Apr 14, 2009

Bundling Cable, Phone, and Internet Services

Is bundling cable, phone, and internet services a good strategy for cable companies? Not in a recession. My grandpa just got rid of his bundled packages and saved over $400 in the past three months. WOW! That's a lot of revenue that those companies are losing when a customer quits.

And only offering good deals to bundle package purchasers discriminates against other customers who will go elsewhere or do without if they fee they aren't getting the best deal.

I believe a better strategy would be to offer one service for a discount to everyone, say cable. Then provide cable customers (once you've got 'em) with special "members only" deals that will give them better deals on internet and phone than non-members. Then you're making incremental sales and it's easier to sell someone 1 $30 subscription at a time than to sell them 1 $90 bundle. The bundle price just flips a switch inside people's heads that is an automatic "no." Poison by degrees.

No comments:

Post a Comment