When you suggest the right product from your online store at the right time, it not only boosts sales but also shows you understand your customers. Implemented properly, upselling is like providing shoppers with a personalized assistant. Box Builder explores six benefits of upselling and how they can elevate your business.
The Benefits of Upselling on an Online Store
Go beyond just increasing revenue; see how you can optimize customer relationships and your online store.
1. Encouraging Customer Loyalty
Employed correctly, upselling shows you’re in touch with customers and their preferences. For example, a bookseller may suggest an e-reader with a high storage capacity to a customer who’s an avid reader. Even better, they can upsell a bundle of an e-reader and an e-reader cover to protect the customer’s investment.
Customers appreciate personalized recommendations and are likely to shop more often at an online store that caters to their lifestyle.
2. Quicker Inventory Turnover
Do you have products collecting dust on your digital shelves? One of the benefits of upselling is the opportunity to match those immovable items with the right customers and clear space for more inventory. You can upsell older high-end products at a discount. Alternatively, if you sell a product customers buy repeatedly, like household cleaning supplies, you can bundle a variety pack to sell at a discount.
3. Highlighting Product Value
While you recognize your products’ overall value, your customers may miss key points. Through upselling, you can introduce your target audience to new possibilities.
For instance, if you sell fitness equipment, try upselling resistance bands to a customer who doesn’t have space for standard free weights. Resistance bands are easier to store and transport. By upselling, you can show your product expertise while educating customers.
4. Greater Sales
One of the biggest benefits of upselling is boosting profits. While an online store may make thousands of dollars in yearly sales, those numbers are less impressive if most of that goes into marketing spending. Instead, it’s better to focus on increasing revenue through strategies like upselling.
There’s a big difference between having hundreds of customers who only buy a couple of low-priced products monthly and having hundreds of customers who buy several upsold products each month.
5. Easy Integration
With the right tools and tips, upselling is quick and painless to integrate. An advantage of modern e-commerce software and platforms is they do most of the hard work for you. Shopify has apps that let you create product suggestions based on what customers like and how they shop. This seamless integration also means you don’t have to divert a lot of human resources to integrate upselling apps like Box Builder.
6. Continual Customer Data Collection
Big data is the name of the game for e-commerce business owners. By upselling, you can gather valuable information about customers and their shopping behavior.
Each upselling interaction gives you more data to better understand customer preferences, signs someone is ready to buy, and price sensitivity. This data fuels personalization, helping you pinpoint greater sales opportunities and product ideas. For example, you can use customer data to develop gift boxes for customers.
Maximize the Benefits of Upselling With Box Builder
Give customers what they want, increase your bottom line, and build a better online store with the power of upselling. Box Builder makes it easy to reap the benefits of upselling with high-performing gift boxes and personalized bundles. Contact us today and see how simple it is to launch a bundle in five minutes or fewer.
