Breaking into GTM

What does land and expand mean, and does it apply to my company?

The short answer

Land and expand means you deliberately sell a small first deal to one team, prove it works, and grow from there into more seats, more teams or more products. It applies if your product can deliver real value to a single team on its own and if the natural buying unit inside your customer is a department rather than the whole company. It does not apply if the product only works once the whole organisation is on it, in which case a small land just produces a stalled pilot. The economics only work when the expansion actually happens, so decide up front what the second and third purchases are.

Go deeper, your way

5 hand-picked resources, 1 India-specific, 5 link-checked. Pick how you want to dig in.

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✓ Link checked Free Intermediate

Why we picked it The benchmark study everyone quotes: good and great net revenue retention by business type, built from 20 growth experts plus real public company numbers. It stops the 'is 105 percent good' argument in one page.

What is good retention?

From Lenny's Newsletter by Lenny Rachitsky 15 min read

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The same ground, at another level

How expansion, upsell and churn reads from a different seat.

Terms in this answer

People also ask

What is net revenue retention and why does every investor keep asking me for it? NRR is what happens to the revenue from one group of customers over a year, with no new logos counted: start with what they paid, subtract what chu... Breaking into GTM 4 resources → What is the difference between gross retention and net retention, and which one should I watch? Gross retention counts only what you lost: churn and downgrades, capped at 100 percent. Net retention adds expansion on top, so it can go above 100... Breaking into GTM 5 resources → How much churn is normal, and is mine bad? For software, annual churn above roughly 6 percent is the point where people start calling it high, and monthly churn benchmarks vary hugely by who... Breaking into GTM 4 resources → How do I spot which accounts are actually ready to expand? Look for accounts that are pressing against a limit and accounts that are spreading sideways. Hitting a usage ceiling, adding users faster than the... Doing the work 4 resources → How do I run an upsell conversation without sounding like I am shaking them down? Earn it first. If you cannot show the customer a result they got in the last quarter, you have not bought the right to ask for more money, and they... Doing the work 5 resources → How do I work out why customers are actually churning instead of guessing? Three passes. First, cohort the churn: group customers by when they signed up and by what they did, then see whether people leave at month three or... Doing the work 4 resources →

Also in Starting Up

The same ground, over in Grow & market, our Starting Up track.

Also in D2C

The same ground, over in Grow organically & retain, our D2C track.

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