Successful Land & Expand: Part Sales & Part CS

Land & Expand - Sales Strategy? CS Charter? Reliable?

 

This ubiquitous term "Land and Expand" can be a predictable force building a foundation of revenue from your existing customer base. The keys are (1) an organizational commitment of this approach (2) a healthy alliance between Customer Success and Sales.

"Old School" approaches prioritize logos and quotas where you have this rift between two key teams:

Sales

  • Maximize initial deal size where Customers buy more than is needed because it is an "offer they can't refuse" and discounting enters the relationship.

  • Close and move on to the next to meet goals as set by management

Customer Success

  • Reactive management style and playing catch up

  • Inflow of logos often out pace the buildout of CS teams

  • Renewal conversations centered around minimizing downsell or preventing churn

The "New School" approach is built on the belief that 9x-10x of CLV (Customer Lifetime Value) is after the initial sale and encouraging collaboration:

Sales

  • Start a long-term relationship with Customers where initial deal is based on immediate need

  • Paint a realistic picture of engagement and timeline

  • Partner with Customer Success to deliver value and continue the selling momentum

  • Maintaining the sense of urgency. Driving deals to close.

Customer Success

  • Leading the follow through of promises made to Customers

  • Establishing themselves as the trusted advisor through continuous, proactive, impactful interactions

  • Internal Influencer to assess Customer gaps, ICP (Ideal Customer Profile), and propelling upsell and expansion.