15 Dec Bundling: Business Value & System Capability
Bundling isn’t a new concept. Telcos, in recent years, have excelled at using bundling as a tool to grow their market share, and now cloud solution providers have the opportunity to capitalise in a similar fashion.
In 2013, Izaret and Pineda discussed four major challenges for companies wanting to engage in such flexible marketing tactics:
- Customers don’t seem convinced that bundles meet their needs
- The pricing of a bundle, compared to the sum of its individual components’ prices, is not enticing enough
- The process of purchasing a bundle is too complex
- The bundle doesn’t generate sufficient profit over time
Keeping their observations in mind, our working experience with Telcos over the past 10 years has also helped to realise other points for consideration:
Purchasing should be simple
It’s easier to search and pay for one item rather than multiple items – this goes for renewing subscriptions too. Cut out excess admin to win customers over!
Offer solutions, not products
Forward thinking captures the market. Focus on selling something that really makes a difference to your customers by bundling products and services together, such as training or premium support. Remember that modern buyers want comprehensive solutions without wasting time on worrying about what elements are needed to achieve these.
Be mindful of customers
Effective bundling occurs when you choose the solutions best aligned with your customers’ needs. Align yourself to what your customers really want and remember aspects like company size, type of industry, type of operations etc.
Introduce new products or roll out slower moving ones by using popular products as drawcards. By doing this, cross-selling occurs at initial customer take-on and over time, the cost of sale per product may also decrease.
What sets you apart
Differentiation is crucial to the longevity of your cloud business. Bundling flexibly and effectively means you can stand out on the basis of price, bundle components and more.
Strive for customer stickiness
If your bundles are convenient to purchase and use, priced correctly and meet the exact needs of the customers they’re designed for, you’ll attract repeat business and build profitable relationships. Customers are less likely to look elsewhere if they know you can deliver for their evolving needs.
Bundling is just one of many ways our clients have benefited over the years. Discover more by clicking here.