Looking for an easy way to win customer loyalty and increase e-commerce revenue?
With an in-cart upsell pop-up, you can deliver personalized suggestions to customers that are already purchasing and incentivize them to spend more.
Upselling is a time-honored technique that can help you get more money from current customers.
In fact, way back in 2006, Amazon reported that a fantastic 35% of sales were a direct result of upselling. Moreover, it’s much easier to sell to current customers than to start from scratch.
In the book Marketing Metrics, four leading marketing researches show an interesting finding from their study:
The likelihood of selling to first-timers is 5-20% while the likelihood of selling current customers is 60-70%!
It’s a GREAT gap.
But there’s more: tailored product recommendations make it easy for visitors to find what they want to purchase which, in turn, will increase customer loyalty. A study tells us that upselling is one of the shortest ways to raise your CLV (aka customer lifetime value).
In this blog post, I’m going to reveal:
- What an upsell is.
- 4 ethical methods to upsell your audiences.
So let’s start!
What does upselling mean?
Here is our definition of an upsell:
Upselling is a trick where merchants motivate customers to spend more. They can do this through offering upgrades, more feature-rich items, or other add-ons to their purchase to get more money from each transaction. Like this:
What’s cross-selling? It’s a very similar cousin to upselling. Cross-selling has the same goal – increase AVO – but it does so through offering complementary products. Here’s a visual:
So, now we know what an upsell is, and how it’s different from cross-selling, let’s consider 4 tips for upselling the non-intrusive way.
#1. Recommend relevant items
The more personalized experience you provide your customers, the better.
When you offer items you’re sure your shoppers will like, you can improve customer experience and maximize your sales.
How can we help you with upselling?
Recom.ai lets you add an upsell offer to the shopping cart to quickly promote higher-quality alternatives and boost your potential sales without pushing too hard.
Each Upsell offer is displayed as a popup and can contain any combination of the following: product name, custom description, price, discount and call-to-action button.
Want to create more upselling opportunities? To incorporate a non-intrusive, responsive popup into your website you need to:
1. First, you set up different product offers based on the number of products in a shopper’s cart or the dollar value of their purchase.
2. Choose products that will be delivered to the customers or allow automations do it for you.
3. Finally, add a discount and hit Publish.
And, Recom.ai works with popular e-commerce platforms. That means you can use our app to create a BigCommerce upsell offer, or a popup for your Shopify and Magento online stores.
#2. Keep the rule of 25% in mind
As a general rule of thumb, you should never try to upsell items that are more than 25% of the initial product. If a potential customer lands on your store looking for a $5 tank top, the price of your upsell tank top should not exceed $6.26. If the price difference between items is big, the customer can refuse your offer and stay with the item that has already existed in their shopping bag.
(When cross-selling, the products you recommend should be cheaper than the initial product).
#3. Add discount to your upsell offer
And make your promotions easy to understand and redeem. If you strike out the initial price on your webstore and showcase the new price, perhaps in a red color or via the phrase “Save $5 with this offer”, shoppers can easily see the benefit of the promotion.
#4. Upsell during checkout
You don’t have to only locate suggestions on product details pages. Why not add upsell offers to your shopping cart page and give your customers a chance to discover something new? Here is an example from urbandecay.com:
When a shopper adds the item to the shopping bag, the website recommends extremely relevant items.
A shopping cart page is a perfect option for entrepreneurs looking to showcase items that are slightly cheaper than ones in the cart. It empowers buyers to make quick purchase decisions, resulting in upsells.
Once again, you can use Recom.ai – Upsell & Cross-sell to deliver more advanced and more feature-rich products during the checkout process. Or consider other great options!
Upselling is one of the shortest ways to faster time to profit and create a seamless customer experience.
No matter which approach you choose when creating upsell recommendations, remember the core principles:
- Tailor your offers and recommend only relevant products
- Respect your customers’ budget and stick to a < 25% upsell price
- Offer customers an upgrade at special discount
- Add recommendation to unexpected places such as a shopping cart page
Above all else, take a mental note – your brand exists to help people solve their problems.
Your customers are waiting. It’s time to start creating the kind of upsell offers that they can’t resist.