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Upsell describes the activity of driving more upgrades, subscriptions or purchases (and hence not applicable for all revenue models). In a nutshell, efforts should be made to convert freemium users from free-tier to subscription or purchase and to increase the average revenue per paying user (ARPPU) by driving additional ongoing purchases, ideally with increasing frequency, value or ideally both.
Upsell activites are closely tied to pricing, since users may be more inclined to purchase at specific price points, at specific points in their user journey, specific times of the day / week / year and so on.
Specific Upselling tactics include:
- Special offers & discounts
- Limited-Edition items
- Calendar or event-based merchandizing (prominent display or announcements themed around gifting days, real-world events, etc.)
- Loyalty points (earn discounts or rewards through frequent purchases)
- Promoting goods & services to existing/new users through in-app and external channels
- Reminders when subscriptions are close to expiration date
- Abandoned-cart campaigns over owned or paid channels to re-market specific items to users who were close to purchase but did not complete the transaction (possibly incentivized with a discount).