This is a guest post from Kate Cassidy, the Partner Marketing Manager at CartHook—an Honest Ecommerce Partner that allows top Shopify brands to add post-purchase offers to their native Shopify checkout.
Think the sale is over when your customer completes their checkout? Think again. Strategic marketers sell past checkout for a low-risk and low-cost way to boost AOV and increase ROI.
If you’re investing in customer acquisition, make sure you get the highest return possible for your marketing dollars by increasing AOV with a one-click upsell.
Let’s look at average order value like this: The higher your AOV, the more you earn per transaction. When you raise your AOV, you offset the cost of acquiring customers.
On average, 15% of customers accept a post-purchase offer. An informed post-purchase offer strategy will help your store to realize that conversion rate—or higher!
Why post-purchase upsells work
Post-purchase offers have ideal timing
The sweet spot? Right after your customer completes their purchase.
As your customer is feeling a post-purchase high, present them with a targeted, relevant upsell before they see the thank you page. Using an app like CartHook Post Purchase Offers for Shopify stores, the customer can then accept the offer (or decline) with one-click.
Post-purchase offers are theoretically risk-free
Offers before the checkout can distract customers, so you risk losing the purchase or an abandoned cart. Post-purchase offers give merchants the opportunity to make targeted offers, without risking the initial checkout conversion.
Targeted personalization makes upsell offers feel special
Post-purchase offers are designed around one simple data point: What your customer just purchased. When you upsell wisely, you’ll not only increase your AOV, you’ll improve your customer’s experience.
Thanks to retailers like Amazon, customers expect personalized experiences. “Customers take it for granted,” McKinsey says of personalization, "But if a retailer gets it wrong, customers may depart for a competitor.”
Some merchants look at post-purchase upsells as a way to solve a problem (or to present customers with a solution they didn’t know they needed!). If you just sold your customer a dog collar, offer the matching leash as an upsell. Sold an electronic? Don’t forget the batteries!
Customers feel more like they’ve been served, instead of “sold to.” Specialized offers result in a higher likelihood the customer will accept the offer and a higher chance they will return to your store, boosting brand equity and LTV.
Post-purchase offers are easy to accept (or decline)
A few years ago, post-purchase selling was full of friction. Customers would check out, then receive a thank you email. If the email included an offer, the customer would have to click-thru (or enter a promo code, yikes!) to accept. Then, they’d re-enter payment and shipping info. As I said—full of friction!
Post-purchase offers are presented on an interstitial page, directly after checkout and before the thank you page. Customers can truly accept or decline the offer with 1-click and without re-entering payment or shipping info. Plus, offers can easily be accepted via mobile (good thing, considering 45% of ecommerce sales will soon be via mobile).
Single-click acceptance keeps conversion rates high! On average, merchants see a 15% acceptance rate on offers.
It’s easier to sell to existing customers
A clicking clock gives a visual sense of urgency
Adding a little urgency is a proven tactic that drives action. Post-purchase upsells are fleeting offers, only available to customers right after their initial purchase. When you add a countdown timer to your offer page, the urgency leads to a sense of consequence and fear of missing out. One recent study found the presence of a timer created an 8.6% lift in conversions.
How to implement a post-purchase strategy
Modern apps like CartHook Post Purchase Offers, make it incredibly simple to implement a post-purchase strategy quickly and without a developer.
Here’s how to launch post-purchase upsells in 5 steps:
1. Determine the triggers that display your upsells
You’re in control of when a customer sees a post-purchase upsell. Decide if you want to display offers based on what was just purchased, cart value, and product count.
Let’s say your company’s hero product is eye brightening cream. You can decide to only show the cream if your customer has—or has not—already purchased it.
*A big caveat! One of the most successful upsell strategies is offering an additional item of what was just purchased.
2. Launch your offers
An app like CartHook Post Purchase Offers allows merchants to add an unlimited number of funnels, or actions that trigger the offer. You can also add up to two post-purchase offer pages.
Many merchants find success offering an initial upsell, followed by a downsell. If your customer just purchased a french press, offer a milk frother as an upsell. If they decline the frother, you could display a lower-cost item, like a bag of coffee.
3. Control your offer settings (and add a discount!)
Choose products or variants to display, create unique post-purchase discounts, and set quantities for customers.
Discounts are a reliable way to ensure you hit a 15% acceptance rate (or higher!) on offers.
Are you a store that doesn’t typically offer discounts? Position the upsell as a super limited, one-time offer that’s only available to your loyal customers. A slim 2% increase in customer retention can lower costs by as much as 10%. If you have the margins, discounts may be worth the long-term investment!
4. Customize and design your offer page
Design your offer page so that it gives your customers a seamless experience. Consider adding timers, product descriptions and testimonials. You could even add seasonal headlines and images.
5. Test. Test. Then keep testing.
Keep an eye on your Shopify analytics to see how your funnels are performing. Small adjustments can have a huge impact. Test discounts displayed as a dollar amount vs a percentage off. You can also test funnel priority and try selling higher-priced products.
Once you hit your post-purchase stride, the ongoing marketing effort is minimal!
Offer strategies top Shopify brands use
How do you know which products to offer? Or what type of offers perform well? Here are a few strategies used by top Shopify brands:
- Offer your hero product: Keep things simple by displaying a best selling product. If customers love your store’s lip balm, offer that balm!
- Offer a BOGO: Display a second item of what your customer just purchased. This strategy works especially well for brands selling supplements and consumables.
- Display a bundle: Offer a product that’s complementary to what was just purchased. Did your customer just buy shoes? Offer socks!
- Reward volume and value: If customers are shopping in bulk, reward their high volume spend with an additional discounted item. Are they spending a higher than average amount? Reward them with a higher than average post-purchase discount.
- Manage your inventory: Offer discounts on surplus stock! Use this strategy to liquidate seasonal items, make room in your inventory, or to reduce back stock before new products launch.
- Share new products with sample size offers: Display miniature or travel sizes that let your customer try something new. This method is a great way to introduce your customers to new products. Try offering a travel-sized version of the product they just bought, like a small bottle of CBD gummies in a different flavor from what they purchased!
- Build loyalty with free gifts: Offer a gift to customers when their order value is above a certain threshold (and boost LTV)! Try offering a free sample packet of eye cream if they purchased $100 or more in skincare items. The sample won’t give you a bump in AOV, but it will be worth the effort if it creates a repeat customer!
Ready to add new revenue with post-purchase upsells?
On average, merchants using CartHook Post Purchase Offers see a 10% increase in total revenue.
Take the strategic approach and continue selling past checkout. Try CartHook Post Purchase Offers free for 14-days and let us know how post-purchase marketing boosts your AOV.