Bundling partnerships

Bundling partnerships overview

bundles are becoming a must-have rather than a nice-have

In recent years, bundling partnership has become a crucial part for both merchants and online acquirers’ growth as well as competitiveness. For instance, the average telco has at least two VoD bundles. Telcos can use these bundles to upsell existing customers to higher ARPU packages, user acquisition, and unlock new revenue streams. 

In a survey conducted by Omdia, 63% of the respondents said they purchased a bundle of two or more services. Almost 50% of the respondents said they purchased a bundle because “it was a good offer at the time of purchase”, while 32% said it was cheaper to buy a multiplay package than to purchase each service separately”. These kinds of bundling partnerships are used by not only Telcos, but also common amongst for instance broadband providers, banks, and energy companies. 

For merchants such as audiobook- , VoD- , and music services on the other hand, bundling partnerships helps: 

  • Access new channels for user acquisitions
  • Reach an attractive customer base with an already  established billing behaviour
  • Scalable cost setup (rev-share) 
  • Local know-how of the market specifics and simplified sign-up flow 

Four main models of partnerships to consider:

Hard Bundles

The subscription service is sold together for a fixed price with the acquirers regular service pack to the user. It could for instance be “Upgrade to Acquirers 100GB pack and get 6 months of Subscription Service X for free”. 

The standard length of a free trial for hard bundles varies between 3-12 months. The acquirer usually guarantees a minimum promotion budget to compensate for giving the service for free. 

Soft bundles

The subscription service is sold separately from the acquirers regular service pack, but a special offer is available to the users. It could for instance be “Acquirer 100GB users can get subscription service X  for 3-for-1 month offer” 

The standard discount is usually 1-3 months free trial or a significant discount such as 3-for-1 offers. Usually some marketing commitments are made from the acquirer.  

reselling/ add-ons

The subscription service is sold separately from the acquirers regular service at a standard price, but the service is still paid for through the acquirers channels. The subscription service is usually offered under a general “offer page” of the acquirers website. 

No discounts or only light discounts are offered e.g. 30 days free trial and the marketing is done at the acquires discretion.

Reversed bundles

As the name suggests, is a reverse bundle when a service provider include the acquirers service for free as part of selling its own subscription packages. It could for instance be “Subscribe to Subscription Service X, and get 5GB of free mobile data from Telco Y” 

Which model should you choose?

Considering there is no “one-size fits all” and that the technical requirements for setting up any of the above stated bundles is approximately the same regardless of how many different offers are launched, is the recommendation to launch multiple different bundles. For instance, a hard bundle can be good when bundle with an acquirers best selling package while the rest of the user base if offered a soft bundle. 

Our platform supports all kinds of bundling partnerships, if you are interested to learn more how we can help your company scale up with bundles, don’t hesitate to reach out! 


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