Expansion Selling: A Proactive Data-Driven Strategy Framework

0

As SaaS businesses gain traction and customers begin to adopt their solution at scale, the next step is to drive customer expansion. Since existing customers are usually more willing to buy, companies typically offer additional solutions and features in the form of upsells and cross-sells. This enables the company to deliver additional value to customers while generating more revenue.

However, most companies are at a disadvantage because they use the same sales strategy for both new and existing customers. This approach, however flawed, may produce some results, but it will be far from optimal. From experience, the best method is to interpret and leverage available customer data to develop a different strategy for expansion selling campaigns.

“Most companies are at a disadvantage because they use the same sales strategy for both new and existing customers.”

Formulating a sales strategy based on existing customer data delivers better results than ad-hoc methods because it can be proactively tailored to customer needs and business goals. Based on how it is collected, customer data can be grouped into:

  • Qualitative Data;   obtained from customer-facing personnel.
  • Quantitative Data; obtained from different systems.

The most appropriate time to leverage customer data to drive new sales opportunities for existing customers is after sales and implementation are successfully completed. This may be after a year when customers have fully adopted the product and your interaction allows for account expansion.

Qualitative Data

Qualitative data is obtained from customer-facing teams and personnel. This includes the support team, customer success team, delivery or service team, and account managers. These teams can serve as listening posts to curate data about the customer’s needs. The data is then transferred to the executive in charge of customer expansion, where it is translated into useful information that frames the up-sell strategy.

Quantitative Data

Quantitative data is often readily available but underutilized for customer expansion campaigns. Support data trends, if properly tracked, can reveal which customers to target for additional training packages. Usage data, survey data, and online community discussions can be used to identify customers with additional business needs or interests in additional services. Sales data may also help to predict which customers require additional services based on the combination of different products they purchased or a lack of certain services in a mix of solutions that are typically purchased together.

Thinking Ahead

Many companies upsell after their customers express a need for additional services. Instead, businesses should be proactive in identifying expansion opportunities through recurring campaigns. This can be done by consistently tracking these three customer data points:

  • Consumption Trends: This is a comparison of customer purchases against solution adoption.
  • Adoption Trends: This is based on the frequency and amount of usage and which solutions customers aren’t actually using.
  • Goals and KPIs: This shows how much value the customer derives from the solutions and if they achieved their business goals with it.

Companies can, therefore, run proactive, targeted, and profitable quarterly campaigns that are solely driven by the customer’s consumption and adoption trends. These recurring campaigns may be run alongside ad hoc campaigns for new products and services.

Businesses should be proactive in identifying expansion opportunities through recurring campaigns

Subscription marketing book anne janzer

Expansion Selling Strategy Framework

You can utilize this framework to develop an expansion strategy that is proven to generate more results than merely waiting for customer ad hoc requests or CSM suggestions:

    1. Identify Outcomes: Determine which of your customer’s business needs your solutions can address, your customer’s expected business outcomes, and what service levels your customers are accustomed to from other vendors.
    2. Define Offering: Based on the solutions you offer, define appropriate upsell or cross-sell bundles for different sets of customer needs. Document your expansion playbooks in detail for future recurring campaigns.
  1. Find Triggers: Use customer data to identify a list of customers that are likely to have those business needs.
  2. Compile a List: Create a list of customer success qualified leads (CSQL) that the account manager or CSM can contact to validate that the business needs exist.
  3. Launch Campaign: Create a short or ongoing campaign to test the expansion playbooks. Offer a bonus to accelerate the adoption of the new plays. Adjust and improve your campaigns every quarter.

Summary

Customer data can be gathered and translated into actionable insights that can be used to define a better and more targeted expansion campaign strategy. This proactive approach delivers better results than using standard sales strategies for existing customers.

Written By:
Irit Eizips

Irit is the Chief Customer Officer & CEO at CSM Practice, is a world-renowned expert on customer retention, upsells, cross-sells, and customer value strategies and methodologies. Since 2013, Irit has been pivotal in shaping Customer Success best practices. She has been nominated as a top Customer Success strategist and influencer, year after year, since 2013. Irit was recently named one of the Top 150 Global Customer Experience Thought Leaders and Influencers of 2020. She is frequently producing thought leadership on her youtube channel (CSM Practice) and is often featured as a speaker at conferences and Customer Success publications.

56 comments

  1. Great content! Super high-quality! Keep it up! 🙂

    1. Thank you! Much apprecaited.

    2. That’s awesome ?

  2. Hello, I read your blogs daily. Your writing style is awesome, keep doing what you’re doing!

  3. Hiya, I’m really glad I’ve found this info. Nowadays bloggers publish just about gossip and web stuff and this is actually irritating. A good blog with interesting content, that’s what I need. Thank you for making this site, and I will be visiting again. Do you do newsletters by email?

  4. WOW just what I was searching for. Came here by searching for website

    1. Thanks, Vilma! Appreciate it..

  5. Greate pieces. Keep posting such kind of info on your
    page. Im really impressed by your site.
    Hi there, You’ve performed a fantastic job. I will definitely digg it
    and for my part recommend to my friends. I am sure they
    will be benefited from this site.

  6. Very good post. I definitely love this website. Continue
    the good work!

    1. Thanks so much!

  7. What’s up all, here every person is sharing these kinds of experience, thus it’s good to read this blog, and I used to pay a quick visit this web site daily.

  8. Hello There. I found your weblog using msn. That is a really well written article.
    I’ll make sure to bookmark it and return to learn extra of your helpful
    info. Thank you for the post. I’ll certainly comeback.

  9. Saved as a favorite, I love your site!

  10. This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your excellent post. Also, I’ve shared your website in my social networks!

  11. Thanks a bunch for sharing this with all folks you actually recognise what you are talking approximately!
    Bookmarked. Kindly additionally discuss with my web site =).
    We may have a link trade agreement among us

  12. Wonderful site you have here but I was wondering if you knew of any message boards
    that cover the same topics discussed here? I’d really like to be a part
    of community where I can get opinions from other experienced individuals that share the same interest.
    If you have any suggestions, please let me know.
    Cheers!

  13. Thank you for sharing excellent informations. Your website is very cool. I’m impressed by the details that you have on this blog. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for extra articles. You, my pal, ROCK! I found just the information I already searched all over the place and just could not come across. What an ideal web-site.

  14. I¡¦m not sure where you are getting your info, however great topic. I must spend some time finding out much more or understanding more. Thank you for fantastic info I was searching for this information for my mission.

  15. Thank you for sharing your thoughts. I truly appreciate your efforts
    and I am waiting for your further post thank you once again.

  16. We stumbled over here coming from a different page and thought I might as well check things
    out. I like what I see so now i am following you. Look forward
    to finding out about your web page repeatedly.

  17. fantastic submit, very informative. I ponder why the opposite
    experts of this sector do not understand this. You should continue your writing.
    I’m sure, you have a great readers’ base already!

  18. Superb, what a weblog it is! This webpage provides helpful information to
    us, keep it up.

  19. I just like the valuable information you supply in your articles.
    I will bookmark your blog and check again here frequently.
    I’m somewhat sure I’ll be told many new stuff proper here!
    Best of luck for the following!

  20. Fantastic beat ! I would like to apprentice while you amend
    your web site, how can i subscribe for a blog web site?
    The account helped me a acceptable deal. I
    had been tiny bit acquainted of this your
    broadcast provided bright clear concept

  21. Quality content is the key to attract the visitors to pay a visit the site,
    that’s what this web page is providing.

  22. I’m really impressed with your writing skills
    and also with the layout on your weblog. Is this a paid theme or did
    you customize it yourself? Either way keep up the nice quality writing, it’s rare to see a great blog
    like this one nowadays.

  23. I used to be able to find good info from your articles.

  24. Its like you read my mind! You seem to know so
    much about this, like you wrote the book in it or something.
    I think that you could do with a few pics to drive the message home
    a little bit, but instead of that, this is great blog.
    A great read. I will definitely be back.

  25. Thank you for sharing with us, I believe this
    website really stands out :D.

  26. We stumbled right here provided by a different website and thought I may
    as well check things out. I like what I see so i am just just following you.
    Look ahead to learning about your internet page yet again.

    Here is my web site; CameliaDRoby

  27. I’m no longer sure where you’re getting your information, however good
    topic. I needs to spend some time learning much more or working out more.
    Thank you for wonderful information I used to be searching for this info for
    my mission.

  28. It’s very trouble-free to find out any matter on net as compared to textbooks, as I found this post at this website.

  29. I am actually delighted to glance at this website posts which contains
    lots of valuable data, thanks for providing these information.

  30. I think the admin of this web site is genuinely
    working hard in favor of his web site, because
    here every stuff is quality based material.

    Here is my website – DominX Pills

  31. Wow, fantastic blog format! How long have you been blogging
    for? you make running a blog glance easy. The entire glance of your
    web site is fantastic, as neatly as the content
    material!

  32. Someone essentially lend a hand to make severely articles I
    would state. That is the very first time I frequented your website
    page and to this point? I surprised with the analysis you made
    to make this actual submit amazing. Wonderful job!

  33. Pretty! This has been an incredibly wonderful
    article. Many thanks for providing these details.

  34. I am really impressed with your writing skills and also with the layout on your blog.
    Is this a paid theme or did you modify it yourself? Either way keep
    up the nice quality writing, it’s rare to see a nice blog like this one these days.

  35. Greetings from Colorado! I’m bored to death at work so I decided to check out your website on my iphone during lunch break.
    I really like the info you present here and can’t wait
    to take a look when I get home. I’m shocked at how fast your blog loaded on my mobile ..
    I’m not even using WIFI, just 3G .. Anyways, wonderful site!

  36. Hi there, I desire to subscribe for this web site to get
    most recent updates, so where can i do it please assist.

  37. I do not even know how I ended up here, but I thought this post
    was good. I do not know who you are but certainly you’re going
    to a famous blogger if you aren’t already 😉 Cheers!

  38. Thanks for every other informative site. Where else could I am getting that kind of
    info written in such an ideal approach? I’ve a mission that I am just now operating on, and I’ve been on the glance out for such info.

  39. Post writing is also exciting, if you be familiar with after that you can write otherwise
    it is complex to write.

  40. I simply want to mention I am newbie to weblog and honestly liked this web page. Most likely I’m want to bookmark your blog . You amazingly come with superb articles and reviews. With thanks for sharing your blog site.

  41. Wow, incredible blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your website is fantastic, let alone the content!|

  42. This is really interesting, You are a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your fantastic post. Also, I have shared your site in my social networks!|

  43. Very interesting information!Perfect just what I was looking for!

  44. Thank you for your appreciation. We acknowledge your ideas and opinions. Please sign up for our newsletter. Here’s the link: https://www.csmpractice.com/newsletter-sign-up/

  45. Thank you for your appreciation. We acknowledge your ideas and opinions. Please sign up for our newsletter. Here’s the link: https://www.csmpractice.com/newsletter-sign-up/

  46. Thank you for sharing your ideas. Highly appreciated! Please sign up for our newsletter, here’s the link: https://www.csmpractice.com/newsletter-sign-up/

  47. Hi there! This is my 1st comment here so I just wanted to give a quick shout out and tell you I
    really enjoy reading through your blog posts. Can you recommend any other blogs/websites/forums that cover the same topics?
    Thanks!

  48. Thanks to my father who told me regarding this web site, this weblog is really amazing.

  49. Hey there! I just want to offer you a big thumbs up
    for the great info you have right here on this post. I will be coming back to your site for more soon.

  50. Simply want to say your article is as surprising.
    The clearness in your publish is simply spectacular and that i could assume you are knowledgeable on this subject.
    Well with your permission allow me to snatch your feed to keep up to date with
    drawing close post. Thanks a million and please
    keep up the enjoyable work.

  51. Excellent beat ! I would like to apprentice whilst you amend your web site,
    how could i subscribe for a weblog web site? The account aided
    me a appropriate deal. I have been a little bit familiar of
    this your broadcast provided brilliant clear concept

  52. This is my first time go to see at here and i am really pleassant to read
    all at one place.

Comments are closed.