The corporate sector of today has many techniques to push their business ahead and sell more and more products. Some companies attract users through discounts, while others offer free stuff, service providers also use gimmicks like first month free or money-back guarantee. In the end, all these are marketing tactics used to convert a consumer, a new consumer to be precise. However, the most legit of all these tactics are bundle deals. Bundling is a concept when a business gives a combination of more than one product to its customers and gives discounts on all the items present in a bundle.
This not only allows the business to drive out more products but also gives customers the advantage of getting discounts on a number of items, something they wouldn’t be able to achieve when getting products separately.
It is one of the most successful business tactics and can be done both in the product and service industry. Usually, in the service industry, the bundling techniques are utilized by internet service providers who often give bundles of different services packed with their core one, the internet. These additional services can be either cable TV or home phone services.
Often these bundles are sold as double or triple plays, where double play is a two-service bundle and triple-play comes with all three services that a company provides. For example, a company like Spectrum has double play bundles that include Spectrum internet and home phone services or Spectrum TV and internet services. While a package which has all three services like internet, TV, and home phone is called Spectrum triple play, furthermore these double play and triple play has categories within them which depend on the cable or internet package. The cable company offers multiple bundles plans to their customer with different features and prices.
We have explained the business dynamics of bundles for our customers and how companies drive out more of their products and services through these bundles. Also through the example of a service provider like Spectrum, we have also tried to make our readers understand the standard composition of bundles offered by service providers like ISPs. But after all this explanation a question should arise that indeed bundles are a good tactic by business to attract more customers and sell more products, but does the consumer gets any benefit from these bundles, apart from the discounts? We are going to try to answer this question below.
Benefits of Bundling for Consumers
Apart from the most evident benefit of costs, there are also some other alternate benefits that consumers can capitalize on when going with bundle deals. We have mentioned some of these benefits below which might convince our readers to go with bundles.
Pricing and Discounts
The most major point of going with bundles is the cost-effective pricing, this is why most bundles are advertised with these discounts. Usually, the discounts that are offered with bundles are more, in comparison to the price cuts that are offered with individual services. The reason behind it is because since a user is going with two products or services with a company, this, in turn, increases the customer lifetime value of a consumer because a consumer is going to pay more till he is subscribed to a bundle.
And since a company gets more revenue from a consumer, they don’t mind giving out a bit of extra back to the customer. Even though these discounts are much more still a company earns more revenue through bundles than by selling individual services all because of increased CLTV or customer lifetime value.
Saving on Miscellaneous Costs
Well, the discounts that are offered in bundles are one thing but there is another monetary benefit that only a few are aware of. This cost savings comes in the shape of other miscellaneous charges that a user pays. This is especially prevalent in the service industry where there are many other costs like service charges, surcharges taxes, and installation costs with internet cable and phone. When you get a single service like the internet there are separate taxes and surcharges that you have to pay, apart from that there are standard one-time charges like installation and other monthly costs like equipment rental that comes with it.
However, when users go for a bundle they get reduced miscellaneous costs since most customers can get all services installed on a single installation charge. Most companies also throw in free stuff with bundles like free equipment and oftentimes the taxes and surcharges are less with bundles than getting the same services individually from different providers.
Ease and Convenience
An alternate benefit that most people don’t consider about bundles is the ease and convenience that it provides users with. This is a hidden benefit that bundles offers, they offer ease and convenience for the users since they don’t have to keep track of all different service providers who are providing let’s say cable or TV services. Plus all the services come under one bill so it becomes easy to keep track of the entertainment budget.
Many companies also provide superior customer service or dedicated lines for consumers who are subscribed to high-tier bundles. This is because these consumers pay more revenue to a company so the provider in return offers options like these to enhance a user’s overall experience.
Conclusion
Bundles are not only a good way for businesses to push more products and increase revenue and CLTV, but it is also a great way for customers to save extra money and get rid of hassles. The benefits mentioned above are enough to convince anyone to go for bundle deals. However, a customer should only go for a bundle if they are actually interested in getting additional services, they shouldn’t just do it for the sake of it or for getting extra discounts because what’s the point of a bundle if you are not going to use all the services included in it.