Product and Service Bundling

It sounds so simple to create product and service Bundles - combine some products into a package and give customers a discount for taking it up and the task is done. The result is higher revenue, lower operational costs and better profits, i.e. 1+1=3; the synergistic profitability impact.

In today’s marketplace, companies are constantly under pressure from shareholders to increase their profits and bundling has become a very popular way of trying to acquire more share of wallet from customers and improve customer retention.

However, there are many unique issues in developing and implementing a bundling strategy that will ultimately drive success or failure. As bundling involves combining a range of products, it exacerbates the complexity and importance of resolving these issues and challenges in order to reap the potential profits from bundling. What appears to be a winning profit strategy could end up with disastrous results to a company’s bottom line if not managed correctly.

So what are the keys to bundling success? Genroe provide services that incorporate the success factors into bundling feasibility, operations and rollout. Some of key issues that are covered by Genroe include:

What type of Bundles will you offer and what are the strategic impacts of each type of bundle:

• Cost efficiency bundles;
• Cross sell bundles; and
• Relationship bundles

• How will you change KPIs and management goals to incorporate Bundling;
• How will you estimate customer demand;
• How will you incorporate Bundling features into the Bundling Business case; and
• What marketing and internal Communications approaches will you use?

The correct decisions in these areas will bring success. Incorrect decisions will cause long lasting issues for the overall business.