Do More Than Just Renew: Grow Revenue with Upsell and Cross-Sell Margot Schmorak, Vice President Sales Strategy and Execution, ServiceSource

October 15, 2014

ServiceSource Confidential Information 1

Rational View of Politics

Metal Movable Type

Vernacular Language

More Challenges More Opportunities

2

More likely to drive revenue from an existing loyal customer than a new prospect1

81%

3-4X Cheaper to upsell to a new customer than to acquire a new customer

Sources: 1 Marketing Metrics 2 2013 Pacific Crest SaaS Survey

Why upsell and cross-sell pay off:

ServiceSource Confidential Information

customer retention + cross-sell / upsell

3

10%

company value

30% Why upsell and cross-sell pay off:

DELIVER

ACQUIRE DEPLOY USE

UPSELL

CROSS-SELL

RETAIN

RENEW

ADVOCACY Customer Lifecycle Management Creates Customers for Life

5

Upsell Cross-sell

Examples of Upsell: •  Trial Conversion •  Increase # of licenses •  Upgrade service level •  Move to a multi-year contract •  Convert warranty to service

Examples of Cross-Sell: •  Expand services (e.g. Training) •  Sell consumables alongside •  Sell a bundled offering with other

services or products included

Opportunistic Revenue Available at Renewal:

6

Know what you can sell:

7

•  What offer(s) do you want to target? •  Examples: Seat license,

Multi-year contracts •  What are the key benefits? •  Entitlements – are you giving

any part of this away for free?

•  What training or professional services will enhance value?

•  Which products/services complement each other?

•  What’s your track record cross-selling specific products?

Upsell Cross-sell

Ann

ual S

ubsc

ript

ion

Reve

nue

Usage

Data and Insight is Instrumental to Engagement How do I retain

these customers?

How can I expand revenue?

What additional offerings?

VMware: using predictive analytics to win $ millions in incremental revenue from existing customers

Predictive analytics

Analyze buying behavior

Trained and certify teams

Product sprints each week

Evaluate and uncover additional opportunities

Cross-sell training

Focus on extending contract length

Upsell enhanced support

Segmentation & Identification Engagement Upsell +

Cross-sell

9

10

Start small and iterate quickly

11

Draw up plan Define roles and responsibilities

Analyze and refine

•  Who are target customers? •  What is the offering? •  What tools are needed?

•  What skills do we need? •  Is technical expertise

needed?

•  Which metrics should we use to track effectiveness? •  How do we compensate?

SuccessFactors: regular customer touch points to nurture upsell and cross-sell opportunities

• Uncover opportunities during renewals conversation

• Health checks become lead gen conversations

• Proactive outreach 4x/year

• Explore usage and satisfaction

• Educate customers:

• Additional features

• New product/service offerings

• Bundles that may fit their needs

• Cross-sell products that are reaching End Of Life

• Upsell support offerings based on product usage and customers’ needs

• Focus on customers with recent acquisitions

Identification Ongoing communication

Upsell/cross-sell Plays

Engage with the right plays

Segment and automate

Drive revenue

Address the entire customer lifecycle

Boost retention Scale your business

DELIVER

ACQUIRE DEPLOY USE

UPSELL

CROSS-SELL

RETAIN

RENEW

ADVOCACY Customer Lifecycle Management Creates Customers for Life

Q & A