E-commerce stores face fierce competition, which is why it's important to make the most out of customers who have decided to buy from them.
Upselling is a great way to increase revenue from existing customers, and it's less expensive than trying to attract new customers.
Research proves that it's 68% more expensive to try to convert someone new into a customer than to upsell to existing customers, making upselling a cost-effective approach to increase revenue and grow the average order value.
This article will help you understand everything about upselling. It will give you a chance to brush up on the basics like what does upsell mean, difference between cross sell and upsell and upselling opportunities. I will also share everything about the best places to display your upsell offers on your Shopify store. Lets dive in!
What is Upsell?
An upsell is a specific sales offer made by businesses to encourage customers to buy a more expensive or upgraded version of the product they are already interested in.
If a customer is buying a laptop, you can upsell them by recommending an upgraded version with a more powerful processor or a longer warranty for an additional cost.
When a customer is buying a pair of shoes, an upsell could be suggesting a higher-end shoe model with more features. Upsells are created to increase the average order value and enhance the customer's overall shopping experience.
Some Shopify stores avoid upselling because they worry it will come across as too aggressive. But if done right, your customers will be more than happy to spend a little extra and get something else.
Cross sell vs Upsell
Cross sell and upsell are both sales offers used by eCommerce businesses to increase the total value of a customer's purchase, but they are different in their approach and focus.
Cross-sell is a sales offer recommending the customer a related or complementary product to the product they are already interested in buying.
For example, if a customer is buying a camera, a cross-sell could be offering them an additional lens or a camera bag.
Upsell is an offer which involves suggesting a higher-end or more expensive version of the product the customer is already interested in purchasing. The idea is to encourage the customer to upgrade their purchase to a better version of the product.
For example, if a customer is interested in buying a camera, you could upsell them a more advanced version with extra features and a higher price point.
Both upsell and cross sell offers aim to increase the average order value and provide them with more products that may enhance their overall experience with the original product.
While upsells are powerful in growing your bottom line that doesn't mean you can just throw out an upsell on each page on your store.
To use upselling like a pro, you need to have an effective upsell strategy.
Your upsell offers need to have a certain level of thoughtfulness and purpose. The timing is also a decisive factor - knowing when to present the offer to the customer in a way that is most likely to resonate with them and encourage them to make a purchase.
The best time to offer upsells on your Shopify Store
Upsells can be strategically used on your website to not only grow your bottom line and but also enhance your customer experience. You can use upsells on your Shopify store at three points in the buyer's journey:
1. Pre-purchase upsells
Upsells that are displayed on product pages, where customers are already viewing a specific product and considering a purchase. These may also be presented on category pages, where customers are browsing a selection of related products.
For example, if a customer is browsing a category of laptops, an upsell might be a featured laptop with an upgraded processor or more storage capacity.
2. Mid-purchase upsells
Upsell offers that are displayed at various points during the checkout process to encourage customers to add extra items or upgraded version to their cart before completing the purchase.
One of the most common location for mid-purchase upsells is the shopping cart page, where customers can review the items they have added to their order before proceeding to checkout.
Upsells might be presented as last-minute add-ons, such as extended warranties or expedited shipping options.
You can also display upsells in pop-ups, such as a pop-up window that appears after a customer has added an item to their cart but before they proceed to checkout. These upsells might be presented as limited-time offers or special discounts.
Abandoned cart emails can also include mid-purchase upsells as a way to encourage customers to return to their cart and complete their purchase.
3. Post-purchase upsells
These upsells are displayed after a customer has completed their purchase and are designed to encourage them to make additional purchases or upgrades.
Upselling on Thank You page and the Post purchase page on your Shopify store is a surefire way to boost your bottom line.
You can also upsell customers post purchase by sending them follow-up emails with the upsell offers.
How can you effectively use upsells on your Shopify store:
Install PersonalizerAI to display AI driven personalized upsell offers on product and category pages.
You can display 1:1 personalized upsell offers in pop-ups, shopping cart, checkout page and abandoned cart emails.
With PersonalizerAI, you can display personalized upsell offers on thank you page, post-purchase page and also in follow-up emails.
For a successful upselling strategy you need to make sure all the product recommendations you offer in these upsells above are personalized to each customers’ needs and interests.
The key point here is not to annoy the customers with irrelevant and unwanted offers that add absolutely no value to them. Using an AI to generate upsell offers on auto-pilot will save you tons of time and money.
Upselling tips to boost your Shopify store's revenue
The tips ahead will teach you how to upsell effectively. I’ll delve into some proven upselling strategies and will provide examples to inspire you in your business. By the end, you’ll be able to implement your own profit-boosting upsell strategy on your Shopify store.
1. Personalize Recommended Upsells
Collect customer data, such as purchase history and browsing behavior, to tailor your upsell recommendations to their individual preferences.
Use personalized language in your upsell offers, addressing the customer by name and using data from their previous purchases to make your offer more relevant.
Provide a range of upsell options at different price points to appeal to customers with different budgets.
2. Upsell into a Subscription
Offer customers the option to subscribe to a product they have already purchased, such as a subscription box.
Provide incentives for customers to sign up for a subscription, such as discounted prices, free gifts or exclusive access to new products.
Make it easy for customers to manage their subscription, such as offering flexible delivery dates and easy cancellation options.
3. Upsell with Incentives
Offer incentives for customers to upgrade their purchase, such as a discount on their next purchase, a free gift with purchase or free shipping over certain amount.
Use urgency to encourage customers to take advantage of the incentive, such as limiting the availability of the offer to a short period of time.
Highlight the benefits of upgrading, such as higher quality products, additional features, or a better user experience.
4. Don't Be Pushy or Aggressive
Use a friendly and conversational tone when suggesting additional purchases.
Provide customers with relevant information about the product and allow them to make an informed decision.
Avoid using manipulative language or making false claims about the product.
5. Use Product Comparisons to Trigger a Sale
Create product comparison pages that highlight the benefits of each product and demonstrate how they are superior to competing products.
Use clear and concise language to describe the features and benefits of each product.
Highlight the unique selling points of each product, such as eco-friendliness, durability, or ease of use.
6. Send a follow-up email with an incentive
If a customer didn't buy your upsell item at checkout, don't worry - you can still try to sell it to them later.
One way to do this is by sending them an email with a special offer for a limited time. This email will remind them of the product they didn't buy and the discount or special offer will encourage them to make the purchase.
The strategy will work well for customers who recently made a purchase and might be interested in taking advantage of a sale you're running.
7. Leverage Social Proof to Convince Buyers
Use customer reviews and testimonials to demonstrate the quality and value of your products.
Display social media followers and engagement to show customers that your brand is trusted and respected.
Use trust badges and security seals to assure customers that their personal and financial information is secure.
8. Use Urgency
Create a sense of urgency or FOMO by using limited-time offers or limited availability.
Use language that emphasizes the need to act quickly, such as "Act now!" or "Limited time only!"
Display countdown timers to create a visual reminder of the urgency of the offer. Make sure this urgency or scarcity is genuine and authentic.
People are smart, fake scarcity or urgency when used frequently could leave the customer feeling used and manipulated. When offering limited-time deals you better stick to the timeframe and not extend the offer beyond what was promised.
9. Use a Referral Program to Encourage Sales
Offer existing customers a discount or reward for referring new customers to your store.
Make it easy for customers to refer others, such as by providing a referral link or email template.
Offer rewards that are valuable and relevant to your customers, such as discounts on future purchases or free products.
10. Get the Language Right
Use persuasive language that focuses on the benefits of the product rather than just its features.
The language used on your store should be clear, concise and easy to understand, avoid technical jargon or overly complex phrasing.
Use emotional language that appeals to the customer's desires and needs, such as "improve your life" or "feel confident and happy."
Use the right upselling tools and apps for your store
Shopify app store offers multiple apps that are specifically built for upselling on Shopify stores. Many stores already take advantage of upselling thanks to Shopify's smooth interface enabling the offering.
You can research the best upselling apps for your specific store and industry. If you want to upsell on auto-pilot, you can install PersonalizerAI on your store.
PersonalizerAI integrates seamlessly with your Shopify store and has a user-friendly interface that will help you display hyper-relevant upsell offers to the right customers, at the right place and time.
If you're upselling on your Shopify store then using PersonalizerAI is probably the easiest and most profitable way to go.
Learn to Upsell effectively: What is Upselling? Ultimate Guide for Shopify