Product Bundling Strategy

by Neil Kokemuller, Demand Media Google
Some companies offer optional bundling that saves customers money on multiple items.


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A product bundling strategy is a marketing approach where multiple products or components are packaged together into one bundled solution. This strategy has become increasingly common in the early 21st century as companies try to overcome the costs of acquisition. When effective, bundling offers benefits to both your business and its customers.

Bundling takes place in many business and product settings. Electronics retailers often bundle hardware, software and accessories. For example, you might buy a computer and get a bundle deal with the monitor, printer, cables and antivirus software. Banks bundle banking products to maximize the amount of business from each customer. If you hold multiple loan, checking and savings accounts, you often earn interest benefits. Restaurants commonly bundle food items to create value meals or combinations.

When effective, a product bundling strategy can significantly increase profits on individual sales and over time. Product bundling in banking can increase profits by 15 to 30 percent, according to consulting firm Collabera. Selling multiple products or components in one solution means a greater initial return on the costs of acquiring a customer. Some companies use bundling as a way to package less popular products with hot selling items, although this reasoning is sometimes criticized. You can also create longer-term opportunities for add-on sales when you get multiple products in a customer's hands.


As with other business strategies, your business may succeed or fail with product bundling. Typically, long-term benefits and better customer relationships develop if customer convenience and value is your motivation. Your business should carefully analysis revenue and profit projections for both unbundled and bundled options. If bundled solutions generate lower profits with no customer advantages, this strategy makes little sense. Tracking bundling performance and customer satisfaction helps ensure long-term benefits.

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