Expansion Revenue Playbook Template

Upsell means moving a customer to a higher tier of the same product (Starter to Pro, Pro to Business). Cross-sell means selling an additional product or add-on (core product + analytics add-on, core product + security module). Both contribute to expansion revenue. Upsells typically have higher close rates because the customer is already using the product and hitting limits. Cross-sells require demonstrating value for a new capability.

For B2B SaaS, 110%+ is healthy, 120%+ is strong, and 130%+ is best-in-class. Below 100% means you are shrinking even if you add new customers. The [NRR glossary entry](/glossary/net-revenue-retention-nrr) breaks down the formula. NRR below 110% usually means either too much churn, not enough expansion, or both. This template focuses on the expansion side of that equation.

Both. Small expansions (seat additions, usage overages, tier upgrades under $100/mo difference) should be self-serve with in-app prompts. Large expansions (Enterprise upgrades, multi-year deals, add-ons with implementation) need CS or sales involvement. The trigger-based approach in this template works for both: the trigger fires, the system routes it to the right motion based on deal size and complexity.

Three rules: only prompt when the customer has actually hit a limit or demonstrated need (data-driven triggers, not arbitrary timing), show the value they will get rather than the price they will pay, and cap the frequency (no more than one expansion prompt per 30 days per account). If a customer dismisses an offer, do not show it again for at least 90 days.

After you have product-market fit and your gross retention is above 85%. Expanding accounts that are at risk of churning wastes CS energy and annoys customers. Fix retention first, then build expansion on top of a stable base. The [retention strategy template](/templates/retention-strategy-template) covers the retention foundations that expansion depends on. ---