What tme says

The way you package your services shapes how customers value, use and experience your offer. This is particularly important to the "conversion/delivery" stage of the customer journey where you're delivering your main service. 

So how can you provide (and capture) the highest amount of value in the simplest form?

It depends on what differentiates your business from competitors, how your customers behave and the cost of the service you provide.

👇🏽 Here's when to bundle your services and when to charge separately.

Signs of poor service packaging

• Low conversion rates

• Hesitation from customers

• Pricing doesn’t match perceived value

• Customers leave before fully understanding your value

• Difficulty increasing profitability

Signs of good service packaging:

Increased 

• Conversion rates

• Perception of value

• Average ticket value

• Retention and lifetime value

• Profitability

When to bundle services:

• Increase service use

• Reduce friction

• Improve perceived value

ReasonS to bundle

The Sunk Cost Effect

When people prepay, they feel compelled to use what they’ve already paid for. 

e.g., streaming platforms, gym membership, educational courses

Reduces “Pain of Paying”

If customers must pay each time, they hesitate. Bundling removes repeated spending decisions

e.g., Netflix vs. pay-per-movie

Creates a Sense of Added Value

Bundled services feel like a bonus, making the core offer more attractive

e.g., free shipping with Amazon Prime

Encourages Loyalty & Retention

If customers receive ongoing value, they’re more likely to stick around

e.g., ClassPass for fitness

when to charge separately

Usage Varies Dramatically

If customers only use a service occasionally, they may prefer pay-as-you-go pricing rather than paying for what they don’t use

e.g., extra baggage fees on airlines

Some Customers Value Certain Features More Than Others

If one group is willing to pay extra for a premium experience, unbundling creates an upsell opportunity

e.g., SaaS companies with tiered pricing

Bundling Could Encourage Overuse & Hurt Margins

If an unlimited model increases usage to an unsustainable level, it may eat into profits

e.g., all-you-can-eat buffets losing money when people over-consume

Customers Expect Transparent, Itemised Pricing

In some industries, people prefer knowing exactly what they’re paying for

e.g., legal services with hourly billing

All in all, the right approach depends on your customers, your costs, and how you want to shape behaviour.

• Bundle when it adds value, increases usage, or justifies a higher price.

• Charge separately when customers value flexibility, when costs increase with usage, or when premium features can drive higher revenue.

Got another quandary?