Increasing Upsells And Expansion

Question 1

What is up sell - where can revenue come from?

Answer 1

New revenue can come from two sources in a SaaS-business:

1) new customers
2) existing customers

Question 2

List the four upsell-based revenue models

Answer 2

1) Consumption (uses more of the same feature like AI-tagging)
2) Capability (expands the feature or functionality within the your product like adding DfS)
3) Price increase (pricing increase/adjust)
4) Enhanced services (like support plans; only if services are recurrent)

A well-defined strategy for driving up sells is essential.

Question 3

What are the main reasons for why is upsell important?

Answer 3

1) Upsells help combat increasing acquisition costs.
2) Upsells help offset the impact of churn. It helps lower the risk.
3) Upsell help you learn who your best customers are.
4) Upsell helps increase Customer Lifetime Value and pos. impact NRR.

Question 4

What are the keys to getting upsell success?

Answer 4

1) People (who does what and when is important)
2) Process (having a well-planned and structured process is key!)
3) Analytics (assess the possibility in the opportunity)

Question 5

Explain who does what when it comes to upsell

Answer 5

CSM should act as a trusted advisor
Sales should negotiate and close
Marketing should influence and promote
Product / CS Leadership should develop and codify journey
Training should help customer get the most out of it

It’s really a team effort that goes across the entire organisation

Question 6

What plays could you create around upsell?

Answer 6

1) Increase licenses
2) Increase consumption
3) Upgrade product or service tier
4) Annual Price increase
5) Professional Services
6) Training Services