Subscription bundles are everywhere — from meal kit subscriptions to beauty and wellness bundles delivered periodically to entertainment subscriptions!
Subscription bundling is changing the way customers shop. For eCommerce retailers, subscription product box bundles ensure regular revenue and better inventory management.
In this blog, we break down every element of subscription bundling for your Shopify business.
Let’s get started!
What are subscription product bundles?
Subscription bundling involves a curated selection of products put together in a subscription model. For instance, these boxes bundle together products that are based on a theme or purpose. The products could be complementary or the same in multiple numbers. These boxes provide value and enhance subscribers’ experience. Some examples of a subscription box product bundle would be a subscription box of a curated selection of coffees or teas.
Here’s an example:
Key features of subscription product bundles
Why are subscription bundles becoming popular? What are the key elements that make them appealing to customers? And what are the features that brands can offer via subscription product bundles? We answer these questions in this section.
1. Curated collections
With subscription bundling, you can curate selected products in each delivery. This ensures a cohesive experience for customers. Personalized subscription bundles enhance the overall customer experience as the products are more relevant to customer preferences. This simplifies customers’ purchase decisions.
2. Value and savings for customers
One of the key features of subscription bundling is its special pricing and its value-add to customers. Subscribers typically get a discount on bundle subscription boxes compared to if they buy products separately. Apart from lower prices, bundle subscriptions also offer benefits such as free delivery and other incentives, which enhances the value of the subscription.
3. Themed or seasonal subscription bundling
Subscription bundling often involves creating bundles around themes or seasonal events, such as festivals, seasonal products, etc. This helps brands keep their subscription bundles relevant and fresh. Since there’s something new offered every time, customers remain engaged and excited. At the same time, it also brings a sense of urgency as customers do not want to miss out on different themes.
4. Exclusive or premium products
Depending on your product type, you can include exclusive and premium products in bundles that are not available separately outside of the bundle. For example, limited edition products, early bird access products, etc. Including exclusive products makes customers feel special and boosts brand loyalty. Additionally, premium products improve the overall value perception of the subscription product bundle on Shopify.
Bundle subscription vs. usual subscription model: the difference
It is easy to confuse subscription bundling with the usual subscription box model. However, the two are different in many ways. Here are the differences.
Feature | Subscription box product bundles | Standard subscriptions |
Product selection | Curated collection of multiple products | Single product or limited selection |
Value proposition | Bundles many products at a discounted rate, offers benefits such as free shipping, etc. making it more valuable | Value is based on the quality and features of the single product |
Thematic focus | Products are themed around specific interests, seasons, or trends | Typically focused on a single product without thematic curation |
Product discovery | Allows discovery of multiple products, including new or complementary items | Limited to the single product offered |
Engagement and excitement | Creates anticipation with varied contents in each box | Experience is more predictable and focused on the individual product |
Pricing and cost management | Pricing enhances value, often with discounts, requires careful cost management | Pricing is based on the cost and value of the individual product, simpler cost management |
Benefits of subscription box product bundles
Today, customers want the best experiences from brands. And subscription bundling ensures that in many ways. Let’s look at some benefits of subscription box bundles.
1. Enhances customer experience
When you put together thoughtfully curated products that are relevant to customers, it directly enhances their perception and experience of your brand. Any level of personalization helps increase customer satisfaction. For instance, from the unboxing experience to using the products to waiting in anticipation for the next bundle, it builds a positive emotional connection.
2. Increases value per box
The most important benefit of bundles is its pricing and value. Bundles offer a selection of products at a much lesser price compared to what one would pay for individual products. This enhances the value of bundles as customers feel they are receiving more value at a lesser price.
3. Encourages loyalty and retention
Subscription bundling has many factors that lead to retained engagement. For instance, bundles that include relevant and thoughtful products keep customers’ interest going. Customers feel excited about receiving the next subscription bundle box. And as long as the subscription box meets their expectations, customers feel connected and stay committed for a long time.
4. More product discovery opportunities
With subscription box bundles, you can introduce new products to customers that they may not have seen before. For instance, if you have a new collection or if you’ve added a new brand in your inventory, you can improve its reach by adding it to your subscription bundle. This helps customers try and explore new products. This also enhances future sales potential for the new products.
Considerations for creating subscription box product bundles
Consider these aspects to ensure your subscription bundling strategy covers all key requirements.
1. Product selection
One of the first factors to consider when creating a subscription bundling model for your Shopify store is the products. Subscribers won’t renew subscriptions if the products don’t excite them. Here’s how you can retain subscribers by ensuring the right products:
- If you’re creating multiple bundles, keep them simple so that customers don’t face decision paralysis
- Choose products that complement each other and enhance the usefulness of the bundle
- Personalize the bundles by including products that interest your customers
- Choose products that allow you to offer discount and still ensure profitability
- Mix less-popular products with star products to help manage inventory
Here’s an example of a beauty subscription bundle:
2. Pricing and cost management
Bundles appeal to customers for their discounted pricing—51% of consumers who prefer savings opt for subscription bundles. However, there are a lot of factors you will have to consider in order to ensure pricing that is best for your business and customers. Here are some tips for subscription bundling:
- Ensure your subscription product bundle pricing is competitive
- Emphasize on discounts, savings, and other benefits
- Combine high-value and low-value products to maintain AOV
- Monitor market and competition to adjust your bundle pricing
- Consider seasonal and festive changes for pricing
3. Packaging and presentation
While many brands focus more on creating the best bundles with top products, they ignore a key element – packaging. How you present and package your subscription bundles can have a huge impact on customer experience. Keep these cues in mind:
- Ensure attractive and creative packaging and presentation
- Package bundles in a way that enhances the unboxing experience
- The package should reflect the bundle theme and your brand
- Use advanced tactics such as sharing a QR code for bundle reviews on the packaging
- Use eco-friendly packaging to cater to a growing number of conscious consumers
4. Regular updates
The market keeps changing with new products and trends. And customers, too, expect something new from their favorite brands. In such a scenario, if your subscription bundling remains monotonous, subscribers may soon lose interest. Here’s what you must do:
- Refresh your Shopify product bundle subscriptions regularly with new products
- Ensure your subscription bundles remain relevant to customers as trends change
- Keep subscriptions exciting by continuously adding new elements, new products, etc.
- Collect customer feedback and reviews to understand the changes customers would like in the subscription bundles
Step by step to set up subscription bundling
Follow these actionable steps to get started with your subscription product bundles by making adjustments to align to your products and business goals.
1. Decide your subscription bundle type
Choose from the different types of subscription bundles. For instance, fixed bundles, tiered bundle structure, etc. Here are some things to consider:
- Bundles complementing products to make the bundle more useful
- Select from different bundle types – tiered bundles, advanced bundles, premium bundles, etc.
- Offer multiple bundle types to cater to diverse customer segments
- Offer multi-tier bundles to increases the potential of customers upgrading to higher-value subscription product bundles
- Use an efficient Shopify product bundle app that offers a wide range of bundle structures
2. Define your subscription bundling pricing strategy
Pricing is one of the most critical factors when setting up subscription bundles. Consider these strategies:
- Price the subscription box bundle to offer value to customers
- The pricing should be beneficial to both customer and your business
- The bundle price should be lower than the combined price of individual products
- Monitor pricing and profit margins continuously and make adjustments
- Offer tiered pricing – premium subscription bundles at a higher price but with more discounts and savings
3. Create subscription bundle listings
Once the pricing strategy is set, list your subscription product bundles on various platforms so that customers become aware of them.
- List the bundles on your website clearly
- Highlight subscription bundles on your website with a dedicated page
- Make the listing visually appealing with images and highlighting savings
- Write clear and concise description and details
- Highlight the benefits – discounts, savings, other value-add benefits
- List your bundles on third-party websites as well
Here’s an example:
4. Promote your subscription product bundles
The best way to promote your subscription bundling products is to display them on platforms where your target audience spends time.
- Promote bundles on various pages on your website
- Create pop up notifications on your website and third-party websites
- Promote subscription product bundles on social media via campaigns
- Use other methods, such as paid ads, contests, etc.
5. Monitor and optimize subscription bundles
The market is always changing. To ensure your bundles remain relevant, monitor their performance and make adjustments. Do this:
- Measure basic KPIs — sales, conversions, profits, subscription renewals, etc.
- Monitor which bundles perform well and which ones don’t and make necessary adjustments
- Collect customer feedback and reviews to understand customer sentiment around your subscription bundles
Ready to start your Shopify subscription bundling?
An increasing number of consumers are opting for subscription product bundles, not only for the price benefits and savings, but also for the convenience subscriptions offer.
To improve your Shopify sales and customer experience, you can start subscription bundles on your store. And to make it easy, use Appstle Bundles and Discounts – a Shopify product bundle app that helps in setting up bundles and managing them with automated features.
Install Appstle Bundles & Discounts on your Shopify store today!