Bundle your products and services to make your customers more sticky
If you own or manage a company, you will know that it makes a lot more sense to keep an existing customer rather than seek new customers. Customer churn, also known as “customer attrition”, isn’t a new phenomenon, and some industries deal with customer churn of up to 30%!
To grow your business, simply said, you need to acquire and retain more customers than you churn.
Acquiring a customer is expensive, and the probability of selling to a new prospect is up to 14X less than selling to an existing customer. Wouldn’t it be much better to continue selling to your existing customers?
Assuming your business provides quality products and services, here are a few options to help reduce churn:
Increase customer engagement: Implement effective customer engagement strategies that focus on building meaningful relationships with customers. This can include offering personalized discounts, rewards, and other incentives, as well as providing personalized customer service.
Create a loyalty program: Implement a loyalty rewards program to encourage customers to return and purchase more frequently. This can include rewards such as discounts, points, and exclusive offers.
Expand your product/service offering: Explore ways of expanding your product/service offering to provide customers with more options. This can include introducing new products or services, offering special editions, or adding additional features and benefits to existing offerings.
Bundle products and services: Offer customers the opportunity to bundle products and services into one package. This can include offering discounts for bundled items, creating custom packages tailored to their needs, and providing free products or services with select bundles.
In this article, we will be focusing on bundling your products and services to help with customer retention. One of our favourite success stories is Kogan.com - a customer on the IMZI mobile network.
Kogan is a great example of multi-product bundling. They have bundled their retail offering with mobile, internet, insurance, finance, energy and more. By offering customers a discount for bundling an additional service to their existing services, the customers benefited from the bundling offers and discounts, and Kogan saves on customer acquisition.
Kogan.com launched their mobile offering in 2015 with IMZI and our parent company Isoton, and they amassed over half a million subscribers in just a few years. They have multiple offers for their mobile customers including Kogan First membership on sign-up.
The launch of their mobile offering achieved points 1, 3, and 4 in our list above - they increased customer engagement, expanded their existing offering, and they bundled their products and services. In 2022, 5.9% of Kogan’s gross company profit was attributed to their mobile offering. Impressive!
Bundling services makes a customer think twice before leaving the Kogan ecosystem, hence increasing customer retention. For Kogan, sticky customers are not only a great source of recurring ongoing revenue, they are also a target market to cross-sell other products too.
From the IMZI perspective, we know the endless benefits of launching a mobile product. It increases your brand trust and value, allows you to be closer to your customer, and more. Bundling your products and services with mobile is a proven way to increase customer loyalty and retention. It will also help you upsell and cross-sell to your customers, which can lead to a further increase in revenue.
If you would like to launch your own mobile brand, or if you are a mobile network operator and are interested in having the IMZI MVNO solution on your network, get in touch with our experienced team.
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