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  • Writer's pictureTal Nagar

How to Increase Your Recurring Revenue This Year

What makes some customers buy more from the same company? What makes others stick to the same subscription?


Customer Success Leaders lose sleep over these questions, especially when their teams miss quota.


Pressured by unsatisfactory results, they spend hours trying to find the answers. Yet, as time passes, their sense of hope turns into despair.


I know. I’ve felt it more than once.


But, what if I told you, you already have the keys to unlock the upsell gates?


Read through this quick 4-part list to see what you need to focus on.


** I’d recommend keeping this list handy, so you can always stay on the right track and keep the gates open.

 

What is Upsell and Why Is It Important?


Upselling is a sales technique designed to maximize profits from existing customers.


It does so by encouraging them to buy more features or a higher tier of their current service.


While it is a sales technique, Customer Centricity is necessary for long-term success.


After all, customers won't spend more money for the sake of spending money. They'll do so only if the new features will help them succeed.


This is why so many CSMs, who already serve as customers' trusted advisors, carry upsell quotas.


Here are 4 powerful strategies for Customer-Centric upselling!


#1: Look for Natural Successes


Take a second and think about your most successful customers. Those who are making the most out of their subscriptions. What will happen if they reach a usage limit?


My guess is, they’ll want to remove it, even if it means they have to spend more money.


Natural successes happen when customers:
  1. Reach their usage limits.

  2. Ask for specific features or add-ons.

  3. Share a specific goal that can be achieved through an upsell.


When customers use your product and realize value, upsell opportunities are generated naturally. All we need to do is act on them.


My recommendation: make this process easier by adding in-app prompts, such as:


  1. Notifications alerting customers that they reached their subscription limits. “You’ve used up all your accounts. Looking to add more? Contact us here.”

  2. Display locked features with a hyperlink to an upgrade page. “This feature is only available to [tier]. Upgrade now.”



Upsell opportunities are generated naturally. We just need to pay attention.


#2: Become a Customer Expert


As I said in my previous post, success only comes to those who care about their customers.


The more you know your customers’ goals and challenges, the more you can help them succeed.


With time and real results, trust is gained. Your customers know you genuinely care about their success - making upsells easier.


That said, a true customer expert knows more than the customer's definition of success.


3 (Additional) Ways to Become a Customer Expert:


  1. Whenever possible, ask the right discovery questions - resource?

  2. Always be curious and strive to learn more about your customers.

  3. Define measurable goals and track progress.



Success only comes to those who care


#3: Focus on Providing (More) Value


One main rule drives everything we do in Customer Success:


The value of our product is the engine of our business.

The more value customers realize, the higher the retention and satisfaction rates. Hence, creating new opportunities for upsells.


It's important to note that this strategy is not effective without Customer Centricity.


CSMs must offer customized and relevant value to each customer. Otherwise, they hurt their efforts to become the customer's trusted advisors.


After all, our customers don't care about someone else's goals. They only care about their own.


You can provide more value to customers in multiple ways:


  1. Become a value expert: understand how each customer segment perceives the value of your product. Then, deliver and increase it.

  2. Share new use cases to help customers achieve more than they initially planned.

  3. Offer customer education programs, such as webinars and training sessions. These will ensure customers maximize your product’s value.



The more value customers realize, the easier the upsell


#4: Turn Data into Real Opportunities


Customer data is a goldmine for effective and efficient customer AND business success.


It allows us to execute and automate our strategies while remaining Customer-Centric. For example:


Creating customer segments based on specific data points (roles, locations, and usage patterns). Then, we can use them in two ways:


  1. Reach large groups of customers with value-centric email campaigns.

  2. Alert CSMs when customers are in the "Upsell Zone."


Please remember:

Data must be accompanied by Customer Centricity. Otherwise, you’re just wasting your time and overwhelming your customers.



CS Teams cannot be effective and efficient without customer data

Final Thoughts…


If your CSMs aren’t hitting their upsell quotas, use the 4 powerful strategies featured in this post. Just don’t forget: the key to success is to remain Customer-Centric.


What strategies do you use to increase upsells? Share in the comments below!


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