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Bundles drive better consumer engagement, study reveals

Bango's Digital Vending Machine connects services and their customers with subscription-based offerings like streaming products
(Photo by Matthew Keys for The Desk)

New research from Parks Associates and Bango are trumpeting the strategy of subscription bundles across different services.

A new white paper called “Effective Bundling: Pain Points and Expectations from Subscription Leaders” asked executive leaders across video, music, education and productivity markets to weigh in on how individual services are driving consumer retention and engagement compared to bundles.

Executives affirmed subscription bundles help drive higher consumer satisfaction, engagement and retention when purchasers are able to buy groups of services at one price, compared to when they pay for those services on an individual basis. The paper reflected a 22-point lift in the Net Promoter Score (NPS) associated with Internet service providers who offer bundles of other subscription-based products to consumers.

While any subscription-based service can offer a comparable bundle, executives say telecoms like home Internet and wireless providers are a natural fit for service bundles because they already have billing relationships with consumers and adequate marketing budgets to reach new customers and engage existing ones.

“Partnerships are increasingly driving acquisition and retention,” said Kristen Hanich, a Research Director at Parks Associates. “Partnerships enhance brand awareness and market reach, reduce customer churn, and remove friction from the user sign-up process, in addition to increasing overall customer satisfaction.”

“In a short period of time, subscription bundling has graduated from just a distribution tactic to a fundamental driver of consumer engagement,” added Giles Tongue, VP Marketing, Bango. “Leaders across the subscriptions world recognize the importance of bundling at scale. It goes beyond acquisition, delivering greater consumer satisfaction, increased longevity and more profitable relationships. Bango technology helps many of these leaders capitalize on Super Bundling, building mutually successful partnerships with telcos and other bundling partners.”

To access the study, visit the Parks Associates website by clicking or tapping here.

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About the Author:

Matthew Keys

Matthew Keys is a nationally-recognized, award-winning journalist who has covered the business of media, technology, radio and television for more than 11 years. He is the publisher of The Desk and contributes to Know Techie, Digital Content Next and StreamTV Insider. He previously worked for Thomson Reuters, the Walt Disney Company, McNaughton Newspapers and Tribune Broadcasting.
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