Upselling Techniques For Better E-Com Revenue Generation
ECommerce has changed the way you buy and sell. A few decades back, no one has ever dreamt about buying items digitally. Despite the complexities of the modern era, some strategies - like upselling - can never be replaced.
Upselling is the technique that retailers are relying on form ages, and there is no sign of the art of upselling going away soon.
Today, many businesses are looking for effective ways of making more money online. That can be done by getting more customers, convincing customers to buy more frequently, and by selling high-value products to your existing customers.
However, the most effective way to grow your revenue is by selling high-value products to your existing customer - Upselling.
As I discussed in the last blog - the probability of selling to someone new is under 20%, where the likelihood of selling to an existing customer is 70%.
Up-selling Vs. Cross-selling
Both up-sell and cross-sell help you boost your sales while providing value to your customers, but they are different.
Conveniences your customers to purchase a more expensive version of the product
Conveniences your customer to purchase related products
Results in better profit margin
Helps distinguish your brand from your competitors
Increase the customer lifetime value
Develops customer equity
Improves customer satisfaction rate
Improves customer loyalty and engagement
Both the techniques effective but, I will focus on upselling instead of cross-selling.
Because according to researchers, upselling is 20 times better than cross-selling.
If you look at the statistics, it has clearly stated that visitors who are shown similar but more expensive product drives over 4% of the sales where only 0.2% of sales are driven from cross-selling.
Why Upselling works?
Before you implement an upselling strategy, it's vital to understand why upselling works.
Upselling is effective enough to boost your sales graph by 4%, as it's a strick while the iron is hot.
If you look at the customer's journey, here are the steps they take before making a purchase decision;
- Perform some basic research
- Research your brand
- Examine your site
- See how your product solve their problem
- Read product reviews
After, all that they will decide to buy from you as that product helps them fix their particular pain point.
They added the product in their cart and about to checkout, all willing to make a transaction.
In simple words, they are in a buying mode.
This is a critical time as your customer might be open to buying an alternative product even as long as it offers more value than the initial product. If so, they will happily make a buying decision no matter if the cost is a bit higher than the initial product.
Therefore, it's fair to spend a bit more for an upgrade, and even your shoppers won't mind doing so.
Additionally, it's convenient, and people don't have to do an additional search with a single click they are ready to go.
These are the reasons why upselling works so well.
How To Implement Upselling In Your Store?
After looking at the perks of upselling, let's dive into the ways to maximize your store's revenue.
There are three ways you can promote your offer in your store - on your homepage, product page, and checkout.
It's the main page of your store, where most of the visitors arrive without definite aim. By displaying your special offers, promotions, and current deals on your homepage, will give your audience a reason to stay.
For example, If you visit the iPhone's homepage, you will find a good representation of upselling.
A product page holds detailed information about a particular product. Customers exploring the product page are more inclined towards your product. If you recommend relevant products along with your offer, it will help you fill your sales funnel with high-value products.
For example, if a shopper is checking out a perfume, you might showcase two-three other fragrances of the same brand on the product page. This way, the buyer can notice what else is available before they make a purchase.
If you want to boost the transaction value on your cart, offer supplement products that closely relate to the original products that shoppers already have in their cart.
The upsell offer on the checkout page attracts 3% more visitors to opt for the offer and boost revenue by 4% per user.
For example, at Nordstrom, you can add a free gift message, or upgrade to a gift box for just $5 extra during checkout.
Tool To Automate Your Upsell
Now that you have understood that upselling plays a vital role in marketing strategy. Its time to automate your upsell with your Shopify store.
There are hundreds of tools that serve the same purpose, but you deserve the best.
Cartroids is one of the most effective tools that help you create an upsell offer for any of your products. Imagine each of your best-selling products, having a complimentary product as an upsell!
With Cartroids analytics, you can see how many orders and revenue was generated through upsells offers.
Bundling is the most effective way to attract customers, especially with related items. But a perfect upsell offer must be appealing for your shopper both visually and in terms of price.
Cardroids is 3 IN 1 app that serves you with the option of upselling, cross-selling, and bundle offers. You can also reward your customers with discounts for each additional product added to their cart.
The best part is, it only charges you when you start generating revenue. No matter if it's after seven days, 14 days, or a month. Install for free!
Increase your AOV by using laser-focused upsell offers!
Upselling will help you yield loyal customers, thus bearing a significant impact on your revenue. I have explained three useful upselling techniques in the article. Now, it's up to you how you experience them in your favor.
Do you practice upselling on your site?
Which technique has been the most effective for your store?
Share in the comments below.