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Expansion revenue refers to the additional revenue generated from existing customers beyond their initial purchase. This is typically achieved through upselling, cross-selling or add-on purchases. Upselling involves encouraging customers to upgrade to a higher-tier SaaS subscription with more features or capacity. Cross-selling involves offering complementary products or services to existing customers.

By focusing on expansion revenue, businesses can increase customer lifetime value and drive sustainable growth without relying solely on acquiring new customers.