Do More Than Just Renew: Grow Revenue with Upsell and Cross-Sell Margot Schmorak, Vice President Sales Strategy and Execution, ServiceSource
October 15, 2014
ServiceSource Confidential Information 1
Rational View of Politics
Metal Movable Type
Vernacular Language
More Challenges More Opportunities
2
More likely to drive revenue from an existing loyal customer than a new prospect1
81%
3-4X Cheaper to upsell to a new customer than to acquire a new customer
Sources: 1 Marketing Metrics 2 2013 Pacific Crest SaaS Survey
Why upsell and cross-sell pay off:
ServiceSource Confidential Information
customer retention + cross-sell / upsell
3
10%
company value
30% Why upsell and cross-sell pay off:
DELIVER
ACQUIRE DEPLOY USE
UPSELL
CROSS-SELL
RETAIN
RENEW
ADVOCACY Customer Lifecycle Management Creates Customers for Life
5
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
Opportunistic Revenue Available at Renewal:
6
Know what you can sell:
7
• 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?
Upsell Cross-sell
Ann
ual S
ubsc
ript
ion
Reve
nue
Usage
Data and Insight is Instrumental to Engagement How do I retain
these customers?
How can I expand revenue?
What additional offerings?
VMware: using predictive analytics to win $ millions in incremental revenue from existing customers
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
Segmentation & Identification Engagement Upsell +
Cross-sell
9
10
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?
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
Engage with the right plays
Segment and automate
Drive revenue
Address the entire customer lifecycle
Boost retention Scale your business
DELIVER
ACQUIRE DEPLOY USE
UPSELL
CROSS-SELL
RETAIN
RENEW
ADVOCACY Customer Lifecycle Management Creates Customers for Life
Q & A