What if your SaaS bundling strategy could do more than just boost immediate sales?
Join me, Marcos Rivera, as I unravel the strategic art of product bundling today on Street Pricing. This episode isn't just about quick wins—it's about leveraging bundling to drive customer adoption and set the stage for future growth. Keeping bundles lean and focused is crucial. Overly complex bundles can lead to sales complications and downsells. Learn the power of strategic bundling, and you’ll learn how to craft combinations that meet a broader spectrum of customer needs.
Major companies like McDonald's and HubSpot effectively use ‘soft bundles’ to offer attractive deals that target specific buyers without compromising value. With the less favored, but sometimes advantageous, hard bundles, it's critical to avoid pairing high-performing products with those that underperform. Tune in to transform your approach to product bundling and drive scalable success in the SaaS industry.
In this episode:
(00:00) Bundling, common misconceptions about bundling, strategic bundling, solving more problems for the customer and paving the way for future sales.
(06:00) While bundles can drive growth, a bundle that’s too large or complex can actually backfire, creating friction during both the sales process and customer renewal periods.
(08:29) How to combine products effectively to create bundles that add value for customers. Solving a sequence of problems, reducing context-switching for users, and creating economies of scale during implementation are key, all while being mindful not to overcomplicate things.
(09:00) The most common types of bundles: ad hoc, framework, soft, and hard bundles. Marcos explains why ad hoc bundling is a mistake and outlines the benefits of using soft bundles, where products are sold together to solve complementary problems. He also shares a strategy for bundle pricing and emphasizes the importance of aligning product use cases and simplifying implementation.
(12:00) Understanding customer use cases and ensuring that bundled products naturally complement each other to enhance value and support sustainable customer retention. Practical tips on avoiding common bundling mistakes and ensuring smooth implementation and onboarding processes.
Welcome to Street Pricing, the only show where proven SaaS (Software as a Service) leaders share their mindset and mistakes in pricing so we can all stop guessing and start growing. Street Pricing is hosted by Pricing I/O CEO and Pricing Coach, Marcos Rivera, sought after slayer of bad pricing. With 20 years of pricing expertise, he has helped price over 200 SaaS products and coached over 100 SaaS CEOs and counting! From the streets of the Bronx to CEO, Marcos wants to take the guessing out of pricing.
Resources:
Marcos Rivera LinkedIn
Marcos Rivera X
Pricing IO
Book: Street Pricing
Email Street Pricing for a consultation
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