Hybrid Offerings

Hybrid solutions are a way for companies to boost revenue and balance cash flows. Through innovative offerings, that combine products and services, companies can offer superior value and attract new customers, while at the same time increasing demand amongst existing ones.

Two primary characteristics of hybrid offerings are if they are complementary, and their independence. Complementaryness of the offering is the value to the customer when the product are service are used together. Independence is how easily the products can be purchased and used, separately or together. Highly dependent offerings can’t derive any value unless used together, and are traditionally sold separately. Relatively dependent offerings, in contrast, can function independentally, but there do bring value to each other.

There are four common types of hybrid offerings, each with differing levels of their complementary and independence characteristics.

1. Flexible bundles are highly independent and highly complementary. They are best utilized with complex products and services. These types of offerings can allow customers to get the most value out of their purchases.

2. Peace of mind bundles are low complementary and highly independent. They appeal to customers that are looking for a best brand complete package.

3. Multi-benefit bundles are highly complementary and highly dependent, and are products and services that are often inseperable. Customers derive value from the bundle through the add-on services that are offered.

4. One-stop bundles are minimally complementary and independent. They do not provide value, but offer customers reliability and convenience.

There are keys to success, and reasons for failure. To be successful, companies need to truly understand the customer. The dominant and most reliable predictors of success for new introductions are related to the characteristics of the product/service, strategy, process and...