Upselling strategies to boost revenue for e-commerce businesses
July 10, 2021
0 minute read
Upselling strategies for customers is a needed step for not only traditional stores but also online stores on eCommerce platforms such as Shopify.
However, none is born to be brilliant or master in all of the techniques and methods of sale. The key to becoming successful in this field is to upsell existing customers, which is the art of increasing the revenue for every module of business.
I guarantee that it would be a failure of your business to miss out on a great deal of revenue if you cannot upsell to your customers.
Don’t worry too much, here we present you top 5 quick wins and easy growth non-sleazy upselling strategies to boost revenue for e-commerce businesses.
What are upselling strategies?
Upselling strategies are acts of convincing a consumer to buy a more expensive item or upgrade a product, making the transaction between sellers and clients more profitable.
To make it clear, you probably familiar with the tricks that fast food stores usually use when asking customers “Would you like fries with that?” – this is the finest example of upselling.
Let’s take the chances to increase and promote repeat purchases, brand loyalty, and brand advocacy.
Why upselling strategies are important for e-commerce?
Upselling is often (and mistakenly) seen as an unethical practice to squeeze more out of the customer.
As upselling strategies, however, upselling should be used to ‘help customers win’. It’s about making recommendations that might better meet a customer’s current needs, and aiding them to make a choice being fully informed about their options…
So how do upselling strategies help you, as a marketer?
Increases customer retention
Leaving aside impulse buys, customers buy products and services to solve a problem. They are aware of the problem, but might not be aware of the best solution to the problem.
Steve Jobs was right when he said “People don’t know what they want until you show it to them.” Upselling done right helps the customer find more value than they were expecting. It can increase revenues by up to 43%, thereby improving your customer retention.
Increases average order value and lifetime value
Upselling increases your average order value, creating revenue and profit at a very low incremental cost. You’ve already spent valuable marketing dollars to get the customer to your e-commerce store, so maximizing order value is key to ROI.
A Marketing Metric study reports that the probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%. Upsell to existing customers is a highly cost-efficient way to boost lifetime value.
What and how should use upselling strategies?
One of the most common ways to upsell is to suggest the next higher model. But when it’s just 4% that you are targeting.
Here are some suggestions on how to upsell:
- Promote your most reviewed or most sold products
- Give more prominent space for the upsell, display testimonials for the upsell
- If you have customer personas in place, use those to make relevant suggestions
- Make suggestions relevant by giving context: why should I buy that instead of this?
And always, always, make sure you suggest products from the same category. Don’t ask your website visitor to buy a 17-inch laptop when they’re shopping for a MacBook air. The two products don’t satisfy the same needs.
Upselling strategies to boost revenue for e-commerce businesses
Each client has their own taste, therefore, it is needed that manufacturers should provide them a good fit for an upsell, and should avoid pushing additional products or services on someone not actually needing them. By establishing a relationship with a client throughout a sale journey, marketers and sellers can acquire those who are suitable for an upsell and who are satisfied with their current commodities and services.
Show upsell popup at the right time, you are going to get a much higher chance of making a better sale. Don’t boo them with your upsell when clients just have arrived at your page.
Furthermore, enhancing such relationships means increasing clients’ satisfaction and loyalty, which can also raise repurchasing possibilities and also carry profitable transactions.
Control product’s price increase effectively
Remember to take advantage of upselling at the right time and situation. For instance, you should not offer your prospective clients a $1000 computer after they added a $500 one to their cart. In this case, the customer will realize the trick of your upselling, which does not do good for the transaction.
However, at the same time, slightly-price differences are not suggested, you should keep the price nearly 25% up so that it would be much more profitable for your company. In the case of the difference is smaller than 25%, you are going to stay within the price of what they have already purchased.
Make sure to put the commodities’ price under control with flexible upsell so that customers will be willing to make further purchases. Nonetheless, you should bear in mind that there is a wide range of competitors that propose price limits out there, from 25% to half the original cost.
To optimize this better, you can take into account Upsell Cross‑Sell Smart Tool by Autoketing.
Make the upsell relevant
The key to upselling is relevance. If your client is buying a romantic novel, he/she does not expect to receive the recommendation of a horror storybook. Alternatively, sellers should consider something else similar to what they’re looking at, like the same author’s audio version of the book, or another same author’s book. This will immediately boost your sales.
Don’t forget to show the superior advantages of the upsell, show clients why the goods are worth to be purchased. Take Shopify as an example, they highlight the reasons why audiobook versions can do wonders for buyers.
Provide free shipping
Free shipping deals have proved to boost sales. Around 90% of customers say free shipping is their main incentive to shop more online. A survey of online-purchasing customers conducted by Bloomberg claimed that 85% of them decided to buy goods due to the free charge of shipping.
This fits perfectly with upsell, free shipping bar should remind clients that “The more you buy, the more profit you get”, therefore, they’ll have a huge incentive to keep adding things to the cart, particularly if the goods are not too expensive.
Consider down selling
Last but not least, offering a slight-less decline in price is also useful when you want to upsell your customer. From this, both parties are advantageous since not only retailers/wholesalers can sell their goods but clients also afford the things that they desire to possess. From this, you can build trust for customers, then the next time they will come back to your store and then consider other pieces of stuff, you can probably use the trick of upselling.
Upselling strategies are extremely effective ways to not only increase your sales but also build a better and more enhanced relationship with your customers. It’s important to note that upselling strategies should be done when it adds value to the customer and improves their shopping experience, not simply for improving your bottom line.
For more tips on improving your store, check out our other articles here on Autoketing.
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