Operating and sustaining a business has become even tougher due to the worldwide economic crunch. The coronavirus pandemic has sent the world into recession. The World Bank expects that global GDP will dip by 5.2 percent in 2020.

Businesses are having a tough time coping even as governments restart their economies. Physical distancing protocols and remote work policies still limit a wide range of commercial activities. Consumers are also prioritizing their spending and are focusing more on essentials such as groceries and health over other products and services, affecting the outlook for many verticals.

These are almost certainly to impact most business's cash flows negatively. Companies are likely to continue incurring expenses as they continue to operate. But consumer demand is uncertain. Aside from shifting customer behavior, wide scale unemployment has also limited consumers' buying power. So, there is little to no assurance that businesses will have enough sales to be sustainable if they only operate as usual.

Business management platform vcita recognizes the need for companies, especially small to medium-sized businesses (SMBs), to have stable and assured income in order to weather the crisis. It recently launched a new packages feature that allows companies to bundle their services which can help companies secure income and improve customer retention.

"We're proud to support SMBs during these challenging times and work continuously to help our users adapt and excel in the new normal," said vcita CEO Itzik Levi.

How Packages Help

Bundling several products and services together and selling them as one unit has been a well-established marketing strategy. When properly configured, packages offer customers the convenience of buying or subscribing to several related products or services all at once. The package is often priced at a lower rate compared to the total of each individual component, making it an attractive buy to customers. Discounts and special offers are always likely to stimulate interest and demand.

vcita's packages feature allows companies to effectively bundle their services together and even set customized prices for certain customers, groups, and special days. It can even allow customers to create their own bundles by mixing and matching the services that they like. Packages can also be given a redemption period or expiration date which allows customers to redeem and avail of services sometime in the future.

The feature integrates well with vcita's existing scheduling and booking capabilities so customers can set their sessions in advance. It also works with vcita's customer relations management (CRM) system where the purchased packages can simply be credited to the customer's account which can readily be used at any time. The system can be set to automatically use these credits when customers book a future service. They don't have to receive and pay for a new invoice, making the experience more convenient.

How Companies Benefit

Companies can benefit from bundling in two key ways.

First, packages can help secure their income. Customers pay up front for the package which is a fair trade for the discounted price. For example, certain businesses like hair salons and beauty clinics typically offer multiple-session services and treatments that can span weeks or months. Instead of having customers pay per session, they can offer entire treatments as packages. Sales of such packages give these businesses access to upfront liquidity while only incurring costs once the service is rendered. This gives them more flexibility to manage their money where they can invest in critical activities and potential growth opportunities immediately.

Second, packages also help engage customers. Packages allow customers to experience a wider range of a business's offerings. They also guarantee that customers are likely to come back over an extended period of time, enabling business to have meaningful interactions and build relationships with their clients. Bundles can even be offered alongside other retention strategies such as loyalty programs and increase customer engagement and loyalty.

"Packages is extremely beneficial for both the business and the customer. Now more than ever, SMBs are looking for ways to future-proof their projected income. Selling packages gives them the peace of mind they need and provides them with funds they can invest back into their business," Levi added.

How Sustainability Can Be Achieved

More customers are starting to embrace e-commerce and use digital channels to transact with businesses. Digital solutions and platforms are helping meet this demand. As businesses are able to manage their activities effectively through digital means, the greater their resilience and survivability in this environment.

vcita already provides quite a comprehensive list of features that enable business to manage their activities effectively. Its capabilities include scheduling, CRM, client portal, billing, and marketing. The packages feature is a welcome addition that can help generate sales and improve customer engagement while being conveniently integrated within the existing system.

Users of the platform only need to adopt packages as part of their business activities in order to benefit from the new feature.