Increasing AOV and improving customer loyalty with post-purchase upsells
Apr 30 2021
Online retailers are in a race for customer loyalty, and it’s harder than ever to increase AOV through ad spend. Returning shoppers spend 3x the amount that first-time shoppers do, so building strategies for return customers has a significant impact on your bottom line.
In 2020, online sales grew by 30% as consumers were pushed into the convenience of online shopping. Psychologists say online shopping can be as exciting as in-store shopping. With so many customers shopping from home, how can e-commerce companies set themselves apart?
“The proactive players will seize the day, while businesses that remain complacent will be left behind—in 2021, and beyond,” says Shama Hyder, founder & CEO of Zen Media.
Upselling is a strategy that increases AOV and customer loyalty
Research indicates that product recommendations, such as upsells, account for 10%-30% of ecommerce revenue. At its core, upselling is a technique that encourages the customer to purchase more than they initially intended to. Savvy merchants can use customer data to deliver targeted upsells that are relevant, helpful suggestions.
Recommending an additional product, higher volume or more premium version of the customer’s current choice is a dependable way to increase total cart value. Interested in creating loyalty? Introduce customers to new products by giving away free or discounted samples as an upsell.
What are post-purchase upsells?
Post-purchase upsells are timed to a sweet spot: after the customer checks out and is feeling most euphoric. Right after a customer completes their purchase, they’re presented with a complimentary offer to what they just purchased. Cart conversion rates are never impacted since the post-purchase offer is presented after the checkout event!
CartHook Post Purchase Offers lets Shopify stores add post-purchase offers to their native Shopify checkout to new revenue and boost their AOV. That’s because the offer appears after the customer completes the checkout and before they see the thank you page. They can accept with one click, because they’ve already entered their payment and shipping info.
The value of post-purchase upsells
1. Boost AOV to offset customer churn
310 Nutrition, a health supplement company, implemented a post-purchase upsell strategy to make inevitable customer churn less of a burden on their profits. Upon launch, 30% of their customers took the upsell, boosting their AOV by 25%!1
2. One-click offers
There’s no need to re-enter payment or shipping details.
3. Doesn’t decrease conversion rates
Shoppers have already completed the purchase. Plus, there’s no new huge “total cart value” scare (just the add-on price).
4. Improves customer retention by introducing customers to new products
Bone broth brand Kettle & Fire found that customers who bought more than one flavor of broth were more likely to become repeat customers. Post-purchase upsells present a great opportunity to introduce customers to new products, which can boost your LTV.
5. Sweet spot timing
Customers see the offer during the euphoric post-purchase period. Plus, offers are timed, creating an inherent sense of urgency.
Why an EcoCart enabled Shopify store is primed for post-purchase upsells
Business Insider reports, “a good product is no longer enough to win a consumer’s favor” and consumers want sustainable options. Consumers are more conscientious of the companies they support and search for brands whose values align with their own, with 92% more likely to trust a company that supports social or environmental issues.
Made in the USA apparel company, Tribe Kelley saw a 19% lift in cart conversion after adding EcoCart’s sustainable shipping option. “We get a ton of DMs about having the sustainable shipping option,” said Chantale Riolo, Director of Operations at Tribe Kelley. “They love that we have it and are definitely using it. In general, customers like that the option to make the order carbon neutral is a very small amount of money but they feel good about it; it’s pennies compared to what they’re buying and good for the planet.”
Nutrition brand Nuzest also experienced an increase in cart conversion (22%!) since adding EcoCart to their checkout flow. Customers have relayed to the brand that they feel good that they are able to do a little extra to offset their environmental impact and that they’re proud to shop with a brand that gives them this option.
The double bottom line benefit? Ethical shopping makes consumers happy. According to scientists, contributing to a social impact makes people feel happy longer than securing a quick bargain.
Time and personalize your upsell for the biggest impact
Presenting shoppers with a post-purchase offer right after they’ve purchased a sustainable offset is the ideal time to offer an upsell: when they’re feeling most euphoric.
3 AOV-boosting upsell strategies
1. Make the post-purchase offer highly relevant
Only upsell products that are relevant to what the customer has in their cart or has just purchased.
- You could offer a complimentary item to what your customer just purchased. Just bought a full-size product? Offer a travel size!
- Keep it simple and offer a BOGO, or an additional item of what the customer just bought. Just bought 1 bottle of vitamins? Offer a second bottle at a slight discount!
- Introduce your customers to new products. Offer a sample size, or a new flavor from what they already purchased.
2. Build on existing connections
- Consumers who feel emotionally connected to a brand may spend twice as much as customers who are simply satisfied with it. Emotional connection is also shown to result in a 306% higher LTV. Show your customers your appreciation by offering a gift!
3. Combine upsells and sustainable products
- Trigger your post-purchase offers to deliver products that are mission-driven, and leave a lasting impression of your company’s eco-awareness.
In the race for customer loyalty, a post-purchase strategy is an effective way to offset churn, increase ROI and boost AOV. In the world of online shopping, CartHook Post Purchase Offers are an exciting way to turn shoppers into repeat customers.
This is a guest post from Kate Cassidy, the Partner Marketing Manager at CartHook—an EcoCart Technology Partner that allows top Shopify brands to add post-purchase offers to their native Shopify checkout.