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.
Increased ARPU and LTV
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.
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.
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...