Did you know that it is 25 times much more expensive to attract new customers than to retain existing ones? Keeping your current customers happy is more valuable compared to spending time and resources finding new ones. Studies show that increasing your customer retention rates by at least 5% also increases your profits by as much as 25%.
This drives the creation of average order value (AOV) maximization strategies to leverage on the existing customers’ share of wallet. One click upsell does the trick in AOV maximization, as it persuades buyers to carry another transaction they did not initially plan on doing, just like how impulse buying works on candies displayed beside the cashier’s counter.
As there are many possible upselling techniques, this article centers on post-purchase upselling strategy. The technique marries different scenarios of upselling to increase the average order value but the upsell is only presented AFTER a transaction has been successfully completed.
The Benefits of Post-Purchase Upsells
The clever part of post-purchase upsells is that you won’t ever lose a sale. Unlike pre-purchase upsells, you will present your upsells after the sale has been pushed through, so there’s no way you’re distracting or scaring your buyers off during their browsing stage. In fact, post-purchase upsells can help in growing your revenue by 35%. Moreover, 52% of consumers say post-purchase experience is pivotal to their brand loyalty.
Powerful Ways to Include Post-Purchase Upsells
So, how do you include post-purchase upsells into your everyday online selling? We have listed below the most powerful techniques to post-purchase upsells that your online store should steal in an instant.
1 – Thank you pop-up messages, the gratitude effect
Thank-you pop-up message is a real-time strategy to entice buyers to get more items right after their purchase. After an order has been successfully placed, what you can do is to pop-up a message showing your gratitude. Then, skillfully place your product upsells with items that might stir their interests such as complementary items or product upgrades. To drive higher revenue by 21%, including special offers or discounts to the popup message.
You can easily plug-in tools with integrated one click upsell strategy such as Checkout Boost. This convenient tool has a capability to pop-up a thank you message encouraging shoppers to buy more product right after their purchase.
- The recommended upsells are based on the algorithms of the customers’ behavior and interest.
- Upsell: Plus, to be more convincing, you can add discount coupons which they can redeem for their next purchase. Then, showcase the items that they could choose from.
2 – Product reviews, give them a voice to win a sale
Before deciding to buy, 61% of customers read online reviews. Online customer reviews have multitude benefits to drive your engagement, establish a relationship and strengthen your customers’ loyalty to your brand. Plus, customers use the products, even more, when they are asked to evaluate them.
So, give a voice to your customers by inviting them to post a review of the product they have recently purchased. Then, on your product review request, include a note of your upsell items such as featured products, promos, newly arrived items or discounted products.
- Lazada sends an email to recent buyers for product review after the shipment has been delivered.
- Upsell: At the bottom of the email, Lazada showcases their new products with discounted prices to persuade buyers to go back to their site.
3 – Service satisfaction surveys, let them know that you care
Similar to product reviews, service satisfaction survey is a post-purchase messaging request that asks recent buyers to complete a brief survey regarding their total purchase experience. It is typically sent few days after the product has been successfully shipped to the customer.
Service satisfaction surveys allow eCommerce merchants to get a good grasp regarding their customers’ opinions and feedback. They are also provided as an additional touch point to the customers. Thus, allowing you to continue the sales funnel by up to 20% higher revenue even right after a purchase has been done.
- Photobox sends a follow through post-purchase survey to keep the engagement with their recent buyers alive.
- State that the survey won’t take much of their time and that it would help other customers like themselves on their next purchase
- Upsell: Give them something in return like a highly discounted item. Then, create a link to special offers personalized for them.
4 – Replenishment reminders, don’t let them run out of supply
Replenishment reminders allow you to prompt customers to repurchase a product they have previously bought. You can send a replenishment reminder just in time before a product’s shelf life runs out. These reminders work best for those items that are consumed or used on a regular basis such as beauty products, pharmaceutical goods and similar merchandises that have a specific usable period.
Sending reminders to refill their stocks is a value-added service to your previous shoppers. And in return, it adds value to your store by increasing your AOV by up to 53%. This also prevents potential disappointment when, for instance, they repurchase the product but you have already run out of stock.
- Belk reminds customers to restock their favorite coffee products with a sense of urgency by restating that the products may run out of supply.
- Upsell: Simultaneously remind your customers the perfect companion to the product that they are about to replenish for them to save time and money.
5 – In-season upselling reminders, prompt them to upgrade their wardrobes
If replenishment reminders help your customers to restock similar products, in-season upselling techniques lets you exhibit your newly added items. It’s typically getting rid of the out-of-season products that your customers have previously purchased.
- Upsell: For example, fashion is a very dynamic industry that each season of the year there’s always a popular trend of dress styles and ornaments. What you can do is to send reminders to shoppers who bought out-of-season dresses to buy what’s in for the season. You can do similar approach by upselling the products that have recently just arrived at your store.
6 – Purchase anniversary upselling, celebrate the occasion by offering them what they love
Just like replenishment and in-season upselling reminders, purchase reminders are sent typically a year after the purchase has been made, although you can send monthly or quarterly celebratory reminders depending on the product or the profile of the customer. The use of this post-purchase upselling technique delivers a 15% higher conversion rate.
You can combine different approaches to the purchase anniversary upselling reminders such as incentives, discounts, replenishments or a simple thank you note just like what we have discussed above. It can also be part of your reactivation marketing campaign to spice up your dormant and unresponsive customers who have purchased a product from your online store before.
7 – Product user guides, upsell items that perfectly match their purchases
Re-imagine your product user guides or instruction manuals by upselling items that perfectly harmonize the products they have bought. Create contents that serve as a guide for customers on how to utilize the product and subsequently feature items that could enhance their experience when using the item.
For instance, if you are an online fashion house, send how to style product guides to your customers. If a shopper bought a white sneaker, send a content guide on fashionable items that could match the shoes. In this manner, you are not only genuinely helping your customers on how to maximize their product but you are also subtly upselling more items. Thus, increasing more possible purchases in the future.
8 – Loyalty reward programs, tighten your relationship and simultaneously upsell with purchase qualifiers
The main goal of a loyalty reward program is to strengthen the affinity of your customers to your brand by devising actionable activities that customers need to fulfill in exchange for something beneficial for them such as exciting deals or freebies.
However, more sophisticated loyalty reward programs don’t just focus on keeping the relationship alive but also encourage repeat purchases. And you can design a loyalty reward program with post-purchase upsells. You can do that by introducing purchase qualifiers. It means that in order for the customers to receive the reward, they must purchase first the items from your checklist.
It is just an unobvious way of upselling more items to your customers after a purchase has been made. You see it’s a domino effect of purchase after purchase. For example, three different items must be purchased to receive a freebie or you can also create a digital punch card as a guide to customers on how many more items they need to purchase to get their free product.
- StriVectin, for example, assigns different points for different products
- Upsell: If you have an underperforming product, you can assign higher points to that item to increase chances of purchase
Keep the Sales Coming
Post-purchase upselling techniques help you extend your share of the customers’ wallets without scaring them away with distracting or pushy upsells even before they complete their purchase. And in order for upselling techniques to work best, your recommendations must be personalized, relevant, and time sensitive.
Aside from increasing the average order value, the added bonus of post-purchase upsells is that you do not stop your relationship even after a purchase has been made. Thus, keeping the relationship alive and keeping the sales coming.