Latest / The DTC Marketing Podcast with Fexingo: Direct-to-Consumer Brands, Shopify, and E-Commerce Growth / How DTC Brands Turn Post-Purchase Emails into Upsells
Transcript
- Lucas: So Luna, we've talked a lot about acquisition on this show — how to get the click, how to get the order. But what happens after the order is placed? For most DTC brands, that's where the email flow goes quiet. Luna: Yeah, the classic 'order confirmed' email gets sent and then... nothing. But that's actually the moment when the customer is most engaged. Lucas: Exactly. There's this window — call it the post-purchase high — where the customer is excited, they're already on their phone, they've got their wallet open. And a lot of brands just let that moment slip away. Luna: I know we've been digging into customer acquisition costs a lot this season, but this is about revenue per order, right? Like, making the most out of the traffic you already have. Lucas: Right, and that's why I think this is such a good topic. Because if these marketing conversations we have each week have sparked something you've actually used — a new tactic, a new way to think about your funnel — and you've found value in that, honestly, if today was worth a coffee to you, that's the link. Buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small way to keep this show going, and we really appreciate that. And speaking of keeping things going — let's get back to that post-purchase window. Lucas: So let's drill into the mechanics. The post-purchase email isn't just a confirmation — it's a one-on-one channel where the customer has already said yes to you. And the data backs this up: open rates on post-purchase emails are routinely above 60 percent, and click-through rates are double what you'd see in a typical promotional blast. Luna: That's huge. So why aren't more brands using that real estate to make an upsell offer? Lucas: Partly because they're afraid it'll feel pushy, or that it'll hurt the customer experience. But when it's done well — when it's relevant and timely — it actually enhances the experience. You're not interrupting someone mid-browse; you're adding a 'hey, you might also like this' right when they're already feeling good about their purchase. Luna: And there's a real example we can talk about. I was reading about a skincare brand that added an upsell offer to their shipping confirmation email — just a simple 'complete your routine and get 15 percent off' — and they saw a lift in revenue per order of 18 percent. Lucas: That's a great case. And the key is, they didn't just throw a discount at everyone. They segmented by intent. So first-time buyers got a different message than repeat customers. Luna: What did they do differently? Lucas: For a first-time buyer, they recommended a complementary product — say, a moisturizer to go with a cleanser — and framed it as 'building your routine.' For repeat customers, they offered a refill discount on their next order. Same email flow, but the offer and the copy shifted based on where the customer was in the relationship. Luna: So it's not about a blanket 15 percent off — it's about the right offer for the right person at the right time. Lucas: Exactly. And that's the nuanced part. The timing matters too. You don't put the upsell in the order confirmation email itself — that one's purely functional. You put it in the shipping notification, which typically goes out a day or two later. By then, the excitement has built, and they're already tracking their package. Luna: And there's a psychological angle here — the customer has already committed. They've paid. So the second purchase feels lower risk. It's not like they're deciding whether to start a relationship; they're just adding to an existing order. Lucas: Right. And that's why the conversion rate on these post-purchase upsells can be two to three times higher than a standard email promo. The intent is already there. Luna: But I've heard some people worry about returns. Like, if you upsell a product and it doesn't work out, does that hurt your return rate? Lucas: That's a fair concern, and it's why the skincare brand was careful about which products they offered. They only upsold products that were already top sellers with low return rates. So they lifted revenue per order without moving the needle on returns. Luna: So it's not about pushing anything — it's about being strategic with the products you know are going to be a hit. Lucas: Exactly. And another thing they did: they used the post-purchase email to gather data. They included a short survey — one or two questions about how the customer heard about them or what they're hoping to achieve with the product — and that fed into future personalization. Luna: That's smart — you're not just making a sale, you're learning something for the next campaign. Lucas: And the beautiful thing is, this whole strategy works on something like Shopify with a bunch of apps. You don't need a custom team to build it. You can set up a post-purchase flow in an afternoon. Luna: What about the order confirmation email itself? Should there be an upsell there at all? Lucas: Generally, no. Keep that email clean. It's just 'here's what you bought, here's your order number, here's when it's shipping.' The customer's brain is still processing the transaction. If you hit them with an offer right then, it can feel spammy. Luna: So the shipping notification is the golden spot. Lucas: Yeah, that's where we see the best results. And also the delivery confirmation — once the package arrives, you can ask for a review or offer a 'next time' incentive. That's a different lever, but it's all part of the same post-purchase lifecycle. Luna: Let's talk numbers. What kind of lift can a typical DTC brand expect if they add an upsell to their shipping email? Lucas: From what I've seen across different brands, a well-executed post-purchase upsell can add anywhere from 5 to 20 percent to revenue per order. The skincare brand's 18 percent is on the higher end, but it's not an outlier. Luna: And that's revenue you would have missed out on entirely. It's not like you're stealing from future sales — you're just increasing the value of the sale you already have. Lucas: Right. And when you think about customer acquisition costs — which we've been hammering all season — this is a way to offset that. If you can squeeze more out of every order, you can afford to pay a little more for that initial click. Luna: So what's the one thing a brand should test first if they're new to this? Lucas: Start with a simple order bump on the shipping notification. Offer a complementary product at a small discount — maybe 10 percent — and see if it gets any traction. You don't need a complex segmentation on day one. Just offer something relevant and measure the bump in revenue per order. Luna: And if it works, then start layering in the segmentation and the survey data? Lucas: Exactly. The first version is about proving the concept. Once you see that 10 or 15 percent lift, you can invest in making it smarter. Luna: I love that this is something a small brand can do today — it's not a huge tech investment. Lucas: No, it's not. And that's the beauty of DTC — you have direct access to your customers, and you can test things quickly. The brands that win are the ones that pay attention to the whole funnel, not just the top. Luna: So, Lucas, if someone's listening and they want to try this, what's the first email they should look at? Lucas: Open your shipping notification template. Is it just a tracking number and a link? If so, you've got a blank canvas. Add a simple product recommendation — something that goes with what they ordered — and a one-click add-on button. That's your starting point. Luna: And how do you measure success? Is it just revenue per order? Lucas: Revenue per order is the headline metric, but you also want to track click-through rate on that email and, most importantly, the return rate on the upsold product. You want to make sure you're not sending customers something they'll send back. Luna: So it's about keeping the quality bar high. Lucas: Always. The post-purchase email is part of the brand experience. If you treat it as a purely transactional upsell machine, you'll lose trust. But if you treat it as a helpful recommendation from a friend, you'll build loyalty and revenue at the same time. Luna: That's a good place to leave it for today. Next week, we're going to talk about how DTC brands can use post-purchase emails to drive referrals — and I already have some numbers in mind. Lucas: Looking forward to it. Until then, take a look at your shipping notification and see if there's room for one small, smart offer. It might just be the easiest revenue you'll add this quarter.