Upselling Techniques To Boost Your AOV And CLV Significantly

7 Upselling Techniques To Boost Your AOV And CLV Significantly

Average Order Value (AOV) and Customer Lifetime Value (CLV) have become two crucial factors nowadays for online businesses. If you can increase your AOV and CLV, that means, you will be making more profit from every buyer, while spending less on acquisition and promotional costs.

The best way to optimize your AOV and CLV is to use proven upselling techniques that are designed to maximize conversions.

In this article, we will look at 7 proven upselling techniques that you can actively use to increase your AOV & CLV and eventually earn more revenue.

So let’s begin.

What is Upselling?

Upselling is a marketing strategy where you encourage your customers to consider purchasing a higher-priced product, an upgraded version of a product, or adding complementary items to their initial purchase.

Unlike suggesting related products (cross-selling), upselling aims to enhance the value of the chosen product by showcasing the benefits of the premium or upgraded options.

Upselling techniques to increase AOV

The success of this strategy depends on how well you understand customers’ preferences so that you can offer the right relevant upgrades that are aligned with your customer needs.

But if done right, upselling can easily lead to higher sales revenue and better customer satisfaction.

In most cases, people offer some sort of a discount for the upgrade, which is fine because additional sales revenue would mean no extra acquisition cost for the extra amount earned.

Benefits Of Using The Upselling Strategy

Using upsell tactics will help you get some valuable benefits that will surely align with your business goals.

  • Increased Revenue
    By encouraging customers to spend more, you may witness a direct increase in sales revenue.
  • Enhanced Customer Experience
    Upselling offers a chance to provide added value, improving the overall satisfaction of your customers.
  • Greater Customer Retention
    A successful upselling strategy can foster loyalty, increasing the likelihood of repeat purchases.
  • Achieve Higher AOV
    With certain upselling tactics, you will be able to make more customers spend more on every order, i.e., higher revenue.
  • Improved CLV
    More high-value orders from customers mean increased customer lifetime value per customer. This will be a good reflection on the success of your business.

7 Upselling Techniques To Trigger More Sales

Now, let us look at a few upselling techniques that you can use to grow your online sales significantly.

1. Follow-up Email Upsell Offers After Orders Are Placed or Completed

Email automation can be used smartly to make upsell offers and trigger more sales. In this strategy, you will leverage customers’ purchase history and make meaningful upsell offers via email afterward.

You can set up an automation to send out upsell offers immediately after an order is placed, or when the order status has changed to completed or delivered. That way, the customer will recognize you and consider accepting your offer.

Let’s look at an example.

Suppose a person purchased a t-shirt from your online shop which you delivered earlier today. Right after receiving the order, you can send out an email with a special discount offer on more similar t-shirts.

If the customer is happy with the initial order, the discount will persuade him to purchase another t-shirt.

This is a great example of an email upselling strategy.

If you run a WooCommerce store, then you may easily set up such automated upsell offers using a plugin called Mail Mint. Check it out now.

2. Relevant Product Bundling

One of the commonly used upselling techniques is creating bundles – yes a product bundle is a type of upsell offer.

Basically, you bundle up a few products that are related in terms of category and use case and offer a small discount on the total price.

If the buyer wants, he/she can purchase each of these products individually. However, the bundle will act as an all-in-one offer along with a discounted price creating a good reason for the buyer to take the bundle instead.

For example, suppose a person searched for a facewash from a certain brand. In the search results, she found her facewash but also noticed a bundle that included her facewash along with a face cream and lotion from the same brand.

However, the thumbnail said, “Save $30.” She calculated and found out that the individual prices of each of those items would total an amount that is worth $30 more than the price of the bundle.

Seeing that she would probably need the other two in the future as well, she decided to go for the bundle and save $30.

If you can bundle up the right products and offer a lucrative discount on the total price, it will automatically act as an upsell offer.

You can even offer bundles as the upsell offer as a post-purchase one-click upsell or email upsell offer, which usually works quite well.

3. Tiered Pricing or Upgrade Options

Certain products may have multiple versions or variations with higher value, which is mostly common for digital products, software, or services.

Whenever someone purchases a lower plan, you may run marketing activities to offer him a higher plan.

For example, we sell 3 packages for our plugin, WPVR. If someone purchases the basic plugin, we then run email automation campaigns to try and convince him/her to upgrade to the larger plan at a small discount.

Of course, the higher plans come with additional features and add-ons which will be great reasons for the customer to upgrade, while the discount acts as an added push.

These offers can be made via automated emails, re-targeting Ads, and internal product Ads.

4. Limited-Time Offers

A limited-time discount offer can be a great upselling strategy to convince potential buyers to place orders.

Suppose you own a yearly subscription-based membership platform with 3 membership levels. And let’s say, someone has been a member for the last 6 months on the lowest membership level.

At this point, you may send a surprise limit-time discount offer, maybe for 7 days, to upgrade to a higher membership level.

If the offer is lucrative, the customer may decide to upgrade.

The limited time is crucial here. Normally, people will like to take time to make the decision and end up forgetting about it. The fixed time will make them give higher priority to make a decision before it’s too late.

5. Spending Targer Upsell Offer

You can try using a unique tactic to make customers place more and more orders every month.

Set up a spending program where, based on reaching a certain target spending amount, the customers will be entitled to certain rewards, which can be a special large discount, store credits, or an attractive gift.

For example, you may set up 3 spending targets – $500, $2k, $4k. Upon spending each target amount in a month, the customer will be entitled to an additional 10% discount on all orders afterward.

So, when someone spends $500 on your store, for every order he makes afterward, he will get 10% off. Upon reaching $2k spent on orders, his discount will increase to 20% for further orders. And upon spending $4k, his discount will be increased to 30% for the rest of the orders in that month.

On the 1st of every month, this will reset.

This is a tactic where you are upselling the discount itself rather than a product.

It’s a unique approach and will work well for selling groceries and household products.

6. Post-Purchase One Click Upsells

One-click upsell has proven to be one of the best ways to trigger high-value conversions for any online business. In this tactic, you ensure you have already earned money from the customer before making an upsell offer while making it super easy for the buyer to accept your upsell offer.

The way it works is, that when a person goes through checkout, the amount is charged, and immediately next a special upsell offer appears (which can be an offer on an upgrade or an additional product). The buyer can accept this offer with a single click, without having to input payment information again. Or, the buyer may even reject the offer, which means you have already sold the initial product, and only the upsell offer is not being bought.

It’s an upselling technique that allows you to try and increase the AOV from a customer without having the risk of making him stop completing the initial order.

You may easily set up one-click upsell offers using a sales funnel builder such as WPFunnels. Learn more about WPFunnels.

7. Free Trials or Samples

This upselling strategy is common among online businesses such as SaaS tools, subscription-based digital products, and high-ticket services.

Basically, you offer a free trial for 15-30 days for the customer to try out your services and subscribe to your paid plans only if satisfied.

It’s a great way to make the customer love your product before investing in you, resulting in a long-term relationship.

These 7 upselling tactics can be a powerful element of your overall marketing plan to help earn more revenue out of every customer. Now, let us look at a few common ways to make upsell offers.

How to Make Upsell Offers

Depending on the upselling strategy you use, you may make the offer in various ways.

i. Upsell Offers via Emails

The most common way to make upsell offers is via email marketing. You may send an upsell offer for relevant products, bundles, or higher plans via email series with persuasive copies.

An email marketing automation tool such as Mail Mint or ActiveCampaign could be used to set up these upsell offers via automated emails.

ii. Order Bump Upsell During Checkout

You may also use order bump offers on the checkout page as upsell offers.

For example, if someone is subscribing to your paid program, you may upsell an advanced paid program instead at a discounted price as the order bump offer.

In this case, it will not increase the number of products but rather increase the overall order value in terms of price.

iii. Instant Post-Purchase Upsell

Whenever a person has paid for an order, instantly you may make post-purchase offers either via email or as a one-click upsell to trigger an instant upsell.

WPFunnels’s Global funnels would be a great tool to set this up to connect the one-click upsell offers naturally to your WooCommerce store. It will allow you to set up conditional funnels based on the buyer’s product in the cart, where you may use a custom checkout page and make dynamic upsell offers on relevant products.

iv. Pop-up with Upsell Offer

Whenever a person enters the cart page or the checkout page with a certain product, you may trigger a pop-up to offer a better alternative at a discount.

If the copy is well-written and the pop-up is well-designed, many will consider taking the offer.

Final Thoughts

As you saw, using upselling techniques is not so complicated and have the potential of increasing your revenue significantly.

The 7 upselling tactics discussed in this article have their own unique way of convicing people to convert. But it’s success will really depend on how accurately you can offer the right products using the right tactics.

Nevertheless, the only way to excel at using upsells is by implementing them. So go ahead and start using upselling techniques now and start increasing your AOV and CLV.

Frequently Asked Questions

1. What’s the difference between cross-selling and upselling?

Cross-selling involves selling related or complementary products to enhance the current purchase while upselling focuses on convincing customers to buy a higher-priced or upgraded version of the current product or service.

2. How do I determine the right products to upsell?

Analyze customer purchasing patterns and preferences to identify products or services that complement their purchases. Conducting market research and utilizing customer feedback can also help in this determination.

3. Are there instances where upselling might negatively impact customer satisfaction?

If upselling becomes overly aggressive or if the suggested products don’t align with the customer’s needs, it can lead to dissatisfaction. Hence, it’s crucial to make relevant and considerate upsell offers.

4. What’s the best time to present upsell offers?

Present upsell offers at strategic points in the customer journey, such as post-purchase follow-ups, during checkout, or through personalized recommendations on the website.

5. How do I measure the success of upselling techniques?

Track metrics like AOV, conversion rates of upsell offers, and customer feedback to gauge the effectiveness of your upselling strategies.

Noshin Nisa

Noshin Nisa is a Content Writer at WPFunnels with an interest for WordPress and Woocommerce. She loves to write, learn, and grow, with enthusiasm in Woocommerce, Sales Strategies, and Sales Funnel Builders.

Noshin Nisa

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