Unlocking Wallet Share through Expansion Revenue
In the previous chapter, we explored various strategies for driving customer retention and reducing churn, both of which are crucial for sustaining PLG. While retaining users represents one important lever, optimizing monetization for each customer also holds immense potential to propel revenue.
Capturing a greater customer wallet share represents a pivotal growth lever beyond baseline user acquisition. As cohorts of loyal users persist thanks to thoughtful retention efforts, opportunities flourish to increase their lifetime value. This chapter covers expansion revenue—that is, recurring income unlocked by optimizing monetization from existing customers—as a metric that quantifies the success of efforts to nurture enduring loyalty and value.
We will explore the components that are crucial to expansion revenue optimization:
- Metrics for tracking expansion revenue
- Strategies to increase wallet share
- Measurement...
