The average attention span is shrinking. Did you know it affects your customers too when browsing your site?
Yes! Generic product recommendations are not enough to grab their attention anymore.
Today’s customers expect personalized shopping experiences that meet their specific needs and preferences.
Giants like Amazon and Netflix have trained customers to expect personalization.
This applies to bundles as well. So, when creating bundles, ensure you make the bundles relevant to different customer segments.
How do you do that?
With data and analytics. By collecting and analyzing customer data such as purchase history, browsing behavior, spending capacity, and personal preferences, you can create various customer segments.
Next, you can create personalized product bundles that align with these different segments. This increases the potential of sales, increases revenue, average order value (AOV), and customer satisfaction.
A well planned strategy for dynamic Shopify bundles can become a strong revenue-generation vertical for your business.
In this blog, we explore all about personalized product bundles, strategies, how to set it up, smart bundling tools to use, and more.
Let’s get started!
What are dynamic bundles?
Dynamic bundles are created based on customer data. For instance, bundles are created based on purchase history, browsing behavior, etc. Data collected with the help of Shopify tools is used to extract insights that can help create bundle offers.
For example, using AI-powered tools, you can monitor customer behavior. If customers are browsing certain products a lot, combine those products and sell them as a bundle, at a discount.
What’s happening here? You’re putting together products that customers like and selling it as a package. This increases the perceived value of the bundle. Moreover, there’s a discount on the bundle. This also increases its sales potential.
Automation tools help personalize bundling from curation to promotion to discounting. Dynamic bundles for Shopify stores increase AOV, customer satisfaction, sales and revenue.
So what’s the difference between dynamic and static bundles?
Unlike dynamic bundles, static bundles are not based on any customer data. Static bundles are simply put together and do not have the potential to change.
Example:
Creating bundles based on purchase history
Purchase history data provides various insights that can help personalize bundles. From returning customers to new customers, upselling and cross-selling, purchase history data can be used in multiple ways. Here are some:
Segmenting returning vs. new users
Returning customers and new customers have to be approached differently. For instance, for returning customers, you may have to create bundles that are based on their past purchases and preferences. Whereas for new customers, you will have to focus on product discovery and value proposition.
So, if you want to create conversion-focused bundles, get into the details of how to approach returning and new customers:
- Returning customer: Create bundles based on their past purchase history, budget and affordability, seasonal buying patterns, product preferences, etc.
- New customer: Consider creating bundles based on data from similar demographic segments from your website, browsing behavior, and popular combinations.
Upselling and cross-selling strategies
Dynamic bundling strategies offer potential for upselling and cross-selling. The key to this is understanding customers’ journey, behavior, and purchase, and creating upselling and cross-selling recommendations via bundles.
For instance, a customer has recently bought a display rack for their house. Depending on your product inventory, offer a bundle including a floor rug, bookends, a lamp, etc. Sell it as a room makeover bundle at a discount.
Smart product pairing ideas
Bundling obvious products together is one strategy, but not the best one. If you want to create more value for customers, think more strategically, and try these dynamic bundles on your Shopify store.
- Use data analysis to identify unique products bought together by customers, which you may have missed or never thought about
- Create seasonal and event-based dynamic bundles. For this, continuously collect and analyze data from your store
- Use geographic and demographic information to create bundles based on location
Using browsing behavior to influence bundles
There’s a lot of data you can extract from your Shopify store. But to design your bundles for personalized shopping experience, focus on browsing behavior data: Here are some tips:
1. Tracking viewed products
Monitor the products customers view, the amount of time they spend on product pages, products they zoom in, read descriptions of, and how they navigate. Tracking these activities in real-time can provide opportunities to offer AI-based recommendations in real time.
How to use this information? Create dynamic bundles including the products customers browse, create multiple bundles and show comparisons, and create unique bundles for customers who like to discover new products.
Example:
2. Creating product recommendations based on cart activity
Cart activity is one of the most important factors to track on eCommerce stores. Because it shows intent. Customers who are interested in buying add products to the cart. This makes them your potential target customers for bundles.
Use bundling strategies to offer the products in the cart as bundles. Pair those products with other high-value items to upsell and cross-sell. Set-up real-time dynamic bundle offers. You can also target these customers later if they abandon the carts.
3. Implementing “complete the look” or “frequently bought together”
Commonly used by many eCommerce stores, ‘complete the look’ and ‘frequently bought together’ are bundling strategies that help influence customer psychology into making purchases. While one increased the perceived value of products, the other functions on social proof.
Make these strategies more impactful for dynamic bundling by personalizing messaging, images, and pricing and discounts based on customer segments and preferences.
These conversion-focused bundling strategies can be applied to all products and industries. However, these tactics work well for fashion, apparel, home decor, home appliances, accessories, etc.
Tools that enable dynamic bundling on Shopify
AI-driven bundling tools are the key to offering personalized bundles. When your bundles are more relevant to customers, its conversion increases. There are many powerful tools that process data efficiently, and some, in real-time, too. Here are some tools that make dynamic bundling more impactful with AI-based recommendations.
- Appstle Bundles & Discounts: Multiple bundle types, real-time dynamic discounts, advanced eCommerce personalization capabilities, email and marketing automation for post-purchase upselling and cross-selling
- Rebuy: Data-based product recommendations, smart cart functions, post-purchase upselling features
- WISER: Smart product recommendations and dynamic pricing strategies
Impact of eCommerce personalization on conversions
Before we get into the details of how personalization impacts conversions, let’s look at some statistics:
- 71% of customers expect personalization from brands
- Businesses that get personalization right generate 40% more revenue
- 89% of businesses see personalization as a key to success
- 67% of consumers want businesses to give them relevant product recommendations
- 78% of customers that experience personalization are likely to refer brands to friends
Study also shows that companies that are able to leverage personalization and extract value out of it, grow 40% faster than those that don’t.
How to apply A/B testing for personalized product bundles?
Let’s learn about how to run A/B tests to offer dynamic bundles.
Step 1: Create variations of your product bundles. Try various bundling ideas and strategies to build bundle recommendations.
Step 2: Randomly assign customers to view some bundles based on their location, time of browsing, etc.
Step 3: Track which bundles are getting more clicks, more sales, more browsing. Also track which bundles customers are abandoning in carts.
Step 4: Track key metrics such as conversion rate, AOV, revenue per customer, new customers, old customers, and which bundles are star performers
Step 5: Test one variable at a time and segment your customers to understand how different segments respond to personalized bundles
How to reduce bounce and increase cart size for Shopify bundling strategies?
To maximize ROI from your bundling strategy and ensure long-term success, try these methods to reduce bounce and increase AOV.
- Monitor your site speed. If it has slowed down, improve the speed. Lower speeds lead to increased bounce rates
- Create engaging bundles that make customers browse, explore, see images, and read bundle descriptions. Increased engagement can provide more opportunities for you to offer dynamic bundle incentives and close sales
- Ensure your Shopify store is mobile-friendly and your bundles pages are designed for a small screen. This can help reduce cart abandonment as customers can shop from anywhere, any time
- Create attractive bundles and promote them effectively. Use targeted marketing campaigns, personalized messaging, and automation. Install a smart bundling tool that offers these capabilities
Set up personalized product bundles on your Shopify store
Personalization and dynamic recommendations are the future of eCommerce. Various industries are implementing it using smart tools, data-driven recommendations, AI tools, automation, and other digital capabilities.
One of the best approaches to start with dynamic bundles is to offer simple personalized bundles based on your customers’ preference and needs. Then, slowly, you can create more advanced personalized bundles.
Starting off with personalized product bundles is easy. Thanks to the many bundling apps and tools.
Appslte Bundles & Discounts offers comprehensive features to set up, manage, and run a successful bundling structure on your Shopify store.
Explore Appstle Bundles & Discounts App for your Shopify store today!
