At Rally, we help merchants succeed by improving two key metrics in their business: checkout conversion rate and average order value. In our previous blog post, we wrote about how our one-click checkout solution, Rally Pay, improves conversion rates.
In this post we are excited to discuss our much anticipated feature, post-purchase offers (“PPOs”), and how these offers improve average order value. Displaying offers to shoppers during their buying experience is not a new concept, however, with Rally’s PPOs, the offer is uniquely positioned between the checkout page and order confirmation page. This means that after shoppers complete the original purchase, they are presented with one or more offers before seeing the order confirmation page.
There are several reasons why this unique placement works so well:
We know it works well because we’ve done this before. Our team’s previous checkout product, CartHook, processed $2.5B in GMV, and $300MM of it was from PPO revenue. That means merchants using CartHook added 12% to their revenue through the use of PPOs.
Amazon popularized the use of upselling in ecommerce with their “You may also like” feature, which showed shoppers items that were frequently bought together in the hopes of increasing AOV.
In Amazon’s case, the offer is seen prior to the checkout page, making it a “pre-purchase offer.” The problem with a pre-purchase approach is that it interrupts the path to conversion by presenting an additional buying decision for the shopper. This increases the friction to purchase and can result in a reduced conversion rate and increased likelihood of cart abandonment.
Amazon is uniquely positioned to weather this friction, since they are nearly 100% certain that you’ll be coming back to Amazon to shop again. But just about every other merchant on the web needs to be very mindful about friction during the buying process.
On the flip side of a pre-purchase approach, a post-purchase offer is displayed after the initial purchase. With this placement, the shopper is not interrupted during the checkout flow and there is no added friction.
Rally’s unique positioning of the offer between the checkout page and order confirmation page reduces barriers to a shopper confidently completing their initial purchase. They can easily accept relevant offers with one click, which we then bundle with the original purchase and send back to the platform as one order. The offer page presents a new canvas for the merchant to generate additional revenue, increasing their AOV, and the shopper is presented with a delightful buying and brand experience.
As the merchant, you know your products and customers best. With Rally’s post-purchase offers, you can make a product suggestion that compliments the initial purchase, or suggest additional items that enable them to use the original product as soon as they receive it. If, for example, a customer is purchasing a coffee maker, offer them coffee filters or coffee beans to use with their coffee maker. As another example, if your customer purchases fitness gear, offer them something that enhances their fitness journey, like a blender bottle.
Everyone loves a good deal. We feel accomplished and satisfied that we made such a good decision. Offer your customer another product at a discounted price. They’ll be both surprised and delighted at how easy it was to find a deal, and complete the purchase with a sense of accomplishment that they then associate with your brand.
It can be tough to introduce a new product line. If your customers aren’t even aware that you sell that product, it’s a stretch to expect them to search for it and discover it on their own. With a post-purchase offer, you already have the shopper’s attention and can highlight new products they may be interested in.
Take Native Deodorant, for example. In the past, as a CartHook merchant, they offered customers a travel-sized toothpaste to introduce a new product line as a post-purchase offer.
Customers often need to replenish the products they buy, especially in the beauty, health, and food verticals. When a customer makes a one-off purchase, you can offer them a monthly subscription post-purchase so they never run low again. They’ll thank you when that auto-renewal kicks in and they didn’t even have to think about reordering.
*The subscriptions feature in Rally’s Post Purchase Offers will be released later this year.
Every moment in the conversion journey is important. We designed PPOs as a unique solution to maximize AOV and extend your customer’s relationship with your brand, all while decreasing friction during the checkout process. We are excited to make this feature available to merchants across multiple ecommerce platforms in Q1!
Try the Rally checkout in our demo store!
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