Is it true that 32% of customers place another order from the same business within a year of becoming a customer? Marketers often prioritize attracting new leads and boosting brand awareness, neglecting their existing customer base. However, focusing on existing customers can be incredibly beneficial. Utilizing effective advertising campaigns to re-engage past customers is a wise investment of your time and resources. While it may seem counterintuitive to target existing customers, running paid campaigns for cross-selling and upselling can significantly enhance customer lifetime value and average order value, ultimately driving revenue growth.

So, how can you effectively utilize paid advertising for upselling and cross-selling to previous customers? Fortunately, platforms such as Facebook, Google, and other search and social networks recognize the importance of these campaigns and provide a variety of tools to leverage your past achievements.

Cross-Selling vs. Upselling

Before delving into the tips, let’s briefly define cross-selling and upselling.

Cross-selling involves offering customers products or services that complement their previous purchases. For instance, if a customer buys a new phone and you suggest a protective case, that’s cross-selling. Upselling involves encouraging customers to purchase a higher-priced product or add-on service, increasing their overall purchase value. For example, if a customer intends to buy a bedside table and you convince them to purchase an entire bedroom set, that’s upselling. Businesses across all industries should leverage upselling and cross-selling opportunities to enhance customer lifetime value, promote repeat purchases, and cultivate brand loyalty and advocacy. Now, let’s explore eight effective strategies for cross-selling and upselling to your previous customers using paid search and social advertising.

1. Strategic Messaging

Understanding the motivations behind a customer’s initial purchase is key. Analyze their purchase history, demographics, and compare them to similar past buyers.

By addressing these critical questions and thoroughly analyzing past buyer data, you can gain valuable insights into your previous customers’ motivations. This understanding will enable you to effectively upsell to them. For example, if you sell beauty products and a customer previously purchased shampoo and conditioner, consider how long it will take them to finish those products. As they approach the end of their supply, how can you entice them to make another purchase? If your typical buyer is budget-conscious, offering a loyalty discount could be appealing. For higher-end haircare, an ad featuring celebrity endorsements might be effective. The key is to strategically consider your buyer personas and craft compelling messages that resonate with their specific needs and desires.

2. Create Targeted Customer Lists

After analyzing data and understanding your customer personas, segment them into targeted lists for personalized campaigns. Since these individuals have previously purchased from you, you already possess their contact information, allowing for highly targeted lists. This segmentation ensures that the right customers receive relevant messaging and offers. For example, someone who just bought a couch for their studio apartment wouldn’t want to see ads for another couch immediately. However, they might be interested in decorative pillows or a matching side table. Cross-selling focuses on offering complementary products or services.

3. Leverage Smart Remarketing Tactics

Remarketing is highly effective for automating upselling and driving repeat conversions with minimal effort. While initial setup and monitoring are required, remarketing campaigns essentially run themselves once configured, allowing you to focus on results. After segmenting buyers into relevant lists, leverage remarketing campaigns on social networks and Google, tailoring messages to each group. For instance, after I recently bought outdoor furniture, CB2 showed me a remarketing ad on Instagram for a stylish planter that complements my purchase.

Explore our comprehensive guides on remarketing on Google and remarketing on Facebook for detailed instructions.

4. Remind Past Buyers of Your Unique Value Proposition

Highlight the factors that differentiate your company, products, or services from the competition. Remind past customers why they chose you initially, reinforcing brand loyalty and encouraging repeat purchases. Don’t limit branding campaigns to new audiences. Reinforce the emotional connection with your brand among past customers, turning them into loyal advocates.

5. Offer Personalized Incentives

Utilize the data you have on past buyers to personalize their experience. Offer exclusive discounts or free gifts based on their purchase history, making them feel valued. For instance, Gilt City, where I frequently purchase spa deals, recently presented me with a Facebook ad offering a free gift with a relevant service.

If you have a loyalty program with points (like Sephora or Ulta), use search and social ads to remind customers about their accumulated points and encourage them to redeem them.

6. Recover Abandoned Shopping Carts

Abandoned shopping carts don’t always indicate lost interest. Often, customers get distracted and forget to complete their purchase. Remind past buyers about the items they left behind. For example, while browsing for rugs on Joss & Main, I added one to my cart but got sidetracked. Thankfully, a timely email reminder prompted me to complete the purchase, which I did!

You can also use remarketing to target cart abandoners! Employ display ads to recapture their attention or utilize Gmail ads. This strategy isn’t limited to e-commerce. In the SaaS industry, if a current customer spends significant time on a related product page, consider it an opportunity to connect and upsell. Timing is crucial for effective upselling.

7. Segment Ads Based on Past Behavior and Timing

Strategically target customers with relevant products or services within an appropriate timeframe. If your shampoo lasts for 60 days, start remarketing after 30-40 days of their last purchase, ensuring they don’t resort to last-minute alternatives. Analyze your data to determine the optimal times and days to reach your target audience. Leverage ad scheduling features on search and social platforms to maximize visibility during peak buying periods.

For instance, if you’re in the travel industry and want to cross-sell hotels or rental cars to customers who recently purchased airline tickets, consider that business travel purchases are more likely during weekdays, while leisure travel bookings might increase on weekends.

8. Utilize RLSA Campaigns

Remarketing Lists for Search Ads (RLSA) allow you to personalize search campaigns based on users’ previous website or app interactions. Unlike remarketing ads, RLSAs appear on the search network when specific users search for particular keywords, ensuring highly targeted messaging. RLSAs can significantly boost click-through rates (CTR) and conversion rates compared to standard search ads.

If you’re new to RLSA, consult our comprehensive guide to get started. By implementing these tips, you can effectively convert one-time buyers into loyal, repeat customers.