Expansion Playbook: Land and Expand Strategy
Version: 1.0 | Last Updated: Nov 2025
Expansion Philosophy
Core Principle: Grow with your customers. Expansion should be mutual value creation, not extraction.
Why Expansion Matters:
- 5-10x easier to expand existing accounts than win new logos
- Higher margins (no acquisition cost)
- Stronger customer relationships
- Predictable revenue growth
- Lower churn risk (more embedded)
Target: 120-150% Net Revenue Retention (NRR)
The Land and Expand Model
Phase 1: Land (Initial Deal)
Typical Entry Point:
- Single department (50-200 users)
- Core plan features
- 12-month commitment
- $10-15/user/month
- Total: $6K-36K ARR
Goal: Prove value quickly, build champions
Phase 2: Expand (Growth)
Expansion Vectors:
- User Expansion - Add more departments/teams
- Feature Expansion - Upgrade to premium tier
- Use Case Expansion - New workflows beyond initial use case
- Integration Expansion - Connect more systems
- Service Expansion - Add training, support, consulting
Target: 3-5x initial ARR within 18-24 months
When to Propose Expansion
Success Triggers (Green Lights)
Quantitative Signals:
- ✅ 70%+ Daily Active Users (DAU)
- ✅ 85%+ Weekly Active Users (WAU)
- ✅ Engagement score 7+/10
- ✅ 90+ days live (proven value)
- ✅ Measurable business outcomes (turnover reduction, training completion)
Qualitative Signals:
- ✅ Executive sponsor actively promotes internally
- ✅ Other departments asking "How do I get this?"
- ✅ Customer sharing results in company meetings
- ✅ Feature requests (indicates deep engagement)
- ✅ Positive QBR feedback
- ✅ Customer willing to be reference/case study
Rule: Wait for 2-3 quantitative + 2-3 qualitative signals before proposing expansion.
Warning Signs (Red Lights)
Don't Expand If:
- ❌ DAU below 50% (low adoption)
- ❌ Unresolved technical issues
- ❌ Champion turnover (no internal advocate)
- ❌ Budget constraints (wait for renewal)
- ❌ Change fatigue (other major initiatives underway)
- ❌ Negative feedback not addressed
Rule: Fix the foundation before expanding.
Expansion Conversation Framework
Step 1: Acknowledge Success
Opening: "[NAME], I've been reviewing your engagement metrics and results—this is one of our strongest deployments. Your team is achieving [X]% DAU and [BUSINESS OUTCOME]. That's exceptional."
Why it works: Reinforces value before asking for more.
Step 2: Identify Expansion Opportunity
Discovery Questions:
For User Expansion:
- "Which other departments have expressed interest?"
- "Where else in the company could this create similar impact?"
- "Are there teams facing similar challenges [TURNOVER/ENGAGEMENT/TRAINING]?"
For Feature Expansion:
- "Have you explored [PREMIUM FEATURE] yet?"
- "What would it be worth to add [CAPABILITY]?"
- "If you could add one feature, what would it be?"
For Use Case Expansion:
- "Beyond [CURRENT USE CASE], what other workflows could this support?"
- "Are there other business objectives we could help with?"
- "Where else do you need behavior change or skill development?"
Step 3: Quantify Value of Expansion
ROI Comparison: "You're seeing [X]% improvement in [METRIC] with [CURRENT DEPARTMENT]. If we expanded to [NEW DEPARTMENT], that's [Y] additional employees. Based on your current ROI, that translates to $[Z] in additional value."
Example: "Sales is achieving 40% higher quota attainment with PulsePlus. If we expand to your 200-person Customer Success team, and they see even half the lift (20%), that's $[X]M in additional revenue."
Step 4: Propose Expansion
Offer Structure: "Here's what I'm thinking: Let's expand to [DEPARTMENT/FEATURE/USE CASE]. We can phase it in over [TIMELINE], and here's the investment..."
Pricing:
- Incremental users: Volume discount pricing
- Feature upgrade: Delta between plans
- New use case: Included in current platform
Step 5: Handle Objections
Common Objections:
"We don't have budget" → "What's the budget cycle? Let's plan for Q[X]. In the meantime, we can do a small pilot."
"We need to prove ROI first" → "You already have—[METRIC]. Let's replicate that success in [NEW AREA]."
"Timing isn't right" → "When would be right? Let's get it on the roadmap now."
"We're happy with current scope" → "That's great! But other departments are missing out on the same results. What if we just add [ONE TEAM] as a pilot?"
Expansion Plays (Detailed)
Play 1: Horizontal Expansion (Add Departments)
When: Initial department showing 70%+ engagement
Approach:
- Identify lookalike departments (similar size, challenges)
- Use existing department as internal case study
- Offer pilot pricing for new departments
- Leverage existing champion as internal advocate
Pitch: "[DEPARTMENT 1] is crushing it with PulsePlus—[RESULTS]. [DEPARTMENT 2] has similar challenges. Let's run a 60-day pilot with them using [DEPARTMENT 1]'s playbook. If they hit similar results, we expand."
Pricing:
- First 100 users: $15/user/month
- Next 100 users: $12/user/month (volume discount)
- 200+ users: $10/user/month
Investment: Adding 100 users = $1,200/month = $14,400/year
Play 2: Vertical Expansion (Upgrade Tier)
When: Customer requesting features from premium tier
Premium Features They Might Want:
- Advanced analytics and reporting
- Custom integrations
- Dedicated CSM
- White-labeling
- Priority support
- Custom content creation
- API access
Approach:
- Identify feature gaps causing friction
- Show how premium tier solves it
- Calculate ROI of premium features
- Offer trial of premium tier for 30 days
Pitch: "You mentioned wanting [FEATURE]. That's included in our Enterprise tier. The delta is $[X]/month, which pays for itself if it saves your admin [Y] hours per month on [TASK]. Want to trial it for 30 days?"
Pricing Example:
- Core Plan: $15/user/month
- Enterprise Plan: $25/user/month
- Delta: $10/user/month
For 100 users: $1,000/month additional = $12,000/year
Play 3: Use Case Expansion (New Workflows)
When: Customer mastered initial use case
Common Progression:
Started with: Training & Development Expand to: Performance Management
Started with: Onboarding Expand to: Sales Enablement
Started with: Change Management Expand to: Continuous Improvement
Approach:
- Understand what's working in current use case
- Identify adjacent workflows with similar dynamics
- Show how platform supports new use case
- Offer templates/playbooks for new workflow
Pitch: "You've nailed training with PulsePlus—87% completion rate. What if we applied the same approach to sales enablement? We can create quests for deal stages, achievements for wins, leaderboards for pipeline generation."
Pricing: Usually included in current platform (no additional cost), creates stickiness.
Play 4: Integration Expansion
When: Customer using multiple systems that could connect
Value:
- Automate XP/achievement triggers
- Reduce manual data entry
- Increase accuracy
- Expand use cases
Common Integrations:
- Salesforce (CRM data → PulsePlus)
- Jira (ticket resolution → XP)
- ServiceNow (ITSM → gamification)
- Workday (HR data sync)
- Greenhouse (recruiting metrics)
Approach:
- Identify integration opportunities
- Show time savings from automation
- Offer integration as add-on or included in Enterprise tier
Pitch: "You're manually updating quest progress from Salesforce. What if that happened automatically via API? Our Salesforce integration pulls deal stages in real-time and awards XP. Saves 10+ hours/month, zero errors."
Pricing:
- Standard integrations: Included
- Custom integrations: $5K-15K one-time setup
Play 5: Service Expansion
When: Customer needs hands-on support
Services to Offer:
- Admin Training - Advanced certification for admins
- Manager Enablement - Train managers to use analytics
- Content Creation - Custom quests, achievements, challenges
- Strategic Consulting - Quarterly strategy sessions
- Change Management - Support for rollout to new departments
Approach:
- Identify gap between current state and potential
- Offer packaged services
- Show ROI of professional services
Pitch: "You're getting great results, but you're only using 40% of PulsePlus features. What if we did a half-day workshop to unlock the other 60%? We'll build custom quests, train your admins, and create a 90-day playbook."
Pricing:
- Admin Workshop: $2,500 (half-day)
- Manager Training: $5,000 (full-day)
- Custom Content Pack: $3,000
- Quarterly Strategic Consulting: $1,500/session
Expansion Proposal Templates
Template 1: User Expansion Proposal
Subject: Expanding PulsePlus to [DEPARTMENT]
Body:
Hi [NAME],
Based on the success we're seeing with [CURRENT DEPARTMENT], I wanted to propose expanding PulsePlus to [NEW DEPARTMENT].
**Current Results (90 Days):**
- [CURRENT DEPARTMENT]: [X]% engagement, [Y]% improvement in [METRIC]
- ROI: $[Z] in value delivered
**Expansion Opportunity:**
- Add [NEW DEPARTMENT] ([X] users)
- Same playbook that worked for [CURRENT DEPARTMENT]
- Projected ROI: $[Y] based on current performance
**Investment:**
- [X] users at $[Y]/user/month = $[Z]/month
- Volume discount applied (was $15/user, now $12/user)
- Total annual investment: $[TOTAL]
**Proposed Timeline:**
- Week 1-2: Setup and admin training
- Week 3-4: User onboarding
- Week 5-8: Engagement ramp-up
- Week 9+: Measure results
**Next Steps:**
Let's schedule a 30-min call to discuss. I'll bring specific metrics from [CURRENT DEPARTMENT] and show how we'd replicate that success.
Available for a call this week?
Best,
[YOUR NAME]Template 2: Feature Upgrade Proposal
Subject: Unlocking [PREMIUM FEATURE] for [COMPANY]
Body:
Hi [NAME],
I noticed you've been asking about [PREMIUM FEATURE]. Great news—that's available in our Enterprise tier.
**What You Get:**
- [FEATURE 1]: [BENEFIT]
- [FEATURE 2]: [BENEFIT]
- [FEATURE 3]: [BENEFIT]
- Plus: [BONUS FEATURES]
**ROI Calculation:**
- Current plan: $[X]/month
- Enterprise plan: $[Y]/month
- Delta: $[Z]/month
**Value:**
- [FEATURE] saves [TIME/MONEY]
- Estimated value: $[ROI] annually
- Payback period: [X] months
**Trial Offer:**
Let's trial Enterprise tier for 30 days at no cost. If you see the value, we upgrade. If not, no obligation.
Interested?
[YOUR NAME]Template 3: Use Case Expansion Proposal
Subject: Applying PulsePlus to [NEW USE CASE]
Body:
Hi [NAME],
You've mastered [CURRENT USE CASE] with PulsePlus—[IMPRESSIVE METRIC]. I think we can replicate that success with [NEW USE CASE].
**The Opportunity:**
You mentioned [PAIN POINT] with [NEW USE CASE]. Here's how PulsePlus could help:
- [SOLUTION 1]
- [SOLUTION 2]
- [SOLUTION 3]
**Proof:**
[SIMILAR CUSTOMER] used PulsePlus for [NEW USE CASE] and achieved [RESULT].
**Implementation:**
- No additional cost (included in your current plan)
- We'll provide templates and playbooks
- 2-week setup, 30-day pilot
**Next Steps:**
Let me show you what this looks like. Can we schedule a 20-min demo of [NEW USE CASE] in action?
[YOUR NAME]Expansion Pricing Strategy
Volume Discounts (User Expansion)
| User Count | Price per User | Discount |
|---|---|---|
| 1-100 | $15/month | 0% |
| 101-500 | $12/month | 20% |
| 501-1000 | $10/month | 33% |
| 1000+ | $8/month | 47% |
Rule: Always show the discount as a benefit of expansion.
Tier Upgrades (Feature Expansion)
| Tier | Price/User | Key Features |
|---|---|---|
| Core | $15/month | All base features |
| Professional | $20/month | Advanced analytics, integrations |
| Enterprise | $25/month | Custom features, dedicated CSM, white-label |
Rule: Position upgrade as unlocking capabilities, not just price increase.
Service Add-Ons
| Service | Price | Frequency |
|---|---|---|
| Admin Workshop | $2,500 | One-time |
| Manager Training | $5,000 | One-time |
| Custom Content | $3,000 | Per pack |
| Strategic Consulting | $1,500 | Quarterly |
| Implementation Support | $10K-25K | One-time (enterprise) |
Rule: Services enhance value and create additional touchpoints.
Expansion Metrics to Track
Leading Indicators
Health Score:
- DAU/WAU ratio
- Feature adoption
- Admin activity
- Support ticket sentiment
- NPS score
Expansion Readiness:
- Time since go-live (90+ days preferred)
- Engagement trends (upward = ready)
- Champion strength (promoter = ready)
- Budget cycle alignment
Lagging Indicators
Expansion Performance:
- % of customers who expand within 12 months (target: 60%+)
- Average expansion deal size (target: 50-100% of land deal)
- Time to expansion (target: 6-12 months)
- Expansion close rate (target: 70%+)
Revenue Metrics:
- Net Revenue Retention (NRR) - target: 120-150%
- Expansion ARR as % of total new ARR (target: 40-50%)
- Average Contract Value (ACV) growth over time
Expansion Objections and Responses
"We don't have budget"
Response: "I understand. When does your budget refresh? Let's plan for Q[X] now so it's in your planning cycle. In the meantime, we could do a small pilot with [X] users to prove the ROI, which makes the budget case easier."
"We need to see more results first"
Response: "Fair enough. What specific results would you need to see to feel confident expanding? Let's define those metrics now, measure over the next 60 days, and revisit."
"Other departments aren't ready"
Response: "Which department IS ready? Let's start there. Success breeds demand—once other teams see the results, they'll come to you asking for access."
"We're happy with current scope"
Response: "That's great! But you're leaving value on the table. If [DEPARTMENT 1] is saving $[X] annually, and you have 3 more departments with similar challenges, that's $[3X] you're not capturing. Can you afford NOT to expand?"
"Concerned about change fatigue"
Response: "Totally valid. The beauty of expansion is it's not a new change—it's replicating what's already working. [DEPARTMENT 2] can copy [DEPARTMENT 1]'s playbook. Minimal lift, maximum return."
Expansion Motion: 30-60-90 Day Plan
Days 1-30: Identify Opportunity
Week 1-2:
- Review engagement data for all customers 90+ days live
- Score accounts on expansion readiness (0-10)
- Prioritize top 10 expansion opportunities
Week 3-4:
- Conduct QBRs with top expansion candidates
- Plant seeds for expansion conversations
- Gather feedback on unmet needs
Days 31-60: Propose Expansion
Week 5-6:
- Present expansion proposals to qualified accounts
- Customize proposals with specific ROI calculations
- Offer pilots or trials to reduce risk
Week 7-8:
- Follow up on proposals
- Address objections
- Negotiate terms
Days 61-90: Close and Deliver
Week 9-10:
- Finalize contracts
- Kick off expansion implementation
- Assign resources (CSM, implementation)
Week 11-12:
- Execute expansion rollout
- Track early results
- Report back to customer on progress
Expansion Champions (Internal Advocates)
How to Identify Champions
Characteristics:
- Actively promotes PulsePlus internally
- Responds quickly to requests
- Attends office hours/webinars
- Provides feedback and feature requests
- High engagement in their own account
Question to Ask: "Who else in your organization should know about PulsePlus?"
How to Activate Champions
1. Arm Them with Proof:
- Give them data: engagement metrics, ROI calculations
- Create internal presentation deck they can use
- Provide talking points for leadership
2. Recognize Them:
- Feature them in customer spotlight
- Invite to customer advisory board
- Offer beta access to new features
3. Make It Easy:
- Offer to present to other departments
- Provide templates for internal business case
- Handle all technical heavy lifting
Expansion Compensation
Sales Team Incentives:
Option 1: Expansion Quota
- 50% quota from new logos
- 50% quota from expansion
- Ensures focus on both
Option 2: Expansion Accelerators
- Base commission: 10% of ACV
- Expansion commission: 15% of expansion ACV (higher rate)
- Rewards growth mindset
Option 3: NRR Bonus
- Bonus pool tied to team NRR
- If team hits 130% NRR, bonus = [X]% of base salary
Expansion Red Flags
When to Pause Expansion:
- Low Engagement - DAU below 50%, fix adoption first
- Unresolved Issues - Open critical bugs or feature gaps
- Champion Turnover - Lost internal advocate, rebuild relationship
- Churn Risk - Account at risk, focus on retention
- Bad Timing - Budget freeze, layoffs, M&A activity
Rule: Never chase expansion at the expense of retention.
Expansion Success Stories (Examples)
Example 1: Manufacturing Company
Land:
- 100 users (Training & Development)
- $15/user/month = $18K/year
Expand (12 months later):
- Added Safety & Compliance department (150 users)
- Added Quality Assurance team (75 users)
- Upgraded to Enterprise tier
- Total: 325 users at $20/user/month = $78K/year
- Expansion ARR: $60K (333% growth)
Example 2: Healthcare Organization
Land:
- 50 users (IT Service Desk)
- $15/user/month = $9K/year
Expand (8 months later):
- Added Patient Services (200 users)
- Added Clinical Training (100 users)
- Total: 350 users at $12/user/month (volume discount) = $50K/year
- Expansion ARR: $41K (456% growth)
Final Expansion Principles
1. Expand from Strength, Not Weakness
- Only expand when base deployment is thriving
- Fix problems before adding scope
2. Make Expansion Mutual Value
- Customer gets more value
- You get more revenue
- Win-win or no deal
3. Use Data to Drive Decisions
- Quantify success before proposing expansion
- Show clear ROI
- Make it a no-brainer
4. Leverage Champions
- Internal advocates sell expansion for you
- Arm them with tools and proof
5. Be Patient but Persistent
- Don't force expansion too early
- But don't leave money on the table either
- Find the right timing
Document Owner: Customer Success & Sales Review Cadence: Quarterly based on NRR performance and expansion win rates