Customer Expansion Rate
Percentage
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.
Formula
(Revenue from upselling / Total revenue) x 100
Example
If you made $10,000 from upselling and the total revenue was $100,000, the expansion rate = (10,000 / 100,000) x 100 = 10%.