In an increasingly competitive online marketplace, an important source of growth is selling more to those who have already bought from or are committed to buying from you. Selling more to existing customers tends to be easier, and is about five times cheaper than new customer acquisitions. This is because people who have already committed to buying from you are simply more likely to trust that you’ll deliver the value you promise and there are fewer hurdles for them to do so.
Here are three of the most common ways to convince your existing customers to opt for more:
Cross-Sell: Suggest a Complementary Product
Once your customer has committed to a purchase, offer them a second product to purchase. The key is to offer a product that does one of two things:
- Adds more value to the customer’s original purchase such as additional software licenses or user accounts.
- Is complementary or similar to the product the customer is already purchasing such as software to go along with a new laptop.
For example, when selling antivirus software, you could offer a data backup solution for added data protection. Present this added value offer as they’re about to hit purchase and make it simple to accept or decline.
Upsell: Offer an Upgrade
Consider offering an upgrade to a premium tier of your product or service. Clearly explain the added value inherent in the upgrade will far exceed the incremental price increase. You can add urgency by making the offer with a limited-time discount.
As an example, Microsoft Office offers three tiers of subscription for their business office applications and services. Office 365 Business is $8.25 a user per month, but for just $4.00 more, a $12.25 subscription to Office 365 Business Premium will provide customers with business-class email plus several other services.
Bundling: Combining Products or ‘Full-Meal Deal’
Bundling products together and offering them at a lower price than they would cost if bought separately is another strategic way to increase your average order value.
An example is Adobe’s Creative suite. You can gain access to the entire bundle of Adobe’s 20+ digital programs for $49.99 a month. Compare this to purchasing access to a single app for a monthly subscription of $19.99 a month. In this case, the bundled offer is highly compelling as it gives a significant increase in value to the end user. And this is backed by visual and written testimony on how the use of all the Apps has enhanced the quality of their users’ professional output and overall experience.
If at First You Don’t Succeed
Even if an upsell doesn’t work at the point of sale, there are opportunities to offer them post-purchase. Create a test to offer the same or an alternative upsell in a follow-up email, always reiterating the value being offered.
In the end, increasing average order value, either at purchase or post-purchase, can have a dramatic effect on your revenue. Reviewing your pricing strategy can help as well. The recipe for success requires that you offer real value to customers and you ensure their experience with your brand is positive at every touchpoint.
Discover how the PayMotion platform can help you boost your average order value!