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Preventing revenue leakage: How to stop leaving money on the table in subscription renewals and expansion

Preventing revenue leakage: How to stop leaving money on the table in subscription renewals and expansion

Scaling a B2B SaaS business often means prioritizing new customer acquisition while overlooking untapped revenue opportunities within the existing base. Subscription renewals and expansion revenue through cross-selling, upselling, and strategic price adjustments is key to unlocking additional growth and ensuring long-term profitability.

The thing is, many companies struggle with execution, leading to lost revenue and unnecessary churn.

But why is that the case? In this article, we’ll get into our thinking behind why companies struggle (and how they can get back on track).

Cross-selling and upselling: expanding customer value

Maybe the most common ways to increase expansion revenue in Enterprise SaaS are cross-selling and upselling.

  • Cross-selling involves introducing customers to complementary products or value-added services that enhance their current purchase—think offering analytics tools alongside a core SaaS platform.
  • Upselling encourages customers to increase their usage, whether through extra seats, more storage, or premium features.

These strategies often overlap, and the key is understanding your customers’ needs, usage patterns, and perfect timing. A structured approach (like targeted campaigns, customer success engagement, and data-driven recommendations) helps you make the most of these opportunities without overwhelming your customers.

 

How smart pricing adjustments can maximize revenue

While cross-selling and upselling are great for revenue growth, getting pricing right can make a huge difference in profitability.

Price increases, when done skillfully, can go straight to the bottom line. But you do need to be mindful of price sensitivity so you don’t push customers away.

Here’s how to nail your pricing strategy:

  • Data-driven segmentation: Understand which customers can absorb price hikes and which ones are more likely to churn.
  • Gradual experimentation: Try small price increases with select customer segments first before rolling it out to everyone.
  • Justifying increases: Explain the added value, whether it’s new features, better support, or improved performance.
  • Ongoing review: Set up a regular review process to keep adjusting pricing as needed.

 

Proactive approach: prevent churn and maximize renewals

Customer Success (CS) teams are in the perfect spot to identify growth opportunities and engage customers early to prevent churn. By building strong relationships and staying on top of customer needs, CS teams can:

  • Spot at-risk customers early and intervene before issues get out of hand.
  • Keep proactive communication going to make sure customers continue to see the value they’re getting from the product.

Renewals are also a crucial moment for retention. A reactive approach (i.e. waiting until renewal time to reach out to customers) often leads to churn. Instead, companies should take a more proactive approach by:

  • Monitoring engagement signals: Look for at-risk customers based on how they’re using the product or how often they reach out to support.
  • Personalized outreach: Reach out months before renewal to reinforce the value and address any concerns.
  • Offering long-term incentives: Encourage multi-year commitments with discounts or extra perks.
  • Leveraging automated reminders: Use timely notifications to keep renewal conversations on track.

Having a solid subscription management system helps automate and structure renewal processes, reducing churn, and improving retention.

 

Bringing it all together: laying the foundation for scalable revenue growth

Maximizing expansion revenue is about:

  • smart pricing,
  • proactive renewals and preventing churn,
  • and well-executed cross-sell and upsell strategies.

To make all these strategies work, B2B SaaS companies need smooth coordination between sales, operations, customer success, and finance teams. If things are siloed (like customer complaints, pricing exceptions, or expansion opportunities) it leads to missed revenue and inefficiencies.

But to scale properly, you also need the right architecture in place. A good Quote-to-Cash (Q2C) system gives the structure needed by:

  • Giving visibility into customer pricing, discounts, and renewal data.
  • Enabling automated but personalized renewal and expansion workflows.
  • Supporting pricing analysis and adjustments at scale.

Without a solid system, companies risk disorganized processes, reactive pricing decisions, and lost revenue. But with the right tools, they can build a foundation for long-term, sustainable growth.


Read more: Bridging the gap between sales & finance for B2B SaaS growth

 

Take the next step

Do challenges in your revenue lifecycle management slow down your business? We’ve created a quick assessment to help you identify bottlenecks in your current setup.

 

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