Upselling is a powerful growth lever for Australian small and medium enterprises, but blasting the same offer to everyone is a recipe for wasted effort. The key to successful upsells in 2026 – and beyond – lies in smart customer segmentation. We’re seeing a shift towards hyper-personalisation, driven by readily available data and increasingly sophisticated, yet accessible, marketing technology.

So, how do you segment your customer base for targeted upsell campaigns? Here are a few approaches that deliver real results:

• Purchase History: This is your most valuable data. Customers who’ve bought specific products are prime candidates for related upsells. For example, someone buying a coffee machine is a great target for premium coffee beans or a milk frother. Analyse what products are frequently purchased together to identify these natural upsell opportunities.
• Customer Lifetime Value (CLTV): Identify your high-value customers – those who consistently spend more. These customers are worth investing in with premium upsells or exclusive offers. Don’t push too hard, though; focus on enhancing their experience.
• Engagement Level: How often do customers interact with your brand? Those who regularly open your emails, visit your website, or engage on social media are more receptive to upsell messaging. Segment based on email open rates, website behaviour (pages visited, time spent), and social media interactions.
• Demographic & Geographic Data: While respecting privacy regulations, basic demographic and location data can refine your targeting. For instance, customers in colder climates might be interested in upsells related to winter products.

Don’t fall into the trap of over-segmentation. Start with 3-5 key segments and refine them based on campaign performance. The technology to do this is becoming more affordable and user-friendly. Many CRM and email marketing platforms now offer built-in segmentation tools. In 2027, we anticipate even greater integration of AI to automate this process further.

The outcome? By focusing your upsell efforts on the right customers, with the right offers, you’ll see a significant boost in revenue and customer loyalty. Your next step should be to audit your existing customer data and identify the key variables you can use to create these targeted segments.