How to increase revenue with bundled services?

Telecommunication agencies are constantly in competition with each other. To attract new and retain current customers, nearly every one of them is offering bundled services. With Xfinity Bundles or Spectrum Bundles, customers can enjoy multiple services for discounted prices.

Examples of Bundled Services

Bundling is not only limited to telecommunication companies, though. A toilet accessories maker called SquattyPotty has bundled up their trademarked toilet brush with a brush holder set and a replacement brush. Since toilet accessories like these are something that a buyer would purchase infrequently, it qualifies as a one-time purchase item. It is also effective in a way that not many people would go hunting for a replacement toilet brush, and they need not look too far if it is available with SquattyPotty.

Or if you consider how Skinny & Co. offers a mixed product in their travel kit bundles which include coconut oil, shampoo bar, deodorant, lip balm, etc. For consumers, the idea of getting a good deal on multiple items is appealing and shows additional perceived value.

Bundled Services

As you might have understood from above, bundling is a marketing technique that is carried out by offering two or more products or services in a bundle for a discounted price. Although it can be useful for consumers, it is even more beneficial for business or brand owners. We will explore how they can continue to generate revenue by providing bundled services.

• Consumers’ purchase pattern. Retailers should observe and study consumers’ behavior towards their own products and services, and design bundles that would seem appealing to these consumers.

• Bundle-related stuff. If you are going to bundle a couple of products, make sure they are related to and complement each other. Otherwise, they are of little value to consumers. If disparate products are bundled together, they are likely to be a deterrent and wouldn’t make sense to the consumer about how they even go together.
• Easily defined benefit. The whole point of bundling is to entice consumers into spending more. That means consumers get to buy two or more products for a price that is lower than if those items were being purchased separately. If there are no discounted prices or the discount is too minimal, then it wouldn’t seem very appealing to consumers.
• Include free items. Consumers love freebies. Including free items in the bundle is also a very effective technique since consumers are more willing to buy a bundle that has free items. As with the previous point, the free items have got to be related to the bundled item for it to make sense to the consumer. If it is not relevant, it is not a compelling reason enough for them to buy the bundle.
• Focus on savings involved. Consumers love to feel like they are saving some bucks when buying products. It is seriously tempting for them when they are presented with such an opportunity. Businesses should stress how much money they are going to save when buying items together rather than separately. It should be crystal clear that buying a specific bundle would help them save a specific percentage or amount of money.
• Allow Custom Bundling. Retailers can also give consumers the option to select from chosen accessories to base bundles. For instance, if you bundle cosmetics together, you can give consumers the option to add eyeliner and eyeshadow together in a bundle to complete their makeover kit.
• Bundles at Checkout. Checkout points in any market are often the busiest section, with customers all lined up, waiting for their turn to pay. Business retailers feel that presenting bundles at checkout is their last chance of generating a few extra sales. It is actually true and consumers do feel a bit tempted by finding bundles on their way out of the store.

Bundled services have proven to boost sales and increase revenues. Business or brand owners need to do it the right way by being smart about it. Bundling products have to be well-suited to consumers’ needs with good deals on them. Also, they should consistently spread the word out on social media or print media that they are offering bundles and promotions.

If your product bundle doesn’t bring you the desired results as in gaining more consumers, improving return rate, etc. then it isn’t really working. But that doesn’t mean it won’t work. Behind every product, bundle failure is understanding towards better ideas on product bundles for you to work on.