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Customer Expansion Rate


Measures the rate at which existing customers expand their contracts or purchases. In businesses where upselling or cross-selling is possible, a high expansion rate indicates that customers see value in the offerings, leading to increased revenue without acquiring new customers.


(Revenue from upselling / Total revenue) x 100


If you made $10,000 from upselling and the total revenue was $100,000, the expansion rate = (10,000 / 100,000) x 100 = 10%.