Upselling – offering customers a better version of what they’re already buying – is a powerful growth lever for Australian SMEs. But simply *having* an upsell isn’t enough. To really see a return, we need to track performance and continually refine the process. Many businesses leave money on the table because they don’t have a clear system for this.
The key is to treat your upsell funnel like any other marketing funnel. We need to understand where customers are dropping off and why. Here’s how we approach tracking and optimisation:
- Define Clear Upsell Stages: Before you track anything, map out your upsell funnel. This might include stages like ‘initial purchase’, ‘upsell offer presented’, ‘upsell viewed’, and ‘upsell accepted’. Knowing these stages allows us to pinpoint exactly where improvements are needed.
- Conversion Rate is King: Focus on the conversion rate *between* each stage. What percentage of customers who make an initial purchase are even seeing the upsell offer? Of those who see it, how many are clicking to learn more? And finally, what’s the ultimate conversion rate to an upsell purchase?
- Average Upsell Value (AUV): Tracking the average amount customers spend on upsells is crucial. A high conversion rate with a low AUV might indicate the upsell offer isn’t compelling enough. Conversely, a low conversion rate with a high AUV suggests the offer might be too expensive or poorly targeted.
- Cohort Analysis: Don’t just look at overall numbers. Segment your customers into cohorts – for example, by initial product purchased, customer lifetime value, or acquisition channel. This reveals whether certain groups respond better to specific upsells.
Optimisation isn’t a one-time fix. We recommend A/B testing different upsell offers, timing, and presentation methods. For example, try offering the upsell on the thank you page after a purchase versus in a follow-up email. Small changes can have a significant impact on your bottom line. As customer data platforms become more sophisticated in 2026 and beyond, we’ll have even more granular insights to work with.
Ultimately, tracking and optimising your upsell funnels is about turning satisfied customers into even *more* valuable customers. Start by mapping your funnel and focusing on those key conversion rates. Consistent analysis and testing will unlock significant revenue growth for your business.
