What are the Best Methods to Retain Customers and Upsell Post Purchase?

What are the Best Methods to Retain Customers and Upsell Post Purchase?

Over the past 6 years, customer acquisition costs have risen drastically due to inflation and online advertising price increases, causing many Shopify merchants to lose around $29 per transaction.

To offset these rising customer acquisition costs, Shopify merchants are looking for a Shopify upsell app to help them retain customers and drive more sales to boost average order value (AOV) and increase their customer’s lifetime value (LTV).

By downloading upsell apps such as UpOrder and CartHook, merchants can see a 14% increase in post-purchase email upsells, as well as a 10% increase in post-purchase, one-click upsells on their store’s checkout page.

In this article, we’ll discuss upselling strategies that will not only boost AOV but enhance the customer’s experience to turn them into repeat buyers.

How is upselling related to customer retention in ecommerce?

Did you know that by increasing your customer retention by just 5%, you can see profit increases from 25% to 95%

Repeat customers’ shopping carts also get more expensive each time they continue shopping at your store, which is reason enough to invest in customer retention strategies. 

This is because existing and repeat customers are more receptive to cross-selling and upsells than brand-new customers — and will spend more money per transaction to boost your store’s average order value (AOV).

First-time buyers tend to be a bit more cautious when placing their first order on a website, and as a result, spend less money on their shopping carts. 

However, once the customer has placed their first order and has a great customer experience, they become more receptive to additional upsell offers during their repeat purchases.

How does cross-selling and upselling help to improve customer retention?

91% of consumers prefer shopping at stores that offer personalized product recommendations, such as upsells and cross-sells. 

This is why so many customers enter your store with the intent to buy just one or two products but leave with a whole shopping cart of goodies. 

Cross-selling and upselling also keep customers on your website longer, because they spend more time clicking around on product recommendations, instead of directly going to the checkout page.

How to cross-sell and upsell during the checkout process on your Shopify site 

One of the best ways to upsell your customers without the risk of cart abandonment is to offer them a one-click easy upsell right after they’ve completed their order, known as a post-purchase upsell. 

For example, after completing the checkout page, your customer will see a pop-up window displaying a recommended product that they can accept or decline with just one click. 

If they accept the one-click upsell, then that product will be automatically added to their existing order, and they’ll be taken to the thank you page.

If they decline the one-click upsell, then nothing has been changed in their order, and their order will still be placed unaltered. 

Using CartHook, you can have up to two upsell offers for each transaction for more opportunities to boost AOV. So, if your customer has accepted their first cross-sell, then you may test your luck to recommend another product recommendation immediately following that. 

The great thing about CartHook is that product recommendations can be completely customizable depending on criteria, such as:

  • Showing discounted upsells after a certain price threshold has been hit
  • Recommending products based on the customer’s current order
  • Recommending products based on seasonal promotions
  • Recommending products based on product selections

In short, we find that offering cross-selling and product recommendations after your customer has placed their purchase to be superior to pre-purchase cross-selling. 

How to optimize transactional emails and post-purchase emails for repeat sales and customer retention

Cross-selling products doesn’t always have to happen directly on your Shopify website — it can happen through email marketing channels as well.

Did you know that email marketing has the highest ROI of any other form of marketing? For every dollar spent on email marketing, you’ll get a $36 return on investment.

This is the reason why promotional email is so rampant with online brands. But the problem is, does anybody actually open up promotional emails in time? With a 21% open rate, promotional emails aren’t the best cross-selling tool out there. 

Instead, look to transactional emails that have an open rate of 80% to insert product recommendation upsells.

Why transactional emails are preferred to promotional emails

Transactional emails are automatically generated and sent emails from the Shopify merchant to their customers following an action, such as placing an order, changing payment information, or requesting a password reset.

After your customer has placed their purchase, they’ll automatically receive an order confirmation email from your Shopify store’s email.

By default, Shopify’s built-in transactional email templates are pretty plain with no product recommendation features.

However, using a upsell app like UpOrder can transform your transactional and post-purchase emails to drive revenue and customer retention through email marketing.

With UpOrder, you can fully customize your Shopify store’s transactional emails to match your store’s branding and colors, and create dynamic product recommendations and easy-to-create promo codes for your store.

Now, each time your customers place their purchase on your store, they’ll receive order confirmations and shipping confirmations with unique promo codes and cross-sells that will bring them back to your store to make a repeat purchase.

Download UpOrder and CartHook for post-purchase upsells 

UpOrder and CartHook are Shopify upsell apps by Pantastic that help merchants sell more products and improve customer retention.

UpOrder is a post-purchase email template design builder that allows merchants to create limited-use promo codes, and drive upsells through smart product recommendations. Shopify owners who use UpOrder have seen a 14% increase in sale revenue through their email sales channel.

CartHook is a one-click, post-purchase upsell that places last-minute product recommendations after the checkout page, without risk of cart abandonment. Merchants see a 10% increase in sales revenue with a 15% acceptance rate for one-click offers.

Download your free trials of UpOrder and CartHook today!

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