You can easily increase your average customer value by offering upsells to your products.
Let’s take a look at an example;
You have a $30/mo membership platform and your average customer retention is 3 months. This means that your average customer is worth $90.
If you offer them an upsell that promotes a reduced annual subscription, you could easily increase your average customer value. For this example, you’re offering an annual subscription for $150. “That’s $210 cheaper” I hear you say! Yes, but your customers aren’t staying members that long on average. Remember your average customer retention is 3-months (or $90).
So for every customer who decides to buy this annual upgrade, you’re actually earning an additional $60 (2-months) worth of revenue. Which will greatly improve your bottom line and increase the revenue across your business.
So, in some cases, you may wish to ‘upgrade’ their main purchase with a different (inclusive) product, or the same product but at a different price point (eg. monthly to annual upgrade).
Other platforms have you cancelling and refunding customers for the original purchase, meaning your customers are initially overcharged, you’ve got refunds to process, and possibly even access rights to adjust.
ThriveCart has made this super simple, with a couple of clicks and you can easily have your upsells replace previous products in the funnel. Not only do they replace the product, but you can also optionally replace the payments as well!