As small business owners, we know this year is going to be tough. For many of us, it will be the first time navigating the stormy waters of an economic downturn. All things are pointing towards a contraction as we enter the final stage of short-term debt cycle, so now is the time to strategise on ways to stabilise the unit economics of your business.
Unit Economics
By understanding the unit economics of your business, you can better evaluate opportunities to grow your business. But what is unit economics? Unit economics is important for an eCommerce business because they allow you to simply understand the financial performance of each customer. This information can then be leveraged to make more informed decisions about pricing, marketing, product development and to track the overall health of your business.
There are two key levers to improve unit economics – increase customer profit and decrease cost of acquiring. A kick-ass upselling strategy will make a material impact on these two important business metrics.
Upselling strategies
Upselling is a powerful strategy that can help businesses increase their revenue and profits. Many companies focus on acquiring new customers, but it’s important to remember that your existing customers are just as valuable. By upselling post-purchase, you can not only increase the lifetime value of each customer, but also create a more positive customer experience.
As Seth Godin would say, “The best way to predict the future of your business is to create it.” Upselling post-purchase is a proactive way to create a profitable future for your business. By offering relevant, high-value products or services to your customers after they’ve made a purchase, you’re giving them the opportunity to invest in themselves and their own success.
Upselling post-purchase is also a way to build trust and loyalty with your customers. By showing them that you care about their needs and are willing to offer them solutions that will benefit them, you’re demonstrating that you’re a company that values its customers. This can lead to repeat business and positive word-of-mouth marketing.
In addition, upselling post-purchase can also help you to increase the average order value of your sales. By offering complementary products or services, you can encourage customers to spend more money and increase their overall investment in your business.
Overall, upselling post-purchase is a smart business strategy that can help you to increase revenue and profits, build trust and loyalty with your customers, and increase the average order value of your sales. By taking a proactive approach and offering relevant, high-value products or services to your customers, you can create a more profitable future for your business.
Post purchase experience
Post-purchase is the best time to upsell because the customer has already demonstrated an interest in the product and is more likely to be open to purchasing related or complementary items. Additionally, the customer may be more satisfied with their initial purchase and therefore more likely to trust the company’s recommendations for additional products or services.
This is where a huge blue-sky opportunity for eCommerce businesses lay – by presenting relevant products on tracking notifications. This piece of real estate has high engagement and is filled with anticipatory goodness by your customers waiting for their goods to be delivered.
Want to know more about how you can start your upselling strategy? Check out how Shippit can help.