The Psychology Behind Bundling
People often assume that shoppers are usually out there, calculators in hand, simply looking for the best deal. That when they're presented with three-for-two or a bundle that contains one item they don't want, they'll whip out their phone and compare prices and then make the rational decision. In reality, if people did that, nobody would ever shop for bundles - there will almost always be something you don't want in the mix.
The way I see it, i've found that what people get wrong with bundles is presumably forgetting to acknowledge how people hate losing money more than they love making it. Or rather, spending money. So instead of thinking about whether a bundle saves them $4 versus $7, a shopper is far more likely to look at a bundle through the lens of potentially overpaying - and then that's all they'll see.
Take this as an example. Let's say you have three items worth $6 each: apples, oranges, bananas. Apples and oranges are in one bundle for $10 and the trio is occasionally available as another bundle for $13. You'll notice immediately that people will jump on the two-fruit basket because it's technically the best deal and avoids paying $3 more for bananas they don't need.
This comes down to an interaction between what is called anchoring bias and loss aversion. More or less. The price of the bundle anchors expectation so buying a deal priced differently can feel like losing out even if you're saving money - you end up looking at price over value, assuming they're related, when they're not.
In this case it all depends on whether your customer needs bananas or not. And that's what makes psychology so difficult to work with because you can sort of make someone who doesn't need bananas desire them - with product placement or clever copies. Bundling benefits people who have to buy a lot of things at once - groceries, clothes, skincare products, hotel bookings - essentially lowering friction by reducing the number of decisions they have to make and leaving them feeling like they've come away with something extra even if they've technically spent more than they would on individual products over several shopping trips.
It's a delicate psychological balance between immediate cost and future gain - even if that gain is just getting something extra today.
Top Bundling Trends in Retail
So, thereâs this common misconception that product bundling is a straightforward tactic. You put two or three items together, slap on a lower price, and sit back while the goods fly off the shelves. Maybe that approach worked back when we shopped in flared jeans and chunky belts, but todayâs shopper is slightly a far more sophisticated breed. It takes more than a discount to excite them.
The real trick with modern bundling lies in customisation. People expect bundles to be tailored to their unique tastes, not some one-size-fits-all thing dreamed up by a faceless marketing department. Think âbuild your ownâ skincare routines, snack boxes designed for picky eaters, and create-your-own-themed gift baskets.
It gives the customer autonomy and makes them feel like they have a say in what they're getting - something you canât quite put a price on. Then there are these âfreemiumâ bundles, where you buy something and get another item thrown in for free. I find that if the extra item is something relevant or useful, it almost feels like getting birthday presents.
I have received so many makeup pouches over the years - some of them are so good, they have become my âgoing-outâ essentials now. Whatâs happening now is that brands are getting clever by pairing up with other brands to bring value into the mix. Like this one time when we bought childrenâs books and got a craft kit from another brand thrown in for free. Of course, getting this right is likely tricky.
One must keep an eye out for business metrics as well as the little joys that come with shopping for something that delights us. I think the magic happens when retailers bundle items that go together without being too obvious - breadsticks go with soup or cheese but did you know they also pair beautifully with a slow-cooked mutton curry.
Essential Bundling Strategies for Brands
Iâve noticed most brands seem to confuse the difference between discounts and bundles. The issue is that they often default to offering a percentage off when a bundle can offer more value while maintaining profits. You see it in the margins too, where the higher the discount the lower the profit. It seems like but there is no one size fits all approach here.
What makes one bundle work for one brand may not work for yours. Itâs about your audience, your brand values, your price point and even your marketing strategies. If youâre about sustainability then bundling with freebies doesnât make sense, and if youâre about building community and customer retention, then exclusive events might be better than sample products.
But this isnât easy. Iâd love to say follow these three steps and your bundles will be perfect forever, but things are always changing and so are customersâ wants. I think as a brand itâs important to remember that itâs always going to be evolving and so sticking with what worked in 2021 or 2022 might actually cause more harm than good. Itâs not all doom and gloom though, because once you know what works for you, it becomes easier to test new ideas.
Sort of. And yes, you need to test because there is no way of knowing unless you try something new out. It seems like the crux of this is that there are thousands of ways to create bundles but until you know your business goals well enough itâll always feel like youâre shooting in the dark.
How to Create Irresistible Bundles
What I see most often is people running before they can walk. Reminds Me Of they race straight to the website backend and throw together a couple of items that are thematically similar, set an offer price, and then expect shoppers to go gaga over them. Most times, the bundles donât perform at all. This is why understanding your audience is so important.
Bundling to build value is occasionally only one way to do it, but if you want someone to buy your products in a bundle they have to genuinely want to own them all. Or almost all of them. In order for a bundle to perform well, it needs to serve a purpose.
Yes, value is relatively important but ultimately no one buys something at a lower price unless they really want it or need it. Thatâs where you come in. The secret sauce here is knowing what youâre selling and whoâs buying it and why they are buying it.
For instance, if you sell beauty products that are sort of skin-type or skin-tone sensitive, you may not have much luck bundling two different shades of blush together. Instead, what could work really well is if you bundled products meant for a certain type of makeup user together - day wear eyeshadow with primer and mascara or party wear eyeshadow with primer, mascara and glitter pigments.
That way a party goer who wants to go glam gets everything they need in one package and a minimalist who wants muted tones also gets what they need. What many people get wrong about bundles is assuming that shoppers will buy things they donât need because itâs on sale as part of a bundle when the reality is that what shoppers are looking for from bundles is essentially two things - added value (pay less for more) and solutions (fix multiple problems with one purchase). If you focus on those two when creating your bundles and back it up with data about best sellers and user behaviour you should be golden.
Case Studies: Successful Bundling Examples
I think thereâs a tendency to see âbundlingâ as a sign that a product line isnât selling. People think bundling is for things that are trying to move before the season closes, or a sale thatâs got to go now. That isnât always true - and when you look at successful bundles, theyâre often made up of popular products or unique picks with surprisingly high value.
This is where Iâd bring up Pangaiaâs athleisure bundles. These often come as sets of tights and tank tops or joggers and sweatshirts in trending colours, and people buy them in droves - for themselves or as gifts for friends. Itâs easier than buying each item separately (which can be frustrating if the products sell out while youâre still shopping) and gets shoppers a complete set to start wearing together immediately.
Adore Beauty does something similar with makeup kits, especially around Valentineâs Day and Motherâs Day. These come with multiple best-selling products like Glow Recipe serums and REN cleansers packaged into themed gift boxes sold at marginally lower prices than if you were buying everything on its own. Most of these work because they have limited runs - shoppers feel like they need to get in quick before the offer closes or items run out.
With these sorts of bundles, you also get free samples included with orders which incentivise customers to come back (if they like the sample enough). That adds a new layer of interest on top of savings from the bundle offer itself - youâre getting more than you pay for whether you buy the full-size sample later or not. It seems that successful bundling relies on customer feedback about what sells best on its own, what products are likely to be bought together by most people, and value-added offers that make it seem like theyâve been handpicked by an expert in beauty or fashion rather than just randomly bunched together at an end-of-season sale.
Future of Bundling: What Shoppers Want Next
I think most brands get it wrong when they believe that the future of bundling lies in product alone. Theyâre quick to try discounts, free shipping, and combo packs or cross-selling. But what todayâs shopper wants is so much more than a product - they want an experience. They want value for their time, money, and mindspace.
So, the future of bundling lies in creating multiple touchpoints for interaction and conversion. That means building bundling into the offline and online shopping journey by including things like sampling as a part of your bundle products (so shoppers can try new things with zero risk), AI-based recommendations based on buying habits, seasonal packages that help drive the spirit of festive shopping or build forward momentum into something important like a New Yearâs Resolution, âBuy More Save Moreâ deals so shoppers feel like theyâre getting value for money right then and there, buy one get one offers, loyalty bundles for repeat customers where rewards build over time, special promotions to convert wishlists into actual sales, and even BOPIS (buy online pick up in store) deals or trade-in deals where you bring in an old product and get a new one at a discount. I know that sounds like a lot. Because it is.
The most successful brands will take the time to build robustly in at least one channel first before tackling others. I also wouldnât suggest that any brand stretch themselves thin trying to launch multiple bundling strategies at once. A key concern with bundling options is occasionally that some versions donât let you maintain lean inventory management structures because thereâs too much going out all at once.
What the new reality can look like is using data to create these touchpoints instead. It means using automated workflows (no matter how simple) to automate email marketing of bundle deals based on what shoppers are browsing for. It means using push notifications for limited time BOGO deals or driving urgency around limited edition bundles through SMS reminders.
It seems like in the end, what weâre getting at here is this: shoppers have gotten used to great sales from dtc models but what will make them stick around is how we communicate our value beyond price - thatâs what makes this complex but so worth it in the long run.