Identify, monitor, and execute timely account expansions with real-time reports and indicators.
Proactively identify at-risk customers and prevent churn using automation, early warning insights, and more!
Understand your customers interactions with your product and make informed product success decisions.
Define and track onboarding by phase, user progress, account, and portfolios.
Intelligence-driven, scalable insights for onboarding, adoption, retention, and revenue growth.
Handle this critical component of the post sales customer journey.
We aren’t just any Customer Success platform. We have the insights, imagination, and technology that others don’t.
Get a complete view of your customer and all their moving parts.
Deliver consistent customer experiences and repeatable success.
Create the right scoring system for your organization.
Create alert rules that are flexible.
Manage, analyze, and optimize your customer interactions.
Track your tasks easily by account, product, and outcome categories for better efficiency.
Create dynamic segment across accounts and users.
Drive adoption, upsell and cross-sell using extensive product data.
Automate your actions, alerts, playbooks and more.
Proactively uncover key insights and receive data-driven recommendations for your team.
Transcribe your calls and catch key phrases used by customers to trigger actions.
Improve decision making and actions for enhanced outcomes.
Unlock value from your data with our embedded Business Intelligence solution.
Meet the industry’s first virtual assistant (SIA) designed for customer success and account management.
Our core values, team, and community
Get in touch anytime.
Don’t miss an episode of the Customer Success Intelligence Podcast
Our annual survey captures the current state of CS Intelligence and automation.
Resources for new and seasoned Customer Success teams.
Features and SDKs you can integrate into your apps.
Calculate the potential ROI you could achieve with SmartKarrot CS.
To grow exponentially, what must a SaaS company do once it has established its customer base? It must shift its attention from retention to growth. And for successful and sustainable growth, one needs to increase revenue per customer. How does one do this? Either by raising the price of the produ
To grow exponentially, what must a SaaS company do once it has established its customer base? It must shift its attention from retention to growth. And for successful and sustainable growth, one needs to increase revenue per customer. How does one do this? Either by raising the price of the products for new customers, or upselling to your existing customers. For SaaS companies, SaaS Upsell rates is important and the latter is the key to generating revenue by keeping customer acquisition costs minimal, and thereby, unlocking growth opportunities.
Now, upselling is essential for any SaaS company’s long-term growth and revenue generation. As growth consultant, Lincoln Murphy says, “The initial sale is critical, but it’s just the tip of the iceberg.”
It should be – surveys show that existing customers are much easier to sell to: the probability of converting an existing customer is 60-70%, compared with only 5-20% for acquiring a new customer. This means, it costs five times more to attract a new customer, than keeping an existing one happy and loyal to you. The reason for this is,
Upselling has no other induced cost than the ones you incurred for product development. So, getting the customer, who has already bought into your brand’s USP, to upgrade, leads to a more profitable sale.
Particularly for SaaS customers, upselling or SaaS Upsell rates is also a measure of how well you’ve achieved your desired outcomes and customer success goals because only when the customer feels that he is achieving success and progression by using a certain software service, will he be further motivated to seek upgrades, even this cost him money.
But SaaS companies know that all this is easier said than done – most of them struggle in the upselling department, and most find little or no success. What is the reason for this?
It is because many don’t consider the key component for successful upselling: timing
The perfect timing would be right at that point when your customer is succeeding with your SaaS service or product. Are they getting continuing value from using your product? How do you measure this? By gauging what success means for them. Is your company meeting that one overarching desired outcome that the customer has? Have you value-added to that by helping him meet this outcome successfully? Track your customer success milestones to analyse these metrics – customer habits such as repeated logging in and inviting others to join to use a certain product are good indicators of this.
Once you identify these indicators of desired outcome and customer success, the next step is to identify those consumers who are most likely in the need for those very functions that you’re upselling. Once they see what functionalities they will benefit from by upgrading to your added services, they will opt for them.
The most successful upselling endeavour would be when at the time when the customer is most in need of your additional features. It is the time when upgrading will make most sense to them.
Zoom is very good example of upselling the right product at the right time. They entered a market at a time when the COVID19 pandemic had most companies searching for video calls and virtual meeting options; at a time when entrepreneurs were searching for a platform that maximises their online reach, as physically accessing customers was no longer possible. Their freemium included almost all functions, and then, customers were looking for growing through Zoom, they introduced price points and packages for those wanting to reach out to larger audiences and value-added functionalities such as the mute-all button (a real life-saver for webinars). The result? A magical triple-digit growth for the company!
This goes to show that the best upselling opportunity is at the exact time when your customer has attained his success milestone, and is logically ready to work on expansion related to it
Random upselling never leads to desired outcomes for your company. Be laser-focused on your customer rather than your service or product and you’ll know the exact timing of when a SaaS upsell rates make the most sense to your customer. Look for answers to questions such as:
There are many ways in which you can improve your company’s upselling strategies, such as tracking user segmentation, and using that behavioural data to provide continuing value to subscription customers, keep design and discovery at par in the R&D department, keep offering upgrades at regular intervals throughout the customer’s lifecycle, take customer feedback seriously and work on requirements generated by them, and focus on retaining revenues using upsell. But all of these hark back to the same thing – timing it right, giving the customer what he needs when he needs it. 14
Fact is, most SaaS companies focus on communicating everything about their product to their customers when, in fact, they should be communicating how it will benefit them. That’s the key to a great upselling strategy or SaaS Upsell rates – generating the need for a paid upgradation in the customer’s mind. Growth, for subscription business owners is all about hitting higher revenues and increasing customer lifetime value to reduce churn. And both require them to design and implement a robust real-time yet flexible upselling strategy.
Rohan has over 11 years of experience in client services, marketing and hospitality field. Previously, he was head of digital marketing for a hi-tech mobile application. Rohan is driven by new challenges and the possibility of making an impact on individuals and businesses.
Published June 22, 2020, Updated December 30, 2020
In this blog, explore the seven biggest reasons why MS Project isn’t...
30 May, 2023
Learn how call coaching can effectively enhance the performance of the...
04 May, 2023
Learn the top 5 Critical mistakes to Avoid in your QA testing process ...
24 Apr, 2023
Sign up for SmartKarrot’s newsletter.
See how SmartKarrot can help you deliverwinning customer outcomes at scale.