Data-Driven Bundling: Ecommerce Growth With Bundle Performance Analytics

Data analytics is playing a key role in crafting eCommerce strategies.

Every purchase, click, view, and action taken by eCommerce visitors is tracked. The resulting data and insights are used to craft multiple strategies.

One of the ways data is used is to create bundling strategies.

Unlike simple bundling of the past that was based on guesswork, now, Shopify merchants and marketers use data to create targeted bundles.

Thanks to data and analysis tools in the market, creating data-driven bundles has become easy. Bundle performance analytics combined with smart tools provides winning strategies for business growth and profitability.

In this blog, we explore data-driven bundling strategies, tools, and how to implement these in your Shopify stores.

Curious? Let’s explore more!

Data-driven bundling strategies for high-performing bundles

You can extract different types of data from your Shopify bundles set up. Once you identify high-performing products or bundles, you can convert that information into sales-driven bundling strategies. In this section, we explore some effective bundle performance analytics approaches and use cases.

1. Track bundle metrics

While there are many different metrics you could tack from high-performing bundles, if you spread yourself too thin tracking too many, you may not be able to use it effectively.

The solution: Limit the metrics you track.

Let’s focus on a few metrics such as:

1. Conversion rate
2. Average order value (AOV)
3. Units per transaction.

By tracking conversion rate, you can get an understanding of which bundles are high-converting. These bundles are more popular amongst customers. Either its price is attractive or products are valuable. However, you must also calculate the profitability.

Another bundle performance analytics to track is average order value (AOV). Your bundles AOV should keep increasing. Even a slight and gradual increase can have a big impact on your revenue. And if AOV isn’t increasing, it means it’s time to make your bundling offers more exciting.

Next, track the number of items customers purchase – units per transaction. Bundles that have multiple related products tend to sell more. Tracking this can also increase cross-selling opportunities.

How to use Shopify analytics and app dashboards to track bundle metrics?

Shopify has built-in bundle performance analytics features. Use the analysis reports to gain insights into sales performance, customer behavior, etc. For more detailed Shopify bundle reporting, you must integrate a bundling app, such as Appstle Bundling & Discounts.

Further, it is essential to create custom reports for deeper bundle analysis. For instance, you could set up tracking for specific SKUs, track different customer segments based on bundles they buy, etc. Review these custom reports periodically to identify patterns and opportunities.

Here’s how you can use data for bundling:

• Which products are customers buying together? Can you create a bundle of those items?
• What products are customers buying one after the other through separate purchases? Can these be clubbed together in bundles?
• Which are your most-bought and popular high-value products? Add one high-value product in each bundle and increase AOV.
• Bundle high sales, low value products in a bundle to increase conversion rate.

Example:

2. Personalize bundles based on data

Personalized shopping experiences attract customers. No doubt!

Studies show 80% of customers are more likely to make purchases when brands offer personalized experiences.

But eCommerce merchants tend to ignore this strategy for bundles.

That’s because the idea of personalizing bundles with multiple products for various customer segments comes across as complex. But it really isn’t.

Use these different strategies to personalize bundles:

• Analyze bundle purchase history to understand customer preference
• Identify browsing patterns and use the information to provide personalized recommendations
• Use cart abandonment data and bring back customers with personalized offers
• Gather data about products frequently bought together by customers and create a bundle of those items

Another strategy is to segment customers by intent or lifetime value (LTV). For instance, high-value customers might be more inclined towards premium bundles, while others might go for discounted bundles. Here are some segments you could consider:

• High-value
• Budget customers
• New customers
• Existing customers

Bundle personalization can be effective if you collect and analyze data efficiently. For this, you will require smart eCommerce analytics tools that help track custom behavior, collect data, analyze it, and share Shopify bundle reports.

Pro tip: Start with broad segments to create personalized offers. Continuously collect data to refine segments for deeper personalization.

3. Optimize bundle pricing with real-time data

Customers want better pricing and savings every time they shop. And so, when you price your bundles strategically, you can increase conversion rate.

Let’s explore how to go about pricing bundles based on data.

• Apply real-time data analyses for better bundle pricing
• Run A/B tests for different bundle prices
• Create many different bundles with the same products but price them differently with various discount levels
• Try different discount presentation methods. For example, percentage discount, fixed amount discount, etc.
• Set up dynamic pricing based on inventory levels. For example, low-stock products at a higher price
• Pricing based on seasonal demand. Use eCommerce analytics tools to track seasonal pricing from previous years as well
• Add more high-stock prices in bundles and offer discounts on these bundles
• Track discount and conversion rate of bundles to identify the right balance
• Automate dynamic pricing and real-time pricing via your Shopify bundle app
• Offer limited-time pricing to create urgency and FOMO

Getting started with data-driven bundling

While data-driven bundling has many advantages for Shopify stores, implementing it requires a thought-through process. Here are some steps to follow:

1. Define clear goals for your Shopify bundling strategy. For instance, increasing AOV, clearing dead inventory, improve conversion rate, or improving long-term profits
2. Define short-term and long-term goals to measure progress
3. Set up customer behavior tracking and data collection systems by using smart bundling apps, such as Appstle
4. Review bundle performance analytics and metrics weekly, analyze customer feedback
5. Periodically adjust pricing based on conversion data
6. Monthly, analyze customer segments, run A/B tests of bundles
7. Start small with two or three bundles with fast-selling products
8. Build the bundling strategy with a focus on customer value proposition
9. Continuously optimize using Shopify data and insights

Bundling strategy breakdown: SaltyTubCo

Here’s a case study of the bundling strategy of SalthyTubCo, a wellness and self-care brand that offers bath salts. The brand uses Appstle Bundles & Discounts to manage its bundles. So what makes this brand’s bundles stand out? Let’s find out.

• StaltyTubCo has a dedicated page for bundles. Since all the products are listed on this page, it makes discovering products easy. Also, it makes purchasing easy
• Customers can pick any four products of their choice and make it a bundle. This activity of adding items to the bundle also adds an element of fun to the shopping experience. Unlike other bundles that have pre-selected products, here, customers self choose what items they want in their bundles
• The four-product bundle offers a 25% discount. The individual products have varying prices, so customers can choose any four products of their choice based on their budget. This allows customers to choose the same product multiple times or mix and match products
• The USP of its bundle is not just the discount, it is personalization and customization. Customers can pick the products they want in their bundle. This flexibility and customized experience enhances the appeal for customers and potential for conversion

Create data-driven bundles with Appstle Bundles & Discounts

How well you capture and utilize data from your Shopify bundles can be the differentiating factor between you and your competitors.

The strategies detailed here can help you move from traditional bundling to a data-driven bundling approach, offering several benefits.

Maximize ROI from your Shopify bundles with continuous tracking, bundle performance analytics, and experimenting with different sales-driven bundling strategies.

However, tracking, data collection, analysis, reporting, and automating bundling processes will require a smart tool, such as Appstle Bundles & Discounts App.

Here are the key features of Appstle:

• Set up strategic and targeted product bundles
• Multiple bundle types and discounting options
• Real-time granular data analytics
• Seamless Shopify POS integration
• Dynamic bundling 
• 24x7x365 customer support for Shopify merchants

Install Appstle Bundles & Discounts on your Shopify store today!