Product bundling is a tried-and-true strategy in e-commerce, and for good reason—it can significantly increase average order value and boost sales.
But simply setting up bundles isn’t enough. To truly capitalize on bundling, you need to continually fine-tune your approach.
This is where tracking the right product bundling metrics comes into play.
In this blog, we’ll dive deep into all the essential product bundling metrics you need to know to maximize profitability.
18 Metrics to Determine Which Products You Should Bundle
To create product bundles that truly connect with your customers, the first step is to gather comprehensive information about them.
Below are 18 essential product metrics to monitor to keep your bundling strategy ahead of the competition.
1. Top and Worst Sellers
Keep a record of your product catalog to know what items sell well and which ones are your worst performers. This aids in crafting good bundles to offer.
Here are some tips to track this:
- Keep track of the revenue earned from the items in the inventory that give a profit to the company
- Seek out certain items with record-low sales that are constructive to others
- Combine faster-moving items with items that are moving slowly
- Reduce dead stock and holding costs
- Market new items concurrently with widely compatible and highly sought-after items
Bundling high-performers with underperformers helps achieve a net positive sales outcome as well as destroys the stagnated inventory.
Pro tip: Employ this strategy to introduce a new product line and at the same time gain market traction by availing the products along with favorite items.
2. Annual Growth
Annual growth is the measure of how much value the product has changed in the period of one year. Use this metric to:
- Track year-over-year growth of individual items
- Decide if a product should be in a bundle
- Identify potential bundle anchors (high-growth items)
- Find products needing a sales boost through bundling
Analyzing annual growth helps you make smart bundling decisions based on real sales data.
3. Profitability Analysis on SKU Basis
SKU profitability indicates the extent to which an individual product does better as compared to all other products. This metric:
- Removes non-controllable costs
- Shows profitability for each unit sold
- Highlights defects in the selling technique
- Enables you to react swiftly
By focusing on SKU profitability, you can create bundles that maximize your profit margins and customer satisfaction.
4. Listing Profitability
Listing profitability includes evaluating the performance of a certain item on a particular sales channel. You’d use this metric in deciding which areas to focus your bundles on for maximum impact.
By studying this data, you can:
- Explore opportunities in specific products and their best channel
- Create products that are best suited across different bundles
- Work on the customer engagement levels in those channels that are doing poorly
- Improve conversions in all sales channels
Use this knowledge to adjust your multichannel selling strategy.
For instance, a bundle that is performing well on your site may require some changes before it gets listed on a marketplace. So, you should not ignore the value of this metric in finding the best way of bundling the products for different channels.
5. Trending Profitability
Trending profitability is most useful in identifying the best period to push for bundles. With time to reverse engineer and track product trends and synergies, one can;
- Discover times of the year with specific demands
- Offer well-structured fast-moving bundled products
- Lure people to buy gifts during the holiday seasons
- Anticipate customer needs
For example, booksellers may place together items in the same genre or series, expecting that customers would be willing to buy other products in the same genre. There is evidence in the market to support that selling this move will tremendously increase sales.
Remember, effective bundling isn’t just about product selection—it’s also about timing. Use the metrics provided by profitable transactions to provide the customers with resulting bundles at optimal moments enhancing sales and satisfaction at the same time.
6. Sales Volume
Sales volume measures the total number of bundles sold over a specific period. This is an objective index measure of the acceptance and demand of bundles from customers.
By counting sales volume specifics of customer bundles that are successful can be acknowledged and what adjustments are needed can also be determined:
- Benchmarking the bundle sales performance against the sale of standalone products
- Analyze time trends of bundle sales for seasonality patterns
- Advising on the volume of inventory to procure bundled packages
- Discovering bundles that do well in sales and can be made into more
7. Revenue
Revenue computation for bundled packages highlights the sales that bundles generate in a particular period. This is necessary in assessing the effectiveness of the bundling strategy employed.
It is also possible to evaluate the impact of the promotion by looking at the sales from the bundling and comparing it with standalone item sales.
Now, you can:
- Utilize the revenue generated from a package to see more engaging combinations
- Study growth in revenue derived from the bundles and compare with growth in overall sales
- Determine the price of these bundles in the future
- Study the profitability of these bundles in terms of types (complementary bundle versus same category bundle)
8. Average Order Value (AOV)
Average order value measures the amount of money spent for a purchase between orders that are bundled with other items and orders that are not bundled. An increase in AOV in bundled orders signifies that your packing strategy is working since it persuades customers to spend more.
With this data, you can:
- Track trends in AOV over a long time to determine if bundling has any long-term effects on the behavior of the consumers
- Segment AOV by customer types to identify which groups respond best to bundles
- Use AOV insights to guide marketing efforts for bundles
- Experiment with bundle compositions to optimize AOV
9. Conversion Rate
Conversion rate measures the percentage of visitors who purchase a bundle compared to those who visit the bundle page.
This metric is important for evaluating how effective the bundling strategy has been in turning non-customers into customers. A high conversion rate suggests that shoppers find your bundle offers attractive and appropriately targeted.
Here’s how this data can help:
- Compare conversion rates for different bundles to identify top performers
- Analyze conversion rate trends over time to assess bundling strategy changes
- Use conversion rate data to optimize bundle page design and layout
- Experiment with bundle incentives (e.g., discounts, free shipping) to boost conversion rates
10. Bundle Profit Margin
Bundle profit margin analyzes the profitability of each bundle by subtracting the cost of the bundled items from its selling price.
This metric is particularly relevant in evaluating whether your bundling strategy is going to be financially viable. Understanding the profit levels will help us know what bundles can comfortably be promoted or which ones need to be adjusted.
11. Cost of Customer Acquisition (CAC)
This metric indicates the proper physical investment required to attract new clients with bundled offers rather than on individual items. A less favorable value of CAC being attributed to bundles means that the acquisition is much cheaper.
12. Customer Lifetime Value (CLV)
CLV looks into the long-term economic activity associated with those customers who purchase bundles of products compared to those who purchase individual products.
This metric helps in understanding the extent to which bundling benefits customers and retention.
- Assess customer CLV for both customers who buy bundles and customers who buy individual products
- Research and list the bundles with the highest revenue and include them in marketing activities
- Apply CLV to analyze the customers and customize offers for bundles to them
13. Bundle Redemption Rate
Bundle redemption rate is the measure of how frequently discounted bundles or promotional bundles are redeemed compared to other promotional incentives. This metric assists in analyzing the success of sales generated by bundle-related promotions.
When the bundle redemption ratios are at the higher end, then it means that the promotions based on the cupboards are reasonable to the users.
14. Bundle Engagement Metrics
Bundle engagement metrics, such as click-through rates (CTR) on bundle promotions and interaction with bundle-related content, provide valuable insights into how well your bundles are being marketed.
High engagement indicates that your bundles are appealing and compelling to your audience. Tracking these metrics helps you refine your marketing strategies to better capture customer interest.
15. Inventory Turnover
Inventory turnover shows the rate of how quickly bundled products get sold against stand-alone items.
A quicker inventory turnover per bundle suggests that such combinations fly off the shelves, meaning customers find them valuable. This metric is vital for effective inventory management, reducing carrying costs and enhancing liquidity.
16. Return Rate
Return rate measures the percentage of bundles returned by customers, providing insight into the effectiveness of your bundling strategy.
Here’s what you need to do:
- Examine the differences in return rates for various bundles, as well as whether any problems arise
- Determine the causes of return in order to reconfigure bundle contents or amend bundle descriptions
- Compile data on return rate to help orient approaches to managing quality and customer feedback
- Deal with bundle variations that are expected to reduce return rates while maximizing profitability
17. Customer Feedback and Reviews
Customer feedback and reviews specifically related to bundles provide direct insights into how well these offerings meet customer needs and expectations.
Bundling feedback can assist e-commerce merchants in strategies that work while negative feedback assists in diagnosing pitfalls. Such feedback should be received and assessed often since such information helps in improving customer bundles’ satisfaction and retention.
18. Repeat Purchase Rate
Repeat purchase rate (RPR) is the ratio of customers who come back to buy the bundles again.
It serves as an indicator of how satisfied or loyal the customer is. A high repeat purchase rate indicates a higher relevance of the bundles to buyers and a higher probability of making another purchase on-site.
You can use this valuable product bundle metric to:
- Compare repeat purchase rates across different bundles to identify the most popular combinations
- Use repeat purchase data to segment loyal customers and create targeted marketing campaigns
- Analyze factors driving repeat purchases, such as bundle composition, pricing, or promotions
- Optimize bundles to increase repeat purchase rates, focusing on customer favorites and high-performing combinations
Set Up and Monitor Product Bundles In Your Store in Under 5 Mins!
We’ve already discussed the amazing benefits product bundling can have on your bottom line as well as customer satisfaction. It’s time to leverage these benefits in your Shopify storefront.
Lucky for you, setting up and monitoring product bundle metrics on Shopify stores just got easier. Introducing the Appstle Bundles app!
With Appstle Bundles, you can:
- Easily create, manage, & customize bundles, quantity breaks, & discount options
- Choose from many bundle types: classic, combo, mix & match, advanced, & more
- Smartly upsell with multiple discount types and conversion-optimized templates
- Seamlessly integrate with subscriptions & recurring orders, & other Shopify apps
- Benefit from hands-on 24x7x365 migration and post-installation support
