Upsell and Cross-sell Strategies That Actually Work For Your Shopify Store
It’s all about striking the iron while it’s still hot.
Here is a customer scenario.
When a prospective customer wants to buy a product, they usually have done basic product research, checked your brand on social media,and browsed your website to learn more about the products.
Now, the customer is already in buying mode.
Wouldn’t it make sense to upsell or cross-sell them at the checkout?
But as a Shopify merchant, you will need an upsell and cross-sell app by Shopify to sell products upgrades or alternatives to customers.
More on personalized product recommendation app later.
First things first.
What is the difference between upsell and cross-sell?
According to Shopify, an upsell is ‘the art of suggesting upgrades to purchase—can help you grow your average order value (AOV) with relatively little marketing effort, ‘ while a cross-sell ‘involves making a recommendation adjacent to the original product.’
Cross-sell is selling a complementary product, more like, “Would you like fries with that?” In fact, product recommendations are responsible for an average of 10-30 percent of gross e-commerce revenues.
Now, with a ton of upselling and cross-selling apps by Shopify already in the store, your Shopify store will need strategies that yield results.
Here are the four proven upsell and cross-sell strategies that will work with your Shopify store.
Offer Personalized Product Recommendations
Customized product recommendations increase Average Order Value ( AOV).
Recommending alternatives products as an upgrade or complementary products to your customers that speak directly to them is likely to convert.
A great example is Andy & Evan, which increased their conversions by 10% through personalized product recommendations using a cross-sell app by Shopify.
The American kids’ clothing brand AOV increased by 5%
Add User Generated Content
Genuine customer reviews, product ratings, and testimonials build trust for your brand.
In fact, almost (62%) of consumers from Australia, Canada, France, Germany, the UK, and the US said they were more likely to buy a product if they could view customer photos and videos.
An upsell app by Shopify recommending products that have social proof is a powerful upselling tool when done right.
Display Discounted Alternative Products
The purpose is simple -- to show a customer an alternative product probably in a bundled and with a discounted offer they can’t ignore.
Recommending related products to customers saves them time from trying to figure out and research all over again for the same product.
Amazon is a master in getting customers to buy more products from them.
Test and Iterate
According to Bain & Co, a 5% increase in customer retention can increase company profitability by 75%.
A cross-sell app by Shopify that can test and iterate for better recommendations of products will increase the store’s ROI.
So does an Shopify upsell app increase customers’ lifetime value ( LTV) with an upgrade recommendation.
Closing Thoughts
It’s not all about the bottom line for upsells and cross-sells, but providing more value to your customers at a reasonable price.
As a merchant, it’s not about being greedy or too salesy when offering your customers a better deal.
And with the upsell and cross-sell strategies mentioned above, you get to increase your revenues, and customers get the best product or alternative offers in the market.
When using a top-rated upsell and cross-sell app by Shopify, it’s a win-win for everyone.