Upselling is a great tool to boost your revenue. The usage of upselling can wary from industry to industry. Computer software and electronics don’t use the exact same techniques as fashion. Tech and software stores are both in the top ten industries on Shopify, but not all of them used up whole their potential. So let’s take a look at a few approaches you could try out.
Cross-sell complementary products
This one sounds pretty basic and it actually is, but most people still forget about it. If you sell electronics, you will always have a ton of complementary products on every item. Let’s say you sell an alarm clock, so if your customer wants to be wakened up next morning, he should buy some batteries too, right? Don’t make him search around your shop, or what’s worse forgot about them, make him an offer through upselling. Another important point is that when you offer him your cross-sell, you are the one in charge, you can show only the most suitable batteries or batteries on which you have the best margin. Simple as that.
Cross-sell complementary software products
Customers tend to have a pack of essential apps that they buy immediately after purchasing some hardware with OS from you. So why don’t you cross-sell those apps yourself?
On the other hand, the software you want to cross-sell doesn’t have to be operated on the device your customer is buying. You just need to know your audience. If your main audience is 50+ men from the Netherlands, you could make assumptions that they would buy antivirus as a first thing after purchasing a laptop. Or there is a 15-25 years old youtube beginner, who wants to buy a led lights, so besides the new microphone, show him some online courses he could buy.
If you have more than one software product, don’t forget to cross-sell them through the in-app notifications. That way it’s much smoother and pleasant for customers. If you can’t sell proper complementary software by yourself, try to ask some software companies, they probably have their affiliate programs. That way, you could gain some extra money from immediate purchase, and what’s more, a recurring payment if it’s a subscription-based software. When you know your customers LTV, you can lower the price for the first month, so it would be more appealing and then you will cash in some % from every month that person spends in the subscription model.
1. Cross-sell Services
Cross-selling services is another often overlooked way of increasing your revenue. Good thing is, that you can fit some service on every product you’ve got. You can then test which performs best. Sometimes services with better take rates are harder to maintain in terms of revenue, for example, insurances or prolonged warranties, so check the data regularly.
2. Extended Warranty and Insurance
People tend to be extra cautious when they are buying electronics, so they also spend more on additional services. If you decide to provide an extended warranty by yourself, you should take a look at how often people use the basic warranties and how much the replacement costs. Then you should hold an appropriate cash reserve or have a partnership that will cover the whole thing. You can have a good deal with the brand whose products you sell. Often it’s in the form of a share from every extended warranty you sell. Also, you could cross-sell insurance from a partner company, that provides them. Another partnership could be with a specialized repair center, you would pay them the percentage from every warranty, but they’ll have the obligation to deal with repairs.
3. Premium support
Premium support works both with non-tangible and tangible products. It could be a big advantage if it’s not standard at your competition and you operate in B2B. Don’t forget to test out the workload on a smaller group, so you won’t end up swamped with angry customers. Also if your niche is not the most technical one, but you still sell tech products to them, you could offer extra assistance, implementation, or course on how to use the product. All in all, you should prioritize customers who paid for extra support, however, don’t bail on customers who didn’t pay, remember that the long term relationship with your customer is very important too.
4. General shipping services
First, in line, premium shipping, express shipping, next day shipping, they all work great as a cross-sell offers, you just need to decide which works best for your shop. If you sell high-value products, your customers will probably prefer quicker and safe shipment. If you don’t offer premium products, you can always go with first in line or next day shipping and then you just need to prioritize in your shipping center.
Upgrade/ True upsell
Last but not least, upgrades or true upsells are offers with higher price products, that will substitute the former product in the cart. Simply said, if you sell the iphone with 64GB memory, you’ll try to convince your customer to buy the one with 128GB instead. If you sell software subscription, you can sell a few months more, with a better per month price.
If you sell analog alarm clock, offer the digital one. Check out how the UX could work in our preview shop.