A Profitable Bundle

Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

A Profitable Bundle

This PowerPoint presentation represents the outline of what my panel was going to discuss at Broadsoft Connections. We were going to make 3 points about Marketing a Profitable UC Bundle: 

  1. Does Bundling Work;
  2. How do you sell it;
  3. What makes a successful bundle

Does Bundling Work? It depends. Are you using a Bundle for Customer Retention or Customer Acquisition? Our panleists included to ILEC's and 1 CLEC competing directly against one panelist.

The big point to make is that if you add one component sold separately between 15-20% of your customer base will uptake that new component (if marketed well). However, if you add it to a bundle, many more folks will take it. Albeit at a less margin, but more overall revenue.

Everyone was in agreement that the only way to sell a UC Bundle was face-to-face. A sales force - direct or indirect - could sell it. The hardware salespeople have a problem transitioning from selling a box to selling the Invisible. But training can fix that.

Upselling an existing bundle customer can work via tele-sales to increase stickiness and ARPU.



What makes a successful bundle? No one is sure yet. The only point that could be made is that it needs to be simple. Small business wants the pain of technology removed from their business life. And Broadsoft's 180+ features, Xtended Apps, and the XML on the phone are an infinite list of possibilities that will confuse the sales team let alone the consumer. Bundles should be created to attack a market segment, niche or vertical.


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