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How you can unlock revenue being left on the table by deploying this simple strategy.
When you ask any Shopify merchant what their number 1 goal is, it’s usually the same resonating answer: to make more money. Fortunately for merchants, with the advances in ecommerce and the progression of research into the psychology of online sales, this is now an easier and obtainable goal by most stores.
While there is a plethora of ways to make more money, the easiest (and cheapest) one is to sell more to your current customers.
Think about it. You have maybe spent X on PPC, have written SEO content to get traffic to your Shopify store, blasted out marketing emails, created a successful Facebook campaign and countless other measures to get customers on to your store. Now some of them are buying.
All of the above measures are resource intensive and in some aspects costly. What would be a quick win that is overlooked by a large percentage of new and existing store owners? Sell more to these customers that are already buying.
Let’s do some math. If you have an Average Order Value of say $11 and you make 10 sales in a day, your total sales for that day is $11 x 10 = $110. Over an average month of 30 days, this would equate to $3,300.
Most Shopify merchants assume that to increase this, you need more sales right? Wrong. With the power of cross-selling/upselling, we can increase this number with the same amount of customers.
On the same store as before, we have now added strategic cross-sell and upsells promotions to our products. This means that the same customer numbers are spending more. As a result our Average Order Value has gone up to $14. Why? Some customers saw the upsells on our store and added them to their basket, win!
Now, let’s do some more math. With our Average Order value at $14 for the same 10 sales a day, that’s $14 x 10 = $140. Over the same period of 30 days, this would amount to $4,200. Thats an increase of over 25% which is $900. Over a whole year that is an extra $10,000…
So what makes a good cross-sell/upsell. First things first, let’s address the terminology. A true cross-sell is where you bolt on something, like fries with a burger. An upsell would be getting the customer to not buy the standard burger they had chosen but instead to go for the the XL Double Bacon Cheese Burger. Hungry?
Traditional upselling has taken a back seat as it can often require a sales person to do the talking. A bit hard when you are serving 1000’s online. As a result, when we say upsell in ecommerce, we generally mean to sell more as a collective.
So how do we do that on our Shopify Store?
Identify opportunities. All stores are different but the good news is you should know your store better than anyone else. As a result, you will know what products you offer that compliment each other and where there might be an upsell opportunity.
Example: If you have a pet store and a customer is on a “Dog bowl” product page, this would be a great place to offer an upsell. A BAD upsell would be a “Bird cage”. The chances that our customer who is looking at the dog bowl is also in the market for a bird cage are probably close to zero. Over a sample size of 1000 customers all hitting that dog bowl product page, you probably wouldn’t get a single sale for the bird cage. 😞
A GOOD upsell would be a dog toy. Its an impulsive buy that matches the market our potential customer is in. Not only that, its a “treat” product. Something a customer would buy to treat their pet therefore it applies to anyone who owns a dog. Over the same sample size of 1000 customers, let’s say 125 of them saw the awesome dog toy and opted for it. That is the power of a strategic upsell. Customers who otherwise may not have seen the dog toy have now added it to their basket and your average order value shot up. 🤑
Bonus Strategy Tip: Incentivise the upsell offer with a discount. Not only are you showing a potential upsell to your target market, you are offering a discount on it. This could mean another 50 customers go for it who otherwise may not have. Double whammy!
Ok, so we have identified the theory, communicated the strategy and now we want to action it. Shopify merchants have it easy, there are apps for that. An app that does all of the above in a nice tidy package is one of our very own called SellUp.
Now there are other apps available but as merchants ourselves, we wanted to position an app that not only handled upsells but could do it in a powerful way.
With SellUp, you can position strategic upsells directly on the product page underneath the Add to Cart button. Undoubtedly the most converting position you could display upsells. Secondly, we wanted a second chance and selling even more. As a result, we created Action Upsells. These are shown and triggered once a customer has clicked on the Add to Cart for the lead product. A popup can then show offering a discounted offer or another product that compliments the lead product to further increase your Average Order value. An Upsell Funnel if you like!
So with the theory, the strategy and solution on the table, what does it cost?
The answer is it’s costing you potentially thousands in lost revenue by not having this strategy in place.
SellUp is a free upsell app to install in your Shopify store and with that you get 1 upsell. Upgrading to the premium plan is not only the cheapest unlimited upsell plan on the Shopify App Store, its also the most sensible thing to do considering the additional revenue you could make.
With SellUp on the Pro Plan, you get Unlimited Upsells, Access to Action upsells and also In-Cart Upsells. If you follow a strategy to deploy the upsells on your store in a couple of clicks, you will be making extra cash instantly.