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How to increase ARPU and LTV with expansion revenue

Build highly relevant up-sell and cross-sell CTAs to create expansion revenue from each user.
Goal:
Increased ARPU and LTV
Time:
60
Journey Blocks:
3

The fifth stage of the Growth Flywheel is the Expand Stage. At this point, your customers have been activated and retained. They are happy with your offering and searching for other ways your product can help them. Now is the perfect time to create expansion revenue through upsells or deeper product adoption).

In this playbook, you will learn how to create highly relevant up-sell and cross-sell CTAs to create expansion revenue and drive your business towards the holy grail of growth: net negative revenue churn.

The Strategy

This playbook consists of 3 Journey Blocks: 

1. Notifications — Upsell Basic to Pro
The first encourages customers on our Basic plan to upgrade to the Pro plan. 

2. Notifications — Cross-sell Smart Journeys

The second encourages our high-tier Notifications customers to book a Smart Journeys demo. 

3. Smart Journeys — Upsell Experiences

The third promotes our highest tier product, Experiences, to our Smart Journeys customers.

Journey Block 1
Notifications — Up-sell Basic to Pro

How to create this audience:

With this audience, you’ll want to target customers that are on your lowest plan and are prime candidates for an upgrade. In our case, those customers have a trait named planID with the value basic.

With our targeting, we want to be sure to up-sell people who recently signed up. For that reason, we set a condition where they have at least 1 active campaign in their account before we prompt them to upgrade.

The block’s design:

For the design, you’ll want to promote a key feature or benefit from a higher-tier plan you offer. In this case, we grabbed a customer quote about how well our Hot Streaks feature works to increase conversions on their site.

By featuring the value of the higher-tier plan, we hope our customers take the opportunity to upgrade.

Journey Block 2
Notifications — Cross-sell Smart Journeys

How to create this audience:

In this step, you’ll want to sell customers of 1 of your products into a new product. In our case, we are targeting the customers for 2 of our highest tier plans for Notifications and pitching them Smart Journeys.

In the audience builder, we target them with the rules plan id contains platinum or premium.

Again, we make sure they have at least 1 campaign live before putting them into the cross-sell audience. We don’t want to sell them something new until the first thing they bought is being put to good use.

The block’s design:

This is a fun block that uses merge tags and human-centered design. We’re highlighting the personal touch that implementing Smart Journeys can bring to your site.

Oh and we never miss an opportunity to use confetti...

Journey Block 3
Smart Journeys — Upsell Experiences

How to create this audience:

After our Smart Journeys customers have published 3 campaigns AND if they are at least 50 employees in size, we want them to consider upgrading to Experiences.

We use the following logic in our audience builder to target the right users with this Smart Journey block:

The block’s design:

With this block, we’re pushing the visitor to book a demo of Experiences, our mid-market and Enterprise solution for web personalization.

Moving Out of Expand and Into Refer 

The sixth and final stage of the Proof Growth Flywheel is the Refer Stage. 

This is where the loop restarts and all the hard work of delighting your existing customers pays off as they start to refer new customers back to your Educate stage.

The entire flywheel picks up momentum and your business will start to grow faster than before, with less effort.

Check out our Refer Playbook to see how to build the next steps for a highly personalized customer journey your highest-value customers will love.

Final Say

Consistent expansion revenue can turn a good business into a great business.

The “land and expand strategy” has worked for countless of the best B2B businesses before yours, and it will work here too iff executed properly.

Use the Expand playbook to create relevant up-sells to customers who actually want to spend more money with you.

Convert more visitors with Experiences by personalizing your website call to actions.

Learn about Experiences