Subscription business model has proven to be one of the best ways to retain loyal subscribers for as long as subscription operators continue to deliver value. The main advantage of subscriptions is the convenience of its payment system where you register for it once and then forget about it.
Furthermore, a subscription model allows consumers to enjoy ‘continuous’ updates of products without the need to pay for extras (e.g. movie streaming introducing new movies or music streaming adding new music). For this reason, more customers are moving towards subscription based products for its asset-less plans and without hidden charges.
But what is a bundle subscription?
Bundle subscription is a value add service by adding more than two subscriptions based products or services that enhance an existing subscription plan. Large organisations such as Apple, Google and Disney, have adopted bundle systems to increase customers retention and keeping their customers happy within their network.
The values that customers get from bundle subscriptions can vary based on the providers, such as:
- Product Bundle: Two or more individual products that are bought together to form a package set and often available at a discount. E.g. Apple bundle or Google one.
- Component Bundle: A selection of multiple products that creates a complete product. E.g. mountain bike or home theatre.
- Cross Bundle: Any two products from separate product ranges can combined to form a personalised bundle. There are two types of cross bundles:
- Customise: Bundle that designed based on individual preferences.
- Mass: Bundle that sold as a standard bundle package to consumers.
Regardless of the kind of package you would like to offer to customers, ultimately it is to provide value to your subscribers and drive growth to your business.
Should your company think about offering subscription bundles?
Firstly, if your company offers more than one product or component then you should be looking into subscription bundles. A good example would be Microsoft Office 365 together with OneDrive, it’s the best combination for a bundle that one can think of. Current trends include Walt Disney Co., where they are offering a bundle within their brands such as Disney, Pixar, Star Wars, Marvel, National Geographics, ESPN+ and Hulu.
Secondly, will this subscription bundle make your customers happy? If yes, then you should do it too. Companies such as Disney, Apple, Google, etc. with many different brands under their umbrella can easily give discounts to their customers if they purchase more than 1. It gives customers the satisfaction that they got a great deal and this helps to promote word of mouth marketing too, talking about the products (e.g. movie or shows).
Thirdly, if your company has a good partnership with other providers (non-competitors) then it is an excellent opportunity to bundle products together. Spotify is partnering with Google Home Mini, Chromecast with Google TV and 6 months of Netflix and Hulu, Spotify and Showtime for student bundle. This a great network effect, not only does it boost sales but customers get a great deal from several providers under one roof. The additional benefit other than discounts is that customers will only need to manage 1 billing for all of their products.
Lastly, if you want to keep your customers forever (retention), then bundle is a beneficial choice for your company. Having a single subscription potentially allows consumers to unsubscribe your service over a period of time. However with bundle, consumers will less likely unsubscribe due to the discounts and other benefits .
To view examples of subscription bundles, visit Purplebundle.