Customer expansion helps current customers benefit from an increased value proposition and encourages them to buy more - in the form of upselling (when a customer buys a more feature-rich version) or cross-selling (when a customer buys an unrelated or complementary item). The trick to a successful customer expansion strategy is knowing what customers are ripe for expansion, and having upsell and cross-sell opportunities built right into the product.
Your organisation will see a much higher return on investment if you get your existing customers to buy more. The most common way to do it is by upselling - enticing customers to purchase more expensive versions of a product or service. A detailed customer expansion strategy can grow revenue by up to 125%!
A 'freemium' model is one in which basic or limited features are available free of charge, and advanced features are charged a premium. Getting people to try out your product for free is one thing. Convincing users to upgrade is a different ball game. You’ve got to prove how you will deliver more value - the kind worth paying for. There are a few time-tested conversion techniques you should consider: nurture your freemium users, create a sense of urgency, unlock features, tease them and show them what they’re missing! And most importantly, make it easy to upgrade.
The step between paying nothing and paying something, however little, is the most significant step for a user of your product. If you’re working on moving freemium customers to a paid version of your product, you’re going to want to track success and how much revenue it’s ultimately bringing in. If now you’re thinking that your customer expansion could work a lot better, please call.