Definition
An expansion playbook is a repeatable process to drive upgrades, add-ons, and renewals based on usage signals and customer goals.
How to use it
- Trigger outreach on leading indicators (adoption depth, seats approaching limits).
- Measure expansion by cohort and segment to ensure durability.
- Align expansion offers with verified outcomes to avoid discount-driven churn.
- Document timing, owners, and success criteria for each playbook step.
Common mistakes
- Launching expansion outreach before activation milestones are met.
- Using the same playbook for SMB and enterprise accounts.
Why this matters
This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.
Practical checklist
- Write a 1-line definition for "Expansion Playbook" that your team will use consistently.
- Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
- Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Retention & churn hub: cohorts, GRR/NRR, and retention curves) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- ARR Calculator: Estimate Annual Recurring Revenue (ARR) from customers and ARPA.
- ARR vs MRR Calculator: Convert ARR to MRR (and MRR to ARR) and understand the ARR vs MRR relationship.
- ARR Growth Rate Calculator: Calculate ARR growth over a period and convert it to CMGR and annualized growth (CAGR).
- ARR Valuation Calculator: Estimate a SaaS valuation from ARR and a revenue multiple (ARR valuation).
- ARR Valuation Sensitivity Calculator: Estimate valuation sensitivity to ARR and revenue multiple assumptions (simple 3x3 grid).
Guides
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.