For those who have bundled offerings, did bundling multiple products actually increase your average revenue per user (ARPU), or did it mostly just give a discount to customers who would have bought all the products anyway?

Based on our saas pricing book, Price to Scale, bundling multiple products can indeed increase your average revenue per user (ARPU) when executed thoughtfully. Here’s a breakdown:

• Bundling isn’t just about providing discounts. Instead, it’s designed to boost perceived value by encouraging customers to adopt additional services that they might not have purchased individually. This increased adoption can lead to a higher ARPU.

• When done correctly, bundling deepens customer loyalty and makes it harder for them to switch to competitors. This effect is achieved by offering value that goes beyond the sum of individual products.

• However, the book also cautions that if bundling is not designed carefully, there is a risk that customers could see it as simply a discounted way to buy features they would have acquired anyway. Additionally, offering too many products in one bundle may introduce complexity or extras that customers don’t necessarily need.

In summary, our book suggests that the key is in structuring your bundles in a way that truly encourages customers to try out new, complementary products, thereby increasing overall ARPU rather than just offering a discount. Always weigh the added value against potential downsides to ensure the bundle aligns with customer needs and drives real incremental revenue.

Get Started with Pricing-as-a-Service

Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.