What is bundle?
A bundle is a group of goods & services sold together. XaaS bundles are often used to sell multiple hardware and software products and value-add services, from one or multiple vendors at a time, as one solution. Bundles are generally used for two different purposes:
- As a tool for managing product portfolio & supporting sales strategy – packaging products that fit the same use case of the same target audience into one unified solution.
- As a tool for promotions – cross-selling and up-selling extra products & services and thus increasing average basket size. This ultimately results in higher sales revenue. To incentive customer to buy more, bundles are often discounted in one of several ways depending on product strategy and the exact objective of the promotion:
a. Buy A and B together for a discount on both.
b. Buy A at the regular price and get a large discount on B.
c. Buy A and B at regular price and get C for free.
Case a. can be set up using bundling of separate offers from product management.
Bundles are used by both vendors and sellers of various types.
d. Vendors use bundles to package multiple of their own offers together.
e. Sellers use bundles to package offers from multiple vendors together.
f. Managed service providers (MSPs, or sellers who also sell their own offers) use bundles to package offers of other vendors with their own value-add services like consulting, training, support, integrations, monitoring, etc. Such sellers nearly fully manage the service for the customer and charge based on generated outcomes, hence the term MSP.