4 EXAMPLES OF COMPANIES THAT BUNDLE PRODUCTS AND SERVICES PROPERLY
Product bundling is a common marketing tactic seen today. To summarize, bundling is the practice of combining individual goods or services and selling them together as package at a lower price than if you were to sell them individually.
Why would I want to sell any of my products at a lower price? The main purpose of bundling is to increase average order value, an important metric to predict the success and growth of your company. According to Vineet Kumar of Harvard Business School, customers are more likely to spend a lump sum of money upfront, rather than purchase items over an extended period of time. They may also in turn purchase complimentary products from other companies.
We have identified 4 examples of companies from different industries that properly implement bundling.
If you don’t know where to start, let the customers bundle for themselves. For example, a retail company can offer a 10% discount for a customer that spends at least $50. This encourages customers to purchase more products just to take advantage of what is a perceived value. Above everything, you must make sure that the products you bundle make sense to the customer or this strategy will fail.
For suggestions specifically for your company, please contact us directly to see how we can help you implement this strategy and others in your business.