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Customer economics
Expansion revenue
Additional revenue from existing customers — more seats, higher tiers, added products — measured as a share of starting ARR.
Owned by: Senior sales analystTest band: Senior sales analyst
In practice
Expansion is the cheapest growth there is. If it is under 10% of starting ARR, account management is servicing customers, not selling to them.
The kind of thing the test asks
- Expansion is 4% of starting ARR while NRR is 96%. The account management team is…