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Tracks revenue from existing customers (upsells, cross-sells, upgrades). Often higher ROI than new customer acquisition.
Guida passo passo
- 1Sum all revenue from customer account increases
- 2Exclude new customers (only existing)
- 3Calculate % of revenue from expansion
- 4Compare to new customer revenue
Esempi risolti
Ingresso
10 cust, $1k inc
Risultato
$10k expansion
Errori comuni da evitare
- ✕Not tracking expansion separately from gross new revenue
- ✕Pricing tiers too far apart reducing upgrade probability
Domande frequenti
Why is expansion revenue important?
Higher margins, lower CAC, faster to revenue, improves retention, and increases LTV.
How do I increase expansion revenue?
Build usage metrics into pricing, remove friction in upgrades, communicate ROI of higher tiers.
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