Generating sales in a competitive market seems to be quite challenging. So to make your store stand out from the crowd, you need to apply some unique strategies, and upselling is one of those. In this article, we’ll discuss the advantages of upselling and some techniques for effective upselling on your Shopify store.
What is upselling?
Upselling is showing an upgraded version of the product that your customers bought or just added to their cart. When done correctly, upselling can help you sell more products and increase the order values. Upselling is not only to make a profit but also to improve the customer buying experience. By suggesting the right products, you show your customers that you understand their needs and do your best to satisfy them. In the next part, we’ll explore in detail why upselling is important to your Shopify store.
Advantages of doing effective upselling on your Shopify store
Boost the average order value (AOV) of your store
Average Order Value (AOV) is the average monetary value customers spend each time when they place an order on your website. Knowing the AOV helps you understand whether your online store is doing well. By showing upselling products at the right place on your Shopify store, you can persuade customers to add more products to their shopping cart. This will help you boost the AOV of your store. As upselling can be personalized and targeted, you can get more sales, and increase customer satisfaction at the same time.
Build stronger customer relationships
To build a good relationship with your customers, you need to meet their expectations or exceed their expectations. Fortunately, upselling can help you achieve that goal. By showing upselling products, you satisfy the needs that customers may not even know they are having! Once your customers are satisfied with your upselling, they will surely come back next time and become your loyal customers.
Increase customer lifetime value
Customer lifetime value (CLV) represents the total revenues you gain from a customer during the whole period of your relationship with them. Upselling has a significant impact on the customer lifetime value because upselling with existing customers is more effective than with new customers. Your existing customers have already tried your products and have some trust in you. So when you present them with more related products or an upgraded version of the products they purchased, they are more likely to get it.
To show upsells on your store, you can do it manually or use any Shopify apps like iCart Cart Drawer Cart Upsell.
Tips for effective upselling
Upsell the right products to the right customers
Before making any upselling, you need to define which customer segments you should upsell, and which upselling products are relevant to them. You can rely on the products that your customers have just added to their shopping cart, or what they purchased in their previous orders. And upselling products need to be products from the same category with a higher value, or upgraded functionalities (which is different from cross-selling).
Offering discounts in upselling products is one of the best ways to boost sales for your online store, especially if you place these discounts at the last steps of the buying journey. Seeing the discounts, customers are more likely to grab your upselling products, even if they have no intention to buy.
Build trust in your customers
To attract more customers to your upselling products, the key is to make your offers relevant and trustworthy. You can do that by showing testimonials or customer reviews. iCart is integrated with Judge.me, so you can add social proof to your upsells, cross-sells, product bundles by showing Judge.me star ratings. Another way to make your upselling more trustworthy is to display a list of upselling items “viewed by other customers”. Seeing other people also buy your products, customers are more inclined to get these products as well.