Community / Sales Glossary
Retention

Expansion Revenue

Expansion Revenue is additional revenue generated from existing customers through upsells (moving to a higher tier or adding seats), cross-sells (adding a new product or module), or usage-based growth. It is the primary driver of NRR above 100% and is often the highest-margin revenue a SaaS company generates because the cost of sales is significantly lower than acquiring a new logo. The most effective expansion motions are driven by customer success teams who help customers achieve outcomes and identify natural triggers for expansion.

Related Tools
Account ExpansionNRR Modeler
Related Terms
NRR (Net Revenue Retention)GRR (Gross Revenue Retention)Land and ExpandCSM (Customer Success Manager)QBR (Quarterly Business Review)ARR (Annual Recurring Revenue)
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