Remember not too long ago when home phones were a staple? Then cable came into the picture, and then internet. Paying for all three would be prohibitive, but luckily the telecom companies had an idea: bundling.
Bundling services isn’t a new concept, but it sure is a good one. It can work for virtually any industry, and the best part? It benefits your business and your customers.
You Scratch Their Back, They Scratch Yours
Say you’re a pest control company. You offer a general pest service as well as more specific services like mosquito or rodent control. Each of these services costs your customers money. And, performed individually, they cost you money in the form of wages, gas, and wear on your company vehicles.
By creating bundled packages, you’re creating a value for your customers that is hard to argue with. They get all of the services they want (and maybe even more) without having to pay a la carte. You reap the benefits of tackling all of those services in one trip instead of three, and more importantly, you’ve added a recurring revenue stream to your bottom line. In other words, your profits go up, and as far as your customers are concerned, so has the value of your service.
Fewer Options, Better Results
At Coalmarch we recommend bundling services by offering three or more tiered packages. By offering a small assortment of options, you’re able to draw attention to the package that’s most profitable for you and most attractive to your customers.
Take, for instance, Triangle Pest Control.
This is our sister company, and they offer three service bundles. The first, Healthy Home, offers the bare minimum for a reasonably low price. The third, Healthy Home Premiere, offers the Cadillac of service combinations at a more aggressive monthly rate. Then there’s Healthy Home Plus, hanging out in the middle and essentially splitting the difference. It’s not the cheapest, it’s not the most expensive - right in the average customer’s sweet spot.
But this is far from a simple pricing strategy. From a digital marketing standpoint, offering bundles, displaying them prominently, and making them easy to book is a proven tactic for higher conversion rates.
Keeping it simple means potential customers aren’t left trying to tally a whole list of services, growing ever more wary of the growing cost. Paralysis by analysis is real! Make their decision a no-brainer.
A Gateway To Greater Revenue
Customers who opt for bundles are interested in getting a good product at a great value, and more often than not will start off with a lower tier of service. By offering more expansive (and more expensive) packages along with the entry-level options, you’re leaving room for those customers to move up the ladder over time.
Let’s go back to that cable analogy. Say you pay $130 per month for cable, internet, and home phone service. Adding a premium movie channel is $10 more per month. Do you do it? Probably! You’ve already committed to the big sum - what’s another $10 each month at that point, especially for something you really want?
The same goes for your services. A customer who buys a $30/month plan is far more likely to upgrade to a higher plan, or sign up for an add-on service (summertime mosquito service, for instance) if the increase in price is low relative to what they’re already spending with you.
All this is to say, if you’re not bundling your services, you’re leaving money on the table. So grab that recurring revenue by the horns and get to bundling!