Our previous posts have spoken extensively about how product bundling is a tried and tested strategy to help brands easily upsell, cross-sell and increase their average order values. But with different product bundling strategies possible, we know how tough it can be to get the right product bundle set up.
So in this post, we’re going to deep dive into one product bundling strategy in particular - subscription bundles.
Recap: What are subscription product bundles?
Subscription product bundles are a combination of the subscription business model and the product bundling strategy. In this case, you group products or services and sell them together, but also additionally offer consumers the ability to subscribe for the bundle to receive them on a recurring basis.
Unlike one-time sale product bundles like fixed bundles, mix and match bundles, and others, the subscription bundle is targeted at helping brands secure repeat sales.
This strategy is used across various industries, from fashion and apparel, beauty and cosmetics, health and wellness, food and beverages, and even electronics.
Why are subscription product bundles popular?
The subscription business model in general has become popular in the eCommerce industry. From offering convenience to online shoppers to securing repeat sales for the business, the subscription bundles are a win-win. Here’s taking a look at some of the reasons subscription bundles are popular:
1. Offer convenience
The good thing about subscription bundles is that you can offer them for a set quantity of one product or allow for a mix-and-match of items from your store. So you combine the flexibility that other bundling strategies offer with the convenience of getting these products on a recurring basis without the consumer having to start the buying process from scratch every time.
Think about getting a mix of beauty and cosmetics products you regularly use at set intervals without having to remember when you need to order them.
2. Boosts product discovery and average order value
When you offer a deal on a bundle, consumers are more likely to experiment with more products to avail it. Now when you offer a benefit or a deal on buying that bundle on subscription, you get the same effect.
So if you combine subscriptions with the ability to mix and match or even if you offer fixed bundles on subscriptions, you nudge the consumer to explore the other products available on your store, boosting product discovery.
3. Increases customer lifetime value
Subscription product bundles are not just designed to get a consumer to buy more. They are designed to get the consumer to commit to a set of products/ services in the bundle for a period of time.
Once a subscription is purchased, your brand doesn’t need to try to sell to them every month. They get the order purchased at set durations, keeping your sale secure.
Subscription product bundles are proven to help brands keep customers engaged and also boost customer lifetime value.
How to create a subscription bundle for an eCommerce store?
Let’s take a look at how you can create a subscription product bundle for your eCommerce store:
1. Research demand
The very first thing you need to look at is what products are in most demand in your target market. You can narrow down your research based on the type of products you sell, the price points of the products and even different segments of your audience.
We also recommend looking into popular subscription bundles addressing the same audience with similar products/ services.
2. Identify products
Once you know what online shoppers are actively consuming, identify the products in your catalog that match the demand. You can also evaluate the extension of your catalog if you have been thinking of adding new products/ collections.
Take note of the products that your audience is more likely to buy on subscription.
3. Evaluate a model
The next step is for you to decide what type of bundle you’d like to offer on subscription. Will it be a fixed product bundle? A mix and match product bundle? Or a bundle that requires purchasing one set item, with others customizable?
4. Set key parameters
Next is for you to look into the key parameters that define a subscription and a product bundle. This includes the maximum and minimum number of products in the bundle or the fixed number of products you’d be selling and the duration for which the subscription will be available.
For example, you can offer a product bundle of 3-5 items, on a subscription for 1, 3, 5, 7 months, based on what the purpose of those products is for the consumer.
5. Decide your bundle pricing/ discount
Next, you need to decide what price, discount or benefit you will be selling the subscription product bundle at. Some of the popular models include fixed/ flat-rate, tiered pricing, limited time offers and benefits, gamification based on the duration for which the subscription is bought.
We do recommend taking into account the cost of your products, the marketing and advertising spend, the logistics required to deliver these recurring orders, and other related costs when setting the price for the subscription bundle.
6. Give your bundle a name and tagline
Craft an appealing and memorable name and tagline for your subscription bundle. These should convey the value and uniqueness of the bundle to attract potential buyers.
For example, if you're bundling health and wellness products based on concerns, you can name it "Monthly Detox Essentials." And the tagline can be "Your monthly detox routine simplified.”
7. Develop a marketing plan
After you’ve given your bundles an identity, it’s time to create a marketing plan that outlines where and how you will promote subscriptions.
Apart from actively promoting the subscription bundles on your site through pop ups, announcement bars and other product detail page elements, we also recommend turning to email marketing, social media, SMS and other channels to highlight the benefits.
You should use persuasive copy that emphasizes the savings and convenience that comes with subscription bundles.
8. Optimize continuously
Regularly monitor the performance of your subscription bundles. From the products in the bundle that consumers use the most to the discounts they respond to actively and how long they subscribe for, track every little detail. We also recommend running customer feedback campaigns to get these insights directly from the consumers.
Subscription product bundle examples
Let’s take a look at some subscription product bundle examples you can take inspiration from:
1. Fireside Farms
A brand known to deliver the freshest of products like vegetables and fruits, straight from the far, Fireside Farms offers multiple subscription bundles. They give the customer the ability to not just choose the number of products and the items they want to add to the bundle, but also subscribe to receive those products at regular intervals.
A popular beauty and cosmetics online store with a vast catalog of products, Ipsy is another brand that offers subscription bundles. Their bundling strategy also gives customers the flexibility to choose the products they’d like to add to the bundle (albeit, with a upper limit) every month for the subscription period they choose.
3. Uncommon goods
Another interesting example of a subscription bundle is that of Uncommon Goods. The subscription bundle is targeted at customers who love history and features replicas of fascinating documents from the past. While the bundle does not offer the flexibility to choose which type of historical documents one can receive, it does do a good job of promoting what’s inside to keep customers engaged!
Create your first subscription product bundle with Easy Bundles
With the rise of demand for subscriptions lately, this type of product bundle isn’t just a way to get consumers to buy more from you, but also engage with you in a repeated manner. This helps you boost your customer retention in highly competitive markets and also get a chance to quickly adapt to changing needs based on the feedback of the subscribers.
If you can set the right combination of products, pricing, and discounts, you can create an appealing subscription bundle that benefits both your customers and your bottom line.
To simplify the process and create subscription bundles with ease, you need the right infrastructure in place. That’s where Easy Bundles comes in - the best Shopify app for product bundles. From building your subscription bundle box to promoting and measuring the success of it, you can do it all with one app.