Expansion Rate

Measured as

Measure Expansion Rate on the same customer segment, time window, and revenue basis each time you review it.

Operator takeaway

• Track expansion by cohort to separate durable expansion from one-off spikes.
• Use expansion rate with GRR to understand whether growth is leaky or durable.
• Keep Expansion Rate consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
• Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.

Next decision

• Read Retention & churn hub: cohorts, GRR/NRR, and retention curves if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
• Decide whether Expansion Rate is a growth, retention, or efficiency signal before you set targets around it.