product bundling

CPQ Product Bundling: Your go to checklist

by Kevin Willemse

In addition to the SKU overhaul you’ll likely go through to prepare for smart product rules and automations, there are a few other must-dos that precede CPQ-powered product bundling. Each of these items is meant to prepare your overall sales strategy for the added nuance bundling will introduce. Indeed, deciding which products to bundle with which products could mean the difference between finding yourself in the red vs. the black. One seminal study on product bundling found that a company that stops selling standalone products altogether—a strategy known as pure bundling—can expect to experience at least a 35% revenue drop compared to a company that offers mixed bundling (i.e., a company that sells products both standalone and bundled); this study, published in the journal Marketing Science, underscores how important it is to get product bundling right.

I’d like to offer a “pre-bundling” checklist: five steps to take to ensure your sales reps are set up for success with the newly revamped processes. The first item, SKU catalog structuring, is essentially a repeat of the previous chapter—it’s just that important—and you may recognize other repeated themes in this summary. The additional four items are arguably less tactical in nature, but just as critical to paving the way for optimal results. In short, you really should not consider executing on any one of these tasks without evaluating the others: 

 

1. Structure your SKU catalog properly

Your SKU catalog is the foundation of any product bundling strategy. The way you categorize, group, and describe your product lineup in written form has direct, consequential impacts on both sales volume and the length of your sales cycle. For sales teams to use an SKU catalog effectively, it needs to be well-structured. That means eliminating duplicate SKUs, using standardized nomenclature throughout the catalog, and creating a clear and intuitive hierarchy with logical grouping practices. Ideally, every SKU should be as easy to sell on its own as in a bundle. You will want to interface closely with end users to structure your SKU catalog, as your priorities during this overhaul should be keeping customers happy, improving efficiencies, and maximizing sales opportunities.

2. Evaluate downstream impacts to dependent processes

As you build out your product bundling capabilities in Salesforce CPQ, keep in mind that you need to do more than just optimize your bundling strategy. You also need to make sure that you think through all potential impacts of your bundling strategy on…

 


 

Want to keep reading? Download the complete white paper: Guide to Product Bundling: Firsthand Experience and Knowledge From Salesforce CPQ Experts.

Related Articles
project management
6 things I would tell my junior self about project management

Through trial and error, I’ve found six proven time-saving project management strategies that keep clients happy and projects moving forward. 

erp
Lead to…? When to hand off Salesforce orders to your ERP

Let’s explore the three most common junctures where businesses make the handoff billing to ERP: Lead-to-Invoice, Lead-to-Cash, or Lead-to-Rev Rec.

patient-centric care
A single solution to several barriers in patient-centric care

Simplus is deploying solutions to the healthcare industry to bring patient-centric care to the providers’ business model.