Expansion Revenue: Unlocking Growth from Within

In response to recent questions about metrics from Land and Expand (read it here), I wanted to dive deeper into Expansion Revenue—a critical measure of how effectively you're growing revenue from existing customers.

What is Expansion Revenue? It’s the additional revenue generated from upsells, cross-sells, or upgrades within a specific period.

The formula is: Revenue from Existing Customers at End of Period - Revenue from Existing Customers at Start of Period

My Experience with Expansion Revenue In one role, a "lite" product version was introduced, making it easier for customers to start small and expand as their needs grew. This approach led to a 25% increase in Expansion Revenue over a year.

How to Boost Expansion Revenue

1. Segment customers to identify upsell opportunities.
2. Personalise campaigns to address unique customer needs.
3. Train teams on value-based selling, ensuring every interaction adds value.