E-commerce Tips & Tricks

7 min read

18 Jun 2021

Post-Purchase Offer Strategies That Boost Your AOV

Post-Purchase Offer Strategies That Boost Your AOV

When it comes to ecommerce data, average order value (AOV) is a key metric smart retailers keep an eye on.

The math is simple: Increase your AOV and you’ll increase your profits.

Let’s look at some numbers. In 2019, the average AOV for ecommerce retailers was $114. If you’re a retailer processing 1,000 orders/month and you boost your AOV by 25%—you’d add almost $30K in monthly revenue (without adding additional marketing or customer acquisition costs)!

Convinced you should boost your AOV? Good choice! Adding post-purchase upsells to your ecommerce store is the way to do it.

What Is A One-Click Post-Purchase Offer?

Post-purchase offers are upsellings or downsells that are presented directly after the checkout event and before the Thank You page. Your customer can then accept or decline with one click!

Successful post-purchase offers come in all shapes and sizes, and often, the best method is to keep it simple. One strategy top Shopify brands use is to offer a complimentary product to what the customer just bought. Try offering reusable ice packs to go with a portable cooler. Or, offer a travel-sized version of the product they just bought, like a small bottle of sunscreen.

Post-purchase offers present an ideal opportunity to introduce customers to a new product they’ll love and return to your store for. You could offer a sample packet of matcha tea for $5 (if they purchased $50 or more in other products). The sample won’t have a significant impact on your AOV, but if it creates a repeat customer, it’s worth it! Did you know that 30% of customers would rather buy from a website they already bought from? Provide your customers with a great buying experience and choosing to return to your store will be a no-brainer!

Three Reasons Why Post-Purchase Upsells Work

1. There’s No Risk Of The Sale "Backfiring"

Post-purchase offers happen after checkout, eliminating the fear of cart abandonment. Traditional pre-purchase upsells that occur before the checkout may give your customers choice overload, leading them to exit the store without completing their initial purchase.

Researchers at Northwestern University’s Kellogg School of Management discovered that the choice overload phenomena may not only lead to a failure to follow through with a purchase, but they might also lead to an increase in buyer’s remorse, leading to more product returns.

Reduce your customer’s decision-related pressure with an approach that gives them time to choose. The post-purchase time slot is ideal for customers. They’re euphoric from completing their initial purchase and ready for the next offer.

2. Post-Purchase Offers Are Frictionless

Apps like CartHook Post Purchase Offers allow customers to accept or decline an offer with ease. Plus, there’s no need to re-enter shipping or billing info!

Before the onset of one-click upsells, most post-purchase offers were made via a follow-up email and a clunky customer journey. The customer had to place an order, open an email, read the email, click a button, and re-enter payment and shipping info.

This type of friction cost ecommerce brands over $50 billion in 2019 due to dramatically lower conversion rates.

Options like CartHook Post Purchase Offers erase this friction from the customer journey by displaying up to two relevant offers the customer can easily accept or decline with one click. 

In 2021, 53.9 percent of all retail ecommerce is expected to be generated via mobile commerce. Are you providing your customers with a smooth mobile shopping experience? With CartHook, the frictionless experience continues in mobile, where customers can scroll and accept offers with the touch of a finger.

3. Post-Purchase Offers Are Hyper-Relevant And Data-Driven

Call it the Amazon effect; Modern consumers demand personalization and intimacy from brands. In fact, 80% of customers are more likely to purchase a product or service from a brand that provides personalized experiences.

Post-purchase upsells take advantage of key data: What the customer just purchased. Responding to what the customer just purchased allows merchants to deliver highly relevant offers to each customer. In turn, this improves the customer’s experience! They feel more like they’ve been served, instead of “sold to." The end result is a higher likelihood that the customer will accept the upsell and return to your store, leading to a boost in brand equity and LTV.

How Post-Purchase Upsells Increase AOV

  • Timing: Offers before the checkout can distract customers, so you risk losing the purchase. When you display an offer after they check out—in between your checkout and thank-you pages—you increase the chance they’ll accept it.
  • Did you know that scarcity leads to higher perceived value and makes it more likely people will want something? Smart marketers use this principle by adding a countdown timer to their offers. The clicking clock signals scarcity and increases the perceived value of the offer.
  • Excitement: CartHook’s post-purchase offers happen right after your customer completes their purchase at the checkout of your online store. It’s a powerful moment: they trusted your brand enough to buy something and they may be feeling that post-purchase retail high. Why not give them more (based on what they just purchased)?!
  • Ease: The customer experience is seamless! Offers are accepted or declined with one click.

Strategies Top Shopify Brands Use To Boost AOV

On average, Shopify merchants who use post-purchase upsells see a 15% conversion rate on offers. Optimize your offers to make sure you see similar (or higher) results! Try starting with these simple, high-converting strategies.

  • Hero: Do you have best-selling products customers love? Show it! If customers are obsessed with your store’s mascara, offer it post-purchase, at a slight discount.
  • BOGO: Buy one, get one. Display a second item of what your customer just bought. Simplicity works!
  • Bundle: Offer pillowcases if your customer bought sheets, or a case if they bought sunglasses.
  • Volume and value: Offer a discounted item to customers who purchase multiple items or a higher-than-average spend. If customers are shopping in bulk, reward it!
  • Samples or gifts: Use the post-purchase euphoric timing to share a new product with your customers. You could display a miniature size that lets your customers try something new. This strategy is a great way to boost LTV and create repeat customers. Try offering a travel-sized version of the product they just bought, like a small bottle of vitamin gummies in a different flavor from what they purchased.
  • Inventory Management: Offer a discount on excess inventory items. Try this strategy when it’s time to liquidate seasonal stock or make room in your inventory before new products launch.

A Post-Purchase Strategy Is An Essential Part Of Your Ecommerce Marketing Stack

Could you imagine running your business without an email marketing strategy? Operating without a post-purchase strategy is equally unbelievable. As customer acquisition and retention costs continue to increase, maximizing each customer’s spend is essential. In the race for customer loyalty, a highly relevant post-purchase strategy is an ideal way to offset churn, increase ROI, and boost AOV.

To boost your AOV and turn shoppers into repeat customers, try CartHook Post Purchase Offers free for 14 days.

Author Bio:

This is a guest post from Kate Cassidy, the Partner Marketing Manager at CartHook—a Debutify Partner that allows top Shopify brands to add post-purchase offers to their native Shopify checkout.

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Debutify CORP

Debutify is the easiest way to launch and scale your eCommerce brand.

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