Maybe you’ve sold quite a few units of your current products, but have you ever thought about what to sell your customers next?
Figuring out what to sell your customer next isn’t just about boosting sales in the short term—it’s about unlocking the full potential of your customer lifetime value (CLV). For Direct-to-Consumer (or D2C) businesses, focusing on CLV can make a big difference.
Let’s face it, acquiring new customers is expensive, and while it’s always important to attract fresh faces, retaining the ones you already have is where there is the most upside for your business. Loyal and happy customers not only stick around longer, but they’re also more likely to make repeat purchases. They might even recommend your brand to others, and this is the best advertising you can get. That’s why building long-term relationships with your customers is critical, and upselling and cross-selling can play a huge role in that process.
By offering customers products or services based on their past purchases, you enhance their shopping experience while growing your revenue. It’s a win-win. But how do you figure out the right products to recommend next?
That’s a tough question, but let’s explore why this is so important and break down practical ways to identify what your customers are most likely to buy next. Whether it’s introducing a complementary product or offering a premium version of what they’ve already purchased, understanding what to offer at the right time is key to sustained business growth. SO, let’s talk more about the process.
Why It’s Important to Know What to Sell Your Customers Next
Knowing what to sell your customers is really important for the long-term success of your business. Here are a few reasons why that is crucial to your ecommerce business:
1. It Increases Customer Lifetime Value: We talked a little bit about CLV above and it’s important enough that we need to talk about it more. You see, one of the biggest reasons you need to sell your customers on something new is that it can increase your customer lifetime value (CLV). How do you calculate it? Well, CLV is a measure of the total revenue a customer will give you over their relationship with your brand. Repeat purchases are so important to growing that value. By continuously offering relevant products that match your customers’ interests, you’re not only boosting your bottom line but also extending the length of time a customer stays engaged with your brand.
2. It Builds Stronger Relationships with Customers: Another key benefit of knowing what to sell next is being able to build strong relationships with your customers. When you offer products that fit their changing needs and wants, you show that you truly understand them. This makes your brand feel more personalized and tailored to their preferences. Instead of feeling like they’re just a number, your customers feel valued, and seen. That sense of connection is what keeps them coming back for more. Over time, this relationship-building is what transforms a casual buyer into someone who recommends your brand to others.
3. It Lowers Customer Acquisition Costs: Selling to existing customers is also far more cost-effective than trying to find new ones. Acquiring new customers means a huge investment in marketing and sales efforts. On the other hand, keeping loyal customers is much cheaper. By focusing on what your current customers are likely to buy next, you lower your customer acquisition costs and increase profitability.
4. It Boosts Brand Loyalty and Helps Customers Advocate for you: Finally, knowing what to sell next helps boost brand loyalty and advocacy. Why is this important? Well, when you meet your customers’ needs with timely and relevant offerings, they’re more likely to trust your brand and become repeat buyers. They’ll also tell their friends and family about you. As we mentioned, word-of-mouth referrals are one of the most powerful marketing tools out there. Delivering what your customers need, when they need it, helps build that trust.
How to Figure Out What to Sell Next
So, if it’s that important, how do you figure out what to sell next? Well, you need to focus on customer needs, segmentation, and timing.
Better Understanding Your Customers’ Needs
Figuring out what to sell next starts with really understanding your customers and their needs. A great way to get started is by digging into their purchase history. By looking at what your customers have bought in the past, you can get a sense of what they might need in the future. When your recommendations feel spot-on to your customers, it not only boosts the chances of a sale but also strengthens customer loyalty.
Don’t forget to ask your customers their opinions too! Feedback through surveys or reviews can give you really important insights into what they’re missing or what they’d love to see from you. It’s a simple way to spot gaps in your product lineup. Also, if you’re tracking browsing habits—like abandoned carts or how long someone lingers on a specific product page—you can get even more clues about what’s catching their eye but hasn’t made it into their cart yet.
How Customer Segmentation Can Help
Once you have this info, segmenting your customers can help make your product recommendations even more personal. What is segmentation, though? Segmentation is a way to group buyers by things like shopping habits, where they live, etc. Frequent buyers might love exclusive deals on premium items, while new shoppers might appreciate discounts on entry-level products. You can also tailor suggestions based on preferences like eco-friendly choices or budget-friendly options.
What about Timing? When To Offer Your Next Product to Customers
Timing is everything when it comes to offering your next product too. So, be sure to pay attention to seasonality and trends. For instance, aligning your promotions with holidays or current fads makes your offers feel more timely and relevant to your customers. Post-purchase campaigns are another really great strategy; following up with customers just as they’re likely to run out of a product can lead to repeat purchases without feeling pushy.
Additionally, lifecycle campaigns allow you to send automated messages triggered by key moments in a customer’s journey, whether it’s a friendly reminder a month after their first purchase or a special offer celebrating their loyalty.
How Do I Sell a New Product to Existing Customers?: Smart Selling Strategies
When it comes to selling new products to your existing customers, using smart strategies like cross-selling, upselling, and product bundling can make a big difference.
Cross-selling is all about suggesting products that go hand-in-hand with what your customer has already bought. The key here is making sure your suggestions are relevant and useful—show your customer how these extras can add value and make their purchase even better. Offering bundled products at a discount can also sweeten the deal for customers while boosting your sales.
Upselling is another great strategy, but it takes a slightly different approach than cross-selling. So, instead of suggesting related products, you’re encouraging your customers to upgrade to a more premium version of what they’re already interested in. The timing of this is really important. To have a chance of being successful, you want to present the upgrade to your customer just before they check out or while they’re reviewing their cart. Highlighting the benefits of the upgraded option, like extra features or better quality, can make the offer hard for them to resist. You can also throw in a small discount or special offer to make the decision even easier.
Personalized product recommendations are another great way to make shopping feel more tailored and thoughtful for your customers. You can do this by using AI tools to analyze your customer’s past purchases or browsing habits, you can suggest products that are perfect for them. You can sprinkle these personalized suggestions throughout your website, whether on the homepage, product pages, or at checkout.
Lastly, subscription models are a fantastic way to keep customers coming back. Offering them the chance to subscribe to regular deliveries of essential items or exclusive products not only makes their life easier but also builds brand loyalty.
Tools That Can Help You Determine the Next Product to Sell
Figuring out what to sell next doesn’t have to be a guessing game—using the right tools can make it much easier and more accurate.
Use CRM Software
One of the most valuable resources at your disposal is CRM (or Customer Relationship Management) software. With a CRM, you can track your customers’ purchase history, interactions, and even preferences. This gives you a complete picture of their behavior. The data you see helps you to figure out what products they might be interested in next. So, you can personalize your recommendations. It’s like having a roadmap for what your customers want, making it easier to keep them coming back for more.
Use Behavioral Targeting Software
Behavioral targeting software is another tool that gives you deeper insights into what your customers are doing on your website. It allows you to take information you know about your customers and apply it. Try using tools like Google Analytics. It can track things like how long people stay on a page, what products they’re browsing, and even if they abandon their carts. This type of data can be a goldmine when it comes to understanding what’s grabbing your customers’ attention. You can then use that info to suggest the right products at the right time, giving your customers exactly what they’re looking for before they even realize they need it.
Use AI Tools
If you want to take things up a notch, AI-powered tools can help automate this process. These platforms use advanced algorithms to analyze customer data and make smart product recommendations. The tools learn from customer behavior to figure out which products are most likely to resonate with each individual. It’s a great way to deliver super-personalized suggestions that feel tailor-made for your customers, all while saving you time and boosting your sales.
So, convinced yet? Figuring out what to sell your customers next is a really important next step. It involves a blend of understanding their needs, leveraging smart selling strategies, and timing your offers just right. By analyzing purchase histories, gathering feedback, and using customer segmentation, you can create personalized recommendations that resonate with your audience.
