What feature adoption patterns indicate upsell potential?

ROI insights

Understanding how your customers actually *use* your product or service is gold when it comes to upselling. It’s far more effective than simply sending out promotional emails hoping something sticks. We’ve seen time and again that analysing feature adoption patterns provides clear signals about who’s ready for more – and what ‘more’ looks like for them.

So, what should you be looking for? Several patterns consistently indicate upsell potential within Australian SMEs.

  • High Usage of Core Features: Customers deeply embedded in your core functionality are the lowest-hanging fruit. They’re already getting value, and expanding their use is a natural progression. Think about offering add-ons that enhance those core benefits – perhaps increased capacity, advanced reporting, or dedicated support.
  • Adoption of ‘Gateway’ Features: Some features act as stepping stones to more advanced capabilities. For example, if a customer starts using your basic integration with Xero, it suggests they’re open to exploring deeper accounting integrations or automation features. Identify these gateway features within your product and trigger targeted upsell messaging.
  • Reaching Usage Limits: This is a very direct signal. If a customer consistently hits limits on storage, users, or API calls, they clearly need a higher tier. Automated alerts and upgrade offers at these thresholds are highly effective.
  • Multiple User Adoption (for team products): As more team members start using your platform, the value increases exponentially. This is a strong indicator they’re ready to invest in features designed for collaboration, like shared workspaces, advanced permissions, or team-level reporting.

It’s important to remember that these aren’t just about *what* features are used, but *how* frequently and deeply. A customer logging in daily and utilising multiple features is far more valuable than someone who occasionally dips in. We recommend segmenting your customer base based on these usage patterns and tailoring your upsell messaging accordingly. Generic offers simply don’t cut through.

To unlock this potential, start by ensuring you have robust product analytics in place. Track feature usage diligently and integrate that data with your CRM. Then, focus on creating targeted upsell campaigns that demonstrate the *additional* value customers will receive. By focusing on behaviour, rather than assumptions, you’ll see a significant improvement in your upsell conversion rates and overall revenue growth.

The bottom line

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