The Trust Moment: Learn the Right Time to Apply Upsell Discount Strategies
by Jonathan Biri
CEO @ Conversion Bear
Bonus Material: 50 Discounted Upselling Examples
Every customer loves a discount. That's close to being a universal truth.
Shopify store owners, not so much.
But here's the thing: giving your customers a discount doesn't mean you're reducing your profit.
On the contrary: discounts can increase your average order value (AOV) and even improve your customer's loyalty.
How, you ask?
There are many ways of doing it, of course. And many of them involve a sales technique called upselling (with or without discounts).
Every customer loves a discount. That's close to being a universal truth.
Shopify store owners, not so much.
But here's the thing: giving your customers a discount doesn't mean you're reducing your profit.
On the contrary: discounts can increase your average order value (AOV) and even improve your customer's loyalty.
How, you ask?
There are many ways of doing it, of course. And many of them involve a sales technique called upselling (with or without discounts).
What Exactly Is Upselling?
Upselling means to persuade a customer to buy something additional and usually more expensive (hence the up preceding the word sell).
Simple, right?
But bear in mind, there's a strategy behind it.
If a customer buys a cellphone, for example, you can offer insurance against water-damage as an upsell. If a customer buys a party dress, you can offer some customized add-ons. They bought a new plant? Offer a more elaborate pot to go with it.
You get the idea.
Simple, right?
But bear in mind, there's a strategy behind it.
If a customer buys a cellphone, for example, you can offer insurance against water-damage as an upsell. If a customer buys a party dress, you can offer some customized add-ons. They bought a new plant? Offer a more elaborate pot to go with it.
You get the idea.
The key ingredient to the upselling recipe is to offer your customers something that complements the item they are interested in buying (or have just bought) by leveling it up.
And the not-so-secret ingredient is to upsell with a discount – which, in the end, will make you more money.
Not to mention more customer loyalty too.
And the not-so-secret ingredient is to upsell with a discount – which, in the end, will make you more money.
Not to mention more customer loyalty too.
How Can Discounts Make You More Sales?
Discounting means cutting down the price of an item. Duh. We're pretty sure you knew that.
The goal of any discount pricing strategy is to increase customer traffic, clear old inventory from your business, and increase sales.
As the volume of sales increases – due to the reduced prices – so does your profit.
However, it's not a strategy that can be used on its own for long periods of time. Otherwise, customers will lose the sense of urgency to enjoy the discount – and you might lose money.
That's why seasonal discounts are so popular: Black Friday, for example.
If customers could buy new computers with large discounts all the time, no one would wait until November to do so.
The goal of any discount pricing strategy is to increase customer traffic, clear old inventory from your business, and increase sales.
As the volume of sales increases – due to the reduced prices – so does your profit.
However, it's not a strategy that can be used on its own for long periods of time. Otherwise, customers will lose the sense of urgency to enjoy the discount – and you might lose money.
That's why seasonal discounts are so popular: Black Friday, for example.
If customers could buy new computers with large discounts all the time, no one would wait until November to do so.
And laptop makers would make far less money, too.
Not Every Discount Is Created Equally
Overall, there are four types of discounts:
• Loyalty member discounts: part of a loyalty reward program.
• Seasonal discounts: Black Friday, Valentine's Day, Mother's Day, etc.
• Volume discounts: for customers who buy in bulk.
• Promotional discounts: offered for a limited time.
When we talk about an upselling discount strategy, we mean using promotional discounts like "buy one get one (free or half off)" or offering a percentage off certain items.
As they generally increase customer traffic and sales, it's the perfect match for upselling strategies.
Let's not get our sales terms mixed up, though!
• Loyalty member discounts: part of a loyalty reward program.
• Seasonal discounts: Black Friday, Valentine's Day, Mother's Day, etc.
• Volume discounts: for customers who buy in bulk.
• Promotional discounts: offered for a limited time.
When we talk about an upselling discount strategy, we mean using promotional discounts like "buy one get one (free or half off)" or offering a percentage off certain items.
As they generally increase customer traffic and sales, it's the perfect match for upselling strategies.
Let's not get our sales terms mixed up, though!
Upselling X Cross-Selling: What's the Difference?
It's easy to confuse upselling with cross-selling. They are very similar strategies since they both work by adding something to a product.
To differentiate them, just focus on the words: upselling, starting with up, means to add something higher in value, complementing the same product the customer has bought.
It can be as simple as adding a monogram to their new pajamas.
To differentiate them, just focus on the words: upselling, starting with up, means to add something higher in value, complementing the same product the customer has bought.
It can be as simple as adding a monogram to their new pajamas.
Cross-selling, on the other hand, starting with cross, means to add a different product related to the one the customer bought.
For example: If a customer's buying a bike, you offer them a new lock. Or maybe you're offering batteries with their new scales – which they could've forgotten otherwise. Very thoughtful of you!
With both upselling and cross-selling, you're giving your customers two things (well, hopefully more!) they need at once.
If upselling means thinking higher, cross-selling means thinking sideways.
For example: If a customer's buying a bike, you offer them a new lock. Or maybe you're offering batteries with their new scales – which they could've forgotten otherwise. Very thoughtful of you!
With both upselling and cross-selling, you're giving your customers two things (well, hopefully more!) they need at once.
If upselling means thinking higher, cross-selling means thinking sideways.
No pressure on getting the terminology right, though. The benefits are what really matters!
Advantages of Upselling in Ecommerce Sites
If you still have doubts about whether an upselling discount strategy would benefit your business, take a look at these:
• Increases average order value (AOV). As you are offering more products (or upgrades for a certain product), you are likely to sell more.
• Helps increase conversion rates. When added at the right point in the customer journey, they're more likely to convert (aka buy) since the intention is already high.
• Delivers a better customer experience. You're helping customers when you suggest upgrades they might need, but hadn't thought of just yet. This adds up to their customer experience and satisfaction.
Just remember to not be pushy – that's shooting your foot.
• Increases average order value (AOV). As you are offering more products (or upgrades for a certain product), you are likely to sell more.
• Helps increase conversion rates. When added at the right point in the customer journey, they're more likely to convert (aka buy) since the intention is already high.
• Delivers a better customer experience. You're helping customers when you suggest upgrades they might need, but hadn't thought of just yet. This adds up to their customer experience and satisfaction.
Just remember to not be pushy – that's shooting your foot.
Strategic upselling originally comes from brick-and-mortar stores but were easily adapted into ecommerce sites.
And better yet, you can add upselling discounts at strategic points during your customer's journey.
This will help you grow order sizes.
And better yet, you can add upselling discounts at strategic points during your customer's journey.
This will help you grow order sizes.
The Right (And Wrong) Places for Upselling Along the Customer Journey
If someone offers you a piece of cake, a few possible scenarios can happen:
A) You're not hungry, and you say no to the cake.
B) You'd love it, but you're actually on a diet right now, so no thank you.
C) You're hungry, and a piece of cake would be perfect right now. Thank you!
A) You're not hungry, and you say no to the cake.
B) You'd love it, but you're actually on a diet right now, so no thank you.
C) You're hungry, and a piece of cake would be perfect right now. Thank you!
That piece of cake is your upselling strategy. Offer them to your customers at the right place and time, and they're more likely to take them.
These places often are:
• The product page
• The cart/checkout page
• After checkout (post-purchase)
That's because your customer's buying intent is high. They're hungry.
And it's also important to know when customers are not hungry. We want to increase their customer experience, not ruin it.
These places often are:
• The product page
• The cart/checkout page
• After checkout (post-purchase)
That's because your customer's buying intent is high. They're hungry.
And it's also important to know when customers are not hungry. We want to increase their customer experience, not ruin it.
To keep your customers happy avoid upselling on these occasions:
• During customer service: If the customer got in touch with a problem, don't try to sell them an upgrade. Focus on solving the problem and keeping customer satisfaction high, and not necessarily on hard selling.
• When there's a budget: Not everyone can afford premium upgrades. Instead of pushing these, mention discounted products or tell them how that could be beneficial in the future.
• When the upselling isn't relevant: If the upgrade doesn't relate to the purchased product or to the customer's immediate needs, don't do it. Customer's needs come first.
These are occasions where your customer isn't hungry. Or even worse, they're on a diet, and you're ruining their day.
• During customer service: If the customer got in touch with a problem, don't try to sell them an upgrade. Focus on solving the problem and keeping customer satisfaction high, and not necessarily on hard selling.
• When there's a budget: Not everyone can afford premium upgrades. Instead of pushing these, mention discounted products or tell them how that could be beneficial in the future.
• When the upselling isn't relevant: If the upgrade doesn't relate to the purchased product or to the customer's immediate needs, don't do it. Customer's needs come first.
These are occasions where your customer isn't hungry. Or even worse, they're on a diet, and you're ruining their day.
Customer Loyalty: a Bigger Splash
You're getting more and more ready to implement upselling discount strategies in your ecommerce site. You know the right place, the right time.
All that's left is to create some ambiance. The perfect scenario for your customer to say yes to whatever it is you want them to upgrade.
For that, remember to:
• Include social proof: If you have reviews about how great your upselling strategy is – and how happy your customers are with it – make sure you're displaying it.
• Use the "Rule of Three": This strategy refers to the technique of showing three items during the upselling moments. One is the baseline item, the second is a moderately priced upgrade, and the third one, the premium version. Amazon is great at doing this.
All that's left is to create some ambiance. The perfect scenario for your customer to say yes to whatever it is you want them to upgrade.
For that, remember to:
• Include social proof: If you have reviews about how great your upselling strategy is – and how happy your customers are with it – make sure you're displaying it.
• Use the "Rule of Three": This strategy refers to the technique of showing three items during the upselling moments. One is the baseline item, the second is a moderately priced upgrade, and the third one, the premium version. Amazon is great at doing this.
• Avoid being pushy: One upselling moment is OK, two are good, and more than three might be a bit too much. Be sensible.
• Offer meaningful upgrades: Keep your upgrades relevant to your customer's original purchase. Warranties and insurances are always a good call.
And of course, don't forget about testing what upselling strategies work the best.
• Offer meaningful upgrades: Keep your upgrades relevant to your customer's original purchase. Warranties and insurances are always a good call.
And of course, don't forget about testing what upselling strategies work the best.
A/B Testing and Upselling Strategies
Upselling strategies and A/B testing go hand in hand.
That's because testing will tell you which strategy is performing the best, and when it's performing the best too.
Think of it almost like a game: what types of cake can you offer, and when?
There's not one single way of getting an upsell right, and A/B testing can tell you which ones are working better.
Should you offer your upgrade in the cart?
With or without a photo?
Add some copy to it? Or not?
That's because testing will tell you which strategy is performing the best, and when it's performing the best too.
Think of it almost like a game: what types of cake can you offer, and when?
There's not one single way of getting an upsell right, and A/B testing can tell you which ones are working better.
Should you offer your upgrade in the cart?
With or without a photo?
Add some copy to it? Or not?
Will these changes influence your main product's conversion?
A/B testing will show you the more successful way.
A/B testing will show you the more successful way.
When Won't A/B Testing Help?
If you want your A/B testing to be relevant and show results that will help you with your upselling decisions, remember that:
• You need a lot of data to get results you can act on. If your sample size is too small, your results might be false.
• To get data, you need traffic. So focus on getting more traffic before investing on A/B testing.
• You should test one thing at a time. Measure small changes against each other to ensure you know what's actually making a difference.
• You need a lot of data to get results you can act on. If your sample size is too small, your results might be false.
• To get data, you need traffic. So focus on getting more traffic before investing on A/B testing.
• You should test one thing at a time. Measure small changes against each other to ensure you know what's actually making a difference.
Types of Upselling
As you prepare to kickstart your upselling discount strategy, there's a few options you can offer your customers. They are:
1. Add-Ons
These are products added to the main one (or additional purchases, if you're talking about cross-selling).
When selling a laptop, for example, add-ons include extra adaptors or charging cables.
This is the ideal point to make unique, limited-time offers.
When selling a laptop, for example, add-ons include extra adaptors or charging cables.
This is the ideal point to make unique, limited-time offers.
2. Product Upgrades
One of the most common types of upselling. This means offering customers a more advanced product than the one they originally put in their cart.
Back to the laptop example, you could offer additional storage or more memory.
Back to the laptop example, you could offer additional storage or more memory.
3. Complementary Services
Something that saves your customer time and money.
With the laptop, it could be a product warranty offer. Regardless of your product, be creative here: if you sell custom stationery, for example, could you add a calligrapher to handwrite addresses and names on invitations?
With the laptop, it could be a product warranty offer. Regardless of your product, be creative here: if you sell custom stationery, for example, could you add a calligrapher to handwrite addresses and names on invitations?
Not only does this add value, but also contributes to a greater customer experience.
Which, in return, gets you more customer loyalty.
And customer loyalty = long-term growth and profitability.
And it all started with upselling.
This is another sales technique you should add to your ecommerce site's toolbox to generate sales and growth.
Ready to learn more about seven different upselling discount strategies to add to your ecommerce site?
Which, in return, gets you more customer loyalty.
And customer loyalty = long-term growth and profitability.
And it all started with upselling.
This is another sales technique you should add to your ecommerce site's toolbox to generate sales and growth.
Ready to learn more about seven different upselling discount strategies to add to your ecommerce site?
Upsell Discount Strategy #1: The "Dummy Choice"
The "dummy choice" is a product that you add only for comparison. It's there to be a point of reference for the customer, highlighting the advantages of the other options.This strategy is also known as price anchoring.
With price anchoring, you show the customer a price point that they can base their decision on.
And at the same time, you make one of the decisions look much more appealing than the others.
By offering a discounted upsell, you make your offer more tempting than ever.
How can you use it?
Say your ecommerce site sells three products: an entry-level one, a mid-level (without add-ons) and the same mid-level (with add-ons plus a discount).
Then, both mid-level options are at a similar price. They are still slightly more expensive than the entry-level one, but one of them comes with add-ons and a discount.
Does that look like a deal you should miss out on?
And at the same time, you make one of the decisions look much more appealing than the others.
By offering a discounted upsell, you make your offer more tempting than ever.
How can you use it?
Say your ecommerce site sells three products: an entry-level one, a mid-level (without add-ons) and the same mid-level (with add-ons plus a discount).
Then, both mid-level options are at a similar price. They are still slightly more expensive than the entry-level one, but one of them comes with add-ons and a discount.
Does that look like a deal you should miss out on?
When you show the mid-level options to a customer who's looking at the entry-level one, and add a discount, you're offering a lot more value for their money.
Then, they are more likely to say yes.
And they're pretty happy they found such an awesome deal!
Then, they are more likely to say yes.
And they're pretty happy they found such an awesome deal!
Upsell Discount Strategy #2: Free Shipping
Which customer isn't happy when you offer them something for free?Around 90% of them see free shipping as an incentive to shop more.
When you show customers how close they are to receiving free shipping, you're motivating them to spend more.
Free shipping could be considered a strategy on its own, but it also relates directly to discounted upselling.
That's because you have to offer them the right upgrades to make them go for it.
Remember: with upselling, you want to add more value with every suggestion you make. You want to make your customer happy, not annoyed.
How can you use it?
During checkout, remind your customers that they need a few more items to complete their minimum order amount and qualify for free shipping.
You can do that with a shipping bar while they shop, or during checkout.
It's important to adjust the minimum order amount to maximize conversion rates. Which is something you can find out with – you guessed it – A/B testing.
But this is the twist: complement that message with discounted upgrades or services related to upgrading their product.
And if you really want them to take action, add the normal costs of shipping for comparison.
When you show customers how close they are to receiving free shipping, you're motivating them to spend more.
Free shipping could be considered a strategy on its own, but it also relates directly to discounted upselling.
That's because you have to offer them the right upgrades to make them go for it.
Remember: with upselling, you want to add more value with every suggestion you make. You want to make your customer happy, not annoyed.
How can you use it?
During checkout, remind your customers that they need a few more items to complete their minimum order amount and qualify for free shipping.
You can do that with a shipping bar while they shop, or during checkout.
It's important to adjust the minimum order amount to maximize conversion rates. Which is something you can find out with – you guessed it – A/B testing.
But this is the twist: complement that message with discounted upgrades or services related to upgrading their product.
And if you really want them to take action, add the normal costs of shipping for comparison.
Upsell Discount Strategy #3: Creating Urgency
You've heard of fear of missing out (FOMO), right?
We think we should create another acronym: FOMS (fear of missing sales).
We think we should create another acronym: FOMS (fear of missing sales).
It's definitely a thing, and it prompts customers to take action.
When you create a limited-time offer, customers are more inclined to take it. No one likes to miss a good deal!
How can you use it?
When creating your upsell, add a discount and a ticking clock: it can be a day or even a few minutes. Or showcase how limited your stocks are at the moment!
Then, watch your conversions increase.
Although you can use these strategies on their own, combining them to create a discounted upsell makes them more relevant to your customers, and increases the perceived value too.
When you create a limited-time offer, customers are more inclined to take it. No one likes to miss a good deal!
How can you use it?
When creating your upsell, add a discount and a ticking clock: it can be a day or even a few minutes. Or showcase how limited your stocks are at the moment!
Then, watch your conversions increase.
Although you can use these strategies on their own, combining them to create a discounted upsell makes them more relevant to your customers, and increases the perceived value too.
Upsell Discount Strategy #4: Personalized Offers
We can't stress it enough: your discounted upsell offers have to be relevant.
And personalization is a great way of doing that. Pre-purchase, post-purchase, and even during the checkout process.
The ecommerce product options are endless, and customers want to find what they want, and fast.
Better yet: offer them what they didn't know they needed. Make the product upgrade come to them.
And personalization is a great way of doing that. Pre-purchase, post-purchase, and even during the checkout process.
The ecommerce product options are endless, and customers want to find what they want, and fast.
Better yet: offer them what they didn't know they needed. Make the product upgrade come to them.
If you've done your homework – that is, qualitative and quantitative research to find out what your customer is interested in. use that data to offer them the needed upgrades.
With a discount.
This upselling strategy can be combined with other marketing tools, such as remarketing and abandoned carts.
How can you use it?
The possibilities of this strategy are many. A few examples are:
• Pre-purchase: an abandoned cart can be an opportunity to offer a limited-time discounted upgrade. More value, and less time to make a decision (aka urgency).
• Post-purchase: what has your customer bought in the past? It could be the perfect time to email them with discounted services to complement their past purchase. Bonus points: the exclusivity feeling.
• During checkout: depending on the level of personalization your ecommerce site already has, you can create exclusive offers to be added during the checkout process.
With a discount.
This upselling strategy can be combined with other marketing tools, such as remarketing and abandoned carts.
How can you use it?
The possibilities of this strategy are many. A few examples are:
• Pre-purchase: an abandoned cart can be an opportunity to offer a limited-time discounted upgrade. More value, and less time to make a decision (aka urgency).
• Post-purchase: what has your customer bought in the past? It could be the perfect time to email them with discounted services to complement their past purchase. Bonus points: the exclusivity feeling.
• During checkout: depending on the level of personalization your ecommerce site already has, you can create exclusive offers to be added during the checkout process.
If you have a customer loyalty program (and your customer is logged in), you might have even more ideas on how to create irresistible upsells with the discount they've been waiting for.
And if you don't, what are you waiting for?
And if you don't, what are you waiting for?
Upsell Discount Strategy #5: Follow Up Offers
Not every upsell opportunity happens at checkout.
Email marketing is also a great place to invest in your upselling strategies.
And it's an efficient way of reaching customers too.
Follow up your customer's past buys – or even their abandoned carts – and double-check if they really don't need anything more to complement their purchases.
How can you use it?
If your upsell was ignored at checkout, you can offer it again by email after their purchase. With a cherry on top: a discount.
Email marketing is also a great place to invest in your upselling strategies.
And it's an efficient way of reaching customers too.
Follow up your customer's past buys – or even their abandoned carts – and double-check if they really don't need anything more to complement their purchases.
How can you use it?
If your upsell was ignored at checkout, you can offer it again by email after their purchase. With a cherry on top: a discount.
You can follow the same strategy for abandoned carts. After all, the average cart abandonment rate is 69%, according to the Baymard Institute.
A lot of these customers might rethink their decision when offered a discount, though.
Make sure you're reaching out to them to give it a try.
A lot of these customers might rethink their decision when offered a discount, though.
Make sure you're reaching out to them to give it a try.
Upsell Discount Strategy #6: Discounted Substitutes
Your limited stock upselling strategy was amazing.So amazing that you sold out.
Yay! Congratulations!
But just because you ran out of a product, doesn't mean you'll stop making sales.
Hell no.
Continue offering the upsell. That's what discounted substitutes are here for.
With upselling strategies, you always have an alternative.
It's good for your customer, and it's good for you.
Yay! Congratulations!
But just because you ran out of a product, doesn't mean you'll stop making sales.
Hell no.
Continue offering the upsell. That's what discounted substitutes are here for.
With upselling strategies, you always have an alternative.
It's good for your customer, and it's good for you.
How can you use it?
What's your upsell?
Whatever it is, find a substitute for it. It has to be an upgrade still – say, upgrading a laptop's memory from 8GB to 16GB.
Offer different laptop models (from the same manufacturer) that contain the 16GB upgrade. Still not available?
Get their email and let them know when their desired product is back. Golden stars if you can also add a discount or even a free gift to thank them for their patience.
Never forget: great customer experience pays off.
What's your upsell?
Whatever it is, find a substitute for it. It has to be an upgrade still – say, upgrading a laptop's memory from 8GB to 16GB.
Offer different laptop models (from the same manufacturer) that contain the 16GB upgrade. Still not available?
Get their email and let them know when their desired product is back. Golden stars if you can also add a discount or even a free gift to thank them for their patience.
Never forget: great customer experience pays off.
Discounted substitutes are not an exclusive strategy to upselling, though. You can always switch to cross-selling and offer similar laptop models from different manufacturers.
Bonus tip: how can your business offer services as part of your upselling strategy? Services are rarely sold out ;)
Bonus tip: how can your business offer services as part of your upselling strategy? Services are rarely sold out ;)
Upsell Discount Strategy #7: Shopping Cart Add-Ons
If you shop online (and who doesn't?), you've probably come across shopping cart add-ons countless times.
This strategy is also known as order bump. For a discounted price, or a seemingly low cost, you can add more features to your original purchase.
It works a bit like a McDonald's order. It's late, you're tired, and you walk in, intending to get nothing but a simple cheeseburger.
Then the questions start:
Would you like to double-up your burger?
For $5 more, would you like to add large fries and a large drink?
Would you like a dessert too?
You also get a free toy!
This strategy is also known as order bump. For a discounted price, or a seemingly low cost, you can add more features to your original purchase.
It works a bit like a McDonald's order. It's late, you're tired, and you walk in, intending to get nothing but a simple cheeseburger.
Then the questions start:
Would you like to double-up your burger?
For $5 more, would you like to add large fries and a large drink?
Would you like a dessert too?
You also get a free toy!
Great ecommerce lessons don't always come from Amazon. Ecommerce sites can learn a lot from McDonald's upselling techniques, too.
Just avoid the creepy clowns. They are never a good idea.
How can you use it?
Get your ecommerce site ready for the checkout process.
What can you offer to upgrade the original purchase? Can you offer it with a discount, or even for free?
Think: what are your large fries and double cheeseburgers?
Perhaps your customer hadn't considered those upgrades before seeing them on their add-on list. All that extra added-value they nearly missed!
It's hard to say no to that.
These add-ons might be small ones. Your customer might not choose all of them, but they might choose one or two.
And that's already enough to increase their order value.
If more of them do the same, you're winning!
And no clowns were involved, thankfully.
Just avoid the creepy clowns. They are never a good idea.
How can you use it?
Get your ecommerce site ready for the checkout process.
What can you offer to upgrade the original purchase? Can you offer it with a discount, or even for free?
Think: what are your large fries and double cheeseburgers?
Perhaps your customer hadn't considered those upgrades before seeing them on their add-on list. All that extra added-value they nearly missed!
It's hard to say no to that.
These add-ons might be small ones. Your customer might not choose all of them, but they might choose one or two.
And that's already enough to increase their order value.
If more of them do the same, you're winning!
And no clowns were involved, thankfully.
Upsell Discount Strategy #8: Subscribe and Save
“Subscribe & Save” is a strategy developed by Amazon.
It's simple: it allows customers to commit to an order (with subscription) in exchange for a discount.
It started with health supplements, but the model quickly spread to other ecommerce sites and products too.
Not only does it drive a higher average order value (AOV), but it also promotes customer loyalty.
All the things an ecommerce site owner wanted.
(Fun fact: Amazon's "Subscribe and Save" model counts with the highest numbers of subscribers in the world, according to McKinsey.)
It's simple: it allows customers to commit to an order (with subscription) in exchange for a discount.
It started with health supplements, but the model quickly spread to other ecommerce sites and products too.
Not only does it drive a higher average order value (AOV), but it also promotes customer loyalty.
All the things an ecommerce site owner wanted.
(Fun fact: Amazon's "Subscribe and Save" model counts with the highest numbers of subscribers in the world, according to McKinsey.)
How can you use it?
Don't sell health supplements?
No problem.
The "Subscribe and Save" strategy can be used as a discounted upsell strategy for other products, too.
Take a look at your products: do you have something that your customer needs to continuously shop for?
That goes from cleaning products to pet food.
Follow the rule of three, and show them different versions, maybe in increasingly bigger sizes, with a discount.
Even if they don't necessarily spend more, they're spending more often – which is also great for your ecommerce site.
Don't sell health supplements?
No problem.
The "Subscribe and Save" strategy can be used as a discounted upsell strategy for other products, too.
Take a look at your products: do you have something that your customer needs to continuously shop for?
That goes from cleaning products to pet food.
Follow the rule of three, and show them different versions, maybe in increasingly bigger sizes, with a discount.
Even if they don't necessarily spend more, they're spending more often – which is also great for your ecommerce site.
Skincare brands do it.
Fashion brands like Savage x Fenty (lingerie) and Fabletics (active wear) have a similar strategy too: they offer a monthly subscription that can be used as a credit in their ecommerce site, and offer the members exclusive discounts on top.
Fashion brands like Savage x Fenty (lingerie) and Fabletics (active wear) have a similar strategy too: they offer a monthly subscription that can be used as a credit in their ecommerce site, and offer the members exclusive discounts on top.
One Last Detail: Measuring Your Results
So you've picked up the upselling discount strategies that fit your ecommerce site the best. Yay!
And of course, you've used A/B testing to decide which ones are delivering the most efficient results.
Well done!
Remember that, as your ecommerce site grows, so will your upselling strategies. Keep measuring their results.
One of the best ways to do this is to compare the number of product sales made with and without upsell features.
To do this, track them manually with a spreadsheet, or use a customer relationship management (CRM) tool to automate the process.
And once you notice that a strategy is no longer working, test new ones to improve them again.
And of course, you've used A/B testing to decide which ones are delivering the most efficient results.
Well done!
Remember that, as your ecommerce site grows, so will your upselling strategies. Keep measuring their results.
One of the best ways to do this is to compare the number of product sales made with and without upsell features.
To do this, track them manually with a spreadsheet, or use a customer relationship management (CRM) tool to automate the process.
And once you notice that a strategy is no longer working, test new ones to improve them again.
Key Takeaways
If you own an ecommerce site, upselling is a strategy that you can't miss out on. It will:
• Improve your conversions
• Increase your average order value
• Level up your customer experience
• Help your customers make better decisions
And to implement a successful upselling discount strategy, remember to:
• Make it relevant for your customer
• Personalize it according to the customer's previous purchases or buying persona
• Create a sense of urgency (with a limited-time offer, for example)
• Improve your conversions
• Increase your average order value
• Level up your customer experience
• Help your customers make better decisions
And to implement a successful upselling discount strategy, remember to:
• Make it relevant for your customer
• Personalize it according to the customer's previous purchases or buying persona
• Create a sense of urgency (with a limited-time offer, for example)
• Offer free shipping on minimum ordersSent post-purchase follow-up offers
• Be supportive and helpful with your upselling, and never pushy
• Use A/B testing to see what strategies are performing the best
• A small discount will go a long way – especially as part of an upgrade.
Want to see 50 real-life examples of brands nailing discounts? Get the list here.
• Be supportive and helpful with your upselling, and never pushy
• Use A/B testing to see what strategies are performing the best
• A small discount will go a long way – especially as part of an upgrade.
Want to see 50 real-life examples of brands nailing discounts? Get the list here.