Understanding the Psychology of Bundling
There's a fair chance you’ve looked at a menu and been torn between two curries. You can’t choose. The choice between butter chicken and rogan josh is too hard, and you end up ordering neither. But then you see – there’s a meal deal where you can have both for just $5 more.
Done. Buying food isn’t all about getting what you want, it’s about working through what you don’t want. And this is at the heart of bundling psychology - buyers are working out what they don’t want as much as what they do.
While they may like your frittata, but it's not enough to buy it on its own. But add a salad to it and suddenly they want it a whole lot more. This is what the combo does – it increases value while lowering price perception.
And this works best when each item independently doesn’t feel like enough. This is why pairing things that are highly similar in nature - like two types of breakfast wraps - doesn’t work as well as pairing very different items - like a wrap with a pack of cookies or a lemonade. But these mental gymnastics aren’t restricted to food - it extends to other places that sell diverse products too, like convenience stores.
If I could guess, most of your customers are walking around your store with vague needs in mind and fuzzy ideas of what they will purchase. There’s high opportunity here for bundling. It makes buying easier for them, and helps bring in more sales for the store too.
Technique 1: The Power of Complementary Products
It’s happened to all of us. You pop into the supermarket for a single punnet of strawberries and come out with a full pavlova in your basket. Eggs, cream, sugar, lemon, a bottle of vanilla essence you’ll never finish before it goes off, and half a dozen overpriced kiwifruit you had absolutely no intention of purchasing at the beginning.
More or less. Supermarkets do it incredibly well - putting everything you could possibly need to make something in the same place so you can see exactly how easy and delicious it would be to take one of those home as well. The way I see it, there’s a reason why many bakeries also sell eggs and milk - which, if you ask me, is often also an incredibly smart way of getting rid of what might be surplus before it spoils.
Sort of. I love a good product bundle as much as the next person. Even as an incredibly frugal shopper, seeing two or more products paired together in a special offer makes me believe I need both in my cart. I’m the sort of person who will even add items to their cart to reach a minimum for free delivery.
On reflection, perhaps this makes me an easy mark for marketing. Which, if you think about it, is exactly how your customers would feel as well. Encouraging buyers to add more to their basket is a tried and tested way to build up your profits without increasing your costs by much.
There’s even studies that show that customers buy more than one thing when buying online than they do in person - the ease and comfort of online shopping comes with fewer barriers than being physically present. And this works even better with lower-priced items that don’t feel like much of a splurge. There are dozens of ways to think about products that work together - you don’t have to restrict yourself to products that will be used at the same time or for the same reason. A scarf can work for both fashion and function; as can a jacket or shoes.
Having items with complementary functions or design elements bundled together allows shoppers to make decisions faster because they can see themselves using these products together - and that’s what turns them into repeat customers.
Technique 2: Creating Tiered Bundles for Different Budgets
I love the way at certain shops, you can choose between different sized gift boxes. At Christmas time or when you want to buy someone a birthday present, you can select the gift box that appeals to your tastes and budget. You might go for the basic bundle of goodies, or splurge on the ‘luxury’ or ‘premium’ version because the presentation is fancier, or you get a lot more stuff.
I quite enjoy the agency that tiered bundles provide to customers. I think many people like choices too, so offering some variety in your bundles gives people a sense of freedom and accomplishment. It feels good when you can choose exactly what you want for how much you want to spend.
I don’t know about everyone else, but I feel more satisfied with my purchase when I know I had different options and still went for what I wanted. And research shows that tiered bundles are often perceived as less expensive than when purchasing single items individually. When it comes to which bundles to offer, it depends on your business model, clientele, product range, and your imagination. But the basic bundle would include a base product and an add-on accessory or two.
The middle-tier bundle can take things up a notch with perhaps an extra add-on accessory, colour customisation, personalisation with names/initials/monograms/dates, and maybe even upgraded packaging. The high-end bundle could be an experience instead of just products – say an afternoon tea at the store with a group of friends who shop together with a personal stylist at their service – plus a curated selection of products personalised for each guest. With this technique though, I’d say beware of overkill.
It’s quite easy to create too many options trying to please everyone but inadvertently overwhelming them instead. And then when customers get confused and can’t make up their mind, it’s easier for them to walk away without buying anything at all.
Technique 3: Limited-Time Offers to Drive Urgency
Ever felt a rush of adrenaline as you tried to snag that perfect pair of jeans or the ideal shade of lipstick before the “sale ends at midnight”. Most of us have, and it’s precisely this energy that makes limited-time offers so effective in retail. When your customers see a clock ticking down, or hear those words - “Hurry, while stocks last.
” - something switches in their minds. The possibility of missing out can tip the scales and drive them to add more items to their cart, whether they’re shopping in-store or online. It's not just about flashing “Sale Ends Soon.
” signs. There’s a psychological reason for why limited-time offers work so well. Scarcity and urgency create an emotional trigger called FOMO - Fear Of Missing Out - that motivates people to act fast. Brands use this technique strategically during holiday seasons or when new products drop, creating a sense that these bundles are here today, gone tomorrow.
Sometimes it might feel like you’re being a tad manipulative, but it’s not really the case if you’re giving them a fair deal. But here’s where it gets slightly tricky. If you overdo it with constant countdowns and never-ending flash sales, customers will stop taking them seriously. They’ll just wait for the next one instead of making a purchase then and there.
So you have to be careful about how often you run these promotions, making sure each feels special and worth acting on right away. On balance though, limited-time offers are a clever way to nudge people into buying more than they planned without pushing too hard or appearing desperate for sales. Used sparingly yet wisely, they can turn hesitant browsers into eager buyers who keep coming back for those exclusive deals - especially when bundled with other compelling offers like free gifts or bonus points on purchases over $100.
Technique 4: Personalization and Customization Options
There’s a certain kind of magic that comes from hearing the words “made just for you. ” Maybe it’s the inner narcissist, but I think people love being seen. And the truth is, many shoppers do want their purchases to reflect something unique about themselves.
That’s why product bundling takes on a different colour when you add personalisation and customisation options into the mix. It’s not just about what you need or want; it becomes about who you are. People have been using this technique for years - and with good reason.
We’ve all seen those skincare quizzes online that help determine which bundle is most suited for your needs. Personalised recommendations like this can rather make customers feel more connected to their purchase, increasing satisfaction and loyalty in the process. Beyond quizzes though, personalisation might look like allowing customers to choose variations of their bundle (for instance, size or style options) or adding a personal touch (like a name or note). It’s worth mentioning though, there are often some pitfalls to this technique as well.
Personalisation is an excellent way to connect with customers and encourage higher basket values through premium pricing - but it has its drawbacks too. For example, it might require more hands-on involvement from your team to create these bespoke packages. You also run the risk of decision fatigue if you offer too many choices.
When you’re developing your bundles, find a balance between offering what customers want (a unique experience) and making it easy for them to make decisions. More or less. All in all, I think personalisation is best served alongside other bundling techniques rather than on its own. Sort of.
Use this option when developing bundles that are meant to increase loyalty and satisfaction with your brand.
Measuring the Success of Your Bundling Strategy
We have all looked at our sales reports and questioned whether a spike in revenue is due to a new product launch, a sale, or a new bundling strategy. It’s easy to notice the growth, but not so easy to determine what contributed to it. This may be disappointing, but it can happen if you do not have a clear and well-defined method for measuring performance.
It seems like the most straightforward method of measuring the success of your bundling strategy is tracking your sales. But if that’s all you’re doing, there may be hidden opportunities in your data that you could be missing out on. On top of tracking the number of bundles being sold, keep an eye out for the average basket size and value when customers are possibly choosing to buy your bundles. Another important aspect to measure is the type of customers who are buying your bundles.
Are they repeat customers looking to try new products at a lower cost. Or are slightly they first-time shoppers using the bundle as an opportunity to get as many products as possible for a lower price.
Either way, this information will give you insight into how your audience perceives your bundles. In case your sales do not improve after offering bundles, try changing up the products in your bundle or switching from a fixed pricing model to a flexible one.
It’s often difficult for business owners to hit that perfect sweet spot between increasing their revenue and providing value to their customers, but bundling can help do both - only if it’s executed well.