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Digital Product Bundling - The Hidden Secret to Massive Sales

Aug 17, 2007
What is the single most powerful marketing technique you can use to grow an existing business? Opinions vary on this point, but having produced and promoted more than 50 products online, my answer is resoundingly clear: digital products.

But how can a "product" be a marketing technique?

It's all in how you use it.

You have probably heard the idea that you should sell "benefits" rather than "features."

That's basic marketing, and good advice. But there's a problem.

There tends to be a gap between a product with all the potential benefits it can provide, and the customer actual "getting" those benefits. And that gap typically involves the customer actually using the product. And using it properly. And using it fully.

After all, if the customer doesn't get the benefit from the first product they buy from you, why would they buy a second one? Or a third?

And this brings me to the second problem, which I call the "smart marketing dilemma."

If you only plan to sell one product one time to a customer, then maybe it's not that critical that he get the full benefit of the product. Desirable of course, but not critical.

But "smart marketing" dictates that often the first sale to a customer is not where you make most of your money. Why? Because the first sale has to pay for the marketing and advertising to attract the customer in the first place. In fact, if you just "break even" on that first sale, you may be doing pretty well.

The implications are that there must be additional sales to the customer in order to actually make any significant amount of money. But the trouble is that if the customer failed to get the benefit from his first purchase, what makes us think there will be any additional purchases?

You see the dilemma.

Now, I'm going to tell you about a shocking statistic I pulled directly from my own business 3 or 4 years ago that almost knocked me over. I sent a survey out to a large number of customers for one of my consumer software product lines, asking them what they liked, disliked, wanted to see added etc.

I received quite a large number of replies, but the thing that absolutely blew me away was the fact that nearly half - nearly 50 percent - admitted that not only had they not used the software, they had never even installed it.

I couldn't believe it.

Here I am looking for ways to add more value to the product in order to increase the benefit to the customer, and half of them hadn't even bothered to look at it. They'd bought it. They'd received it. But they hadn't ever gotten around to loading it.

Talk about an uphill battle. These folks clearly weren't getting ANY of the benefit if they didn't even install the software, much less use it. How on earth was I going to sell them a second product, or a third?

So as I'm mulling over this little gem of information, I received an e-mail from a fellow who started out by saying: "Jason, I am planning to buy your program, but I have no intention of actually using it..."

I laughed out loud when I read this.

Things had gone from the ridiculous to the sublime. Now the prospects weren't even planning to use the program, never mind the customers. Good grief.

But, I went on to read the rest of the e-mail. It turns out that he already had a business which sold a physical product to the same market that I sold my software to, and that my software provided the "missing link" between his product and the benefits he wanted his customers to receive.

So his plan was to bundle my product in with his, and sell one complete solution to his customers.

Neat idea.

So we came to an agreement and he sold a large number of them that way.

A couple of months later, I got an e-mail from another fellow who wanted to do the same thing. Different product, different market, but the same idea. And he ended up being very successful with it too.

All of which got me to wondering whether I should try that concept with my own products. (D'ya think?)

So I did.

I started with one of my higher-priced business to business products, and added a video training series showing not only how to use the product, but how to streamline the customer's business in the context of using the product. This went well beyond just a "user guide" and could have stood on its own as a business improvement product.

Best of all, there was no way a customer could fail to get the benefit from my product. This video series covered everything from the time the customer paid me money until the time his business was running smoothly as a result of using my product properly.

It was like having a "greased chute" between my product and the benefits my customer wanted.

Then I bundled it in, just as the other two fellows did, and nearly doubled the price of my offering. Actually, I think I bumped it up about 75%.

The really neat thing is, that in the few months that followed, my unit sales actually increased - even at the 75% higher price. The overall revenues from this product more than doubled. In fact, it allowed me to completely re-work the economics of that entire line of business, all because I made it easy for my customers to get the full benefit of my product.

And this brings me to the take-away lesson for you.

If you sell a product or a service - whether online or offline - if there are any steps that your customer must take in order to use your product properly or get the full benefit of your offering, this digital product bundling technique is dynamite!

The digital product you add could be training material, usage information, or even a management tool.

It might be printed, audio, video, even software that you outsource.

Maybe it's a spreadsheet template, a tutorial, even a tele-seminar.

Whatever it is, the key is that it be fast and inexpensive for you to create, and essentially free for you to replicate. (How much does it cost to burn something onto a CD? 30 cents? 50 cents? It's virtually free.)

When you do this, you can enhance the value of the product or service offering to your customer, you can increase your unit sales, and you can send your customer satisfaction level through the roof!

You improve your positioning in the marketplace, you create a much more defensible Unique Selling Proposition, you have more ammunition for prospecting, and you can even subdivide the content into more sequential contacts to your prospects, which can improve your sales conversion rate.

You can even create a stand-alone product line.

It's all good. There is such an enormous up-side, it's almost insane not to do this!

And best of all, it's fast, it's cheap, and it's very easy to do.

In fact, there are tools and resources available on the Internet that will let you automate or outsource for pennies on the dollar, almost any aspect of digital product creation that you don't want to do yourself.

And with the tools that are available, doing it yourself is extremely easy too.

Make a point today to look at your own product and service offerings. Identify exactly what your customer has to do from the time they pay you money, until the time they get the full benefit of the product you are offering. This represents the single greatest, easiest and most immediate profit opportunity for a digital product in your business.

You may just find that bundling a digital product in with your existing product or service is the greatest marketing technique you ever use.
About the Author
Jason Jantzi has produced over 50 software and information products online. You can use his exclusive Online Resource Blueprint, showing over 100 essential tools, from how to create profit-driving digital products in under an hour, to hidden website marketing strategy tips to increase web site traffic . Download free at http://www.OnlineResearchLabs.com .
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