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 starting point. 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 these behaviours and tailor offers accordingly.
• Demographic & Geographic Data: While respecting privacy regulations, basic demographic and location data can reveal valuable insights. For instance, customers in colder climates might be interested in upsells related to winter products.

Don’t fall into the trap of over-segmentation. Too many tiny groups become unmanageable. Start with 3-5 key segments and refine them based on campaign performance. We anticipate that by 2027, AI-powered tools will automate much of this process, but a solid understanding of these core segmentation principles is crucial now.

The most effective upsell campaigns aren’t about simply pushing more onto customers; they’re about providing genuine value and enhancing their experience. Begin by auditing your existing customer data and identifying these key segments. From there, you can craft targeted offers that resonate and drive revenue growth.