Upselling and Cross-selling: Everything you need to know to maximize revenue for your Shopify store
Shopify store owners derive business from two segments of customers- the news ones and the existing ones. Engaging new customers for expanding revenue generation is essential but retaining and persuading the existing customers is also crucial for getting more sales.
Interestingly, you can increase your sales by cross-selling and upselling to your customers both new and existing.
Mastering the Art of Upselling and cross-selling, you will be able to raise your Average Order Value with fewer marketing efforts. Apart from that, Upselling, if done well, builds a stronger relationship with your customers earning their loyalty and retention.
In this blog, we will learn why and how upselling is important for your Shopify store.
What are Upselling and Cross-Selling anyway?
To begin with, Upselling is the strategy of offering an updated version of purchased goods at a higher price whereas, Cross-selling is recommending additional products that go with the original purchase.
Upselling is typically done to existing customers and offers an upgraded version of the same product. Cross-Selling, on the other hand, relates to different products.
While the technique of Upselling centers around increasing Order Value and greater purchase, Cross-Selling focuses on additional recommendations for other products.
According to a report, there is a 27% likelihood of first-time customers coming back to your store, but this data changes to 54% in cases of second and third-time buyers.
Hence, Upselling is quite an effective strategy to persuade existing customers and increase sales.
How to do Upselling and Cross-selling to optimize revenue generation
The key to succeeding in Upselling and Cross-Selling is timing.
Upselling can be done both before and after purchase. Recommendations before purchase let shoppers see the relevant add-on products in their cart or products page before moving to check out. This is effective for small purchases.
But Upselling after purchases allows customers to add another item to their shopping cart without disrupting the initial order conversion. It happens between check out and thank you page and works great for discounts or small add-ons.
The tricks to do successful Upselling and Cross-Selling are:
- Make sure to offer existing customers products relevant to their purchases, don’t cross-sell them with irrelevant products.
- Be helpful with recommendations that make sense with their purchase, even if it’s not directly relevant to their previous purchase. Intelligent cross-selling will ultimately increase upselling.
- Make it appealing by offering recommendations of the products which are the most relevant, best-sellers, and most reviewed.
- Limit the availability time frame to highlight the urgency and popularity of the product.
- Make the process of Upselling simple and easy. Do not make the process lengthy with membership or signing up procedure. You may add extensions to complete the process smoothly.
That was all. We hope this article helps you in increasing revenue for your Shopify store.
And, if you are looking to hook your store with Salesforce CRM, you may try the super-efficient connector app Shopify Made Easy to seamlessly sync your data with Salesforce in real-time. Check out the app in Salesforce AppExchange here!