Running a successful online store requires business owners to adopt several strategies and integrate them into their eCommerce operations. There are an array of interesting tools to use to increase sales and one of the most influential modern tactics is upselling. Upselling is a marketing strategy that we will share more detail about in this guide, and we will also discuss how waterfall consumer financing can help support your upselling tactics.
What is Upselling?
Upselling is a sales strategy that eCommerce stores implement to encourage consumers to purchase more expensive items when browsing online stores. Upselling is a technique that businesses use to increase the average sales values of their consumers. Upselling is also incredibly beneficial when it comes to selling to existing customers, who are far more likely to invest in expensive items than new customers. By promoting more frequent sales of costly products, upselling also has the potential to raise customer lifetime values. Customer lifetime values refer to the total spend of a customer on an online store for the duration of their buying cycle with that store. Increasing this value can have significant benefits for your profit margins.
Difference Between Upselling and Cross-selling
Upselling differs from cross-selling in the way that it encourages the purchase of more expensive or premium items. Take, for example, a paid subscription plan. Most sellers will encourage customers to purchase their more exclusive plans by promoting several benefits of these premium packages that the more basic options do not deliver. Cross-selling differs in the way that it does not promote more expensive items but items that pair well with a customer’s chosen product. For example, a customer buying shoes may be interested in purchasing a new set of laces or socks with those shoes. Cross-selling helps customers find those related products quickly.
Best Upselling Strategies
Upselling is an effective sales strategy that can generate greater revenue than other tactics, such as cross-selling. Below, we share some of the best upselling strategies to consider for your online store:
- Display recommendations at the bottom of a product page pointing towards more expensive items or premium products to encourage consumers to purchase these products.
- Utilize pop-ups as recommendations that appear during the checkout process of the consumer journey. These can be a great way to encourage consumers to change their minds after they have landed on a specific product.
- Follow-up emails can be sent to customers after a purchase to encourage them to shop again. You can personalize this form of marketing, offering products that may provide additional value to their lives based on their order history.
- You can incentivize customers to take advantage of your upselling offers by sharing discounts or rewards with them for doing so.
- You can allude to the potential downsides of not taking advantage of the upsell offers.
How Waterfall Consumer Financing Supports Upselling
Waterfall consumer financing can support your upselling strategies. Waterfall consumer financings as a service is an integration that enables customers to access financial support at checkout. They can apply for loans without having to undergo credit checks or leave your online store. One of the main benefits of waterfall consumer financing is that it encourages customers to purchase more expensive items. It enables them to easily access the financing necessary to order premium products.
Upselling is a strategy to implement in your online store. It is a great way to increase customer lifetime values and generate more profit. With the addition of waterfall consumer financing, you can see improvements to your average order values and enjoy a greater return on marketing investment.
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