CATEGORY > GLOSSARY

Expansion Revenue

27 May, 2024 1 min read

What is Expansion Revenue for your B2B SaaS company?

Let us understand how your Customer Success team can keep tabs on, crunch numbers, and plan around expansion revenue.

What Is Expansion Revenue?

Expansion revenue is the revenue generated from existing customers who purchase additional products, services, or upgrades.

It is calculated by deducting the retained amount of recurring revenue from the total recurring revenue generated during a specific period.

How To Calculate Expansion Revenue?

Expansion Revenue = Total Recurring Revenue - Recurring Revenue Retained

An Example Of Expansion Revenue

A company has $10,000 in recurring revenue at the beginning of the month and $12,000 in recurring revenue at the end of the month.

Expansion Revenue = $12,000 - $10,000 = $2,000

Insights About Expansion Revenue

Expansion revenue is an important metric for measuring the success of upselling and cross-selling initiatives.

It indicates that customers are finding value in additional offerings from the company.

TOP BLOGS

The Ultimate Guide to Customer Success Management

The Ultimate Guide to Customer Success Management

Customer Success is not just about selling a product or providing support; it's a promise brought to life, guiding customers toward success while ensuring a delightful journey

21 September, 2023

The Ultimate Guide To Keeping Your Customer Churn in Check!

The Ultimate Guide To Keeping Your Customer Churn in Check!

They say not all churn is bad. What do you think? I think so too, but don’t take my word for it. Some say all churn is bad and I’d give that to them but not take it personally!

15 February, 2023

Can a 1% reduction in churn result in a 38% increase in ARR?

Can a 1% reduction in churn result in a 38% increase in ARR?

When I started working on my Customer Success startup ZapScale my first thought was why should anyone spend on Customer Success and what value it brings.

23 April, 2022

Quality Content,

Straight To Your Inbox!

Subscribe for the latest blogs, podcasts, webinars, and events!

Write a Blog

If you have experience in CS and

a flair for writing, we’d love to

feature you.

Write to us on

hello@zapscale.com