A comprehensive guide to setting up and running bundle subscriptions for your Shopify store.
Subscriptions have taken the world of eCommerce by storm!
Think OTT subscriptions to groceries to wellness to fashion—you’ll find many different subscription options in every industry.
And within subscriptions, one of the most lucrative models is bundle subscriptions—for both customers and brands.
In this comprehensive blog, we’ll tell you all you need to know about bundle subscriptions.
Let’s get started!
What are bundle subscriptions?
Bundle subscriptions are a type of subscription through which eCommerce brands can offer more than one product—multiple related products or services packaged as one and offered at a discounted price.
Bundle subscriptions help eCommerce businesses as well as customers in many ways.
- Brands can encourage customers to purchase more
- Increase the average order value
- Customers can enjoy discounted rates
- Improve brand perception
- Boost customer loyalty
Now let’s explore the different types of bundle subscriptions:
- Pure bundle: Products are available only and exclusively in bundles
- Mixed bundle: Combines products that are sold separately
- Price bundle: Offer multiple products together with a discount on overall bundle
- Build your bundle: Customers choose products to bundled together
Example of bundle subscription: A skin care brand combines products for dry skin together in a bundle.
Benefits of bundle subscriptions
While many eCommerce marketers think bundle subscriptions are difficult to sell, we found several benefits of bundle subscriptions that you do not want to miss out on.
More value to customers
With bundle subscriptions, customers get more value for less price. Moreover, customers don’t measure value only in terms of financial gains. They also seek value from the solution provided by products or services. Different customers may find different values from the same bundle.
Savings for customers
Bundle subscriptions offer discounts to customers. This means customers pay less when they buy a bundle, compared to what they would pay for buying individual items. Bundle subscriptions can help customers save a lot in the long term. So the next time you’re wondering how to create effective bundle offers, ensure you consider the pricing and saving factor.
Ease and convenience for customers
Bundling products and services together makes it easy and convenient for customers to make purchases. They can make one single purchase instead of multiple.
Product/service discovery
Bundling can also help customers discover new products and services that they would have otherwise not discovered. For brands, this makes it easy to introduce new products.
Improve customer loyalty
By maximizing value with bundle subscriptions, brands can also enhance customer loyalty. When customers find more and continued value via subscription bundles, they would feel more inclined to continue buying from you.
Increase in sales for brands
Another benefit of bundle subscriptions is that it helps increase sales for eCommerce brands. Brands can offer more value to customers and encourage them to purchase more.
Popular bundle subscription examples
Here are some known and some not so known bundle subscription examples from different industries. These are proof that bundle subscriptions work if you set them up well and manage them efficiently.
1. AppleOne
Apple offers AppleOne — four subscriptions bundled into one — for individuals and families. Through this bundle subscription, Apple allows customers to use all its services under one bundle, so customers do not have to pay for individual services.
2. Volvo
Another popular bundle subscription service is from Volvo. The car subscription includes maintenance, insurance, roadside assistance, and protection for the car. The bundle subscription offers many car-related services as well as the option to change cars after a specific period.
3. Wild One
A pet products brand, Wild One, created a Harness Walk Kit bundle. The subscription bundles popular and less popular items. This model helps the brand promote and sell all products in their inventory.
Comparing Single vs. Bundle Subscriptions
Now let’s take a comparative look at single subscriptions and bundle subscriptions. Comparing single vs. bundle subscriptions will help you determine which type of subscription is best suited for your eCommerce business.
Single subscriptions | Bundle subscriptions | |
Savings | May not be on discounts, so no savings for customers | Mostly on discounted price so savings guaranteed |
Convenience | Customers purchase individual products | Customers can purchase many products at one go |
Discoverability | Low chances of discovering new products | Higher chance of product discoverability in bundles |
Excitement | Simple, straightforward | Bundling makes the experience exciting for customers |
Value | Limited value from single products | More value from bundling offers and discounts |
Average order value | Low AOV from single products | More products means high AOV |
How to create effective bundle offers?
There are a few basics you must consider and get right when planning your bundle subscription strategy. Remember, a well thought subscription model with a strong foundation and long-term goals at its center has higher chances of success in today’s competitive subscriptions market.
1. Know your customers
One of the most crucial aspects of knowing how to create effective bundle offers is to tailor it to your customer base. But for that, you’ll have to understand your customers well. There are a few methods you could try — conduct direct surveys with customers, ask them to answer a questionnaire at the time of sign up or launch, conduct market research based on your competitors and why their customers like bundle subscriptions.
2. Incorporate an efficient subscriptions tool
Here’s a fact: your subscription model is only as good as your subscriptions app. Consider these factors:
- Does your tool support multiple features?
- Is it fast and intuitive?
- Is it easy to manage and navigate?
- Does it make customers’ experience enjoyable?
3. Create a dedicated page for bundle subscriptions
To ensure customers understand how your bundle subscription works, have a dedicated page for it on your website. This page can be customers’ go-to for any query or FAQ. This is also the page where you can explain how the subscription works, the benefits of bundle subscriptions, etc. What is more, the page link can be easily incorporated into your marketing campaigns.
4. Identify what you want to bundle
Choose your bundle products based on the type of bundle subscription. For instance, for buy-more-save-more subscriptions, you can bundle fast-selling with slow selling so that your stagnant inventory gets cleared.
For quantity discount bundles, you can pick replenishable products. For instance, pick popular and fast-selling items in bundles to increase the average order value.
Extract data from your sales history to see the items that customers buy together. For example, if many customers buy school lunch boxes with water bottles, that’s a good bundle to offer.
5. Determine bundle subscription pricing
A critical factor of subscriptions is its pricing. If customers don’t find price benefits, they won’t be motivated to buy subscriptions. They would rather choose single products. It plays a key role in maximizing value with bundle subscriptions for customers.
Some tips to price your bundle subscription:
- Know your cost price and then offer discounts on bundles
- Try different pricing methods to see which one works better
- Offer extra discounts from time to time to entice customers
6. Promote the bundle subscription
If you create a good bundle subscription that you know your customers will value, you must ensure you do everything to promote it. Because unless you make consumers aware about it, they won’t know it exists.
Here’s what you can do:
- Create a landing page for the bundle subscription
- Use social media to promote it
- Create email, SMS, and WhatsApp campaigns
- Provide bundle option on single product pages as well
- Think of creative campaigns around the bundle subscriptions
Tips for a successful bundle subscription
Note these tips to ensure you avoid mistakes and set up a bundle subscription plan that grows your eCommerce business. In addition, read our earlier blog on How To Get Your First 1000 Subscription Customers (Checklist).
1. Keep your subscription tools upgraded
Customers will enjoy your bundle subscription if your tools are efficient, upgraded, and function smoothly. A poor digital experience can lead to frustration and affect customer satisfaction. Hence, ensure your subscription tools are always upgraded.
2. Experiment with different bundle types
As discussed earlier in this article, there are different types of bundles. If you want to ensure your bundles don’t become repetitive and redundant, you must experiment with different types of bundles. This will also ensure your customers stay engaged.
3. Create limited time offers
Even if your subscription bundle pricing is appealing, you will have to incorporate other marketing tactics from time to time, to entice customers. Think urgency and FOMO (fear of missing out). Offer limited time bundles—create unique combinations, offer extra discounts, etc.—maximize value with bundle subscriptions.
4. Make it financially beneficial for customers
One of the biggest reasons for customers to buy bundle subscriptions is price benefit. Customers don’t mind paying a little more to get two or more items rather than paying more when they buy items individually. Hence, ensure your bundle subscription pricing is compelling and financially beneficial for customers.
5. Combine fast-selling with slow moving products
One of the best ways to bundle is to combine popular products with the not-so-popular ones. This way you can sell off your stagnant inventory.
For instance, if it’s summer season, customers may not be looking to buy winter wear. But by bundling a summer hat with winter gloves and offering high discounts, you can increase the chances of selling gloves in the off season. Customers who only buy discounted products will be keen on using this bundle offer.
6. Personalize bundle subscriptions
90% of marketers agree that personalization significantly contributes to business profitability. It applies to subscriptions too. How do you personalize bundle subscriptions? Here’s how:
- Use data from customers’ past purchases to cross sell products via bundles
- Use data from other features such as recently viewed products to create personalized bundles
- Make bundles relevant to different customer segments to boost personalization
Get started with your Shopify bundle subscriptions?
There are many subscription apps in the market, but Appstle Subscriptions App stands out for many reasons. It is a comprehensive app that addresses all subscription needs, making it a smooth experience for customers. It is one of the best subscription apps used by thousands of Shopify and Shopify Plus merchants across industries.