#marketing-creatives-lp
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Curious how others approach scaling with hero bundles..
When testing high-perceived-value bundles (for example main product + add on items like care kits, accessories etc), are you okay accepting a lower gross margin on paper - with the goal that it leads to a better net margin after CAC due to higher AOV and stronger offer performance?
We’ll be experimenting with a bundle that drops gross margin from ~60% to ~36%, but the perceived value jumps by 60%+.
Wondering how others think about this tradeoff when trying to find scalable hero offers. Do you treat these like front-end acquisition tools or aim for better blended margin across the funnel?
Here are example numbers (with random numbers)
To me thats way too much of a drop in GM. I would probably start out at 45% and see if that works. Then continually scale down and test again if needed.
Thanks <@U086STT605R> @Maxim Drkoš, appreciate it.
Which way would you approach this:
- Keep the products the same in the bundle, but increase the price of the bundle to increase GM (makes the bundle more expensive than the main hero product “product 1” by itself)
- Leave out “product 3" in the beginning (and maybe offer “product 3” at like 50% discount if they purchased the bundle) a. + maybe throw in x2 “product 4-s” instead of x1 as that’s a consumable add-on
- Test both above
Would defo avoid doing number 1, just creates bad trust. Maybe try number 2 but first I would really test just how large the discount needs to be for you to see bigger lift in CVR/drop in CPA. And go from there
Makes sense, thanks @Maxim Drkoš
<@U086STT605R> yes they absolutely do. That’s interesting! Curious, are you running specific ad creatives that feature the bundles directly, or are you just offering them as better value options on evergreen landing pages? Trying to understand if bundles are driving TOF interest or just helping convert more efficiently later in the journey
Quick feedback on the PDP to increase performance. Otherwise looks great!
weird, not seeing the savings on my end Got it, just a sharing what I noticed straight away
Yeah, EU, maybe something in the Markets setup. Probs can ignore it then. Hope it continues to perform!
<@U086STT605R> @Maxim Drkoš Looks great on my end (Australia).
Love the brand. Might have to get a few for Christmas gifts this year!
<@U086STT605R> Here's what we just implemented this week. Bundles are the core upsell on the product page, and I'm very encouraged by the initial results. - Looks very nice and user friendly. I like the way the colors of the flask & tumblers change when I choose colors from the swatch.
For the “Flask / Bundle & Save” variant button, did you use an app or custom coded it? Just wondering how is it so smooth & quick, as its basically loading a whole new PDP each time you press the button.
Really cool. Makes me super excited about our own bundles.
One thing that I think is worth testing out at some point, is making it very clear that the wool case is also part of it. Something like “Free Wool Case”
Ridge wallet's bundle switcher - I’ll get my dev on it! He’s just finished working on Ridge’s add-on selector 😅 We’ll be rolling that out in early September
<@U086STT605R> How’s the take rate on the hat? We’re about to launch our own merch/apparel
Makes sense. We’ve been focusing a lot on continuous product dev. Both new categories, and on cross sell / upsell (and general LTV bump) products. Biggest unlock for us has been involving our existing customers in the journey. Product surveys and even focus group calls. We have 500+ people taking part of product surveys each month, which makes new drops and launches also way more effective, as they’ve been part of the journey from day 1. We would’ve never launched 90% of our products if we didn’t ask our customers what do the want to see
<@U086STT605R> That’s huge! Surely that’ll scale insanely well during Q4, especially if marketed as ultimate gift bundle or something.