If you’re like most companies, you focus the lion’s share of your growth budget on demand generation and customer acquisition.
But the sale isn’t over just because your prospect becomes a customer. There’s still ample opportunity to grow revenue from customer expansion—nurturing your existing customer relationships, helping them see the value of expanding with your solution, and continuing to build loyalty over time.
Consider these stats:
Analysts estimate that 70-80 percent of the average company’s annual revenue comes from existing customers in the form of renewals and upsells.
Yet, the majority of companies allot only 10-20 percent of their sales and marketing budgets toward customer expansion.
In other words, the majority of sales and marketing spend goes to customer acquisition, which only amounts to 20-30 percent of your customer lifecycle. Clearly, there’s a significant, yet overlooked opportunity for businesses to tap into customer expansion as a growth engine.
Anton Rius from Corporate Visions shares 3 ways to capitalize on the customer expansion opportunity, plus shares 4 additional resources for taking your customer expansion game next level in the post linked below.
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