3 Stages of Bundles

December 24, 2020

The 3 Stages of Bundles

Manufacturers like bundles: it improves margin, drives up the Average Unit Price (AUP) and aids marketing (selling solutions versus a bunch of parts).

Configure Price Quote (CPQ) can enable bundles if it can handle all three stages of the process of delivering them:

Stage 1 – Bundle Creation

Deciding which products to group should be simple, it is not. Limiting the portfolio will reduce the attractiveness, increasing flexibility will increase the complexity for transactional partners (e.g. Distribution).

Whether you describe this as Big Data or Artificial Intelligence: if you have quote/sales data that is fresh, relevant and dynamic, it can be leveraged to ensure products are market appropriate. Your CPQ application should be able to do this and provide a vehicle to create starter kits, which users should be able to customize. Critically it must track product lifecycle status and ideally, local inventory.

Historically, without CPQ, eCommerce has relied on virtual part numbers to manage bundles. This approach is problematic. A rule that says ten systems can have ten options and ten services creates 1000 virtual parts. Most of which will never be used.

Stage 2 – Bundle Customer Experience (CX)

Where the tyre meets the tarmac. A user will only choose a bundle route if the experience is flawless:

  1. When a user chooses a product that is available in one or more bundles offer them but do not mandate them.
  1. Some users will enjoy a solution experience, so also offer that route.
  1. Ensure that if a user breaks a bundle (by removing a component), the user can undo to restore it.
  1. Offer proximity alerts – add X product or service to enable this bundle and make $Y saving.

Stage 3 – Rebate Claiming

Manufacturers that sell through a Channel invariably compensate the Seller retrospectively for the Bundle discount. With very flexible bundles, the Seller needs to validate their claim – CPQ can pre-validate claims using the same rules set to create them. Claiming issues is a key barrier to adoption in Channel.


If you are serious about bundles – you need CPQ. If you are in the Tech Sector – you need channelcentral.

Watch the summary video here:

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