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Post Purchase Upsell: Maximizing AOV [Ultimate Guide]

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Maximizing average order value (AOV) can be a challenging task for e-commerce businesses. Simply relying on the initial purchase amount may not be sufficient to sustain profitability in the long run. However, by implementing post-purchase upselling strategies, businesses can overcome this challenge and achieve multiple objectives simultaneously.

Post-purchase upselling presents a powerful opportunity to increase customer retention by enhancing the shopping experience. By offering relevant upsells after the initial purchase, businesses can demonstrate their commitment to meeting customer needs and providing additional value. This, in turn, fosters customer loyalty and encourages repeat purchases.

Furthermore, post-purchase upselling allows businesses to leverage their existing customer base to drive upsells and cross-sells. By carefully analyzing customer preferences and purchase patterns, businesses can tailor their upsell offers to align with individual customer interests. This targeted approach increases the chances of a successful upsell and boosts the AOV.

As you can see, post-purchase upselling provides a cost-effective means of increasing profitability. Since it targets customers who have already made a purchase, the acquisition costs associated with new customers are eliminated or reduced. This allows businesses to optimize resources and maximize revenue without incurring significant additional expenses.

So, we’re going to talk about how your e-commerce site can take advantage of post-purchase upselling to boost AOV and increase profitability.

Here we go!

What Is Post-Purchase Upselling in Shopify?

In Shopify, post-purchase upselling refers to a marketing strategy where additional products or services are offered to customers after they have made a purchase. It is a technique used to increase the average order value by encouraging customers to buy more or upgrade their purchase immediately after completing a transaction.

Here’s how the post-purchase upsell process typically works in Shopify:

#1: Customer completes a purchase

After a customer completes a purchase and proceeds to the checkout process, they are presented with an order confirmation page.

#2: Upsell offer

A post-purchase upsell offer is displayed to the customer on the order confirmation page. This offer could relate to the product they just purchased, complementary products, or an upgrade or add-on to their original purchase.

#3: Incentives and benefits

The upsell offer is usually accompanied by enticing incentives or benefits to encourage the customer to take advantage of the additional offer. These incentives may include discounts, exclusive deals, free shipping, or other perks.

#4: One-click upsell

Shopify allows for one-click upsells to simplify the process and improve conversion rates. This means customers can accept the upsell offer with a single click without re-entering payment or shipping information.

#5: Confirmation and fulfillment

Once the customer accepts the upsell offer, they receive a confirmation of their updated order. The additional product or service is then added to their original order, and the necessary adjustments are made to the payment and shipping details.

Post-purchase upsells can be effective because customers have already demonstrated their willingness to purchase, indicating trust and engagement. By offering relevant upsells immediately after purchase, Shopify merchants can capitalize on this momentum and potentially increase their revenue per customer.

While you can find various post-purchase apps within the Shopify ecosystem enabling post-purchase upsells, these apps may not offer the full range of functionality that PickyStory offers. Read on to find out how PickyStory can help you implement a killer post-purchase upsell strategy to maximize your revenue.

Post Purchase Upselling strategy for Shopify
Source: https://www.unsplash.com/

Why Is Post-Purchase Upselling Important?

Post-purchase upselling is a vital strategy that holds great significance in the e-commerce world, just like post-purchase evaluation. By offering additional products or upgrades to customers after they make a purchase, businesses can boost their overall sales and profitability. The primary impact of post-purchase upselling is its ability to increase the average order value (AOV).

Businesses can maximize their revenue by encouraging customers to spend more without incurring additional customer acquisition costs. This not only contributes to immediate financial gains but also has a long-term effect on customer loyalty. When customers feel valued and provided with relevant and personalized upsell offers, their satisfaction increases, fostering loyalty toward the brand. Businesses can cultivate lasting relationships with customers by consistently delivering additional value and enhancing the customer experience.

Ultimately, post-purchase upselling is a powerful tool for businesses to drive sales, increase profitability, and establish strong customer loyalty in the competitive e-commerce landscape. Be sure to keep post-purchase upselling on your radar as it provides a highly useful marketing strategy ensuring long-term, sustainable growth.

What Are the Benefits of Post-Purchase Upselling?

Post-purchase upselling offers several key benefits, allowing e-commerce sites and customers to get greater value without increasing expenses. Here are the key benefits of post-purchase upselling:

#1: Increased revenue

The primary goal of post-purchase upselling is to increase the average order value. By offering additional products or services to customers who have already purchased, businesses can boost their revenue without acquiring new customers. It allows businesses to make the most out of each transaction and maximize their profitability.

#2: Higher customer lifetime value

Upselling to existing customers can significantly impact their lifetime value. By encouraging customers to spend more immediately after a purchase, businesses can increase the customer’s overall value over the long term. A higher customer lifetime value contributes to the sustainability and growth of the business.

#3: Enhanced customer experience

When executed properly, post-purchase upselling can enhance the customer experience. By offering relevant and complementary products or upgrades, businesses can provide customers with valuable options that enhance their initial purchase. This can increase satisfaction and positive brand perception, improving customer loyalty and retention.

#4: Cross-selling opportunities

Post-purchase upselling also creates opportunities for cross-selling. Cross-selling involves offering related or complementary products to customers based on their initial purchase. For example, if a customer buys a camera, a cross-sell offer could include accessories such as lenses, memory cards, or camera bags. This strategy helps customers discover products they may not have considered initially and increases the likelihood of additional sales.

#5: Cost-effective marketing

Upselling to existing customers is generally more cost-effective than acquiring new customers. It requires fewer resources and marketing efforts since the customer has already established a relationship with the business. By leveraging the existing customer base, businesses can achieve higher returns on their marketing investments.

#6: Competitive advantage

Post-purchase upselling can give businesses a competitive advantage in the market. Businesses can differentiate themselves from competitors by offering personalized and tailored upsell offers. This demonstrates a deep understanding of customer needs and preferences, leading to increased customer satisfaction and loyalty.

#7: Data-driven insights

Implementing post-purchase upselling strategies provides businesses with valuable data and insights. Businesses can gain a deeper understanding of their customer base by analyzing customer behavior, preferences, and purchasing patterns. This data can then be used to refine marketing strategies, optimize product offerings, and improve overall business performance.

#8: Improved Customer Satisfaction

When executed thoughtfully, post-purchase upselling can enhance the customer experience and satisfaction. By offering relevant and valuable upsell options, businesses provide customers with additional products or services that enhance their initial purchase. This demonstrates attentiveness to their needs and preferences, making customers feel valued and leading to increased satisfaction.

#9: Personalization and Relevance

Post-purchase upselling allows businesses to personalize their offers based on the customer’s previous purchase history and preferences. This tailored approach increases the relevance of the upsell offer, making it more enticing to the customer. By leveraging data and customer insights, businesses can present highly targeted upsell suggestions that align with the customer’s interests and needs.

As you can see, post-purchase upsell tactics can help drive sales but also help e-commerce sites increase their market shares. The key point is leveraging an existing customer base to ensure customer loyalty and sustainable, long-term growth.

Types of Post-Purchase Upselling Strategies

Post-purchase upselling strategies come in various shapes and sizes. As such, you can choose the one that best suits your e-commerce site, products, and target customers. The following post-purchase upselling strategies will surely give you plenty of food for thought:

#1: Product Upgrades

Offer customers an upgraded version of the product they just purchased. For example, suppose a customer bought a basic model of a smartphone. In that case, you can offer them an upsell for a higher-end model with more features.

#2: Bundle Offers

Create bundles by combining complementary products or services. For instance, if a customer purchases a camera, offer them a bundle that includes lenses, a camera bag, and a tripod at a discounted price.

#3: Cross-Selling

Recommend related products or accessories that enhance the customer’s initial purchase. For example, suggest a laptop bag or a wireless mouse as an add-on if someone buys a laptop.

#4: Subscriptions or Add-On Services

Customers can subscribe to a service or add additional features to their purchase. For instance, if someone buys a software tool, provide an upsell for a premium support package or a monthly subscription for exclusive features.

#5: Volume or Quantity Upsell

Encourage customers to buy more of the same product by offering discounts or special pricing on bulk purchases. This strategy is effective for consumables, office supplies, or beauty products.

#6: Loyalty Programs or Memberships

Provide customers with the opportunity to join a loyalty program or membership that offers exclusive benefits, discounts, or rewards. This encourages repeat purchases and fosters long-term customer loyalty.

#7: Limited-Time Promotions

Create urgency by offering time-limited promotions or discounts on additional products. For example, provide a limited-time discount on a complementary item if the customer adds it to their order within a certain timeframe.

#8: Personalized Recommendations

Leverage customer data and purchasing history to offer personalized recommendations. Use algorithms or AI to suggest products or services that align with the customer’s preferences and past purchases.

#9: Free Shipping Thresholds

Set a minimum order value for free shipping and offer an upsell that pushes the customer’s order value above that threshold. This incentivizes customers to add more items to their cart to avoid shipping fees.

#10: Exclusivity or VIP Offers

Provide exclusive upsell offers to loyal or high-value customers. This can include early access to new products, limited edition items, or special discounts reserved for VIP customers.

It’s important to note that the effectiveness of these upselling strategies depends on factors such as customer segmentation, relevance, timing, and the value proposition of the upsell offer. By tailoring these strategies to your customer base’s specific needs and preferences, you can maximize the impact of post-purchase upselling on your business.

Grow your sales with high-performing deals.

Examples of Effective Post-Purchase Upselling Strategies

The following examples of post-purchase upselling provide inspiration for any type of e-commerce site looking to implement this highly effective approach. Let’s take a closer look:

#1: Dollar Shave Club

Dollar Shave Club is an online subscription-based store that specializes in delivering high-quality shaving and grooming products to customers. The company offers a wide range of grooming products, including razors, razor blades, shaving creams, aftershave lotions, beard care products, and more. Initially, they gained popularity for their affordable and high-quality razor blades. They also do post-purchase upselling strategies quite well.

Here’s a closer look at this post-purchase upselling example:

post purchase upsell example shave
Source: https://www.shopify.com/uk/blog/post-sales-emails-turn-buyers-into-fans

This example highlights how Dollar Shave Club entices customers to purchase more by suggesting complementary products. This approach fosters Shopify product upselling as customers can view products they may not have considered before. As a result, customers may feel compelled to add more products to their cart in order to complement the product they originally wanted to purchase. Furthermore, these suggestions are always a great way to ensure customers don’t miss the deals you want them to see.

#2: Beauty Shop

Beauty shops offer wonderful beauty products. They consistently run offers to keep attracting customers. While the offers are fantastic, generally e-commerce sites use a simple but often-overlooked tactic: post-purchase upsell.

Most e-commerce sites drive sales by offering post-purchase upsell with a discount. Of course, most customers love discounts. Offering good deals is one of the most successful ways to boost sales. 

Here’s a closer look at this post-purchase upselling example:

Source: https://www.pickystory.com/

This post-purchase upselling strategy works since customers have a chance to add an additional product for a better price. Bear in mind that even small margins can add up, leading to increased AOV and boosted profits.

#3: PickyBoutique

PickyBoutiqe is a wonderful Shopify store where Shopify store owners can try all PickyStory features in one place and check the real-life offers automated with AI technology.

Here’s a closer look at this post-purchase upselling example:

Source: https://try.pickystory.com

This example highlights how timers provide a great opportunity to upsell customers. Psychologically, not taking advantage of these discounts makes customers feel like they are leaving money on the table. In addition, these discount types work very well with products customers frequently consume. This approach results in increasing sales and boosting profitability.

You can create your post-purchase upsell offer based on an AI-driven algorithm for your customers easily with PickyStory.

How to Create Post-Purchase Upsell with PickyStory [Step-by-Step]

#1: Set your post-purchase

In your Shopify admin, go to Settings -> Checkout -> Choose PickyStory as your Post-purchase page.

post purchase step 1

#2: Create story with post-purchase

Go to PickyStory’s app and click on Stories -> Post-purchase story.

post purchase step 2

#3: Set the discount

Choose your discount type and discount value.

post purchase step 3

#4: Create urgency with the timer

Enable/disable the timer and set up the time.

post purchase step 4

#5: Set your CTA

Choose the Call-to-action text.

post purchase step 5

#6: Publish and generate more revenue

Publish the story to make it live in your store.

post purchase step 6

Your post-purchase offer is now live and will look like that- 

post purchase step 7

Try PickyStory now to create your first post-purchase upsell offer!

Top Ten Tips Maximize AOV with Post-Purchase Upselling

Here are ten tips to help you maximize AOV with post-purchase upselling:

#1: Understand Your Customers

Gain a deep understanding of your target audience, including their preferences, needs, and purchasing behavior. This knowledge will enable you to identify relevant upsell opportunities that align with their interests.

#2: Analyze Purchase Patterns

Use data analytics tools to analyze customer purchase patterns and identify popular combinations of products or services. This analysis will help you identify logical and complementary upsell offers.

#3: Segment Your Customers

Divide your customer base into different segments based on their preferences, demographics, or past purchase behavior. Segmenting customers allows you to create tailored upsell offers that resonate with each group, increasing the likelihood of a successful upsell.

#4: Personalize Upsell Recommendations

Leverage customer data to personalize upsell recommendations. Use purchase history, browsing behavior, and preferences to suggest relevant upsell options to individual customers. Personalization creates a more engaging and customer-centric experience.

#5: Offer Bundles or Packages

Create value-added bundles or packages that combine related products or services. Offering these bundles at a discounted price compared to purchasing each item separately encourages customers to add more items to their cart, increasing the AOV.

#6: Highlight Benefits and Value

Clearly communicate the benefits and value of the upsell offer to the customer. Focus on how the additional product or service enhances their original purchase, saves time, or provides a better overall experience. The customer should understand the value they will receive from accepting the upsell.

#7: Use Social Proof and Reviews

Leverage social proof by showcasing positive reviews, testimonials, or ratings from other customers who have accepted the upsell. This builds trust and confidence in the additional product or service, making the upsell more appealing.

#8: Create Urgency and Scarcity

Incorporate elements of urgency and scarcity into your upsell offers to encourage immediate action. Limited-time offers, exclusive upgrades, or “only X left in stock” notifications create a sense of urgency, increasing the likelihood of conversion.

#9: Provide Incentives

Offer incentives to customers who accept an upsell, such as a discount, free shipping, or a bonus item. These incentives provide extra motivation for customers to take advantage of the upsell offer, further increasing the AOV.

#10: Optimize Post-Purchase Communication

Strategically time and deliver post-purchase communications to offer upsells. Use automated email sequences (post-purchase email strategy), order confirmation pages, or personalized recommendations on your website to present upsell opportunities. Timing is crucial, and presenting upsells when customers are most engaged increases the chances of a successful upsell.

Please remember that it is important to strike a balance between offering relevant upsells and avoiding overwhelming customers with too many options. Implementing these tips can effectively maximize AOV with post-purchase upselling, leading to increased revenue and customer satisfaction.

Post Purchase Upsell Ultimate Guide for Shopify
Source: https://www.unsplash.com/

Top Ten Mistakes to Avoid with Post-Purchase Upselling

Here are ten mistakes to avoid with post-purchase upselling:

#1: Irrelevant Upsells

Offering upsells that are irrelevant to the customer’s original purchase can be off-putting. Make sure your upsell suggestions are closely related to the customer’s needs, preferences, and the product they just purchased. Personalization is key to ensuring relevancy.

#2: Overselling and Pressuring Customers

Pushing customers too aggressively to accept an upsell can lead to a negative experience. Avoid using high-pressure tactics or bombarding customers with excessive upsell offers. Instead, focus on providing value and letting customers make informed decisions.

#3: Poor Timing

Timing is crucial in post-purchase upselling. Offering an upsell too early in the customer journey may feel premature while presenting it too late can miss the opportunity. Understand the customer’s buying cycle and find the right moment to present the upsell, preferably when they are most engaged and receptive.

#4: Lack of Clear Communication

Failing to communicate the upsell’s benefits, value, and differences can result in customers’ confusion or skepticism. Provide concise and transparent information about the upsell, highlighting how it enhances their purchase and addressing potential concerns.

#5: Ignoring Customer Preferences

Neglecting to consider customer preferences and past purchase behavior can lead to ineffective upsell offers. Leverage data and customer insights to personalize upsell recommendations. Treat each customer as an individual and tailor your offers accordingly.

#6: Neglecting Post-Purchase Experience

Overemphasizing upselling without focusing on the overall post-purchase experience can harm customer satisfaction. Ensure your post-purchase process is seamless, with timely shipping, excellent customer support, and clear communication. A positive experience increases the chances of successful upsells in the future.

#7: Overcomplicating the Upsell Offer

Keep your upsell offers simple and easy to understand. Customers may feel overwhelmed or hesitate to proceed if the upsell offer is confusing or requires additional steps or decisions. The upsell process should be straightforward and seamless.

#8: Failing to Track Results and Optimize

Neglecting to track and analyze the results of your upselling efforts can hinder your ability to optimize and improve. Use analytics tools to measure the effectiveness of different upsell offers, conversion rates, and overall AOV. Continuously refine your strategies based on data insights.

#9: Offering Excessive Upsells

Bombarding customers with multiple upsell offers within a short timeframe can lead to decision fatigue and frustration. Be strategic and selective with your upsell offers, focusing on quality over quantity. Too many upsells can overwhelm customers and deter them from making additional purchases.

#10: Ignoring Customer Feedback

Customer feedback is a valuable resource for improving your post-purchase upselling strategies. Pay attention to customer reviews, comments, and inquiries related to upsells. Incorporate feedback into your approach, addressing any customer concerns or issues.

By avoiding these mistakes and focusing on delivering value, personalization, and a positive customer experience, you can effectively implement post-purchase upselling strategies that enhance customer satisfaction and drive increased revenue.

Conclusion for Post Purchase Upsell: Maximizing AOV

Post-purchase upselling is a powerful tool to boost profitability without incurring excessive costs. Businesses can capitalize on existing relationships by strategically offering relevant upsells to customers who have already purchased and increasing the average order value. This approach eliminates the need for expensive customer acquisition campaigns, allowing businesses to maximize their revenue while keeping costs in check.

By providing customers with valuable and tailored upsell offers, businesses can enhance customer satisfaction, foster loyalty, and ultimately drive higher profits without straining their budget. Post-purchase upselling is a cost-effective strategy that empowers businesses to increase their profitability sustainably and efficiently.

Grow your sales with high-performing deals.


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