Did you know? The fastest growing SaaS companies add 3X more ACV from upsells than companies growing slowly according the 2014 Pacific Crest SaaS Survey.
Upsells accelerate growth, expand Customer Lifetime Value (LTV), and make acquisition spend more efficient. But when it comes to upsells, timing is everything. Knowing when to present an offer to a customer is just as important as knowing what offer to present. Join Gainsight Customer Success Evangelist Lincoln Murphy and Steli Efti, Co-Founder and CEO of Close.io, as they dig into the following key questions on using Customer Success to drive expansion with your existing customers:
Specifically, we cover:
- How can you use Customer Success data to know exactly when to present an upsell offer?
- How can you use your Customer Success operations to know the best offer to present?
- Who should own the upsell process in your organization?
The most successful Enterprise SaaS companies know that growing revenue only through new customer acquisition is the less efficient way to scale. Rather, they understand that growing revenue within your existing customer base - through up-sells, cross-sells, and expanded use - is the most profitable way to scale.
In fact, Enterprise SaaS companies that grow revenue - and company valuation - by expanding revenue within their existing customer base also know the key to making this work is to focus on - and operationalize - Customer Success.
2. Housekeeping
• Q&A panel on your right
• Recording for colleagues who can’t make it
• All attendees will receive slides
• Twitter hashtag #customersuccess
3. Our Speakers
Lincoln Murphy
Customer Success Evangelist
@LincolnMurphy
Steli Efti
Co-Founder & CEO Close.io
@Steli
4. What We’ll Cover Upsells, Expansion
Revenue, and Negative
Churn
1
2 How Customer Success
Drives Upsells
3 Operationalize the
Upsell Process
4 Organizational
Considerations
5 Q&A
5. Upsell is a Growth Accelerator
• Increased Customer Lifetime Value
(LTV)
• Improved Customer Acquisition Cost
(CAC) Efficiency
• Greater Dollar Revenue Retention
(DRR)
• Reduced Logo Churn
Growth
LTV
ACV
DRR
6. [ No Upsells?
]
Lower DRR /
Higher Churn
Failure to capture latent
expansion revenue
Valuation may suffer due to
unrealized revenue potential
8. Negative Churn
“
Each year, the typical customer
pays New Relic 14% more than
last year. Negative churn is
incredibly attractive [...] if the
company were to cease spending
money to acquire new customers,
the business would still grow at a
14% CAGR.
” Tomasz Tunguz
Redpoint Ventures
http://tomtunguz.com/new-relic-s-1
13. Operationalize the Upsell Process
1
Be clear on
what success
means for your
customer
3
Benchmark
where your
customers
start
6
Peg upsell
opportunities
to certain
success
milestones
8
Present the
offer at the
right time
2
Set goals with
your
customers
4
Identify
success
milestones
5
Design journey
along those
milestones
7
Know what
offer to present
for which
milestone
14. Upsell Hacks
Mention upsells early in their lifecycle Improve time to first value to upsell faster
Use self-service as part of
trials & POCs
Enable self-service activation
where possible
Offer concierge onboarding
20. Organizational Considerations
1
Who owns
upsell in
your
organization
?
2
How do you
compensate
them?
3
How is this
handled at
various stages
of CSM org
maturity?
21. A Gift from Steli
http://www.unscalablestartup.com/ultimate-upselling/
22. Train a New Team
www.gainsight.com/customer-success-university