Developing Product Bundling Offers

From the Journal: A bundle that Disney and Warner Bros. Discovery launched last July that offers Disney+, Hulu and Max at a discount has shown early signs of success in keeping customers subscribed, according to new data from subscription analytics firm Antenna. About 80% of the bundle’s subscribers were still paying for the service three months later, based on data for those who signed up between July and September, making it stickier than any of the services on their own. It also has a higher retention rate than Disney’s own bundles, such as its Duo pairing of Disney+ and Hulu or its Trio package of Disney+, Hulu and ESPN+. During that period, the triple-whammy bundle was even stickier than Netflix, the envy of the industry in its ability to keep customers. About 74% of people who started subscribing to Netflix between July and September were still subscribed three months later, according to Antenna. Customer retention is a major challenge in #streaming, since many consumers cancel a service once they have finished watching a particular show. Antenna found last year that most streaming services count about twice as many casual consumers—people who are either past subscribers or have signed up less than six months ago—as long-term users. The rise of the streaming bundle marks the resurgence of a familiar strategy for #entertainment: paying one price for a package of content made by different companies. “Warner and The Walt Disney Company to some degree have built their entire business around the cable bundle, so they’re very comfortable with bundling,” said Brendan Brady, Antenna’s strategy director. “We’re starting, increasingly, to see it come back.” The triple-play bundle had attracted roughly 2.2 million paid subscriptions as of Dec. 31, according to Antenna.

"𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐨𝐧𝐥𝐲 𝐭𝐰𝐨 𝐰𝐚𝐲𝐬 𝐭𝐨 𝐦𝐚𝐤𝐞 𝐦𝐨𝐧𝐞𝐲 𝐢𝐧 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬: 𝐎𝐧𝐞 𝐢𝐬 𝐭𝐨 𝐛𝐮𝐧𝐝𝐥𝐞; 𝐭𝐡𝐞 𝐨𝐭𝐡𝐞𝐫 𝐢𝐬 𝐮𝐧𝐛𝐮𝐧𝐝𝐥𝐞" - This is a quote from Jim Barksdale, ex CEO of Netscape. This is a great way to understand how to build businesses. Why does bundling and unbundling look from a consumers point of view? I think of it as a cycle. As businesses get bigger, they add more and more products/features, seeking to expand their total addressable market. For example, for OTT players to grow in India they need to start adding blockbusters in all large languages. As the product and feature set grow, it becomes harder for the current product to serve all the different types of customer segments that are being attracted. This makes it easier for a new incumbent to unbundle some products, provide a better experience to a small part of the TAM, and attack the incumbent. In the OTT example above, this is being done by regional language media houses launching their own OTT platforms (eg: Sainaplay and ManoramaMax in Malayalam) Soon, new players realise that their unbundled proposition was a great go to market. But the size of the customer segment they serve with their current product is small. To grow revenue, they need to serve a larger market, which means adding more products and services, which means -> bundle! And the cycle starts again. Summary: Large companies -> lots of products bundled -> poor experience in some part of the bundle -> new company builds a better experience by unbundling -> new company survives but reaches limits of growth with only unbundled service -> starts bundling -> becomes large company. There are lots of examples in the Indian context. 👉 Meesho unbundled distribution in Tier 2 by using women resellers, then bundled back to full service e-commerce marketplace. 👉Quick commerce (instamart, zepto, blinkit) unbundled high frequency fast moving items which customers wanted in 10 minutes, and is now moving to bundle more categories into their offering (fashion? electronics?) 👉Banks bundled every financial product under the sun - but now credit (Kreditbee), insurance (PolicyBazaar), investments (Groww), FDs (Stable Money) to savings accounts (Jupiter, Fi) is unbundled. But if you look deep under the hood, everyone wants to be a full service bank. Any other examples you can think of? PS: Here's an HBR article that talks about this - https://lnkd.in/gwe3UXkT #product #business

The recommendation is a powerful tool for e-commerce sites to boost sales by helping customers discover relevant products and encouraging additional purchases. By offering well-curated product bundles and personalized suggestions, these platforms can improve the customer experience and drive higher conversion rates. In a recent blog post, the CVS Health data science team shares how they explore advanced machine learning capabilities to develop new recommendation prototypes. Their objective is to create high-quality product bundles, making it easier for customers to select complementary products to purchase together. For instance, bundles like a “Travel Kit” with a neck pillow, travel adapter, and toiletries can simplify purchasing decisions. The implementation includes several components, with a key part being the creation of product embeddings using a Graph Neural Network (GNN) to represent product similarity. Notably, rather than using traditional co-view or co-purchase data, the team leveraged GPT-4 to directly identify the top complementary segments as labels for the GNN model. This approach has proven effective in improving recommendation accuracy. With these product embeddings in place, the bundle recommendations are further refined by incorporating user-specific data based on recent purchase patterns, resulting in more personalized suggestions. As large language models (LLMs) become increasingly adept at mimicking human decision-making, using them to enhance labeling quality and streamline insights in machine learning workflows is becoming more popular. For those interested, this is an excellent case study to explore. #machinelearning #datascience #ChatGPT #LLMs #recommendation #personalization #SnacksWeeklyOnDataScience – – –  Check out the "Snacks Weekly on Data Science" podcast and subscribe, where I explain in more detail the concepts discussed in this and future posts:    -- Spotify: https://lnkd.in/gKgaMvbh   -- Apple Podcast: https://lnkd.in/gj6aPBBY    -- Youtube: https://lnkd.in/gcwPeBmR https://lnkd.in/gb6UPaFA

Most online stores use bundles—whether it’s product sets, mix-and-match deals, or curated offers. But here’s a thought: what if you put all your bundles on a single page? One of our partners did just that, and I loved the approach. It takes a bit of dev work, sure, but if a big chunk of your sales comes from bundles, this can be a game-changer. Instead of customers hunting through different pages, they get a one-stop bundle shop—a place where they can easily compare, explore, and grab the best deal for them. The result? ➝ Higher sales & AOV. More visibility means more purchases. ➝ Easier decisions. No need to click around, everything’s in one place. ➝ Better experience. Shopping feels effortless, and customers love that. ➝ A competitive edge. Most stores don’t do this, so why not stand out? If bundles are working for you, why not take them further? Test it, track the impact, and see how your store responds. Could be your next big win. #shopify

How to Attract Clients for $0? Most businesses focus on competitors, but real growth opportunities lie in adjacent niches. Your clients are already spending money elsewhere—you just need to be in the right place at the right time. What Are Adjacent Niches? Adjacent niches are businesses that serve your target audience but don’t compete with you. Examples: - Leather accessories store + clothing boutique - Gym + sports nutrition store - Barbershop + men’s grooming products store - Coffee shop + bookstore How to Get Clients from Adjacent Niches? 👉 1. Voucher & Discount Placement Place your coupons in their store, and they do the same for you. For example, a customer buys premium shoes and gets a discount on your belt. A simple way to increase sales without ads. 👉 2. Joint Promotions & Bundles Create product or service bundles. For example, “Suit + belt with 15% off” or “Gym membership + massage at a special price.” The client gets more value, and you get new buyers. 👉 3. Cross-Promotion Recommend each other in social media, email newsletters, and chats. “If you care about your skin, try these skincare products. And for a stylish haircut, visit our friends at the barbershop.” 👉 4. Joint Events Host workshops, giveaways, and webinars together. For example, “How to Choose the Right Accessories” by a belt brand and a clothing boutique. 👉 5. Barter & Test Products Give your product to a partner for free so they can recommend it. Example: a barista in a coffee shop wears your branded apron, and you offer a discount on their coffee. Why Does This Work? ✅ Access to clients who are already spending money ✅ Partner recommendations build trust ✅ Saves on advertising while increasing sales Real Business Example A men’s clothing store partnered with a barbershop: Barbershop clients received a discount coupon for the clothing store Suit buyers got a free styling session at the barbershop Result? Sales increased by 27% with no advertising costs! Are you using these strategies?

From embedded to orchestrated finance All technology innovation tends to go through phases of unbundling and re-bundling. After the best niche opportunities have been exploited, the market becomes fragmented and difficult for consumers to navigate. Subsequently, successful entities expand and offer more products. This process is cost-effective as it promotes cross-selling. The standard playbook for startups, sometimes called ‘land and expand,’ is to go to market with a niche product that a small company can viably execute well enough to defend itself from existing players and where the unit economics work - particularly if some efficiency in either operation or distribution can be gained from a modern, digital approach. From this defensible beachhead, an expansion into further markets can be launched. As fintech matures and winners begin to emerge, we are now in a phase of re-bundling, creating a particular market opportunity for bancassurance - a model that is, by definition, a bundling of insurance with banking. The rebundling phase creates both the supply and the demand. The demand comes from platforms becoming aggregators, multi-product platforms like Revolut, which are searching for embeddable services, including embedded insurance, to add to their offering. The supply comes from successful niche fintech products, looking to grow the addressable market (and lower customer acquisition costs) for their product(s) by tapping into others’ distribution channels, and to lower average costs by spreading production costs over larger volumes. On the demand side, Wise is a good example. The fintech conspicuously renamed itself from Transferwise to Wise so that it could cross-sell other products and services without being boxed into currency transfers. On the embedded finance supply side, Currency Cloud provides embedded currency transfer services for other companies, such as Revolut. These products already extend to bancassurance, where, for example, Qover provides embedded insurance for Revolut customers. As the larger fintechs move first to expand their range of offerings, existing banks can and will follow suit. For banks, the embedded approach becomes more attractive than traditional, pre-internet bancassurance as it allows for greater segmentation and personalization, leading to increased customer loyalty and growth. While larger banks that can afford significant development costs and are subject to increased security and regulatory constraints may still opt for in-house solutions, the trade-offs between build vs. buy are rapidly diminishing. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Aperture / Alicia #fintech #banking #payments Arthur Xiaochen Timothy Alex Ali Carlos Michael Andres Alex Rutger Helen

What is more important to revenue and bottom-line growth? Customer acquisition or customer retention? The answer: customer retention! Specifically, customer retention through value maximization! 🎯 In eCommerce, maximizing the value of each transaction is key - for both the brand and the customer. ⛳️ And, one of the most effective ways to maximize value, is  Product Bundling, i.e bundling complimentary or relevant products together, to be sold as one! Product bundling not only increases the Average Order Value (AOV) of a transaction but also increases the internalized relevancy of a brand to a consumer, driving repeat store visits and purchases. This is how product bundling can be effectively offered in eCommerce: 🔥 Best-Seller Bundles → Sell More of What Already Works Apple does this perfectly. The iPhone alone is great, but when it is bundled with AirPods and AppleCare, customers spend more, without much hesitation. 💡 Complementary Bundles → Pairing Products That Make Sense Skincare brands like @DrunkElephant offer routine-based bundles—cleanser, serum, and moisturizer—boosting both AOV and customer experience. 🎯 Subscription Bundles → Locking in Repeat Revenue Brands like @Huel and @AthleticGreens bundle their products into discounted subscription plans, increasing retention while ensuring customers never run out of their favorite products. I’ve seen firsthand how brands using the Appstle Bundles & Discounts app grow their AOV by 30-50%—without slashing margins! Bundling isn’t just about selling more; it’s about making buying easier for your customers. And when you do that, they buy more, stay longer, and keep coming back. 🚀 If you want to boost your eCommerce sales and AOV in 2025, start bundling your products now. #Appstle #customerretention #walletshare #subscriptions #memberships #loyalty #bundling #shopify #shopifyplus

Amazon Sellers: Tired of seeing competitor ads all over your own product pages? Most sellers see Virtual Bundles primarily as a way to increase Average Order Value. They're not wrong, but they're missing the bigger strategic play. The primary benefit of a Virtual Bundle isn't always the sale, it's the free real estate. It's a powerful defensive tool that shoves competitor ads down the page, keeping customers focused on your brand. Here’s the framework for using them effectively: The Defensive Play: A Virtual Bundle takes up a massive chunk of your product detail page. This physically pushes competitor Sponsored Product ads further down, reducing the odds of a customer clicking away from your listing. The Offensive Play: Use your Brand Analytics report to identify which of your products are "frequently bought together." Create logical bundles based on that data to create an offer that is genuinely valuable and easy for a customer to add to their cart. The No-Risk Factor: This is the best part. If a bundle happens to get a bad review, you can just delete it and create a new one. Since the inventory isn't physically bundled, there’s zero risk or long-term commitment. At best, you increase your average order value. At worst, you take up more space on your own listing for free. We broke down this tactic on the pod this past week (and 11 other free Amazon features that most brands aren't using!) Go find it wherever you listen to your podcasts.

Maximizing Revenue with Strategic Product Bundling Many eCommerce businesses underutilize the potential of product bundling strategies. By addressing these five critical oversights, you can transform your approach and drive significant results. 1. Strategic Product Combinations vs. Individual Sales * Challenge: Relying solely on single-item transactions limits revenue potential and customer value. * Solution: * Develop complementary product bundles (e.g., smartphone + protective case + charging accessories) * Implement strategic bundle discounting to incentivize higher average order values 2. Value-Based Bundle Pricing * Challenge: Improperly priced bundles can diminish perceived value or create customer hesitation. * Solution: * Conduct competitive analysis to establish optimal price points * Clearly communicate the value proposition by displaying comparative savings 3. Inventory Optimization * Challenge: Slow-moving inventory represents tied-up capital and lost opportunity. * Solution: * Pair high-demand products with slower-moving inventory (e.g., bestselling outerwear with seasonal accessories) * Leverage bundles as a discovery mechanism for introducing newer or less-familiar products 4. Customer-Centric Bundling * Challenge: Bundles that ignore specific customer needs fail to resonate in the marketplace. * Solution: * Design bundles around specific use cases (e.g., "Professional Home Office Bundle") * Emphasize convenience and comprehensive solutions in your value proposition 5. Strategic Bundle Marketing * Challenge: Even well-designed bundles require visibility to generate sales. * Solution: * Implement dedicated promotional strategies across key touchpoints * Create urgency through limited-time bundle offers and seasonal promotions Effective product bundling represents a proven strategy for increasing average order value, optimizing inventory, and enhancing customer satisfaction through comprehensive solutions. What bundle opportunities might you be overlooking in your product catalog? Share your thoughts in the comments.

Most businesses think they need to discount like crazy to win customers over.  But research shows discounts don't really sway people unless it's 40% off or more!  Instead of slashing your prices left and right, focus on adding more value than your competition—even if that means raising prices. When you endlessly discount to win customers, you're losing out on serious cash with every sale. Instead, bundle your products and services into money-making packages.  By bundling, you make your offers impossible to compare to competitors, so much so that it becomes an apples-to-oranges scenario.  This boosts the perceived value, so customers happily pay more. How do you go about products bundling?   List out all the different products and services you could package together, and get creative. - Bundle complementary products/services. If you offer different products or services that complement each other well, bundle them into a single package at a special price. For example, a gym could bundle a membership with personal training sessions and a nutrition plan. - Bundle limited time bonuses. In addition to your main product/service, temporarily bundle in some bonus extras at no extra cost. This makes the bundle extra valuable for a limited period. - Bundle your expertise. Instead of just selling individual products, bundle your expertise into an all-inclusive package. For example, a landscaper could offer a "Backyard Oasis" bundle that includes landscaping design, installation, and ongoing maintenance. The key to winning at marketing isn't discounting - it's delivering way more value than the other guys. Customers will gladly pay double if they think they're getting 4X the value. So don't fall into the discount trap that kills your profits.  Let what you're selling come in bundles of value… and watch your revenues soar.