‘Complete the Project’ for Home Improvement with Product Bundling

When it comes to tackling home improvement projects, DIY enthusiasts and seasoned home renovation companies want the right tools and materials to do a job correctly. Consumers, whether they’re contractors, designers, or homeowners, have countless products to choose from. Finding the right combination of items to complete a project can be overwhelming, particularly in a digital environment when there’s no sales rep handy to help a customer out. 

Product bundling, also called dynamic bundling, uses AI and machine learning to group products, match complimentary items, and generate personalized recommendations to help customers find the items they need quickly. 

As a home improvement retailer, you can enhance the customer shopping experience making it easier for shoppers to find the right products and ultimately inspire them to tackle their next project with confidence.

Help Customers Bundle Home Renovation Projects

Dynamic bundling leverages AI and machine learning to create customized product sets. Each set is tailored to match an individual shopper’s needs. The feature automatically builds curated groups of products that work together based on the context of the user.

Here are some examples of how that might look for home improvement buying journeys:

• A homeowner is updating their kitchen – dynamic bundling can recommend a curated set of cabinets, countertops, and appliances that match the customer’s style and budget.
• A contractor is building an outdoor space for a business client – Complete the Project’ can suggest a bundled package of decking materials, outdoor lighting, and patio furniture to create a cohesive look.
• A small soap business is updating their displays –A selection of shelving units, signage, and decorative elements can be bundled as a ‘Complete the Project’ recommendation.

How Does Product Bundling Help You Complete the Project?

Product bundling makes it easier for customers to find what they need in one visit. They can purchase items at the same time or add them to their cart along with other items they may be considering. 

Monetate’s ‘Complete the Project’ feature is versatile. It personalizes suggestions for shoppers which can be grouped into relevant categories like flooring, lighting, hardware, and appliances. Dynamic bundling can also group products by room or project type. 

This simplifies the process of shopping for home renovation supplies and encourages customers to take on more comprehensive projects. The home improvement market is a growing industry, with both the consumer and professional markets expected to grow this year. 

According to the Home Improvement Research Institute (HIRI), total home improvement products sales – including professional and consumer markets – will increase 3.7% this year (3.3% in consumer sales and 1.4% in professional sales). That translates to billions in sales.

By bundling related products together, you inspire customers to tackle multiple aspects of their renovation simultaneously. That’s what we call a job well done.

DIY Consumers Expect Personalized Experiences

Like most consumers, home improvement shoppers expect personalized experiences when looking for the products they need. Millennials, a group of consumers who lead in home improvement purchases, are a digitally-engaged generation who prefer receiving personalized offers from retailers. According to recent data from PYMNTS, 90% of Millennials say they want personalized merchant offers.

Customers want to feel understood and valued as individuals. AI-driven technologies scratch this itch by enabling retailers to make shopping more relevant.  Getting this right is important – that same PYMNTS data found that only 45% of the 2500 consumers they surveyed said offers were relevant to their specific needs.

When done well, personalization can enhance the home product buying experience by guiding customers to the right products and helping them discover items they may not realize you sell (or that they need). Features like cross-sells and upsells work because they use information that shoppers have already provided to suggest complimentary items, upgrades, and needed tools.   

Products for a home renovation project can often be grouped together in ways that make sense are helpful to shoppers (e.g., paint and paint brush, refrigerator and dishwasher, etc.).  With this in mind, home improvement retailers should carefully curate suggestions that not only inspire shoppers to purchase more pieces at once, but also educate them about what types of things they’ll need for a given project.  

With dynamic bundling, AI and ML create bundles that factor in product attributes like popularity and availability and connect this to individual shopper preferences. Curated ‘Complete the Project’ bundles help all types of home improvement shoppers find what they need. 

Benefits of using product bundling for home improvement buying experiences include:

• They create meaningful customer experiences that build trust. Bundled product collections show that you understand what shoppers really need for their home improvement projects. Offering a complete kitchen renovation kit or complimentary items that match a specific style demonstrates that you see the bigger picture beyond individual products. Personalized project guides and tutorials, like step-by-step instructions for a bathroom remodel, give consumers the confidence to make their purchases.
• Make shopping more relevant. DIY personalization connects shoppers with items that resonate for their specific—and unique—situation. A homeowner who expresses a preference for flooring in a particular wood tone could be shown items that match or complement this preference. Likewise, bundling items by project type, room, season, lifestyle, skill level, etc. further refines suggestions to make them more personalized and relevant.  
• Prompt surprising (but relevant) discoveries. While bundled recommendations must align with the shopper’s primary goal, you can also be creative or inspiring. For example, a DIYer looking at paint colors could be see recommendations for paint brushes and drop cloths. Thoughtful curation introduces shoppers to new possibilities and expert suggestions can prompt even professionals to consider items they hadn’t thought of.
• Increase sales and other bottom-line metrics. Carefully curated recommendations motivate people to buy. According to McKinsey, top retailers gain 40% more revenue from personalization compared to their competitors and enjoy higher repeat purchase rates and better marketing ROI.  Seeing what products work well together for a given project sparks ideas, but also inspires confidence that the consumer has everything needed for a project.

Home Improvement & DIY Shoppers Want Omnichannel Experiences

An omnichannel shopping experience is one that connects all possible touchpoints and channels into a single journey. It looks at shopping from the customer’s perspective. 

Instead of separating each channel into an isolated silo – your physical stores, your social media presence, your app, your website – the omnichannel approach connects the dots of the customer journey. Omnichannel experiences effectively match messaging and personalization in a way that’s relevant and meaningful, no matter how or where a customer interacts with a business. In a home improvement environment, that might look like:

Click and Collect 

• A shopper buys 20 bags of mulch or a new lawnmower online and drives to Home Depot to pick it up.

Augmented Reality Visualization

• A homeowner uses a retailer’s mobile app to visualize different exterior paint colors for their house by uploading a photo and digitally “trying on” various shades. Once they find the perfect color, they order the paint through the app and schedule an in-store pickup. 

Personalized Project Planning

• A couple renovating their kitchen adds their room dimensions, design preferences, and budget to a retailer’s website which generates a personalized project plan. They get a list of recommended products, tutorials, and a timeline – they visit the store to finalize the items they need and speak with a sales associate who provides guidance and answers questions.

Virtual Consultation and Installation 

• A homeowner needs to replace their outdated HVAC system. They schedule a virtual consultation with a home improvement company’s expert technician, who assesses their needs and recommends the best system for their home. They then order the system online, coordinate the delivery and installation with the expert, and all stakeholders stay in touch throughout the process via email, text, and apps.

As the above examples illustrate, customers are increasingly using both digital and physical channels to purchase home improvement items.  Creating a cohesive omnichannel buying experience requires connecting all channels so you can guide customers through their home improvement projects, regardless of where they choose to shop. 

An omnichannel retail strategy should focus on strengthening and supporting the entire customer journey. It lets you offer up valuable resources and support when it’s appropriate and needed – DIY tutorials, project planning tools, virtual consultations with experts, and “better together” product recommendations.