How to price expansion and growth

Structure pricing tiers, usage-based fees, and add-ons that enable customers to grow with you whilst capturing more value as they scale.

How to price expansion and growth

Introduction

Expansion pricing determines how much revenue you capture as customers grow. Flat pricing leaves money on the table. Usage-based pricing scales with value delivered. Tiered pricing creates clear upgrade paths. Add-ons let customers customise. The best expansion pricing aligns cost with value customers pay more as they get more. This chapter shows you how to structure pricing that enables growth, choose between usage-based and tiered models, price add-ons that don't cannibalise tiers, and communicate pricing changes without triggering churn.

Choose between usage-based, tiered, and hybrid models

Structure add-ons that complement tiers without cannibalising

Align pricing increases with the value customers receive

Communicate pricing changes to existing customers carefully

Conclusion

Next chapter

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Playbook

How to expand revenue per customer

Acquiring new customers is expensive. Growing existing ones is profitable. Identify expansion opportunities from usage patterns and needs. Design clear upsell paths that feel natural, not pushy. Time offers to renewal cycles and milestones. Structure pricing that enables growth.

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How to expand revenue per customer
Tools

Relevant tools

HubSpot
Tool

HubSpot

All in one CRM with marketing, sales and service, strong when you want one system that teams adopt.

Customer.io
Tool

Customer.io

Customer.io sends targeted messages across email, SMS, and push notifications triggered by user behaviour and product data for SaaS companies.

Figma
Tool

Figma

Collaborative design for interfaces and assets excellent for landing pages, ads, and prototypes when marketing and design need alignment.

Growth wiki

Growth concepts explained in simple language

Wiki

Pricing strategy

Determine how to charge for products and communicate value to maximise willingness to pay whilst remaining competitive and supporting desired positioning.

Wiki

Lifetime Value (LTV)

Calculate the total revenue a customer relationship generates over its entire duration to guide acquisition spending and retention priorities.