• Home
  • Search
  • Home
  • Search
  • Welcome
  • Define
    • Annual Planning
    • Account Scoring
    • Branding & Positioning
    • Pricing & Packaging
    • Targeting
    • Territory
  • Source
    • Channel
    • Competitive Knock-Out
    • Demand Generation
    • Demo
    • Email Deliverability
    • Event Marketing
    • Product Led Growth (PLG)
    • Sales Development
    • Trade Shows
  • Grow
    • Account Expansion
    • Account Management
    • Account Planning
    • Analyst Relations
    • Contracting
    • Founder Led Sales
    • International Expansion
    • Managing Opportunities
    • Moving Upmarket (SMB to ENT)
    • Moving Down-market (ENT to SMB)
    • Mutual Plan
    • Value Engineering
  • Delight
    • Community
    • Customer Success
    • Implementation
    • Product Adoption
    • Professional Services
    • Support
  • Optimize
    • Deal Desk
    • Enablement
    • Forecasting
    • GTM Audit
    • KPIs
    • Sales Kickoffs
    • Sales Methodologies
    • Sales QBRs
    • Win Loss Analysis
  • Roles
    • AE & AM
    • CRO
    • Customer Success
    • Demand Gen
    • Hunter Farmer Generalist
    • Org. Structure
    • Overlay Specialists
    • Revenue Operations
    • Sales Enablement
    • SDR
    • Sales Engineer
    • Sales Managers
    • Technical Account Manager (TAM)
  • Tools
    • AI In B2B Sales
    • Compensation & Quota
    • Conversation Intelligence
    • CPQ
    • CRM
    • Data Providers
    • Customer Success Software
    • Dialers/CTI
    • Sales Enablement Platforms
    • RFP & ROI Tools
    • Sales Engagement Platforms
    • Subscription Management
    • Support
    • Tech Spend
  • Odds & Ends
    • B2B Sales Podcasts & Influencers
    • Being a VC Operating Partner
    • President's Club
    • Product
    • PTC BladeLogic Way
    • SaaS Compliance
    • SaaS Finance
    • SaaS Legal
    • Sales Leadership Offsite
    • Strategic Thinking
    • Virtual Assistants

Account Expansion

568 views 1

Expansion Levers

Levers to drive account expansion aka net recurring revenue (NRR):

  • Raise prices (perhaps the fastest & best growth lever)
  • Customer Success
    • Onboarding
    • Ongoing value delivery
  • Prioritize accounts for cross-sell & upsell by quantifying the gap between account potential and existing spend
    • Upsell: Selling more users/usage/seats to current buyer or migrating existing relationship to higher package tiers
    • Cross-sell: Three flavors:
      • Selling more users/usage/seats to a new buyer in a current account
      • Selling a new product to current buyer
      • Selling a new product to a new buyer in a current account
  • Implement in-app, product-led prompts to upgrade

Aligning CSMs and Sellers (AE/AM) to Drive Expansion

  1. My general guiding principle is that sellers are responsible for all commercial motions and CSMs for non-commercial (usage, engagement, etc.)  
  2. Strive to pair sellers and CSMs so they share as many accounts as possible (aka pod structure)
  3. Build and run proactive expansion ‘plays’ for CSMs to run, or better, for pairs of CSMs/sellers to run. At minimum, this involves:
    1. Identifying the right accounts to engage (based on customer health, need, etc.)
    2. Creating collateral
    3. Training/enabling CSMs/sellers (remember to enable first line managers first)
    4. Monitor activity, effectiveness, and results
  4. That being said, you have a number of options to create incentives for CSMs to drive expansion:
    (in order from least to most behavior driving which is also from least to most aggressive)
    1. (helpful but rarely sufficient) Create a recognition program to celebrate expansion success
    2. Maintain a public leaderboard showing expansion by CSM (usually % rather than $)
    3. (recommended) Include NRR for their book of business as part of their compensation
    4. Include CSQL generation (usually # not pipeline) as part of their compensation 
    5. (not recommended) Pay CSMs a direct commission on either individual account expansion or net expansion for their book of business

Was this helpful?

1 Yes  No
Related Articles
  • GTM Audit
  • Support
  • Technical Account Manager (TAM)
  • Sales Enablement Platforms

Didn't find your answer? Contact Us

Leave A Comment Cancel reply

Previously
Grow
Up Next
Account Management
Copyright 2023 Revenue-Playbook.com. All Rights Reserved.