Expansion Readiness Index¶
Definition¶
Expansion Readiness Index is a composite score that measures how ready an account is for an upsell or cross-sell based on behavioral, product usage, and customer fit data. It helps prioritize expansion outreach.
Description¶
Expansion Readiness Index is a key indicator of account maturity and upsell timing, reflecting how product usage, support health, team growth, and behavioral signals converge to indicate expansion readiness.
The relevance and interpretation of this metric shift depending on the model or product:
- In SaaS, it may weigh NPS scores, feature breadth, seat growth, and engagement frequency
- In enterprise, it may include multi-stakeholder alignment, cross-BU usage, or CS satisfaction
- In platform models, it might reflect multi-module adoption or integration depth
A high index suggests a prime window for expansion conversations, while a low index may signal incomplete onboarding or low product engagement. By segmenting by customer type, vertical, or CSM owner, you can uncover patterns that support smart prioritization of upsell plays and resourcing.
Expansion Readiness Index informs:
- Strategic decisions, like revenue modeling or CS team segmentation
- Tactical actions, such as triggering playbooks when readiness thresholds are met
- Operational improvements, including lifecycle campaigns and in-app nudges for underutilized features
- Cross-functional alignment, by connecting product, CS, and RevOps in pursuit of smart, scalable growth
Key Drivers¶
These are the main factors that directly impact the metric. Understanding these lets you know what levers you can pull to improve the outcome
- Product Fit and Feature Utilization: Accounts using advanced features or core integrations are often ready to expand.
- Support Stability and Health Score: Customers with no open tickets and high CSAT are more open to expansion conversations.
- Lifecycle Timing and Maturity: Accounts that are post-onboarding or approaching renewal windows are more receptive.
Improvement Tactics & Quick Wins¶
Actionable ideas to optimize this KPI, from fast, low-effort wins to strategic initiatives that drive measurable impact.
- If readiness scores are unclear, align product signals (e.g., adoption, feature milestones) with CS insights (e.g., sentiment, renewal timing).
- Add a health-score overlay to your expansion target list to deprioritize high-risk accounts.
- Run a test with auto-generated readiness scores based on data, then validate with CS feedback.
- Refine QBR agendas to include expansion readiness signals — not just current usage.
- Partner with product marketing to build use-case maps for high-readiness segments.
-
Required Datapoints to calculate the metric
- Feature Usage Frequency
- Number of Active Users
- CS Health Score or NPS
- Stakeholder Engagement / Role Diversity
- Account Growth Indicators (seats, business units)
-
Example to show how the metric is derived
- Account A scores: 35 usage, 20 CS score, 15 team expansion, 10 role engagement
- Total Score = 80/100
Formula¶
Formula
Data Model Definition¶
How this KPI is structured in Cube.js, including its key measures, dimensions, and calculation logic for consistent reporting.
cube('AccountExpansionReadiness', {
sql: `SELECT * FROM account_expansion_readiness`,
joins: {
Accounts: {
relationship: 'belongsTo',
sql: `${CUBE}.account_id = ${Accounts}.id`
},
ProductUsage: {
relationship: 'hasMany',
sql: `${CUBE}.account_id = ${ProductUsage}.account_id`
},
CustomerFeedback: {
relationship: 'hasMany',
sql: `${CUBE}.account_id = ${CustomerFeedback}.account_id`
}
},
measures: {
featureUsageFrequency: {
sql: `feature_usage_frequency`,
type: 'avg',
title: 'Feature Usage Frequency',
description: 'Average frequency of feature usage by the account.'
},
numberOfActiveUsers: {
sql: `number_of_active_users`,
type: 'sum',
title: 'Number of Active Users',
description: 'Total number of active users in the account.'
},
csHealthScore: {
sql: `cs_health_score`,
type: 'avg',
title: 'CS Health Score',
description: 'Average customer success health score or NPS for the account.'
},
stakeholderEngagement: {
sql: `stakeholder_engagement`,
type: 'avg',
title: 'Stakeholder Engagement',
description: 'Average engagement level of stakeholders within the account.'
},
accountGrowthIndicators: {
sql: `account_growth_indicators`,
type: 'sum',
title: 'Account Growth Indicators',
description: 'Sum of growth indicators such as seats and business units.'
}
},
dimensions: {
id: {
sql: `id`,
type: 'string',
primaryKey: true,
title: 'ID',
description: 'Unique identifier for each account expansion readiness record.'
},
accountId: {
sql: `account_id`,
type: 'string',
title: 'Account ID',
description: 'Identifier for the account.'
},
createdAt: {
sql: `created_at`,
type: 'time',
title: 'Created At',
description: 'Timestamp when the record was created.'
}
}
});
Note: This is a reference implementation and should be used as a starting point. You’ll need to adapt it to match your own data model and schema
Positive & Negative Influences¶
-
Negative influences
Factors that drive the metric in an undesirable direction, often signaling risk or decline.
- Low Product Utilization: Accounts with low usage of product features or integrations have a lower Expansion Readiness Index, as their limited engagement suggests they are not ready for additional products or services.
- Unresolved Support Issues: The presence of open support tickets or low CSAT scores negatively impacts the Expansion Readiness Index, as these issues indicate dissatisfaction or instability, reducing the likelihood of successful expansion.
- Early Lifecycle Stage: Accounts in the early stages of their lifecycle, such as those still in onboarding, have a lower Expansion Readiness Index, as they are not yet fully integrated or ready for expansion discussions.
- Customer Churn Risk: Accounts identified as high risk for churn, due to factors like declining usage or negative feedback, negatively influence the Expansion Readiness Index by indicating a potential loss of interest or dissatisfaction.
- Budget Constraints: Accounts facing budgetary limitations or financial constraints have a lower Expansion Readiness Index, as these factors limit their ability to consider additional purchases or expansions.
-
Positive influences
Factors that push the metric in a favorable direction, supporting growth or improvement.
- Product Fit and Feature Utilization: Accounts that actively use advanced features or core integrations tend to have a higher Expansion Readiness Index, as their engagement indicates readiness for additional products or services.
- Support Stability and Health Score: A high customer satisfaction score (CSAT) and absence of open support tickets positively influence the Expansion Readiness Index, as they reflect a stable and satisfied customer base more likely to consider expansion.
- Lifecycle Timing and Maturity: Accounts that are post-onboarding or nearing renewal windows show a higher Expansion Readiness Index, as they are at a stage where they are more open to discussions about upselling or cross-selling.
- Customer Engagement Level: High levels of customer engagement, such as frequent logins or interactions with the product, positively impact the Expansion Readiness Index by indicating a strong relationship and interest in the product.
- Account Growth Potential: Accounts with demonstrated growth potential, such as increasing user numbers or expanding business operations, positively influence the Expansion Readiness Index by showing a need for additional resources or services.
Involved Roles & Activities¶
-
Involved Roles
These roles are typically responsible for implementing or monitoring this KPI:
Customer Success
Customer Enablement
Product Marketing (PMM)
Sales Manager -
Activities
Common initiatives or actions associated with this KPI:
Account Prioritization
Expansion Forecasting
Growth Plays
Feature Usage Analysis
Funnel Stage & Type¶
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AAARRR Funnel Stage
This KPI is associated with the following stages in the AAARRR (Pirate Metrics) funnel:
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Type
This KPI is classified as a Lagging Indicator. It reflects the results of past actions or behaviors and is used to validate performance or assess the impact of previous strategies.
Supporting Leading & Lagging Metrics¶
-
Leading
These leading indicators influence this KPI and act as early signals that forecast future changes in this KPI.
- Product Qualified Accounts: Product Qualified Accounts (PQAs) act as a strong leading indicator for the Expansion Readiness Index because PQAs represent accounts showing deep product engagement and readiness for upsell or cross-sell. A high volume or quality of PQAs signals imminent expansion opportunities, thus forecasting a rise in the Expansion Readiness Index.
- Deal Velocity: Deal Velocity provides early signals of how quickly opportunities are progressing through the pipeline. Increased deal velocity with existing accounts often precedes higher Expansion Readiness, as fast-moving deals suggest accounts are engaged and may be receptive to expansion.
- Customer Loyalty: Customer Loyalty is a critical predictor of expansion potential. Loyal accounts are more likely to consider upsell/cross-sell offers. High loyalty scores often foreshadow improvements in the Expansion Readiness Index by signaling strong fit and engagement.
- Upsell Conversion Rates: Upsell Conversion Rates help identify how current upsell offers are resonating with customers. High rates indicate that accounts are successfully converting to higher-value plans, often preceding measurable increases in Expansion Readiness across the broader customer base.
- Activation Rate: Activation Rate measures the percentage of users/accounts reaching meaningful product milestones. Accounts with high activation rates are primed for expansion outreach, often providing early signals that inform and forecast the Expansion Readiness Index.
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Lagging
These lagging indicators confirm, quantify, or amplify this KPI and help explain the broader business impact on this KPI after the fact.
- Expansion Revenue Growth Rate: Expansion Revenue Growth Rate quantifies the realized revenue uplift from upsell and cross-sell, directly confirming the business impact of high Expansion Readiness Index scores. It validates that readiness correctly predicted expansion outcomes.
- Net Revenue Retention: Net Revenue Retention (NRR) amplifies and contextualizes the Expansion Readiness Index by measuring the actual retention and expansion revenue after churn and downgrades. High Expansion Readiness should correlate with strong NRR, confirming the downstream business value.
- Customer Downgrade Rate: Customer Downgrade Rate helps explain instances where high Expansion Readiness Index does not translate into expansion. Spikes in downgrade rate can retrospectively reveal underlying risks or miscalculations in readiness scoring.
- Churn Risk Score: Churn Risk Score, while lagging, provides a reality check for the Expansion Readiness Index. If high readiness coincides with high churn risk, it may indicate overestimated expansion potential, informing recalibration of the index.
- Breadth of Use: Breadth of Use quantifies how extensively accounts are adopting multiple product features. High breadth post-expansion confirms that accounts flagged as ready were indeed primed for broader adoption, substantiating the predictive value of the Expansion Readiness Index.