Post-Purchase Upsells Opportunities and Tactics
Are you doing your best to exceed your revenue goals? You are missing out if you are not marketing additional services or products to your existing customers. To succeed and thrive in today’s competitive environment, you need to incorporate upsell into your marketing strategy.
A post-purchase upsell means encouraging your customers to buy more by offering additional products, upgrades, one-time offers, or other add-ons to their initial purchase to increase the amount of the final order he or she initially purchased. Since upselling existing customers is about 5-10x cheaper than gaining new ones, it makes good business sense. In this post, we’re going to discuss post-purchase upsells opportunities and tactics to increase your average order value.
Loyalty programs and rewards are a great way to get customers to spend more with you. If you have successfully convinced a customer to spend more on your deal, after spending on the main product, make sure you reward the customer for spending more and trusting your brand.
Also, the ability to redeem points encourages them to stick with you for the long haul and not shop with your competitors. Some of the ideas for showing your thanks to your customers could include offering a gift, sending a thank-you letter, or offering a discount for a future purchase. Also, there are some upsell apps like ReConvert that you can use to optimize your thank you page and turning it into another sales page.
Your work isn’t done even though you have decided that an upsell offer makes sense for your customers. You need to make sure you can show your customers the value an additional service or product can add to them. You can use things like testimonials, positive customer reviews, or case studies to show your customers how they can benefit from the additional service or product.
If you have data about the increases in key performance indicators, they can get using your service or product, share it with them. Ensure the value is clear to them so they can make the final decision on their own without you being pushy.
Make the upsell after the initial purchase
One of the common mistakes some business owners make is the way they crush their customers with upsells before they have even completed the original purchase. This is a total turnoff for some customers. One of the most significant reasons why customers abandon their shopping carts is because of increased or added prices. Upsells before checkout can be very risky.
So, instead of that, you suggest upselling your customers after they have made the initial purchase. To make things easier, you may not require your customers to input their payment information again before they can complete their second transaction.
Make upsell discounted
Customers can smell when there is an upsell, and they usually think about it from one particular perspective, which is how much it cost. Most customers won’t bite if the upsell is too expensive. However, they will be more interested if it is a discounted upsell.
For instance, you can make the upsell half of the original purchase or less – if you offer SaaS upsells, try to break it down into a payment plan – e.g., only $39/month for three months. With that, you create an illusion of a lower price.
Make the upsell relevant
Relevance is key when determining an upselling. For instance, if someone is purchasing a book on childcare, there is no point in recommending a book on marketing. Instead, you should recommend a project more related to what they are looking at, like another book by the same author or an audio version of the book.
More examples include when selling sunglasses, sell a microfiber cleaning cloth. Sell premium support, for a software, or try to upsell a knife sharpener when you sell s knife. When upselling, it is important you sell the benefits of the upsell. This type of customer education can help you make the sale.
Offer free shipping
Free shipping has been proven to boost sales. Recently, the National Retail Federation shared the results of a study that showed that 75 percent of customers in the United States expect free shipping. So, how does free shipping work with upsells? Well, it is simple; you can remind your customers how much more they have to spend on qualifying for free shipping.
When a customer gets to the checkout screen, it is a sign that he or she is ready to buy, so at this point, you can show how much more items they need to add to their cart to qualify for free shipping. With that, they know there is a big incentive to continue adding more products to their cart, especially if they are not too expensive – these items might even be something they wouldn’t have purchased otherwise.
A customer is more likely to take action when you create urgency. This is an effective tactic that is often overlooked. You can use urgency to increase the value of your upsell. For instance, if there are limited quantities, or the upsell is only available for a limited time, you will want to ensure you highlight this in your marketing.
Also, using words such as ‘Only for the first 50 customers,” “Time-limited offer,” “Only for today” are great examples of how you can increase urgency. Plus, you can use a countdown timer to let your customers know how much time they have left to make a purchase.
Now you know about the post-purchase upsells opportunities and tactics to grow your business. Even if you are running a small business, you can try any of these tactics to increase sales. Post-purchase upsells are the ideal opportunity to experiment based on your customer expectations and needs.
We have touched on a few significant upselling tactics in this post, but the possibilities are practically endless. It is up to you to experiment with your service or product to find what works.
Author: Sagar Mandan is HR and Writer at Techssocial. He has served many businesses with his services of link building and has more than 6 years of experience under his belt.