Journal

How Shopify Stores Boost Their AOV with Post-purchase Upsells

17 Nov
2021

Think your customer’s journey is finished once they checkout? Ecommerce stores know that’s just the beginning. 

With rising customer acquisition costs and steep competition for brand loyalty, smart sellers focus on high ROI strategies that increase the average order value of their customers’ carts. 

How do they do it? Post-purchase upselling

Real quick, here’s how post-purchase offers deliver high ROI and rocket AOV:

  • No additional marketing investment or ad spend
  • Offers never “backfire” or impact the initial checkout
  • Offers are hyper-relevant and lead to a higher likelihood of customers accepting the offers and returning to your store (and boosting LTV)!

The kicker? Shopify merchants using CartHook Post Purchase Offers see a 10% increase in their total revenue. Traditional marketing methods can’t compete. 

Ready to add post-purchase offers to your Shopify store?

Boost your AOV in 5 steps:

Step 1: What a post-purchase offer is and how it boosts AOV

First, let’s get on the same page.

Post-purchase offers are an upsell or cross-sell that appears after checkout and before the thank you page. This timing is a sweet spot! Customers are presented with an offer directly after checking out when they’re feeling most euphoric. 

Customers can then accept or decline with one click (there’s no need to re-enter shipping or billing info). Easy peasy. 

One of the biggest advantages of this sweet spot timing? Offers are presented after checkout, so there’s zero risk of cart abandonment. The initial order is already complete!

Post-purchase offers are triggered by what your customer just purchased, allowing them to be highly relevant. Say your customer just purchased toothpaste. You could choose to offer an accessory product, like a travel case or mouthwash. 

The offer is a truly exclusive one-time deal and is only available to current customers who just made a purchase. 

Past customers have a 27% chance of converting to repeat customers. A post-purchase mix of email automation, SMS, and upsells build a strategic flow to realize that conversion. 

Step 2: Implement upsell strategies used by top Shopify brands 

On average, merchants using CartHook Post Purchase Offers see a 15% conversion rate on offers. Often, the best strategy is to keep it simple!

Here’s a compilation of our favorite (and highest converting) upsell strategies

  • Hero: Do you have a best-selling product customers love? Show it! If customers are obsessed with your store’s mascara, offer it post-purchase at a 10% or higher discount. 
  • BOGO: Buy one, get one. Many brands see the highest conversions when offering the easiest possible upsell: More of the same! If your customer just bought lipstick, offer a second tube at a slight discount. 
  • Bundle: Cross-sell pillowcases if your customer just bought pillows or a case if they bought headphones.
  • Volume and value: Offer a discounted item to customers who purchase multiple items or a higher than average spend. If customers are shopping in bulk, reward it!
  • Samples: Use the euphoric post-purchase timing to share a new product with your customers. Try offering a sample-sized version of the product they just bought, like a small bottle of vitamin gummies in a different flavor from what they purchased.
  • Gifts: Offer a complimentary gift! Sure, this strategy won’t increase your AOV, but it’s a great way to boost LTV and create repeat customers.
  • Inventory management: Offer a discount on excess inventory items. Try this strategy when it’s time to liquidate seasonal stock or make room in your inventory before new products launch.
  • Flash sales: This is a great way to get viral buzz! Say your cereal brand releases a small-batch, limited-time flavor. Making it exclusively available as a post-purchase upsell rewards your current customers and builds demand. 

Step 3: Design high-converting post-purchase funnels 

Once you’ve conceptualized your upsell strategy, optimize the offer’s design to encourage the highest conversion rate. 

Design tips that boost conversions:

  • Button placement: Make it easy for customers to accept your offers by placing your Accept/Decline buttons at the top and bottom of your offer page. 
  • Copy (and images): Update your offer’s copy and images to match your brand’s tone and energy! Consider adding seasonal copy and editorial images.  
  • Brand consistency: CartHook Post Purchase Offers automatically inherit your Shopify store’s theme, so once you launch the offer, your customer’s checkout journey will feel seamless. 
  • Social proof: Testimonials sell! Customer validation helps to build trust—without being salesy. Adding a 5-star review or testimonial to your offer page is a savvy move. 
  • Design for mobile: 45% of eCommerce sales will soon be via mobile.

Step 4: Build customer loyalty with post-purchase subscription upsells

As the fastest growing area in commerce, subscriptions present Shopify brands with a unique opportunity to engage with customers and build long-term relationships. If you add subscriptions to your Shopify store, chances are you’ll benefit from reliable recurring revenue, repeat customers, and a bump in AOV (and LTV)!

Subscriptions lower purchasing friction and are a great option to present as a post-purchase upsell. Here are five high-converting post-purchase subscription strategies:

Strategy 1: Cross-sell a subscription

Complementary and accessory products make great post-purchase offers. Say your customer shows their pet some love by purchasing a pack of dog toys. Upsell a subscription of dog treats, so their furry friend is always taken care of. 

Strategy 2: Offer a subscription as an upsell on a one-time purchase

If your customer buys a plant, display a post-purchase offer that upsells them to a subscription of plant food. 

Strategy 3: Add an upsell to a subscription 

Say your customer’s initial order is a cocktail subscription. CartHook allows you to offer a post-purchase upsell, like a martini shaker. Then, display a second post-purchase offer based on whether your customer accepts or declines the first offer. 

Many brands find success using an upsell/down-sell strategy. If your customer declines the shaker (upsell), present them with a cheaper option, like whiskey rocks (down-sell).

Strategy 4: Upsell to a membership or club

Say your customer buys a bouquet of flowers. Upsell them to a bouquet of the month club! Here the focus is building community and a long-term relationship with your brand.

Strategy 5: Offer a refill subscription

In many cases, the primary function of a subscription (or upsell) is to increase AOV. Take a step back and see that subscriptions have a bigger impact on your business—and your customer’s life. The dependable delivery cadence of a subscription can ease a customer’s burden of remembering to buy something.

If your customer buys a toothbrush, upsell a toothpaste refill subscription. Customers will come to rely on your regular deliveries.  

To add post-purchase subscriptions to your checkout flow, start by adding a subscription app, like Recharge, to your Shopify store. Then, use CartHook to present your subscriptions as post-purchase upsells

Step 5: Test your funnels and optimize your offers

Post-purchase offers allow merchants to increase their AOV without increasing traffic. You’re taking advantage of the customers you already have! Most merchants using CartHook see an average 15% acceptance rate on offers and a 10% boost in total revenue. 

To see those numbers, try:

  • Offering a discount (even if your brand doesn’t typically do this). Post-purchase offers aren’t an incentive to new—and potentially one-time-only—customers. They’re a reward for being customers. Tip: Test dollar amount discounts vs. percentage discounts. 
  • Changing your funnel priority. If multiple funnels share the same criteria, change the funnel priority to trigger a different offer. Tip: Post-purchase offers are triggered based on what your customer just purchased. Build an unlimited number of funnels to present highly personalized offers. 
  • Offer big-ticket (high-priced) items! This strategy might lower your conversion rate, but it could also give a bigger boost to your AOV. 

Post-purchase offers are an essential part of your customer’s journey

As the customer experience continues past checkout, strategies like post-purchase offers support their journey. 

As a recap, here’s how CartHook Post Purchase Offers deliver high ROI, rocket AOV, and increase LTV:

  • No developer needed
  • No additional marketing investment
  • No additional ad spend (or traffic) required
  • Offers never “backfire” or impact the initial checkout
  • 15% of customers who see post-purchase offers hit accept (with one frictionless click)

If you’re ready to boost your AOV and see a 10% increase in total revenue, try CartHook Post Purchase offers (for free!) and add real revenue to your bottom line.

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