The Kate Spade checkout upsell that increases average order value
Anaita recounts a Kate Spade pop-up experience where a cheap checkout add-on (engraving and a free dessert) got her to buy two items instead of one. She explains that surprising and delighting customers at checkout, even with a low-cost upsell, boosts average order value and is one of the most effective marketing tactics.
The lessons
Add a low-cost checkout upsell (like engraving or a free extra) to increase average order value.
A higher average order value directly increases profitability.
Surprising and delighting customers at checkout is one of the most effective marketing tactics you can use.
Questions people ask
What's a real example of a checkout upsell that works?
At a Kate Spade pop-up, customers buying a perfume were offered free engraving, a free dessert, and extra freebies at checkout. This cheap add-on, costing the brand about $5, led Anaita to buy two items instead of one, showing how surprise-and-delight upsells boost average order value.
Transcript
If someone wants to buy something on your website, it means they really like your stuff. Trick though, is to get them to make that purchase but also to buy something else. Because the higher the average order value, the more profitable you're going to be. So here is my Kate Spade marketing hack.
I walked into a Kate Spade pop-up, they were selling one product, a perfume. I liked the smell, I went to buy it. At checkout, they said, also engraving names on it, and we're giving you a free dessert. Also, you're going to get some extra freebies in there.
I was so excited that I bought two. That upsell would have cost them about $5. Set it once and I'll say it again, surprising and delighting your customers at checkout is going to be one of the best marketing things that you'll ever do.
