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Unintended consequences of selling B2B digital subscription add-ons for customer onboarding

Author

Listed:
  • Lena Steinhoff

    (Paderborn University)

  • Jisu J. Kim

    (Auburn University)

  • Vamsi K. Kanuri

    (University of Notre Dame)

  • Robert W. Palmatier

    (University of Washington)

Abstract

Business-to-business (B2B) software-as-a-service (SaaS) providers increasingly bundle add-on services with their core service. The implications of such bundles for onboarding customers to the relationship remain unclear; in particular, the common practice of trying to maximize add-on bundling during the customer acquisition phase arguably might conflict with goals to achieve long-term retention of customers. The current study therefore focuses explicitly on the impact of add-on bundling on customer retention during the onboarding stage, using multiple methods. A theories-in-use exploration suggests that the positive effects of add-on bundling may not manifest in the initial relational stage of customer onboarding. A field study involving a B2B SaaS provider further reveals that bundling more add-on services can significantly decrease customer retention during the onboarding stage. Moving to leaner communication channels can aggravate such attrition. Finally, a cross-industry survey of B2B managers identifies complexity perceptions as the likely source of these detrimental effects of add-on bundling during the customer onboarding stage.

Suggested Citation

  • Lena Steinhoff & Jisu J. Kim & Vamsi K. Kanuri & Robert W. Palmatier, 2025. "Unintended consequences of selling B2B digital subscription add-ons for customer onboarding," Journal of the Academy of Marketing Science, Springer, vol. 53(5), pages 1447-1481, September.
    • Handle: RePEc:spr:joamsc:v:53:y:2025:i:5:d:10.1007_s11747-025-01088-3
    DOI: 10.1007/s11747-025-01088-3
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