The Sales Strategy of Bundling Your Services | Professional Sales Training Malaysia

Clients want professionals who recognize all their needs and wants.

We have learned that firms that adopt a clear marketing strategy when they add each new service are those that succeed while others languish. The number one strategy of a successful marketing effort is to use bundling to add new services onto old ones. Bundling is simply the process of offering two or more services together. Bundling services often requires a new name for a traditional service.

An Example

Let’s look at products for a moment as examples of bundling. Often, bundled products are complimentary in nature: tooth- brush and toothpaste, computer and software. However, this is not always the case. Multiproduct bundling combines products that satisfy different needs for the consumer, while some forms of product bundling are promotional in nature and have a short life span, other forms of bundling can develop into long- term, sustainable “new” products. Automobile bundling takes place when the new car dealer offers you financing, service, and insurance services as part of the purchase. Bundling takes place from your credit card company when travel, credit, insurance, and many other services are included. Bundling can also take place when you bundle your services with another provider. Law firms routinely bundle their tax services with an accounting firm.

The Advantages of Bundling

Bundling services can provide your firm a strong competitive advantage in the market place. It can dramatically improve your marketing return on investment. And because bundling should be client-driven, your selling process is more productive.

In marketing circles, bundling is categorized by two different theories: the Price Discrimination Theory and the Leverage Theory. Originally, the Price Discrimination Theory saw bundling as a method used by a monopolistic firm to engage in price discrimination. Today, however, bundling can be seen as an optimal selling strategy for a multi-services firm with access to a client. In contrast, the Leverage Theory views bundling as an instrument enabling a firm with some monopoly power in one market to use the leverage provided by this power to achieve sales in, and thereby monopolize, a second market.

Conclusion

We can classify customers into three different categories: intrinsic value (commodity buyers), extrinsic value (brand and image buyers), and strategic value buyers. Bundling services will enable you to move clients from commodity buyers to extrinsic value buyers, and others who are extrinsic buyers to strategic buyers. Bundling services can dramatically improve your revenue yield per person or per hour.