COVID-19 has forever transformed the way we shop and has only accelerated the growth of the e-commerce industry by five years, according to TechCrunch. Now is the perfect time for brands to start brainstorming and strategizing how they can adapt to this grand shift of consumer behavior. 

Post-purchase upsells is a strategy that should be taken more seriously and get implemented today to boost revenue. Implementing this strategy will only increase key metrics such as average order value (AOV) and revenue. Research conducted by Forrester Research Analyst, Sucharita Kodali, discovered that product recommendations or upsells can account for between 10%-30% of e-commerce revenue.

Brands should brainstorm how they can make the most of post-purchase offers that will increase the average order value AND revenue while delivering top-notch customer-focused experiences. Wondering how your eCommerce brand can benefit from post-purchase upsells? We are going to expand on that next.

What are the Benefits of Post-Purchase Upsells?

In case you are new to the eCommerce industry, let me quickly explain what a post-purchase upsell is. A post-purchase upsell is a type of offer brands send to customers to encourage additional purchases after they’ve completed a transaction. This often includes similar products or products your business thinks your customer may be interested in purchasing next. For example, if you sell hair care products and your customer purchased shampoo and conditioner, then the post-purchase upsell could be a hair mask, leave-in conditioner, or hairspray. While the idea is easy to grasp, it’s important to understand why these offers are beneficial to your eCommerce brand.

Increase Revenue While Reducing Operational Costs

When a customer adds more products to their order, the average order value per customer goes. The more money you earn from each customer, the fewer customers you need to turn a profit. Meaning you’ll hit revenue goals faster and may be able to spend less money on marketing to gain new or repeat customers. And the bigger their order is - the less you will have to spend on paying employees to package their items and getting orders delivered to your customers.

Demonstrate Customer Focus By Serving and Not Pushing for the Sale

When this approach is executed to your customers, post-purchase upsells should feel natural and helpful—not push for the next sale. Ensure an enjoyable experience with e-commerce data that is available to you such as offering relevant items or discounts based on previous customer behaviors and purchase histories. Additionally, upsells can be used to inform customers about new or existing products and services they may not have seen or purchased before. This is a great way to introduce new products or collections.

The goal of this approach should always be to create value and not to pressure the customer to buy useless or relevant items they don’t want or need. If you take care of your customers right, they will take care of you.

Build on Current Customer Base

Customers may feel emotionally connected to your brand after they have made a purchase. That emotional connection can boost sales if done correctly.

For some people, making a purchase makes them feel warm and fuzzy inside, especially if what and where they are purchasing aligns with their values and personalities, according to a Yale University study. A purchase can create an emotional connection between customers and their favorite brands that they trust and love.

Your main goal should be to gain your customer’s trust because purchases demonstrate trust in your eCommerce business’ products and services. Provide your customers with an opportunity to pursue offers for other similar items to help potentially deepen their emotional connection and investment in your brand.

Combine SMS Marketing with Post-Purchase Upsells

Highlighting limited-time offers helps drive conversions, and upsells often create a sense of urgency among buyers. Therefore, making them a perfect fit for SMS marketing.

The instant nature of SMS encourages customers to take advantage of opportunities quickly. Text messaging feels more personal than other digital marketing channels. It helps deepen the emotional connection of the customer to your eCommerce brand.

More and more consumers say they want to hear from brands via text messaging instead of any other digital marketing channel. If a customer leaves your website before opting in on a post-purchase upsell, a short personalized text message is a cost-effective way to follow up with them to finish out the transaction.

Your eCommerce brand can greatly benefit from combining SMS marketing with post-purchase upsells. Get brainstorming on your strategy and execute it to see that revenue growth.