What is the Upsell Rate?
The Upsell Rate is defined as the percentage of customers within a cohort that purchase additional software or services (i.e., the number of customers that purchased more software and/or services in the cohort divided by the total number of customers in a cohort). This is upsell rate on a logo basis.
Many thanks to Growth Street Partners for coining this SaaS metric.
Growth Street believes that the renewal rate is mostly backward looking. To enhance the effectiveness of the upsell rate, they argue that we should try to be more predictive with our upcoming renewals.
How to Calculate the Upsell Rate
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Download the Upsell Rate slides below.
Additional Resources
How to Calculate the Upsell Rate at The SaaS CFO