Upselling is a powerful growth lever for Australian SMEs, but simply suggesting ‘more’ isn’t enough. Customers respond best when recommendations feel relevant and helpful. That’s where data comes in. We’ve seen businesses significantly increase revenue by moving beyond generic upsells to personalised offers, and it’s more achievable than you might think.
The key is to analyse what your customers are *already* doing. Forget broad demographics; focus on behaviour. Here’s how we recommend approaching it:
- Purchase History is Gold: What did they buy previously? Someone purchasing running shoes is a prime candidate for running socks, a fitness tracker, or even a premium shoe cleaning kit. Don’t just look at the last purchase, consider the entire history.
- Website Behaviour Reveals Intent: What pages are customers visiting? If someone spends time looking at high-end coffee machines after buying a basic model, they’re signalling an interest in upgrading. Use website tracking to identify these patterns.
- Cart Abandonment – A Second Chance: Customers who abandon carts often represent a warm lead. Offer a small incentive to complete the purchase *and* suggest a complementary item based on what was in their cart.
- Customer Lifetime Value (CLTV) Segmentation: Identify your most valuable customers. These are the people worth investing in with more personalised, higher-value upsell offers. Focus on retaining and growing their spend.
You don’t need a huge data science team to get started. Many e-commerce platforms and CRM systems offer built-in analytics and segmentation tools. Even basic email marketing software allows for targeted campaigns based on purchase history. The important thing is to start collecting and analysing the data you already have.
As data privacy regulations evolve, ensuring you have explicit consent for data collection and usage will become even more critical. Staying compliant builds trust and ensures long-term success. By focusing on relevant, data-driven upsell recommendations, you’ll not only increase revenue but also improve customer satisfaction and loyalty. Your next step? Audit your current data collection practices and identify one quick win – perhaps a simple abandoned cart email with a relevant product suggestion.
