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your own CSS here. Click the help icon above to learn more. */ </style> </head> <body class="post-template-default single single-post postid-8447 single-format-standard custom-background custom-header header-full-width content-sidebar"><div id="wrap"><div id="header"><div class="wrap"><div id="title-area"><p id="title"><a href="https://sixteenventures.com/">Customer-centric Growth by Lincoln Murphy</a></p><p id="description">Growth-oriented Customer Success</p></div></div></div><div id="subnav"><div class="wrap"><ul id="menu-page-menu" class="menu genesis-nav-menu menu-secondary"><li id="menu-item-2604" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-home menu-item-2604"><a href="http://sixteenventures.com">Customer Success Articles</a></li> <li id="menu-item-8249" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-8249"><a target="_blank" href="https://www.impactdemy.com/collections?ref=58b2b0">2024 CSM and Head of CS Training</a></li> <li id="menu-item-55" class="menu-item menu-item-type-post_type menu-item-object-page menu-item-55"><a rel="author" href="https://sixteenventures.com/lincoln-murphy-strategic-consultant">Customer Success Consulting</a></li> <li id="menu-item-8433" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-8433"><a target="_blank" href="https://www.impactdemy.com/pages/impact-weekly-podcast">Customer Success Podcast</a></li> <li id="menu-item-8900" class="menu-item menu-item-type-custom menu-item-object-custom menu-item-8900"><a target="_blank" href="https://www.impactdemy.com/courses/fundamentals?ref=58b2b0">Free CS Fundamentals Course</a></li> </ul></div></div><div id="inner"><div class="wrap"><div id="content-sidebar-wrap"><div id="content" class="hfeed"><div class="post-8447 post type-post status-publish format-standard has-post-thumbnail hentry category-customer-success category-sales entry"><h1 class="entry-title">Growth Unlocked: The Key to Exponential Account Expansion</h1> <div class="post-info"><span class="date published time" title="2023-02-18T17:38:56-06:00">February 18, 2023</span> Article by <strong><a href="https://sixteenventures.com/lincoln-murphy-strategic-consultant" target="_blank">Lincoln Murphy</a></strong> </div><div class="entry-content"><p>Expansion – not simple renewal – is the ultimate indicator of a successful customer.</p> <p>There’s a way to handle expansion (upselling, cross-selling, land-and-expand, etc.) that results in limited, incremental growth in customer account value.</p> <p>And there’s a way to do it that results in consistent, exponential growth in customer account value.<br />Interestingly, it doesn’t really matter who is driving the strategy for expansion.</p> <p>Let’s dig in.</p> <p><span id="more-8447"></span></p> <h2>Incremental vs. Exponential Gains</h2> <p>Whether it’s driven by one part of the company (i.e. Sales) or whether it’s a synergistic cross-functional collaborative effort between Sales and Customer Success, if the push for expansion is quota-based and not derived from the customer’s actual progress, it’s going to result in limited increases in the value of customers.</p> <p>However, if it’s based on the customers’ actual success, and the “expansion strategy” is built around giving the customer what they need, when they need it, then you will see revenue from customers 2x, 5x, 10x or more, leading to massive jumps in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR).</p> <h2>Complex Account Expansion Strategies Aren’t Needed</h2> <p>I’ll let you in on a little secret and you can tell your Sales leadership if you want: There’s just not a lot of ‘strategizing’ that has to take place to grow accounts like you have to do with prospects you don’t already have a relationship with.</p> <p>Customers are ready to buy more stuff at different times throughout their lifecycle with you. Probably more frequently than you realize, meaning you could be getting a customer to buy more, more often, if you just looked at things the right way.<br />Instead, most of the time the customer’s readiness isn’t a deciding factor in whether they get approached to buy something.</p> <p>Remember, expansion comes from customers with whom we’re already doing business. That context changes everything about the way you should approach expansion sales.</p> <h2>Customer Success IS the Expansion Strategy</h2> <p>Any “strategizing” that needs to take place would come in the form of understanding what success means for the customer and the stakeholders therein, ensuring the customer is progressing toward that success, knowing where they’re at on that journey, and getting clear on where along the way to that evolving success expansion makes sense. And then orchestrating properly.</p> <p>It’s not like there isn’t work to do to ensure expansion happens, but the work is to ensure the customer is progressing to the points where expansion makes sense, and having managed expectations properly that once they hit that milestone, there’s an expansion opportunity waiting for them.</p> <p>So it’s not about strategizing how to sell to them.</p> <p>Rather, it’s about strategizing on how to make them successful and understanding what logical expansion opportunities exist for them along the way.</p> <h2>How to Surface Expansion Opportunities</h2> <p>When we talk about “Surfacing Opportunities” in Customer Success, we talk about surfacing them with the customer, and then connecting the customer to Sales or Growth or whomever needs to work with them to complete the deal.</p> <p>For less complex “deals,” if the Customer Success Manager (CSM) can just add something to the customer’s account, they do that. Easy.</p> <p>And if the customer can do it themselves, even better.</p> <p>Done correctly, as customers grow and evolve, their relationship with you should grow and evolve, too.</p> <h2>The Ultimate Indicator of Customer Success</h2> <p>Expansion – not simple renewal – is the ultimate indicator of a successful customer.</p> <p>In my years of experience, helping hundreds of companies around the world add Billions of Dollars in market value, the biggest constant among leaders of World-class companies is that they know Customer Success done right should be the biggest revenue driver in the company, far exceeding new business sales.</p> <figure class="wp-block-table"><table class="has-border-color has-base-border-color"><tbody><tr><td><a href="https://www.impactdemy.com/courses/fundamentals?ref=58b2b0" target="_blank" rel="noreferrer noopener"><img decoding="async" width="300" height="300" class="wp-image-8906" style="width: 300px;" src="https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA.png" alt="" srcset="https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA.png 1080w, https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA-300x300.png 300w, https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA-1024x1024.png 1024w, https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA-150x150.png 150w, https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA-768x768.png 768w, https://sixteenventures.com/wp-content/uploads/2024/01/New-CS-Fundamentals-Course-square-CTA-600x600.png 600w" sizes="(max-width: 300px) 100vw, 300px" /></a><a href="https://www.customergrowthlab.com/prompt-engineering-for-customer-success" target="_blank" rel="noreferrer noopener"></a></td><td><a href="https://www.customergrowthlab.com/email-engagement-formula" target="_blank" rel="noreferrer noopener"><img decoding="async" width="300" height="300" class="wp-image-8675" style="width: 300px;" src="https://sixteenventures.com/wp-content/uploads/2023/04/Email-Engagement-Formula-Driving-Success-at-Every-Stage-of-the-Customer-Journey-600-×-600-px-1.png" alt="" srcset="https://sixteenventures.com/wp-content/uploads/2023/04/Email-Engagement-Formula-Driving-Success-at-Every-Stage-of-the-Customer-Journey-600-×-600-px-1.png 600w, https://sixteenventures.com/wp-content/uploads/2023/04/Email-Engagement-Formula-Driving-Success-at-Every-Stage-of-the-Customer-Journey-600-×-600-px-1-300x300.png 300w, https://sixteenventures.com/wp-content/uploads/2023/04/Email-Engagement-Formula-Driving-Success-at-Every-Stage-of-the-Customer-Journey-600-×-600-px-1-150x150.png 150w" sizes="(max-width: 300px) 100vw, 300px" /></a></td></tr><tr><td><a href="https://www.impactdemy.com/pages/impact-weekly-podcast" target="_blank" rel="noreferrer noopener"><img loading="lazy" decoding="async" width="300" height="300" class="wp-image-8437" style="width: 300px;" src="https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-scaled.jpg" alt="" srcset="https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-scaled.jpg 2560w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-300x300.jpg 300w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-1024x1024.jpg 1024w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-150x150.jpg 150w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-768x768.jpg 768w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-1536x1536.jpg 1536w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-2048x2048.jpg 2048w" sizes="auto, (max-width: 300px) 100vw, 300px" /></a></td><td><a href="https://www.customergrowthlab.com/powerful-meetings" target="_blank" rel="noreferrer noopener"><img loading="lazy" decoding="async" width="300" height="300" class="wp-image-8967" style="width: 300px;" src="https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square.png" alt="" srcset="https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square.png 900w, https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square-300x300.png 300w, https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square-150x150.png 150w, https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square-768x768.png 768w, https://sixteenventures.com/wp-content/uploads/2024/04/meetings-promo-square-600x600.png 600w" sizes="auto, (max-width: 300px) 100vw, 300px" /></a></td></tr></tbody></table></figure> </div><div class="author-box"><div><img alt='' src='https://secure.gravatar.com/avatar/3334de1f544b64f1d1b3383098d14892?s=80&d=mm&r=g' srcset='https://secure.gravatar.com/avatar/3334de1f544b64f1d1b3383098d14892?s=160&d=mm&r=g 2x' class='avatar avatar-80 photo' height='80' width='80' loading='lazy' decoding='async'/> <strong>About Lincoln Murphy</strong><br /><p>I invented Customer Success. I focus primarily on Customer Engagement. <a href="https://sixteenventures.com/lincoln-murphy-strategic-consultant">Learn more about me here.</a></p> </div></div><div class="after-post widget-area"> <div id="recent-posts-3" class="widget widget_recent_entries"><div class="widget-wrap"> <h4 class="widget-title widgettitle">You should read these articles, too…</h4> <ul> <li> <a href="https://sixteenventures.com/true-cost-of-meetings">The True Cost of Meetings in Customer Success Management</a> </li> <li> <a href="https://sixteenventures.com/meetings-as-a-metric">Meetings as a Customer Success Metric: The Misguided Path</a> </li> <li> <a href="https://sixteenventures.com/no-goals-no-customer-success">No Goals, No Customer Success: Unlocking the Power of the Goal Discovery Framework</a> </li> <li> <a href="https://sixteenventures.com/revenue-roadblocks">Revenue Roadblocks: How We’re Sabotaging Our Own Growth</a> </li> <li> <a href="https://sixteenventures.com/bad-fit-vs-good-fit-customers">Good Fit vs. Bad Fit vs. Ideal Customers: The Key to Unlocking Sustainable Growth</a> </li> </ul> </div></div></div></div></div><div id="sidebar" class="sidebar widget-area"><div id="custom_html-2" class="widget_text widget widget_custom_html"><div class="widget_text widget-wrap"><div class="textwidget custom-html-widget"><div id="enews-ext-2" class="widget enews-widget"> <div class="widget-wrap"> <div class="enews"> <h4 class="widget-title widgettitle">Join the other 53,897 folks who get my emails and…</h4> <div style="text-align:left"> <ul> <li>Get the latest on <strong>ChatGPT, AI, & Prompt Engineering</strong></li> <li>Stay updated on <strong>Customer Success</strong> & <strong>RevOps</strong></li> <li>Take your <strong>Growth Strategy</strong> to the next level</li> <li>Learn about <strong>Psychology, Engagement, and More</strong>!</li> </ul> </div>  <form id="ck_subscribe_form" class="ck_subscribe_form" action="https://app.convertkit.com/landing_pages/256863/subscribe" data-remote="true"> <input type="hidden" value="{"form_style":"naked","embed_style":"inline","embed_trigger":"scroll_percentage","scroll_percentage":"70","delay_seconds":"10","display_position":"br","display_devices":"all","days_no_show":"15","converted_behavior":"show"}" id="ck_form_options"> <input type="hidden" name="id" value="256863" id="landing_page_id"> <input type="hidden" name="ck_form_recaptcha" value="" id="ck_form_recaptcha"> <div class="ck_errorArea"> <div id="ck_error_msg" style="display:none"> <p>There was an error submitting your subscription. 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https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-150x150.jpg 150w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-768x768.jpg 768w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-1536x1536.jpg 1536w, https://sixteenventures.com/wp-content/uploads/2022/12/Impact-Weekly-with-New-Episodes-Text-2048x2048.jpg 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /></a></figure> </div></div> <div id="recent-posts-4" class="widget widget_recent_entries"><div class="widget-wrap"> <h4 class="widget-title widgettitle">Customer Success & Growth Articles</h4> <ul> <li> <a href="https://sixteenventures.com/true-cost-of-meetings">The True Cost of Meetings in Customer Success Management</a> </li> <li> <a href="https://sixteenventures.com/meetings-as-a-metric">Meetings as a Customer Success Metric: The Misguided Path</a> </li> <li> <a 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