If you are in the e-commerce industry, then you may be very well acquainted with 25th & 28th November 2022. Black Friday and Cyber Monday are two of the biggest shopping events in the industry.
All businesses look forward to these shopping events. It isn’t just about offering discounts to customers, but also trying to make the best out of them. Sales strategies are what play a major role in the success of businesses these days.
One of the strategies revolves around upselling and discount pricing. If done right, this strategy can help you move your sales and increase revenue by increasing AOVs. You can also gain customer loyalty (lifetime value), and even garner the interest of new customers.
It is never too late to start planning your sales strategy for Black Friday or Cyber Monday. Here is a small, early thanksgiving tip from us to you on upselling and discount pricing.
Upselling and Discount Pricing for Black Friday & Cyber Monday
To upsell is to convince a customer to purchase a product/service that is more expensive, upgraded, or premium and compliments an already purchased product/service. However, upselling comes with a well-thought-out strategy. You can’t try and sell just anything related to the product. You need to make sure it compliments the product a customer has already purchased and is interested in purchasing. It is easier to upsell to existing customers than to new ones, as the probability of them buying is 60-70%. Additionally, you can choose to upsell with or without discounts.
Yes, you may not like the idea of discounts, but your customers do. This is why most of them wait for November to make their major purchases during Black Friday and Cyber Monday.
This is where discount pricing comes into the picture. Strategically thought-out product discounts, can not just make your customers happy but also help you in quite a few ways. However, in order to gain the best results and not mess up your online store, you will need to chart out your goals carefully. You must prepare all the approaches that can be taken to reach them.
Most Common Upselling Discount Strategies:
As BFCM approaches, we have put together a few upselling discount strategies you can choose to offer your customers. However, before we get to that, it is important to know that the key to upselling discounted strategies is always assuring that the upsell products are of relevance to your customers.
Free shipping on additional purchases made on Black Friday
“Add X amount more to your order to get free shipping”. This is a great way to get customers to spend more on your store. The majority of your customers will see free shipping as a big incentive. Thus, making them comfortable enough to spend more on your store.
Free shipping relates directly to discounted upselling. Because, for your customers to spend more on other products, those products have to be of value to them. Therefore, something preferably complementing the product they are about to purchase, the right upgrade if I may.
However, the question here is, how do you notify these customers of these upgrades on their products which unlocks the offer of free shipping? Push notifications are the answer to that. Send your customers customized notifications during their checkout journey in real-time. Mobile push notifications perform best in these cases as abandoned carts, search-based personalized notifications can be sent to customers based on their behavior on your app. Mobile app developers like Plobal Apps provide you with different integrations to analyze and set up push notification campaigns based on user behavior. This helps in optimizing your upselling discount strategies.
Creating urgency before Black Friday
Missing out on a good deal is something every customer hates. Therefore, adding a time limit to your discounted upsell product will make customers more inclined to purchase that product.
We highly recommend combining this strategy with discounted upselling, even though it can be used separately. Reason being, it will increase its relevance to your customers making it more meaningful for them to purchase.
Yet again, this is where push notifications play an important role. No doubt, you can send push notifications to a customer even from your website. However, for web push notifications it is necessary for the user to be active on the device and have opted in for push notifications. With web push notifications there is the possibility of these sales/deals becoming redundant for not having reached the user at the right time. This isn’t the case in mobile app push notifications, which can go out to your customers whenever you want them to. Read about web vs app push notifications to know more.
Personalized offers for the big days
Knowing what your customers want and are interested in, is the main thing for all e-commerce businesses. There is qualitative and quantitative research that you can do in order to figure out what each of your customers are interested in. However, if you do not wish to go through the complexity of doing this, there are other simpler ways. Mobile app developers come with different integrations to make the entire process easier for you, from generating user behavior reports to even setting up push notifications campaigns. We at Plobal Apps, don’t just build your app, we stay with you throughout the entire journey. You can speak to our experts or book a free demo if you want more questions answered.
A few examples of personalized discount offer strategies for upselling are pre & post-purchase and during check-out. Use abandoned carts or previously purchased products by customers to find out what they may be interested in and offer them upsell discounted products complementing those products.
Follow Up Offers
There may be a possibility that the customer may not be sure at that particular moment if they wish to purchase the product or not. Use these moments to send out upsell discounts through abandoned cart notifications.
The average abandoned cart rate is 69%, and some of these customers have either forgotten about it or changed their minds. Sending them upsells with a discount may influence them to reconsider their decision.
These are products that you can choose to offer to your customer and are added to the main product they are interested in purchasing.
Now, do not confuse this with cross-selling. Even though similar, you can differentiate between the two by relating upselling with the word “up” – which is to sell a product higher in value than the product being purchased. Cross-selling can be understood by the word “cross” which means to sell sideways – a related, but a different product that the customer may be interested in.
Subscribe and Save
If you have a product that involves continuously purchasing additional products, this is for you. Add those additional products with a subscription for customers at a discounted rate.
This generates customer loyalty and is the key to locking down customers. So not only will they just purchase from you during Black Friday or Cyber Monday, but also will stay a loyal customer to you after.
Benefits of Upselling Discount Strategies with a Mobile App
Upselling Discount Strategies have many benefits. From generating customer loyalty to increasing your AOVs (Average Order Values), which will in turn increase revenue. It also helps in facilitating a better customer experience by helping customers out with suggested products and services they did not know they needed.
Overall, discounts make customers feel good and therefore develop a good perspective of your brand. Not just that, it gives your brand the upper hand over competitors. So with discounts, you’re generating customer loyalty, increasing customer retention, and even customer acquisition.
An additional benefit is that upselling discount strategies can also be a great way to unload excess inventory.
Now while all of these are awesome benefits to get from upselling discounted strategies, you can only make the most out of it by actually doing it the right way.
Mobile Apps help you do that. With features and integrations catering to your every requirement, without you having to even go through a complicated process, mobile app developers like Plobal Apps will help optimize your online e-commerce store in the best way possible.
Push notifications, customer engagement and experience, customer loyalty, real-time updates, user behavior analysis, are just a few of the factors that a mobile app can help make the best out of, for your e-commerce business.
So, this Black Friday and Cyber Monday, prepare and upsell like a pro.