How post-purchase upsells can increase your ecommerce revenue

In this blog, we will take a look at the following point:

  • What is a post-purchase upsell?
  • Why should you include one?
  • How to include a post-purchase upsell?
  • Who’s doing it well?

 

What is a post-purchase upsell?

A post-purchase upsell is what ecommerce marketers use to increase the average order value.

This means they find ways to encourage customers to purchase items they originally weren’t planning on.

An up-sell works best when you use it after a customer has completed a transaction.

The idea is to present customers with products that will compliment the one they’ve just purchased.

You can also use a post-purchase upsell to encourage customers to spend more money with you, by taking advantage of any specific offers or discounts.

Why should you include one?

Benefits of upselling:

  • You don’t have to worry about scaring away your customers
  • You can grow your revenue
  • You can build and foster a relationship with your customers

You don’t have to worry about scaring away your customers
You should use post-purchase upsells because there is no way your customer can stop purchasing from you.

Pre-purchase incentives have the ability to distract or annoy the customer and they might not convert, and make a purchase, but post-purchase upsell customers have already made a purchase.

You can grow your revenue
Using ecommerce post-purchase upsells can help increase your revenue by as much as 10-30%.

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This is because customers are enticed to make further purchases of relevant items.

You can build and foster a relationship with your customers
When setting your post-purchase upsell strategy, you should be concerned with using it to try and build a relationship with your customers. Increasing your revenue should not be your main concern. That will happen naturally once you’ve built a relationship and rapport with your customers.

How to include a post-purchase upsell?

If you’re going to use upsell techniques, then it shouldn’t come across like you’re trying to sell at any opportunity.

This means you should make sure any further products you upsell are relevant to the purchase they’ve previously made. You need to show that you understand the needs of your customer and you’re not just trying to sell anything to them.

You need to show that you understand the needs of your customer and you’re not just trying to sell anything you can to them.

The focus should be on providing value. You should do this by choosing an upsell product to be something the customer is familiar with.

Who’s doing it well?

Offline stores have been using upsell-techniques forever. Think about when you go to a fast food restaurant and they ask if you’d like fries with your order.

In the online world, Etsy is one store who have adopted upselling-technique.

screen-shot-2017-01-31-at-13-57-40When a customer makes a purchase, Etsy, like most shops, sends a purchase receipt.

On that receipt, the customer can see details of their purchase. They can see how much it cost and where they’ve chosen to have it shipped. They also include items you might also be interested in. They curate these images from the images you’ve previously looked at on Etsy.

This is good for these reasons:

  • Familiar – they use items the customer has already looked at, at some point.
  • Value – they know the customer is interested in these items and this upsell might act as a friendly reminder for them to buy them.
  • Not “sales-y” – they include it at the bottom of the receipt email. It takes the focus away from the upsell and allows those who want to ignore it, to ignore it.

Amazon

When you’ve made a purchase with Amazon, they also send you an email.

At the bottom of their email, they have a curated list of recommended products based on the one you have just purchased. This list comes from the masses of data Amazon has been able to collect.

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Takeaways

Customers are smart nowadays and they know when you’re trying to sell to them. If you’re going to utilise an upsell strategy, then you need to think about it from a customer’s point of view and keep it customer-centric with their needs at the forefront.

Remember, you can’t scare away a customer with a post-purchase upsell, as they’ve already made their purchase, but you can increase the chance of them making a second purchase.

Don’t leave money on the table by not adopting an upsell strategy.

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