We all are aware of the adage; the Customer is King. But we also know that this Customer is very fickle. As such, there is enormous energy expended to study consumer behaviour to find out what affects consumer’s buying behaviour and be on top of things. It’s a crucial factor in marketing because gaining a new customer is more expensive than retaining one. In this context, bundling and packaging work best to retain customers.
Much success can be brought about by knowing your Customer’s value perception. When it comes to bundling complementary products, customers go for products that seem like ‘value for money’. The psychology of the buyer at the point of billing is disposed to get a better deal if any is offered. If your customer is presented with a group of complementary and related products at a discounted price, it may just result in additional sales.
You should also have as much information as possible about your customers. This aids in choosing an appropriate bundling strategy. What are the types of products which can be offered together? This can be based on the Customer’s purchase history or the need stemming from low product movement and excess inventory build-ups. It may help to consider the complementarity of the products bunched together. Another vital question to be answered is, what is the discount that can be offered. It should not be so low as to discourage a purchase nor high enough that it does not make business sense.
The Best Practices when Deciding on Bundling
1) Number Crunching
Data analysis is the key to understanding which products are purchased in what combination and how frequently. With a clear picture that emerges, you can bundle what makes sense to the Customer and perceive value.
2) Combine slowly with fast-selling products
Pairing items that have a low off-take with those that are flying off the shelf is one of making an item more wanted than otherwise. You may also consider combing a low-priced item with a premium high ticket item to make it a worthwhile deal. It also helps not to be limited in bundling strategies. Often unrelated products may actually be something a customer may be looking for.
3) Announce new products in a bundle
You can promote a new product by clubbing it with other fast-moving popular products. By offering a high discount on the latest product, you make it attractive for purchase.
4) Highlight the Savings always
There’s no better way to catch the Customer’s eye than highlighting the savings. Prominently displaying ‘Save X% on Product A’ messaging is a sure winner always.
5) Exclusive Bundles Page
For those scouring for a good bargain, a dedicated page (online, of course) with all types of bundles will be like a sight for sore eyes.
6) Use social media to make a lot of noise
A bundling strategy is meaningless without publicity. That’s why you must make the most of Social media and share the bundles across the peer-influencer-centric platforms. A dedicated hour of the announcement will find many takers, and it’s an excellent opportunity to make more sales.
As in the physical world, where bundling can be seen in products packaged together, the world of wireless and the internet also offers a bundle of services. Multiplay bundle services include traditional telecom services such as fixed voice, fixed broadband, Pay TV, and mobile services. At the higher end, the services include standard OTT-video functionalities such as multiscreen, catch-up TV, video-on-demand (VoD), and emerging services such as smart living and connected-home solutions. It appears that bundling is the way forward in both product and service sectors.