Combine usage data, predictive analytics and best practices to understand which customers to up-sell to and who to cross-sell to. Take your subscription business to new heights using ServiceSource technology and salesforce. This is a customer success presentation from Dreamforce 2014

1. Do More Than Just Renew:
Grow Revenue with Upsell and Cross-Sell
Margot Schmorak, Vice President Sales Strategy and Execution, ServiceSource
October 15, 2014

2. ServiceSource Confidential 1 Information
Rational View of
Politics
Metal Movable
Type
Vernacular
Language
More Challenges
More Opportunities

3. Why upsell and cross-sell pay off:
2
More likely to drive revenue from an existing
loyal customer than a new prospect1
3-4X
81%
Cheaper to upsell to a new customer than to
acquire a new customer
Sources:
1 Marketing Metrics
2 2013 Pacific Crest SaaS Survey

4. customer
retention +
cross-sell /
upsell
ServiceSource Confidential Information
3
10%
30%
company
value
Why upsell and cross-sell pay off:

5. DELIVER
ACQUIRE DEPLOY USE
UPSELL
CROSS-SELL
RETAIN
RENEW
ADVOCACY Customer Lifecycle
Management Creates
Customers for Life

6. 5
Opportunistic Revenue Available at Renewal:
Upsell Cross-sell
Examples of Upsell:
• Trial Conversion
• Increase # of licenses
• Upgrade service level
• Move to a multi-year contract
• Convert warranty to service
Examples of Cross-Sell:
• Expand services (e.g. Training)
• Sell consumables alongside
• Sell a bundled offering with other
services or products included

7. 6

8. Know what you can sell:
7
Upsell Cross-sell
• What offer(s) do you want to
target?
• Examples: Seat license,
Multi-year contracts
• What are the key benefits?
• Entitlements – are you giving
any part of this away for free?
• What training or professional
services will enhance value?
• Which products/services
complement each other?
• What’s your track record cross-selling
specific products?

9. Data and Insight is Instrumental to Engagement
Annual Subscription
Revenue
Usage
How do I retain
these customers?
How can I expand
revenue?
What additional
offerings?

10. VMware: using predictive analytics to win $ millions in
incremental revenue from existing customers
Segmentation &
Identification Engagement Upsell +
Cross-sell
Predictive
analytics
Analyze buying
behavior
Trained and certify
teams
Product sprints
each week
Evaluate and
uncover additional
opportunities
Cross-sell
training
Focus on
extending
contract length
Upsell enhanced
support
9

11. 10

12. Start small and iterate quickly
11
Draw up plan Define roles and
responsibilities
Analyze
and refine
• Who are target customers?
• What is the offering?
• What tools are needed?
• What skills do we need?
• Is technical expertise
needed?
• Which metrics should we
use to track effectiveness?
• How do we compensate?

13. SuccessFactors: regular customer touch points to
nurture upsell and cross-sell opportunities
• Uncover opportunities
during renewals
conversation
• Health checks become
lead gen conversations
• Proactive outreach 4x/year
• Explore usage and
satisfaction
• Educate customers:
• Additional features
• New product/service
offerings
• Bundles that may fit
their needs
• Cross-sell products that
are reaching End Of Life
• Upsell support offerings
based on product usage
and customers’ needs
• Focus on customers with
recent acquisitions
Identification Ongoing
communication
Upsell/cross-sell
Plays

14. Engage with the
right plays
Segment and
automate
Drive revenue
Address the entire
customer lifecycle
Boost retention Scale your
business

15. DELIVER
ACQUIRE DEPLOY USE
UPSELL
CROSS-SELL
RETAIN
RENEW
ADVOCACY Customer Lifecycle
Management Creates
Customers for Life

16. Q & A