Boost your Store's revenue and AOV with post-purchase upsells
There has been a massive increase in the growth of the e-commerce industry. This is the perfect time for stores to brainstorm on how to boost revenues and AOV with post-purchase upsells.
Every Shopify store owner wants an increase in revenue. But nevertheless what are the effective ways to do that without damaging the value of your store?
How can I increase the revenue of my store?
The basic thing to do is to "attract new customers" because new customers mean more sales. But will this really boost your store’s revenue? It is said that only 10% of a store’s revenue is gotten from its customers. This implies that aiming to drive traffic and attract new customers is a great method. Increasing the value of your products to your existing customers is obviously another great method and also effective. Some of the popular tactics used by stores to increase their value to customers are:
- Membership scheme.
- Focus on fast delivery.
- Excellent customer service.
All these methods are notwithstanding great but not as effective as implementing post-purchase upsells. Offering your customers a product they will love to buy after a purchase is a great way to boost your revenue.
What is post-purchase upsells?
This is a type of offer you send to customers to encourage them to make additional purchases after they have completed a transaction. When they accept your post-purchase upsell offer, it increases the value of their cart. Which can be a more significant version of the original product purchased.
Cross-selling is nearly the same tactic, only the customer adds a complimentary product to their existing shopping cart. They are both termed "upsells" because, if utilized, they yield almost the same results. For example, let’s say you are buying a phone online. As a bonus, you will get recommendations like wireless chargers, wireless earplugs, phone covers, or a message to subscribe to weekly updates. This way, the customer gets introduced to other items that will improve the value of their product.
Types of upsell strategies
- Pre-purchase upsell: During the transaction, an upsell offer of similar items will be on display.
- One-click upsell: This is a different strategy because the customer sees it after the transaction before they leave the page. If they accept the offer, they can make a purchase without having to input their details (name, payment, shipping information).
The Value of Post-Purchase Upsells
Boost your store’s AOV.
Average Order Value (AOV): This is a metric that tracks the average number of orders placed with a store within a specific period of time. This number is very important for online stores as it is used for key business decisions like marketing, product pricing, and store layout.
Post-purchase upsells is an effective strategy that can significantly boost revenues and key metrics like Average Order Value (AOV). Optimizing your store to have a better AOV will instantly boost your revenue, while reducing time and money spent on marketing. Amazon has reported that upselling makes up as much as 35% of its revenues.
Scale your business faster with higher revenue.
Implementing upsells can have a significant effect on your business growth. Upsells can increase your company’s conversion rate, reduce your ad’s spend, and reduce cart abandonment rates. With this incredible growth, your company’s revenue will automatically increase.
Best practices for post-purchase upsells
Make the post-purchase offer relevant and valuable.
For a client who purchases a coffee maker, recommendations like a backpack, umbrella, or jacket should not be on display. The offer should be for products that are highly relevant to the customer. It can be an upgrade version of what was purchased or similar products that can add value to the customer. It can even be a special deal consisting of what was purchased. These tactics will help increase the chances of your customer accepting your offer.
Use urgent terms in the offer.
Urgency can drive more conversions. Using statements like "one-time offer", "only valid for", or a timer will portray the urgency of your offer. By increasing the conversion rates of your store, you are also boosting your revenues.
Utilize one-click post-purchase offers.
A one-click post-purchase offer occurs between the transaction page and the thank you page. This makes it more effective than others. Why?
- The customer is under zero pressure to add the product to their cart.
- It is not stressful for customers to complete their purchase. With just one click, the order can be easily completed.
- The customer sees this offer during the euphoric moment of purchasing a product.
Choose the right upselling platform.
I recommend using AfterCheckoutUpsell to assist you in levelling up your post-purchase offers. This easy-to-use upsell app helps you create post-purchase offers that help boost AOV, revenues, and customer retention. With customer-friendly one-click PPO, easy configuration, and flexibility with your upsell, this tool is a must-have for every Shopify store owner.
Use post-purchase offer to stay on your game.
A post-purchase upsell is a simple strategy, if implemented well, can increase profits for your store. Now that upselling has become a "thing" in this e-commerce world. You should seize this opportunity and gain an edge over your competitors.