As an eCommerce business owner, you're always on the lookout for new strategies to grow your Shopify store's revenue. One highly effective way to do this is through post-purchase upsells. Post-purchase upsells are offers made to customers after they have already made a purchase, encouraging them to add more items to their cart before checking out.
Post-purchase upsells are an often-overlooked aspect of eCommerce sales funnel optimization, but they can have a significant impact on your store's revenue. In fact, according to a report by Baymard Institute, eCommerce stores that implemented post-purchase upsells saw an average increase of 10-30% in their revenue.
In this blog post, we'll take a closer look at how post-purchase upsells can boost the revenue of your Shopify store. We'll explore the benefits of post-purchase upsells, different strategies for implementing them, and how to optimize them for maximum revenue boost. Interested? Keep on reading!
Benefits of Post-Purchase Upsells
Using post-purchase upsells, eCommerce stores can increase customer loyalty and engagement. Customers are more likely to make a purchase from online stores that offer relevant products that meet their needs.
Now let's take a closer look at some of the specific benefits of post-purchase upsells and how they can help boost your store's profitability.
- Increase in average order value (AOV).
One of the most significant benefits of post-purchase upsells is that they can help increase your store's average order value (AOV). By offering customers additional products or services after they've already made a purchase, you can encourage them to add more items to their cart and increase the total amount spent per transaction. This, in turn, can have a significant impact on your store's revenue and profitability.
For example, if a customer purchases a pair of shoes from your store, you could offer them a complementary pair of socks or a shoe cleaner as an upsell offer. This could encourage the customer to add more items to their cart and increase their total order value.
2. Boost in customer lifetime value (LTV).
Post-purchase upsells can also help increase your store's customer lifetime value (LTV). By offering customers relevant products or services after their initial purchase, you can increase their overall lifetime value to your store. This means that not only are they spending more per transaction, but they're also more likely to return to your store in the future and make additional purchases.
For example, if a customer purchases a camera from your store, you could offer them a camera bag or a lens as an upsell offer. This could increase the customer's overall lifetime value to your store and make them more likely to return in the future.
3. Increased customer loyalty and retention.
Post-purchase upsells can also help enhance customer loyalty and retention. By offering personalized and relevant upsell offers, you can show your customers that you understand their needs and preferences, and that you're committed to providing them with the best possible shopping experience. This can help build long-term relationships with your customers, increasing their loyalty to your store and reducing the likelihood of them shopping elsewhere.
For example, if a customer purchases a skincare product from your store, you could offer them a personalized skincare routine as an upsell offer. This could help build a relationship with the customer and increase their loyalty to your store
4. Cost-effective marketing strategy.
Post-purchase upsells can also be a cost-effective marketing strategy for your store. Rather than spending money on advertising or marketing campaigns to attract new customers, you can focus on leveraging your existing customer base and encouraging them to make additional purchases. This can help you generate additional revenue without incurring the same costs associated with acquiring new customers.
Overall, post-purchase upsells can provide a range of benefits for your Shopify store. By implementing post-purchase upsells in your store, you can take advantage of these benefits and boost your store's revenue and profitability.
Strategies for Implementing Post-Purchase Upsells
Now that we've covered the benefits of post-purchase upsells, let's take a closer look at the different strategies you can use to implement them in your Shopify store. By incorporating these strategies into your post-purchase process, you can encourage customers to make additional purchases, increasing the overall value of their order and boosting your revenue.
Here are five of the most popular strategies for implementing post-purchase upsells:
- Cross-selling. Cross-selling involves offering customers complementary products or services that are related to their initial purchase. This is an effective strategy because it encourages customers to make additional purchases that complement their initial purchase, increasing the overall value of their order.
- Upselling. Upselling involves offering customers an upgraded or more expensive version of the product they initially purchased. This is another effective strategy because it encourages customers to upgrade their purchase to a higher-value product, increasing the overall value of their order as well.
- Product bundling. Product bundling involves offering customers a bundle of products at a discounted price. For example, if a customer buys a single product, you could offer them a bundle that includes several related products at a discounted price.
Product bundling is an effective strategy because it encourages customers to purchase multiple products at once, increasing the overall value of their order while providing them with a deal.
- Order bumps. Order bumps involve offering customers an additional product or service that can be added to their cart with just one click. For example, if a customer buys a product, you could offer them a complementary product as an order bump that can be added to their cart with just one click.
Order bumps are an effective strategy because they provide customers with a quick and easy way to add another product to their order, increasing the overall value of their order.
- One-click upsells. One-click upsells involve offering customers an additional product or service immediately after they have completed their initial purchase. For example, after a customer has completed their purchase, you could offer them a complementary product or service that can be added to their order with just one click.
One-click upsells provide customers with an easy and convenient way to make an additional purchase, increasing the overall value of their order.
The Trackr app gives you the ability to add product recommendations to your order tracking page as well as to your email notification. So with the Trackr app, you not only get the ability to provide your customers with real-time tracking information, but also a product recommendation tool to help you increase sales and revenue.
How to Optimize Post-Purchase Upselling to Maximize Revenue
Implementing post-purchase upsells in your Shopify store is just the first step towards increasing your revenue. To maximize the revenue boost from post-purchase upsells and, you need to optimize your strategy. Here are some key factors to consider:
- Placement of upsells in the sales funnel. One important factor to consider when optimizing your post-purchase upsells is the placement of the upsell offers in the sales funnel. Ideally, you want to present upsell offers to customers at the point in the sales funnel where they're most likely to make an additional purchase. This could be immediately after they've made a purchase, or it could be at a later point in the customer journey, such as when they're browsing related products or services.
- Testing and tweaking upsell offers for higher conversions. Another way to optimize your post-purchase upsells is by testing and tweaking your upsell offers to see which ones generate the highest conversions. You can use A/B testing to compare different upsell offers and determine which ones are most effective at encouraging customers to make additional purchases.
- Personalizing upsell offers based on customer behavior and preferences. Personalization is another key factor in optimizing your post-purchase upsells. By using data on customer behavior and preferences, you can create upsell offers that are tailored to each individual customer. For example, you could offer customers upsells based on their previous purchases, their browsing history, or their demographic information.
- Using upsells to sell higher-priced items. Finally, one effective way to optimize your post-purchase upsells is by using them to sell higher-priced items. By offering customers an upsell to a higher-priced product or service, you can significantly increase the overall value of their order and boost your revenue. Just make sure to present these offers in a way that makes them seem like a good deal or a valuable upgrade for the customer.
By optimizing your post-purchase upsells using these strategies, you can maximize the revenue boost you get from this effective marketing tactic.
Post-purchase upsells can be a powerful tool for boosting the revenue of your Shopify store. By encouraging customers to make additional purchases after they've already made a transaction, you can increase the average order value, boost customer lifetime value, enhance customer loyalty, and enjoy the cost-effective benefits of this marketing strategy.
Regardless of which strategy you choose, it's important to optimize upsell offers for maximum efficiency. By strategically placing upsells, you can take full advantage of post-purchase upsell potential to increase revenue.