What are Bundled Services?

Bundled services are a group of related services that a business offers together as a package deal. Instead of purchasing or subscribing to each service individually, they are all included in one single package, at a special rate that’s lower than the combined price of each service.

For example:

• In the telecommunications industry, bundled services might include internet, cable TV, and phone services.
• A software provider might bundle different tools like word processing, spreadsheet, and cloud storage solutions into one subscription.
• Marketing agencies offer customizable service packages based on the channels and specific strategies a client wants to use.
• Some organizations bundle products with services, like an automaker that offers a warranty, maintenance, and roadside assistance together with the purchase of a new car.

When you offer multiple services that complement or supplement one another and that customers frequently use together, it makes more sense to bundle them. It’s a way to appeal to your customers and make your sales and service delivery workflows more streamlined.

Synonyms

• Product bundling
• Service bundling
• Mixed bundling

Benefits of Bundling Services

Bundling multiple offerings into one service package is both more cost-effective for the buyer and more efficient (and potentially profitable) for the seller. Since it takes time and money to acquire a new customer, bundling services together can lead to higher retention rates and reduce the need for ongoing sales efforts.

How businesses benefit from bundled services:

• Higher revenue and sales volume. By packaging multiple services together, you can encourage your customers to purchase more than they might individually. That leads to higher average order values and overall sales.
• Increased loyalty and CLV. Customers have a greater perceived value of your product when they use more of (and get a better deal on) your offerings. There’s less of a reason for them to leave if they can get everything in one place, which boosts retention and customer lifetime value (CLV).
• Better margins. Because each customer becomes more valuable over time, but you aren’t necessarily spending more to acquire them, your LTV:CAC ratio goes down. Assuming you don’t spend more inefficiently in some other area, your margins will increase.
• Simplified marketing and sales processes. Promoting a single bundled package can reduce the complexity and costs associated with marketing and selling multiple individual services and processing a higher volume of individual transactions.
• New product/service promotion. If you’re launching a new product or service, you can bundle it with the ones that supplement it to raise awareness, get people to understand its value, and land your first customers with it.
• Competitive advantage. When you’re the all-in-one source for something, the level of convenience you deliver through centralization and streamlined operations makes you virtually irreplaceable for your customers. 

How customers benefit from bundled services:

• More convenience. It’s easier for a customer to make a purchasing decision and manage their ongoing relationship with your company when they get everything they need in one place. Otherwise, they’d have to juggle multiple (possibly incompatible) services and billing processes.
• Cost savings. Customers can save money by purchasing service bundles compared to buying each service individually. Especially if it’s something they were going to do anyways (i.e., you aren’t upselling them on the package), it’s a great value.
• Better overall service experience. A comprehensive bundle of related services tends to work together more seamlessly to deliver a better overall experience for the customer. They won’t have to deal with multiple service providers or try to integrate different services themselves.
• More customization options. If you offer several different services, you could give customers the option to bundle whichever ones they need into a single package. Marketing agencies frequently do this with different services, like social media, copywriting, ads, and SEO, for example.
• Access to premium options. Some providers include include access to higher-tier services or exclusive content that might be less affordable or unavailable if purchased separately. For instance, a streaming service might include access to live events or exclusive shows.
• Simplified customer service. When all of a customer’s services come from the same provider, they only need to contact one company for support or billing inquiries instead of trying to navigate multiple providers.

Industries That Bundle Services

Telecom is the main industry you’ll commonly see bundled services. But in today’s markets, the increasing need to differentiate services and provide added value has led to various industries adopting the service bundling practice as a sales strategy.

Telecom

Telcos combine internet, TV, and telephone services into a single package, commonly referred to as “triple play.” You’ll also see cell service providers do something similar with their “family plans” — when you purchase multiple phone plans for a household, you get a discount on all of them.

Insurance

Insurance companies bundle different types of insurance coverages, like home, auto, and life insurance, into a single policy. If you’re already a customer with one type of coverage, they’ll also offer discounts for adding another policy to your account.

Financial services

Banks and financial institutions usually bundle checking and savings accounts, credit cards, loans, and investment services. For instance, SoFi offers bundles that integrate different loan, investment, and financial planning solutions.

Software and technology

Tech companies combine software products into a suite using a modular architecture. The customer can either subscribe to one, some, or all of the tools in the suite.

For instance, DealHub offers:

• CPQ (configure, price, quote) for quoting and contract mangagement
• DealRoom (digital sales room) for unified negotiation, contracting, and approval processes
• Billing for invoices, payment processing, and subscription management

All three work together seamlessly from one process to the next, and users can add or remove any of the tools if they need to. And platforms like Salesforce, Adobe, HubSpot, and Microsoft have even larger product suites you can bundle.

Travel and hospitality

Travel agencies, airlines, and hospitality providers offer packages that combine flights, hotel accommodations, and car rentals, delivering convenience and often discounted rates to travelers. Or, if you’re a member at one of their partner airlines or hotels, you can receive added benefits and points when booking multiple services through them.

Media and entertainment

Streaming services and cable providers bundle various channels and streaming platforms to offer a wide range of content under a single subscription. For instance, DIRECTV offers new users NFL Sunday Ticket for free, as a way to entice them to sign up with them.

Professional services

Agencies, accounting firms, and consulting companies offer clients bundled services that include a mix of multiple different ways to provide expertise.

Full-service marketing agencies might offer social media, paid ads, and web design/development as a full branding package, or they can customize the package to different marketing strategies.

A consultancy might offer financial planning and strategy, risk management, and operational efficiency as a bundled service package.

Bundled Services vs. Bundled Products vs. Hybrid

It’s important to note the distinction between service and product bundling, and when it’s a better idea to take a hybrid approach.

Bundled services

Bundled services, like we’ve already covered, bring several services together to offer a comprehensive solution.

• Phone and internet plans
• Streaming services
• SaaS products
• Insurance
• TV

If it’s a service-based business, you’ll see bundled services with it.

Bundled products

Product bundling is exactly like service bundling, but for physical products (though you might hear the words used interchangeably in the SaaS space). You see product bundling in almost every aspect of everyday life.

• Electronics
• Fast food combos
• Auto packages (e.g. stripes, rims)
• “Make your own” bundles (e.g., BOGO)

They serve the same core purpose — to increase sales and revenue through added value. But they’re also used in retail pricing strategies to create a sense of urgency around the purchase.

Hybrid service and product bundling

If you’re a servitized business (one that offers both products and supplementary services), you’re likely using a hybrid service/product bundling strategy.

• Automakers bundle their vehicles with extended warranties,
• Ventilation system manufacturers bundle their product with installation services
• B2B SaaS companies offering implementation, training, and support for companies using their platform

When you offer both products and services, bundling them together eliminates the need for a third-party provider and creates a more seamless customer experience. It also creates upselling and cross-selling opportunities.

Automating Service Bundling with CPQ

You can use CPQ to supercharge your sales cycle and automate most of the bundling process.

1. Product configuration and rules engine

CPQ software operates on a rules engine. Through a combination of pricing and product rules you program into its backend, it automatically applies the relevant discounts and promotions when creating a bundle.

When your sales rep opens the product configurator to create the package for their customer, they will only see options that fall within your pre-defined product and pricing criteria. As they select items for the bundle, they’ll see new required and optional items appear based on their selections. And they’ll see the total price automatically adjusted based on the selected services and quantities.

Through this system, they can also create custom bundles, where customers or sales reps select their own service choices from a list of options. The software automatically configures the bundle through a seamless interface, while your customer gets the complete flexibility they’re looking for.

2. Pricing rules

Pricing rules are the specific rules you use to execute your pricing strategy.

Examples include:

• Discount rules, like “buy X, get Y 50% off” and “bundle A and B for a 20% discount”
• Promotional rules, like “buy A in the bundle and get a free B” and “spend $1,000 or more and get a 10% discount on the total order”
• Bundled pricing, which is the specific price you set for a combination of products and services in the bundle
• Pricing tiers, where the level of service selected affects the final price of the line item

CPQ software takes these pricing rules and automatically applies them to each customer’s bundle. Once you’ve set the rules, your sales reps don’t have to do anything to execute them — the software takes care of it for you.

3. Product rules

Product rules are the specific rules you set for your individual products or services.

Examples include:

• Dependencies (“If X is selected, then Y or Z must be chosen next”)
• Exclusions (“If X is selected, then Y or Z cannot be chosen”)
• Recommended add-ons (based on what the customer has already selected)
• Required add-ons (for a complete solution)

For custom bundles, your CPQ software can also run compatibility checks. It will automatically look to see which services are compatible with one another to avoid overlap and inaccurate quoting. It will generate an error message if someone selects something that’s incompatible with their chosen service.

4. Quote generation

CPQ also takes care of the quoting process. Its interactive quote builder takes the pricing, product, and customer info from the bundle and generates a branded, professional-looking quote that’s ready to send to your customer.

You have two options:

• Automated quoting: The system generates quotes with standard prices, discounts, and taxes at the click of a button.
• Custom quotes: Your sales rep adds specific details, like a special pricing agreement, service start/end dates, and custom terms and conditions.

Either way, it’ll auto-populate the quote with the info from the configuration and pricing process. The rest is easy — the quote builder has an intuitive, drag-and-drop interface.

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