Measures revenue generated from selling additional or complementary products to existing customers.
What it Measures ?
Extra revenue from selling more to current customers.
Relevant StakeHolders
Sales Teams, Account Managers
Why it Matters ?
Tracks revenue from existing customers, indicating sales team effectiveness and account growth potential.
In-depth Use Case / Real-world Example
This KPI tracks the effectiveness of maximizing revenue from existing accounts. For example, a company that manufactures industrial compressors may sell a client a ₹10 lakh compressor and later cross-sell an ₹8 lakh annual maintenance contract and ₹5 lakh worth of spare parts. The additional ₹13 lakh is considered upsell and cross-sell revenue. This metric is especially important in B2B manufacturing, where customer relationships are long-term. Sales teams can drive this KPI by understanding customer needs deeply, offering bundled deals, and leveraging product compatibility. High upsell/cross-sell revenue boosts customer lifetime value and can indicate strong product-market fit and trust in the brand.
Sample Formula
(Upsell Revenue + Cross-Sell Revenue) / Total Revenue