shell out the money. They are more likely to make the purchase in order to get more value—and feel better about their decision afterward.
Bundling Boosts Your Revenue
Don’t be discouraged by having to offer your services at reduced rates because of bundling. You’ll still make more money as a result!
Why? Because bundles can streamline the entire shopping process while making your offers appear much more valuable. You entice more people to check out your products and end up selling more units than if you didn’t offer a bundled option. You may be selling at a relatively lower price per unit, but it’s balanced out by the sheer volume of products sold—think back to Nintendo’s example.
This is also a great way to encourage new buyers to come back. You establish yourself as an excellent service provider who prioritizes the consumer’s needs.
We hope you’re thinking about product bundling a little more seriously. It’s a powerful strategy that could unlock your business’s potential if you do it right!
Not only will your customers get a super-efficient shopping experience—but they’ll also be getting the most out of their money, while slowly coming to trust your business over time.
And there you have it! If you reached this point, thank you so much for reading, and stay tuned for some more insightful business advice right here on our blog! ⭐