If your website design is the backbone of your eCommerce store, the marketing and conversion apps will be the ribs. While the website design attracts customers and keeps them engaged, these apps are what truly urge customers to purchase.
In the last article, we reviewed the top 21 Shopify apps for your store to increase sales, and one of them is FoxKit - All-in-one Sales Boost. FoxKit is known for its powerful cross-selling features that can significantly increase sales and maximize revenue for your stores.
In this blog, let’s delve into how to make the best use of the FoxKit Shopify app to design product bundles to cross-sell and optimize conversion rates.
What is product bundling?
Product bundling is one of the most popular and effective cross-selling techniques where multiple complementary products or services are packaged and sold together as a single offering. Product bundles typically consist of items that are related or can be used together, offering customers added convenience and value compared to purchasing each item separately.
Bundles present a golden opportunity to boost your average order value (AOV), enticing customers to purchase more in a single transaction. According to McKinsey, approximately 35% of all purchases on Amazon stem from recommendations, many of which qualify as bundled offerings.
Typically, there are 3 types of product bundles that work best for online stores.
- Pure bundle: A pure bundle consists of products that are only available for purchase together as a package and cannot be bought separately. For example, the Dyson Airwrap is sold with detachable blow-dry heads that you can only get when you purchase the set.
- Mixed bundle: In a mixed bundle, customers have the option to purchase either individual items or the bundle itself. Mixed bundles offer flexibility to customers who may want only specific items but are also attracted to the added value of purchasing the bundle.
- Pricing bundle: Pricing bundles involve offering a discount or special pricing when customers purchase multiple items together as a bundle.
How to create and design bundles with FoxKit to increase average order value and revenue
Being one of the most powerful cross-selling Shopify apps, FoxKit offers a comprehensive feature that enables customers to create and design mixed and pricing bundles. To help you make the most of this feature and design the best bundles to attract customers, here are some best practices.
1. Choose complementary products to bundle
The very first step when applying this cross-selling technique is to choose items to bundle. These items should be complementary products.
Complementary products are items that go hand in hand, either by fulfilling a related need or enhancing the usage of one another. They complement each other's functionalities or offer a holistic solution to the customer's requirements.
For example, phone cases or screen protectors are complementary products of smartphones as they are the solution for the demand of protecting the phones of customers.
The implementation of cross-selling techniques with complementary products can increase sales by 20% and profits by 30%. This underscores the significant impact that bundling complementary products can have on your bottom line.
The question here is how to choose the right complementary products to design bundles that are irresistible to customers. Here are the do’s for you:
- Understand customer needs: Identify the needs and preferences of your target audience to determine which products complement each other effectively. You can consider customer feedback, purchasing patterns in your store, and market trends to inform your selection.
- Focus on compatibility: Choose products that seamlessly integrate with each other or fulfill related needs to ensure a cohesive user experience.
- Offer variety: Provide a diverse range of complementary products to cater to different customer preferences and use cases. Your customers can choose the complementary products they want and create their own bundles.
You can see how Way Bros uses FoxKit to design product bundles to learn from. When customers are viewing a vacuum cleaner, they offer a bundle including vacuum bags, an upholstery tool, a plumeau tool, and a crevice tool. These items are frequently bought together to enhance the function of vacuum cleaners.
Besides, instead of convincing customers to buy all these items in a bundle, Way Bros lets customers design a bundle by themselves by choosing the complementary products to add to the cart. This makes the bundle fit their need more, thereby increasing customer satisfaction and the likelihood of buying a bundle.
After choosing products to bundle, go to FoxKit Sales Boost app > Product bundles feature to start designing your own bundle.
Image Source: FoxKit: All‑in‑one Sales Boost
2. Offer discounts on bundled items
Over 85% of customers are influenced to purchase a product if a coupon code is offered to them. Thus, if you want to maximize the potential of your bundles, a discount code is indispensable.
By offering a reduced price for purchasing items as a bundle compared to buying them individually, you create a compelling value proposition that encourages customers to take advantage of the bundled deal.
However, if you don’t have the right strategy to offer discounts, product bundles may not work - or even hurt your profit. Here are some best practices for designing effective bundles with discounts:
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Calculate discount strategically: Determine the optimal discount rate that strikes a balance between enticing customers and maintaining profitability. We recommend you design bundles by using the rule of 25% which claims that users are more likely to buy an extra item when it costs less than 25% of their original item.
However, you should still conduct market research to assess competitor pricing and customer expectations to ensure your discounted bundles remain competitive in the market while still generating revenue. The best tactic is to test, learn, and improve. Use customer feedback and sales data to refine your approach. - Utilize tiered pricing: Incorporate tiered pricing strategies for bundled products to incentivize increased spending. Create a range of bundle options, such as basic, standard, and premium tiers, each offering a greater number of products or enhanced features. This approach not only accommodates diverse customer preferences but also incentivizes customers to select higher-value bundles, thereby maximizing revenue potential.
- Highlight savings: Clearly communicate the savings customers can enjoy by purchasing bundled items compared to buying them individually. Display the discounted price prominently and emphasize the total savings customers will receive, reinforcing the value proposition of the bundled offer.
Fadogia Agrestis Noop applies these strategies to their store with FoxKit well. Once designing a bundle with related products, they offer a 10% discount on every product in the bundle, making it more compelling to customers without hurting their profit margin.
They also clearly communicate the benefits customers receive when buying bundles by using FoxKit to design the headline with a bright, contrasting color. In addition, they display the discounted price right next to the bundle to emphasize the value.
After calculating the discounts for bundled items, you can click on “Activate discounts” to set discounts for your bundles. You can choose the discount type as a percentage or a fixed amount. Remember these rules when choosing a discount type for your bundles:
- For higher-priced products: People are more likely to buy when a discount is an amount off (e.g. $25) rather than a percentage off (e.g. 10%).
- For lower-priced products: People are more likely to buy when a discount is a percentage off.
3. Craft compelling headlines for your bundles
Next, when designing bundles, compelling headlines are crucial for capturing the attention of potential customers and enticing them to explore further. An engaging headline communicates the value and benefits of the bundled offer succinctly, sparking curiosity and encouraging action.
By crafting attention-grabbing headlines, you can effectively communicate the unique selling proposition of your bundles and motivate customers to make a purchase, thereby driving conversions and maximizing sales opportunities.
FoxKit enables you to change the headlines for your bundles by yourself so here are some useful tips for you to create a compelling headline.
- Highlight unique selling points: Identify the key benefits and value propositions of your bundled offers and incorporate them into your headlines. Highlight what sets your bundles apart from competitors and why customers should choose your offer over others.
- Use power words and phrases: Most consumers feel they gain something when they see the wording “get money off” instead of “save money” so try to incorporate persuasive language and powerful words that highlight what they gain to evoke emotion and create urgency. Words like "exclusive," "limited-time offer", or "best value" can instill a sense of curiosity and compel customers to explore your bundled offer further.
- Keep it concise and clear: Craft headlines that are concise yet impactful, conveying the essence of your bundled offer in a few words. Avoid jargon or overly complex language and strive for clarity to ensure that your message resonates with your target audience effectively.
4. Choose the right place to introduce bundles
Selecting the optimal location to offer bundles on a product page is essential for maximizing their visibility and effectiveness in driving sales. The placement directly impacts customer engagement, conversion rates, and overall user experience.
By strategically positioning bundles in high-traffic areas or at key decision points in the customer journey, businesses can increase the likelihood of customers adding them to their cart, leading to higher conversion rates and increased sales.
Here are some strategic places that make successful bundles.
- Above the fold: Place bundles prominently above the fold, ensuring they are visible without the need for scrolling. This prime real estate immediately captures customers' attention and encourages them to explore bundled offerings before delving into product details.
- Near add-to-cart button: Position bundles close to the add-to-cart button to prompt customers to consider additional items before completing their purchase. Placing bundles near the point of conversion increases the likelihood of customers adding them to their cart, effectively boosting average order value.
- Adjacent to product details: Integrate bundles seamlessly into the product details section to provide customers with relevant options as they evaluate the main product. By offering bundles alongside detailed product information, businesses can guide customers towards complementary items or value-added packages that enhance their overall shopping experience.
Choosing a place for your bundles is important but choosing the right layout is also significant as each position on your product page is suitable with a different layout. FoxKit has made it simple with 5 different layouts that are suitable for all strategic positions on your product page.
If you don’t know which layout can optimize the effectiveness of your bundles, FoxKit also provides you with some expert tips right below the layout settings.
Master cross-selling with FoxKit to drive sales
In conclusion, effectively leveraging product bundles is paramount for maximizing sales and enhancing customer satisfaction. Throughout this article, we've explored various tactics to harness the power of product bundles with FoxKit Sales Boost Shopify app - one of the best cross-selling Shopify apps.
By following this guideline, your Shopify stores can capitalize on opportunities to cross-sell, increase average order value, and foster long-term customer relationships with one of the most robust features of FoxKit - Product Bundles.
Unlock the full potential of cross-selling and elevate your eCommerce performance to new heights with FoxKit now.
