How to Increase Average Order Value and Sales by using Dynamic Bundles

With Nosto’s Dynamic Bundles product extension, online merchants can easily bundle together products based on their visual appeal, brand relation, practical use, and more. With this functionality, it’s easier than ever to incentivize more online sales and increase average customer order value.

What are Dynamic Bundles and why do they matter to my store?

Dynamic Bundles are a way to create sub-collections of items within Nosto that go well together (e.g. grouping products that are frequently bought together or products that complete an outfit). Each bundle is shown onsite through the use of Onsite Product Recommendations.

So why are Dynamic Bundles an important element of the shopping experience? Well, the answer to this is simple. First, think about the usual brick-and-mortar setting. Whether you’re shopping at a sprawling suburban mall or a boutique store, the experience is typically the same: The store is adorned with mannequins in fully realized outfits, and pieces of clothing are sectioned off by brand, style, or type.

All of these tactics are deliberate attempts to convince shoppers to make a purchase by creating the most relevant in-store experience for them. With Dynamic Bundles, online retailers can replicate this experience by showcasing visual cues that remind site visitors of how certain products can enhance what they currently own or plan to purchase.

But those aren’t the only advantages. Most cross-selling tools will display products from a list of similar product types or a merchant’s best sellers. Dynamic Bundles take a step beyond this by taking into account the product that’s being currently viewed when populating relevant recommendations. This means that product recommendations can adjust in color, style, and texture to match each item a customer is viewing. This can be completely dynamic, partially dynamic, or 100% manual—giving a merchant full control over the logic behind when, how, and even if Dynamic Bundles display on different category pages.

What do popular use cases for Dynamic Bundles look like?

By using this tooling, merchants can bundle together products based on a wide range of attributes. This allows them to focus on specific brands, certain price ranges, profit margins, coloring, and more. With all of this in mind, let’s dive into a few use cases of what this can look like.

Display recommendations that ‘Complete the Look’

Almost like a virtual mannequin, Dynamic Bundles have enabled lifestyle brand Volcom to display other snowboard clothing categories that complete the look for site visitors who are browsing jackets onsite. Additionally, Bundles are able to identify the color and style of the product being viewed to ensure that the bundle recommendations match. If you’re interested in tailoring your store to show specific recommendations based on different genders or age groups, this is a great tool to utilize. In fact, Volcom’s Dynamic Bundles campaigns have seen conversion rates of approximately 6% since their launch.

Engage visitors to decrease site abandonment

Fashion brand ModLi is an amazing example of using dynamic bundles to effectively capture site visitors before they leave. When a visitor lands on the product page below, they’ll also be shown a dynamic bundle featuring the same product in multiple patterns. A setup like this mimics the experience of browsing in a store because it shows a consumer the item they want to buy and lets them choose which type of color will best suit their interests.

Deploy multiple targeting rules to increase relevance on product pages

Diversify your Dynamic Bundles by choosing multiple targeting rules to pop up on each of your product pages. Take a look at clothing retailer Bluenotes below. In the image on the left they display products that help complete the look of the currently viewed product, while also showing other relevant suggestions in case the customer is considering navigating away from the page. In the right-hand image they also show relevant product suggestions, while also playing off of the customer’s decision to view a product containing stripes. Each is a great way to increase relevance on product pages and, ultimately, drive more conversions.

What are my next steps?

There are countless more ways to leverage Dynamic Bundles on your site to convince customers to buy more products and increase your average order value—but an abundance of use cases doesn’t mean it’s a complex setup. We’ve documented everything you need to know about how (surprisingly easy it is!) to get started with Dynamic Bundles.

If you have a Nosto account, login and then head to the Product Recommendations section of your dashboard. From here it’s a quick few clicks to set up your first bundles and run them live on your site. If you need some additional assistance, our team is also always one quick chat away!


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