Upsell Metrics for SaaS: Empowering Customer Success Managers to Drive Growth

Upselling can feel like a delicate process. No one wants to push customers into upgrades they don’t need, but at the same time, leaving value on the table isn’t an option. The real challenge isn’t just getting customers to spend more—it’s ensuring they see genuine benefits from the additional features or services you offer.

The key to effective upselling is timing, relevance, and data. But how do you know if your upsell efforts are actually working? That’s where tracking the right metrics comes in.

This blog breaks down the essential upsell metrics for SaaS businesses, explaining what they measure, why they matter, and how they help Customer Success teams refine their strategies for sustainable growth.

1. Total revenue

Tracking total revenue helps businesses understand overall financial performance, but breaking it down further—especially isolating upsell-driven revenue—allows Customer Success teams to measure how their efforts contribute to growth.

What total revenue measures

Total revenue represents all income generated by the company, including new sales, renewals, and upsells. While it’s a broad metric, segmenting it into different revenue streams helps businesses assess the impact of specific strategies.

Why total revenue matters

Understanding total revenue trends helps determine whether upselling efforts are translating into meaningful business growth. If revenue remains flat despite upselling initiatives, it may indicate that customers aren’t seeing enough value in the higher-tier offerings.

How to track total revenue

• Separate revenue generated from upsells versus new sales and renewals.
• Monitor revenue growth trends to assess the effectiveness of upselling strategies.

How CSMs can influence total revenue

• Identify high-value customers who have unmet needs and introduce them to relevant premium features.
• Use data-driven insights to personalize upsell recommendations, ensuring that offers align with customer goals.

Total revenue provides a high-level view, but for a more detailed look at upselling impact, businesses need to track Average Order Value (AOV).

2. Average Order Value (AOV)

AOV measures the average amount a customer spends per transaction, making it an important indicator of upsell success.

What Average Order Value measures

AOV calculates the typical value of a purchase, whether it’s a new sale or an upgrade from an existing customer.

Why Average Order Value matters

A higher AOV suggests that customers are purchasing more expensive plans or add-ons, meaning upselling efforts are working. If AOV remains stagnant, it may indicate that premium features are not compelling enough for customers to upgrade.

How to calculate Average Order Value

To calculate this metric, take the total revenue generated within a specific period and divide it by the total number of transactions made during that time.

How to track Average Order Value

• Compare AOV trends before and after implementing an upselling strategy.
• Segment AOV data by customer tiers to identify where upselling opportunities exist.

How CSMs can influence Average Order Value

• Recommend premium features based on customer usage patterns.
• Bundle relevant features together to encourage higher-value purchases.

AOV is useful for understanding spending behavior on a per-transaction basis, but Customer Lifetime Value (CLV) offers a broader view of a customer’s total revenue contribution.

3. Customer Lifetime Value (CLV)

CLV helps businesses predict long-term revenue from customers and assess how upselling impacts retention and spending habits.

What Customer Lifetime Value measures

CLV estimates the total revenue a company can expect from a single customer throughout their relationship.

Why Customer Lifetime Value matters

A strong upselling strategy increases CLV by encouraging customers to invest more in the product over time. If CLV remains low, it may indicate that upsells are not effectively addressing customer needs.

How to calculate Customer Lifetime Value

To calculate this metric:

1. Find the average purchase value – Determine how much a customer typically spends in a single transaction.
2. Multiply it by the number of purchases per year – This represents how frequently a customer makes purchases or renews their subscription annually.‍
3. Multiply the result by the average customer lifespan – This is the estimated number of years a customer continues using the product or service before they churn.

How to track Customer Lifetime Value

• Compare CLV trends among customers who have accepted upsell offers versus those who haven’t.
• Analyze retention rates to see how upselling affects customer longevity.

How CSMs can influence Customer Lifetimer Value

• Ensure that upsell offerings align with customer goals and long-term needs.
• Encourage continuous engagement and feature adoption to maintain a strong relationship.
• Velaris’ success plans help CSMs track customer goals and proactively offer relevant upsells at key milestones, ensuring higher CLV

While CLV provides a long-term perspective, expansion Monthly Recurring Revenue (MRR) helps track the immediate impact of upselling on recurring revenue.

4. Expansion Monthly Recurring Revenue (MRR)

Expansion MRR measures additional recurring revenue generated from upselling and cross-selling to existing customers.

What Expansion Monthly Recurring Revenue measures

Unlike total revenue, which includes all income, Expansion MRR focuses solely on revenue growth from customers who have upgraded or purchased add-ons.

Why Expansion Monthly Recurring Revenue matters

A growing Expansion MRR shows that customers are continuously finding more value in the product and increasing their investment. A stagnant or declining Expansion MRR may indicate that upselling efforts aren’t aligned with customer needs.

How to calculate Expansion Monthly Recurring Revenue

To calculate this metric:

1. Identify all upsells, cross-sells, and add-ons purchased by existing customers – This includes upgrades to higher-tier plans, additional seats, extra features, or any other recurring charges.
2. Sum the additional recurring revenue from these transactions – Only include revenue from expansions that contribute to monthly recurring income.

How to track Expansion Monthly Recurring Revenue

• Differentiate upsell-driven MRR from revenue generated by cross-sells and renewals.
• Identify the percentage of total MRR attributed to upsells.

How CSMs can influence Expansion Monthly Recurring Revenue

• Engage customers before renewal periods to introduce upsell opportunities.
• Offer time-sensitive promotions or discounts for early upgrades.

While Expansion MRR measures revenue growth from upsells, upsell rate helps track how many customers are upgrading.

5. Upsell rate

Upsell rate tracks the percentage of existing customers who upgrade their plans or purchase additional features.

What upsell rate measures

This metric highlights how many customers are moving to higher-tier plans or adding new features, rather than simply renewing their existing subscriptions.

Why upsell rate matters

A high upsell rate suggests that customers are seeing enough value in the product to upgrade. A low upsell rate might indicate that pricing, positioning, or feature relevance need adjustments.

How to calculate upsell rate

To calculate this metric:

1. Count the number of customers who upgraded – This includes those who moved to a more expensive plan, added extra seats, or purchased premium features.
2. Divide this number by the total number of customers – This includes all paying customers, whether they upgraded or stayed on their current plan.
3. Multiply by 100 to express the result as a percentage – This makes it easier to compare upsell performance over time.

How to track upsell rate

• Compare upsell rates across different customer segments to identify trends.
• Monitor how upsell rates change based on customer engagement efforts.

How CSMs can influence upsell rate

• Use AI-driven insights to recommend the right upsell at the right time.
• Offer trial periods for premium features to increase conversion likelihood.

Not all customers are ready to upgrade, so customer health scores help predict which customers are more likely to respond positively to upsell opportunities.

6. Customer health score

Customer health score is a predictive metric that helps determine whether a customer is likely to renew, upgrade, or churn.

What customer health scores measure

This score combines factors like product usage, engagement levels, and support interactions to assess overall customer satisfaction and stability.

Why customer health scores matter

Customers with high health scores are more likely to see value in premium features and upgrades, while those with low scores may need more support before an upsell makes sense.

How to track customer health scores 

• Create a scoring system based on customer engagement, feature usage, and support requests.
• Compare upsell conversion rates between customers with high and low health scores.

How CSMs can influence customer health scores 

• Proactively engage customers with declining health scores to prevent churn before introducing an upsell.
• Align upsell recommendations with customer needs based on their usage patterns.
• Velaris’ customer health tracking automatically scores accounts based on product engagement and sentiment analysis, helping CSMs identify upsell-ready customers.

Conclusion 

Tracking upsell metrics isn’t just about increasing revenue—it’s about making informed decisions that benefit both the business and its customers.

Understanding which metrics to monitor, from expansion MRR to upsell rate, allows Customer Success Managers to refine their approach and ensure that upselling efforts feel natural and valuable rather than forced.

A Customer Success platform like Velaris helps streamline these efforts by tracking customer health, and analyzing data for other important metrics. 

Make upselling more efficient and targeted with the right tools. Book a demo today to see how Velaris can help you track upsell metrics and act on insights that drive sustainable growth.