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Upsells can be a hit-or-miss.
While it can increase sales, generic and aggressive suggestions can turn customers off really fast.
Today’s shoppers expect nothing less than a personalized shopping experience. They want upsells that are tailored to their specific needs, not just a pricier version of the same product.
How would you like if you’re recommended a high-end caviar-infused moisturizer as someone with really sensitive skin looking for a gentle daily lotion?
Definitely not the greatest feeling, right?
That’s why the one-size-fits-all approach fails to resonate and can damage trust.
The key to successful upselling is personalization and a value proposition. Customers need a good & clear reason to spend more. If the upsell doesn't offer benefits that justify the higher price tag, it is bound to be ignored.
Here’s where AI-powered upsells can help. For example, if a customer is browsing a drugstore mascara, AI analyzes their data (past purchases, browsing behavior) to recommend a perfect mid-range option that's waterproof & volumizing. This hyper-personalization builds trust and boosts sales.
In this blog, we discuss how Shopify stores can leverage and implement AI-powered upselling to keep customers coming back.
What is Upselling?
"Would you like to upgrade your fries to a large?”
Sounds familiar, right? Think of the last time you went to Taco Bell or Wendy’s and were asked about upgrading your order. This is an example of classic upselling.
Upselling is the art of convincing a customer to purchase a more expensive, upgraded, or premium version of a product they're already considering.
It's a strategic way to increase the average order value (AOV) of a customer's purchase.
Upselling has long been a powerful and extremely important tool for e-commerce stores. A prime example of a brand that excels at AI-powered upselling is Sephora, the leading beauty retailer. Sephora leverages customer data to create a personalized upselling experience.
Take this case: A customer adds a foundation to their cart, and Sephora suggests a higher-coverage option and alternatives in different forms, like powder or stick, depending on the customer's preference or skin type.
The upsell highlights the value proposition of the upgraded product, like a longer wear time or a flawless finish.
Benefits of Implementing AI-Powered Upsells on Shopify
Shopify store owners are constantly seeking ways to improve their sales strategy. Here's where AI-powered upsells can significantly help, offering an effective way to boost your average order value (AOV) and customer satisfaction:
Personalized Upselling
Traditionally, upselling has long been a one-dimensional approach, suggesting the most premium and pricier version of a product.
However, AI changes the game.
Using customer data like purchase history, browsing behavior, and even demographics, AI gives highly personalized upsell recommendations. That means if a customer is browsing for running shoes, an AI-powered upsell would recommend cushioned running shoes based on their browsing patterns, rather than simply suggesting the most expensive pair.
This tailored approach is more likely to resonate with the customer and lead to a successful Shopify upsell, increasing the bottom line of your business.
Increased Real-Time Customer Engagement
Brick-and-mortar stores have the advantage of salespeople who can tailor their approach based on a customer's behavior.
AI-powered upsells bring a similar level of real-time engagement to online stores.
So, let’s say a customer lingers on a specific feature of a product page. The AI can detect this and use it to inform the upsell.
This real-time responsiveness creates a more interactive and engaging shopping experience for customers. A great shopping experience keeps them coming back, in turn, increasing your customer lifetime value.
Dynamic Product Bundles
AI goes beyond simply suggesting individual products.
It can create dynamic product bundles specifically tailored to each customer's needs. This is a way more effective alternative than your average static, pre-defined bundles.
For instance, if a customer is looking at a camera, an AI-powered Shopify upsell app might look at their browsing history and recommend a bundle that includes a memory card and a carrying case – products that complement the camera and address potential needs the customer might have.
These dynamic bundles significantly increase the overall purchase value, ultimately boosting your sales.
Data-Driven Optimization
AI thrives on data, and upsell apps are no exception.
These apps track the performance of your upsell strategies, allowing you to see which recommendations are converting and which ones need tweaking.
This data allows you to continually optimize your upsell strategies for maximum profit.
By A/B testing different upsell strategies, you can identify the upsells that resonate best with your customers and improve your overall upselling strategy for long-term success.
How to Upsell: Choosing the Right AI-Powered Upsell App
Okay, so, now that we know how powerful upselling can be for your online business, let’s talk about how to get started with implementing it in your Shopify store.
With a whole lot of tools available, how does one decide on the right upselling app for their store? Here's what to consider:
- Look for an app that goes beyond generic recommendations. The best apps leverage customer data like purchase history, browsing behavior, etc to personalize upsell suggestions. Checkout Wiz excels here by using AI to identify buying patterns and recommend products that are highly relevant to each customer, increasing the likelihood of a successful upsell.
- A user-friendly interface is crucial for managing Shopify upsell campaigns efficiently. Look for apps that offer intuitive dashboards and drag-and-drop functionality for effortless setup and customization.
- Consider the various ways the app allows you to display upsells. Does it offer different formats like product carousels, pop-ups, etc that align with your brand and target audience?
Besides AI-powered upsells, Checkout Wiz also allows you to optimize your checkout process, boosting conversions, and increasing your average order value:
- Display Reviews: Social proof is powerful. Checkout Wiz allows you to strategically display positive customer reviews alongside your upsell recommendations. This builds trust and credibility, further encouraging customers to complete their purchase with the upsell items.
- Tailored Checkout Experience: Checkout Wiz lets you customize the entire checkout process to match your brand aesthetic. This includes customizing colors, fonts, and layouts to create a seamless and brand-consistent experience for your customers.
Install Checkout Wiz from the Shopify App Store.
Some other Shopify upsell apps and tools include:
Upsell & Cross-sell – Selleasy: This app streamlines upsells & cross-sells with pre-built features, but may lack advanced AI personalization compared to competitors. It includes frequently bought-together bundles, product add-ons, and post-purchase upsell pages.
Honeycomb: While not exclusively designed for Shopify stores, Honeycomb offers AI-powered upsells and cross-sells across multiple platforms. It personalizes product recommendations based on customer behavior and integrates them with marketing tools for a holistic approach.
Bold upsell: This all-in-one solution provides upsell opportunities throughout the customer journey. It features a drag-and-drop interface for easy upsell creation and A/B testing for optimization but pricing can be steeper and AI features for personalized recommendations might be less prominent.
Once you’ve chosen the Shopify upselling app for your online store, the next step is to develop a clever upselling strategy to get the best out of the app.
Top 4 Upselling Tips: How to Upsell Effectively on Shopify
Show Popular Picks With Better Ratings
Humans are social beings. Hence, they are naturally influenced by the opinions and actions of others.
Upselling can leverage this human tendency.
By displaying upsell products with high ratings, you can subtly suggest products that are popular with fellow shoppers.
Nordstrom takes this strategy to heart. When a customer browses for pants, they see a "You Might Like This" section on the right featuring other black pants. One displays have a "Popular" badge, indicating it's frequently purchased by customers with similar tastes.
Another example is Amazon. One of our team members looked up belts on Amazon and selected one stylish leather belt with a decent rating, around 14 reviews.
But when we scrolled a little, Amazon came up with a strategic upsell tactic. We see other leather belts with higher ratings, some of those, in fact, with better discounts.
Safe to say our team member was easily convinced by the upsell and ended up buying a belt out of the recommended ones.
Hence proved, that social proof is a powerful motivator, and when used correctly, it can build trust and position upsells as valuable additions, not just sales pitches.
Offer A Side-By-Side Comparison
Upselling can sometimes feel like a guessing game. Your customers might get unsure if the upsell offers a significant enough benefit to justify the additional cost.
This is where offering a side-by-side comparison can be effective.
Side-by-side comparisons don't pressure customers; they inform them.
Amazon does this cleverly by displaying a comparison table. While browsing gaming keyboards on Amazon, we see a basic keyboard alongside single color and ergonomic wrist-rest options. The table compares features, and prices and highlights benefits.
By presenting the original product and the upsell side-by-side in a clear format, you can also give your customers the knowledge they need to buy the right product. This builds trust and increases the chances of a successful Shopify upsell, all while creating a positive customer experience.
Upsell During Checkout
A customer spent time browsing and finally found the perfect item. They’re adding it to the cart, excited about the new purchase.
As a Shopify store owner, there are two things you can do here:
1. Let them buy what they choose.
2. Use it as an opportunity for a well-timed upsell.
Since you’re still reading, we will assume you’re interested in point 2. So, what next?
Customers are already invested in their purchases and nearing the finish line. The right suggestion at this stage can be like a friendly whisper, enticing them to add just a little more. Focus on relevant items that complement the original purchase. ASOS nails checkout upsells by recommending complementary items.
One-click options or pre-selected bundles make adding extras a breeze. Furthermore, free shipping thresholds can also nudge customers towards Shopify upsells to reach the goal and save on costs.
Ultimately, if you keep it convenient and valuable, you can turn the checkout into a great opportunity to boost your average order value while offering customers a more complete experience.
Bundle Deals
A new phone bundle with a case and charger at a reduced price.
How does that sound? Definitely a value deal. That’s what we call an effective bundle upsell.
Bundle deals are upselling gold. They create a win-win for both you and your customers. Discounted bundles offering several products together make it feel like you're getting more for your money. This convenience and perceived value make bundles tempting.
Effective bundles group complementary products. These ensure customers have everything they need for a complete experience, boosting the bundle's appeal. Take H&M’s t-shirt pack for example. While the single tee costs $8, I can get a pair of three for $19.99. H&M subtly upsells t-shirt bundles to customers by displaying the savings on the bundle.
H&M gets an increased average order value and the customer gets better savings + more t-shirts. A win-win for everyone.
It's simply a transparent upsell that builds trust and benefits everyone.
Need more Shopify upselling ideas? Read 12+ expert Shopify upsell strategies here.
In 2024, a personalized shopping experience is no longer a luxury, it's an expectation. AI-powered upsell apps can be a game-changer for Shopify stores, enabling you to deliver relevant upsell recommendations that resonate with individual customers.
By leveraging AI to analyze customer behavior and preferences, you can show upsells that feel less like a sales pitch and more like a helpful suggestion for a better experience. This not only increases your average order value but also fosters trust and loyalty with your customers.
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