The expansion that is sold is the expansion that is wasted
The expansion revenue that is sold is the expansion revenue that produces churn within 12 months. The expansion that grows the account is the expansion that the customer asked for, not the expansion that the vendor pushed.
The book calls this the "pull vs. push" principle. Push expansion is when the vendor identifies an opportunity, builds a proposal, and presents it to the customer. Pull expansion is when the customer identifies the opportunity, asks the vendor for help, and the vendor responds. The two produce the same revenue, but the retention rate is dramatically different. Push expansion has a 40% retention rate at month 12. Pull expansion has a 90% retention rate.
The vendors who grow accounts 30% per year without increasing churn are running pull expansion. The vendors who grow accounts 50% per year and watch churn double are running push expansion. The difference is in the signals they read.
The 7 signals
The first signal is the customer introduces a new use case without prompting. The customer is in a meeting with the vendor and says, "we are thinking about using the product for X." X is a use case the vendor did not know about. The customer is doing the work of imagining the next engagement. The signal is the unsolicited use case.
The second signal is the customer asks for a feature that does not exist yet. The customer is asking for a capability the vendor has not built. The question is not a complaint. The question is a request, framed as a question, with the assumption that the vendor will figure it out. The signal is the request, not the feature.
The third signal is the customer's main contact is promoted. The contact who championed the deal is now in a role with more budget, more scope, or more strategic authority. The promotion is usually announced internally before it is announced to the vendor. The signal is the announcement, and the response is to re-engage at the new level.
The fourth signal is the customer adds a new department or region. The product was used in one department or region. The customer is now expanding to a second. The expansion is usually a pilot, not a roll-out. The signal is the pilot, and the response is to support the pilot with extra attention, not with extra sales.
The fifth signal is the customer asks for a reference. The customer is being asked, by a peer at another company, for a reference. The customer is also asking the vendor for materials to support the reference. The signal is the reference request, and the response is to make the reference easy.
The sixth signal is the customer increases usage of premium features. The customer is using features that are licensed at a higher tier. The usage is increasing. The customer is doing the work of justifying the upgrade to themselves. The signal is the usage, and the response is to acknowledge it and propose the upgrade conversation.
The seventh signal is the customer asks about pricing for a larger commitment. The customer is asking, in advance, what the price would be for a multi-year commitment, a larger user count, or a broader scope. The question is a signal, not a negotiation. The response is to provide the pricing transparently, and to ask what the customer is trying to achieve.
How to respond
The response to a pull signal is not a proposal. The response is a conversation.
The vendor's first move is to acknowledge the signal. "I noticed you mentioned using the product for X. Tell me more about that." The acknowledgment is the response. The conversation is the value.
The vendor's second move is to ask questions. What is the use case? Who would use it? What would success look like? What is the timeline? The questions are not sales questions. They are discovery questions. The vendor is trying to understand the customer's intent.
The vendor's third move is to propose next steps. The next steps are not a proposal. The next steps are a follow-up meeting, a pilot, a stakeholder introduction, or a use case review. The next steps are small, concrete, and easy to say yes to.
The proposal comes later, after the customer has confirmed the use case, the success criteria, and the timeline. The proposal is the response to a confirmed opportunity, not the response to a signal.
Frequently asked questions
What is the difference between upsell and expansion?
Upsell is increasing the customer's spend on the existing product (more users, more features, higher tier). Expansion is the broader category, which includes upsell, cross-sell (related products), and new use cases (the same product, new department or region). The principles are the same for both. The signals are different.
How do you tell the difference between a real signal and a casual mention?
The casual mention is in passing, with no follow-up. The real signal is followed by an action. The customer who mentions the use case and then sends an email about it is signaling. The customer who mentions it and moves on is not. The signal is the action, not the words.
How long should you wait between the signal and the proposal?
Long enough for the customer to confirm the opportunity, usually 2 to 4 weeks. The conversation is the bridge. The proposal is the response to a confirmed opportunity. Vendors who propose before the customer confirms are pushing. Vendors who wait for the customer to confirm are pulling.
What if the customer never signals?
The vendor is running a push engagement. The vendor is bringing opportunities to the customer, not the other way around. The fix is to invest in the value conversation (chapter 8) and the strategic alignment (chapter 7). The customer who is engaged in the value conversation will signal. The customer who is not engaged will not.
How do you measure pull vs. push expansion revenue?
Track the source of each expansion deal. Pull deals are introduced by the customer, asked about by the customer, or in response to a customer signal. Push deals are introduced by the vendor, pitched by the vendor, or in response to a vendor campaign. The pull-to-push ratio is the leading indicator of churn-adjusted expansion revenue.
Conclusion
Pull expansion has a 90% retention rate. Push expansion has a 40% rate. The difference is in the signals the vendor reads. The 7 signals — new use case, missing feature, promotion, new department, reference request, premium feature usage, pricing inquiry — are observable, not surveyed. The response to a signal is a conversation, not a proposal. The proposal comes after the customer has confirmed the opportunity.
The next chapter covers how to run the upsell conversation when the signal has become a confirmed opportunity — without breaking the trust you have built.
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About the author: Reginaldo Osnildo is a journalist, professor, and author of works on sales, technology, and communication strategies. His work connects academic research, practical business experience, and storytelling to deliver clear, didactic, and applicable knowledge.
Photo by Yan Krukau on Pexels.
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