increase average order value with upselling

How To Increase Average Order Value With Smart Upsell Campaigns

At brick and mortar stores, representatives always make it a point to persuade shoppers to buy more. You’ll enter the store to buy a pair of jeans and the next thing you know, the sales reps are suggesting items in their t-shirt collection, convincing you about the great deal you’ll be snagging. And just when you decide on buying a t-shirt, they’ll nudge you to check out their accessories section, to complete the look. Simply put, the end goal of the salesperson here is to upsell to every shopper that walks in and make sure the brand’s revenue per customer remains high. So, why not use the same strategy to increase average order value of your Shopify store?

In this article, we’re sharing a few tactics to upsell effectively on your Shopify store. But first…

Upsell and cross-sell are two terms that are often confused with each other. While the two are, to a large extent, are similar and the idea behind them both is to sell more to increase average order value, the core approach to each is different.

Let’s explain this with a quick example of you purchasing a shirt from a store. Cross-sell will aim to sell you skirts that complement the shirt or make you pick up items that have been previously bought together by similar shoppers. On the other hand, upselling will nudge you to purchase a higher-priced variation of the same or a similar shirt but with better texture, linen and other features that make its price a little more than what you were intending to spend.

Now, these smart tactics can be used to convince the different types of shoppers on your store to buy products that come at a higher price – all without being too pushy.

Different ways to increase average order value with upselling

1. On-site notifications

On-site notifications appear while a customer is browsing your store or probing more about a product they are interested in. Most stores use these notifications to simply show social proof and create a sense of urgency around their popular products, but they can be used for smart upselling too.

Let’s take an example. A shopper adds products worth $200 to their cart. Using on-site push notifications, you can nudge him to buy a product variant or purchase a deal that increases their cart total by a certain amount to avail ‘free shipping’ or get an additional 10% discount on the total.

Used by global brands across the world, this technique is called shopping cart upselling and is only effective when the alerts show up in real-time.

Pro tip: Make use of the Fera.ai and PushOwl integration to set up on-site notifications to trigger upsell promotions while the shopper is browsing the site to make a purchase.

2. On-site popups

Another tactic that is commonly used by online stores to promote discounts or prevent cart abandonment, is an on-site popup. The goal of the popup is pretty simple— re-capture the attention of a shopper who is just about to leave the store, nudging them to complete the purchase before they leave with an offer they can’t refuse.

ALSO READ:  3 Ways to Sell via Email to Customers that are Eager to Buy

You can use the same consumer psychology to upsell products from your store. Take, for instance, a shopper who adds a hairdryer worth $50 to the cart. Right before the shopper is about to checkout or views the cart total, you can target them with a popup that promotes a popular hairdryer that costs ‘a little more’ but comes with a higher feature set! Add a special discount or a free delivery to the recommendation and you’ll see them choose the new product more.

increase average order value - popup

You can use apps like WooHoo, Optimonk, Optinmonster or Privy to set up smart on-site popups for your upsell campaign.

3. Web push notifications

More than 69% of your shoppers will add products to their cart and abandon the purchase. Sometimes they might just create a wishlist and walk away without completing the purchase. While your typical cart recovery strategy will kick in immediately, you can also use this shopper data to upsell products seamlessly.

With web push notifications, you can reach out to this shopper with not just reminders of the products they have left behind, but also products that are better than them and popular amongst other customers. You can also target them with a simple message that recommends a product of a higher value or nudges them to purchase from a similar collection to increase the cart total to avail free shipping or an exclusive discount.

increase average order value - web push notifications

Doing this is pretty easy. Store owners can set up PushOwl workflows on Shopify flow where shoppers can be upselled products based on specific product tags that are in their cart. Then using the integration with Growave, you can send push notifications about wishlisted items in a timely manner.

Note: Upsell as a feature will be available on the PushOwl dashboard in a few months. Watch this space for more!

4. Facebook Messenger

Statistics say that Facebook has over 2.3 billion monthly active users. That’s a huge chunk of the global population. You don’t want to miss out targetting this huge user case and trying to boost eCommerce sales from this audience. After all, a lot of them fall under your target shopper personas!

Messenger marketing is already on the rise and has been delivering promising results when it comes to cart recovery campaigns. Now you can use the communication channel to do more with your Shopify marketing strategy. Include upselling in your campaign to increase your average order value and overall revenue.

All you need to do is make sure you take into account the products that a shopper has shown interest in, but not purchased. Using the data, recommend similar products that come with a better feature set at a ‘slightly higher amount’. But make sure you frame your messages in such a way that the shopper feels like the higher value product is coming at a deal that should not be missed! Highlight value before asking the shopper to make the purchase.

ALSO READ:  Shopify Wishlist: How To Get Wishlisted Items To Checkout

You can use smart tools apps like Octane AI, Recart and Flashchat to automate your Messenger marketing campaigns for upselling products.

5. Upselling emails

You can effectively use email as a medium of recovery, re-engagement, and upselling for all segments of shoppers – those who’ve already made a purchase, those who have abandoned carts, or those who left post browsing.

For example, for users who have already made a purchase, you can dig out purchase history to recommend products that would interest them and make them buy a variation that comes at a higher cost but promises more features and value.

For those who have left without making a purchase, you could make use of browsing history to check products that they visited, and bundle those in a deal for upselling or promote a similar product that might cost a little more but is more popular amidst similar shoppers.

For example, a shopper comes to the store to look for a backpack. They browse through a few products, add one to the wishlist but leave without making a purchase. This is indicative of their interest in buying the product, but also shows how they haven’t found the exact product they need. Reach out to this shopper with an upsell email that simply promotes a popular backpack from a similar range. Showcase the price of the product in the email, but make sure you list down what makes it worth the purchase.

With smart apps like Klaviyo, setting up an upsell email marketing campaign is pretty easy. You can check out their step by step guide here.

Increase average order value – choose the right products to upsell

Not every product that a shopper is looking at will create upselling opportunities. You need to take into account the different types of shoppers, their purchase preferences and how their behavior changes over time to be able to strategize your upsell campaigns for higher conversions.

Your Shopify marketing strategy for upselling should include focusing on choosing the right products. To convince your shoppers to spend more, highlight your:

  • Most sold products in the same category/ type
  • Most reviewed and rated products in the same category/ type
  • Exclusive/ limited edition products in the same category/ type

Most importantly, pick products that add more value to the shopper and make sure you upsell at the right time – be it while the shopper is still browsing your site or after the shopper has left your store!

What’s the one strategy you swear by or have used to upsell your Shopify store products? We’d love to hear all about it!