Post-purchase upsells are a great way to increase your average order value (AOV) in eCommerce stores. 65% of businesses with more than 1,000 orders per month use post-purchase upsells.
What is a Post Purchase Upsell
A post-purchase upsell is a type of offer made by stores to shoppers after they have already purchased to encourage further purchases. It's crucial to realize that an upsell doesn't always mean raising the actual selling price; it might also mean raising the average order value (AOV). This is frequently accomplished by providing comparable products to your store that you feel a shopper will benefit from as well. For example, if you offer dog treats and have an upsell to online training tools because they compliment your products well, you may encourage customers to buy both together.
This often features comparable goods that your online store believes the shopper may be interested in purchasing next.
What is an Average Order Value?
To begin, let us define the average order value or AOV. AOV is the average amount of money a shopper spends on your store during a single transaction. Divide the total revenue by the number of orders per period of time to get your current AOV. Because individuals are already going through the checkout process and paying for delivery, why not persuade them to spend a little more with your store?
Because the AOV is the total amount paid per order, adding things to the cart after a purchase that were not there before raises the AOV. By including post-purchase upsells on your store, you may boost your revenue per shopper.
When it comes to improving your average order value, post-purchase upsells may be beneficial. Rather than concentrating just on how to upsell the consumer before the purchase, post-purchase upsells are becoming an increasingly important component in increasing your AOV. The difficulty is to understand what motivates customers to make subsequent purchases after their original purchase; this is a tool that is largely informed by psychology and marketing theory, as well as experimentation and testing.
When it comes to eCommerce optimization, many merchants tend to focus on the initial sale of a shopper. But there's more to the puzzle than just one purchase.
The average order value (AOV) is an important indicator in analyzing your store's overall performance and profitability. It is critical to not only enhance your AOV but also to ensure that it is maximized for each consumer on every order.
The most efficient approach to accomplishing this is to include post-purchase upsells or cross-sells during the checkout process. These upsells might assist you in increasing your AOV with little effort.
While some shoppers may be hesitant about the usefulness of these offers, there are various methods to counteract these preconceived beliefs and offer post-buy upsells or cross-sells that will truly benefit your customers and get them enthusiastic about making a larger purchase from your store.
What are the Benefits of Post-Purchase Upsells?
Because shoppers are already familiar with your brand and are in the suitable mood to make future purchases, the post-purchase upsell is an excellent strategy to improve your Average Order Value.
The good news is that using In Cart Upsell to enable post-purchase upsells is simple.
Let's dive into the importance of post-purchase upsells and their significance to your store.
So why should you be using Post Purchase Upsells? Let’s look at the benefits:
- It increases your AOV (average order value). This is a metric that is important for e-commerce stores. By offering upsells after the purchase has been made, customers are more likely to buy something else as they've already committed to buying from you.
- It increases profits- By seeing an increase in AOV, profits will naturally increase too!
- It improves the customer experience and satisfaction. When someone has bought something from you and then receives a personalized email with recommendations that are relevant to their order, they are more likely to feel satisfied with their purchase and see this as a positive shopping experience.
- You can promote new products by sending out emails with suggested products that match your new inventory items!
It's easy for customers to add an item to their order before they checkout. But what happens when they've already completed their purchase? You may think that it's too late to offer an additional upsell at this stage.
People are more likely to buy more if they have already bought something else.
Remember: post-purchase upsells don't necessarily have to come in the form of additional products.
You could also use this opportunity to highlight other areas of your business and encourage repeat purchases by offering your customers a discount or coupon code on their next visit.
This strategy seems to make sense: the customer has already purchased something, so you might think it's the perfect opportunity to offer them more. But it's not. If you wait until after the sale to offer another product or service, you'll get better results with less effort.
To understand why this is the case, consider what your customers are thinking immediately after they make a purchase: they're happy. They're excited about their new product because they just got what they wanted—and at that moment, your brand is strong in their mind because of it. That means that right after making a purchase is the best time for you to get in front of that customer and offer them something else—otherwise known as an "upsell."
Post-purchase upsells can be a great way to increase average order value. It keeps customers in your funnel longer, increasing their chance of making another purchase in the future. The key is to make sure that you are not spamming them and truly providing them with value. Always be sure to have an upsell offer that is specific to the customer's purchase and you will be fine.
It allows you to make up for any sales that may have been lost during checkout or due to abandoned carts. To truly put the technique to work, analyze your worst performing products and determine what could be done to improve their performance. This way, if a customer orders one of your underperforming items, they'll notice an increase in value and will likely be more willing to purchase other products after the fact.
The idea is to create a post-purchase upsell that will convince the shopper to add just one more item to their cart. This message should be personalized, very clearly stating the value of the product you are offering and why it would be helpful to them. If you can get customers to add one more product to their order they will not only buy it but they will also make another purchase in the future, as well as tell all of their friends about how great your store is.
No, you can’t just add upsells to your online store and expect them to convert. But when you carefully select the right products and sequence the upsells logically, you can increase your average order value by 10 – 20% with minimal effort.
So, don't think of post-purchase upsells as an additional burden. Instead, think of this as one more chance to help your customers, who are already happy with their purchase.