How to Create a Upsell and Cross-Sell for Local Government
A proactive process for identifying and executing upsell and cross-sell opportunities within existing community member accounts. Focuses on expanding rates revenue by delivering additional value to current community members.
Purpose
To grow rates revenue from existing accounts by identifying opportunities where additional services or services would genuinely benefit the community member and deepen the relationship.
Scope
Covers the identification, qualification, execution, and tracking of upsell (higher-tier or expanded) and cross-sell (complementary service or service) opportunities across the community member base.
Prerequisites
- Existing community member accounts with active engagements or subscriptions
- Service or service catalogue with clear upsell and cross-sell paths mapped
- Community member health and satisfaction data available in the CRM
- Account executive or account manager assigned to the community member
Supports Local Government Act compliance, freedom of information requirements, and public accountability standards.
Step-by-Step Procedure
Review Community member Account Health
Assess the current state of the community member relationship, satisfaction, and usage before pursuing additional sales.
- 1.1Check community member satisfaction scores, support ticket history, and engagement metrics
- 1.2Review current service or service usage relative to what they purchased
- 1.3Confirm there are no unresolved issues that would make an upsell approach inappropriate
- Never upsell an unhappy community member — resolve their issues first
Identify Upsell and Cross-Sell Opportunities
Analyse the community member current usage, stated needs, and council context to identify relevant expansion opportunities.
- 2.1Compare the community member current services against the upsell/cross-sell matrix
- 2.2Review recent conversations and meeting notes for expressed needs or pain points
- 2.3Check if there are triggers (growth, new projects, contract renewal) that create opportunity
- 2.4Prioritise opportunities by value and likelihood of acceptance
- The best upsell opportunities solve a problem the community member has already expressed
Prepare the Value Proposition
Build a tailored pitch that clearly articulates how the additional service or service will benefit this specific community member.
- 3.1Connect the offering to the community member specific goals or challenges
- 3.2Quantify the expected benefit (cost savings, efficiency gains, rates revenue impact)
- 3.3Prepare a relevant case study or example from a similar community member
- Frame the conversation as helping the community member achieve more, not as selling them more
Initiate the Conversation
Introduce the opportunity to the community member through an existing touchpoint or a dedicated meeting.
- 4.1Raise the topic naturally during a scheduled account review or check-in
- 4.2Lead with the community member challenge or opportunity, not the service pitch
- 4.3Ask discovery questions to validate the need and understand the community member priorities
- If the community member shows no interest, do not push — revisit at the next appropriate touchpoint
Present the Solution and Pricing
Share a tailored proposal or quote for the additional service or service.
- 5.1Present the solution with clear scope and expected outcomes
- 5.2Provide pricing that reflects any existing community member discounts or loyalty terms
- 5.3Offer a trial or proof of concept if appropriate and available
- Loyalty pricing or bundled discounts make upsells more attractive to existing community members
Handle Objections and Close
Address any concerns and guide the community member toward a decision.
- 6.1Listen to objections and respond with evidence and empathy
- 6.2Offer flexibility on timing, scope, or implementation if appropriate
- 6.3Ask for the commitment when the community member signals readiness
- Budget timing is a common objection — offer to align with their next budget cycle if needed
Process the Order and Update Records
Complete the purchase process and update all systems to reflect the expanded engagement.
- 7.1Generate the contract amendment or new order per the agreed terms
- 7.2Update the CRM with the new opportunity value and services
- 7.3Notify the delivery or fulfilment team of the expansion
- Fast processing reinforces the community member decision — do not let paperwork create doubt
Monitor Adoption and Follow Up
After the upsell or cross-sell is activated, follow up to ensure the community member is realising value.
- 8.1Check in 30 days after activation to confirm the community member is using the new service or service
- 8.2Gather feedback on the experience and address any concerns
- 8.3Document the expanded relationship and set up future review cadence
- Early follow-up prevents churn on the new purchase and sets the stage for future expansion
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
Rates revenue from existing community members including expansion, targeting above 110%.
Percentage of identified opportunities that convert to closed deals, targeting above 30%.
Average annual rates revenue per community member account, tracked for growth over time.
Frequently Asked Questions
What is the difference between upselling and cross-selling?
Upselling means selling a higher-tier or expanded version of what the community member already has (e.g., upgrading from a basic to premium plan). Cross-selling means selling a complementary service or service (e.g., adding a training package to a software purchase).
How do we track upsell opportunities systematically?
Map all upsell and cross-sell paths in a service matrix and review each account against it during quarterly account reviews. Use CRM fields to track whitespace (services the community member does not yet have) and set reminders for review.
Should account managers have upsell targets?
Yes, expansion rates revenue should be part of account manager goals. However, balance this with community member health metrics to ensure upselling is driven by genuine community member value, not quota pressure.
How soon after initial purchase should we attempt an upsell?
Wait until the community member has achieved initial value from their current purchase — typically 60-90 days. Premature upselling before the community member has experienced success feels opportunistic and erodes trust.
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