 Hello, everyone. It's great to be here back at ProductCon here in New York. Good morning to folks here. I hope you all had your coffee and are ready to go. And good afternoon, good evening to folks who are watching it on Hoppin across the world. It's fascinating to see how much product school has grown. I still remember my days as an instructor. And now when I look at some of the amazing work product school has done with over 1 and 1 half million product managers in the community, really getting value and learning about the craft of product management and growing in their careers, it's just fascinating to see. All right. So I'll start off with an introduction about myself. And then I'll talk more about my experiences at Atlassian and why the revenue expansion in product load growth companies is so important, especially during these towns when the overall tech industry is slowing down. I started my journey as a PM at PayPal launching products from 0 to 1. And back in those days, I really was fascinated by how much value we can provide to our customers and delight them. And I really enjoyed the whole process of understanding the customer problems, looking at competitive landscape, the analysis, and then coming up with the right solution and delighting our customers. And I have continued to stay in that field since then and continue to enjoy and grow in my career. And throughout my career, I've worked at companies like PayPal where I let consumer product to Microsoft where I let growth for Azure and recently at Zillow, leading marketplaces. Currently, I'm head of product here at Atlassian where I lead our monetization, growth, revenue expansion teams that are responsible for driving growth for all the Atlassian products. In today's talk, I'm going to cover three things. And the first one is understanding revenue expansion and how these strategies can really fuel growth for product-led growth companies. The second is how Atlassian does product-led growth and revenue expansion. I'll share some of my own examples, some of the experiments we have done, and what the impact of that has been. And lastly, share some tips on how today's product leaders can use some of these strategies to drive growth and revenue expansion for their companies. All right. So let's start with revenue expansion. How many of you have used or heard about JIRA? I'm going to start everyone, so that's awesome. And you may have started using JIRA, and then suddenly you may have stumbled upon another product, let's say Trello or Confluence. Maybe some of your team members were using it, and then you started using that. And now you're using multiple products and getting more value. So that's essentially your classical way of land and expand strategy, which has become quite popular with a lot of companies like Salesforce, Adobe, Microsoft that has a lot of different products for customers. Revenue expansion is essentially the revenue that comes from existing customers by means of different strategies, like upselling, cross-selling, et cetera, where the same customers or existing customers can start using more products to get more value. And that's what drives the revenue expansion. The chart you see here, you'll see that there are two lines, and this is the compound interest. When you look at the effect of compounding or exponential growth, revenue expansion comes to mind because once you have a customer that starts using more and more products, you can get more and more value that itself drives your revenue. So you don't have to go after a lot of customers, but with one customer, you can actually drive more value. This is a land and expand model, which a lot of you may have heard, pretty common in SaaS companies. It starts with acquiring a new customer, and a new customer can be a B2B or B2C, and then quickly deliver value, which is one of the core principles of product-led growth. Once they see value, they're more likely to come back and start using your products more and more, and then once they get more and more value, they're going to expand into more products or additions or add-ons. So that's what drives your land and expand Flywheel. It's really about customer retention and building long-term customer value. So next, look at how revenue expansion can fuel product-led growth. Here in this chart, you can see some of the fastest growing SaaS companies. You have the zooms of the world, the Shopify, Atlassian, and the best SaaS companies can turn a dollar of sales or marketing spend into recurring gross profit at an incredible rate, and that is why, and the reason they're able to do that is because often these companies don't have a lot of investments going into sales and marketing, and more of the investments goes into R&Ds, which actually drives the Flywheel and they're able to generate more cash flow and be profitable. Now, before I go into some examples of how Atlassian does revenue expansion, I want to give a quick background on Atlassian. Many of you know us from using our products like Jira, Confluence, Trello, Bitbucket. We have over 16 different products that are geared towards teams to make them more productive and collaborative. Atlassian was founded in 2002 in Sydney. We have over 9,800 employees. Our products are used in over 190 countries worldwide. We have 240k plus customers, which could be startups or enterprise companies, and we also have over 5,350 marketplace apps. So that's a bit of a background about Atlassian. Why is revenue expansion so important, especially in today's times when companies are not growing as fast, they're not hiding as fast, and the ability to acquire customers, new customers goes down, especially for B2B SaaS companies. We're seeing that in a lot of companies, when you have less folks who are using your products, you're not able to acquire new customers. And what becomes even more important during these times is the existing customers that you have, how do you actually generate more revenue from that pool of customers? So the revenue expansion becomes even more important. The three drivers of revenue expansion that really propels product lead growth. The first one is no customer acquisition cost. Your customer acquisition cost is low or almost non-existing because your existing customers are just expanding into more products. So you don't have to go back and run paid media campaigns or ads to acquire these customers. And higher percentage of revenue therefore can be spent on improving the products, building more features on research and development. The second driver is lower customer churn rate. Because your customers are getting increased value, they're using more products or more features, they're less likely to churn. And that also is because they are also highly satisfied customers. As you may know, MRR churn inhibits growth in SaaS companies. So it's really, and some churn is inevitable, you will see. However, some of these strategies can really lower that customer churn rate to drive more retention and longer custom lifetime value. All right, so the next slide is, let's see, looks like this clicker has having some issues. For some reason, this clicker is not working. Maybe you get another one. While that happens, the reasons why the revenue expansion is so critical is there are four sort of key things that are important here. First one, oh, looks like it's moving here, but it's not moving there. All right, so the first one is, first strategy is upsell. This is about encouraging customers to get more value of three-year products by giving them more features through addition upgrades. For example, a lot of times you'll see you have three products, then you have standard and then premium additions. And upselling is essentially a way for you to encourage customers to get more value. And they become more sticky, and then you can retain them for longer period of time. More value leads to greater retention and then more revenue. Here is an example of an upsell experiment we ran some time back. Here you can see our hypothesis was explaining how each feature can benefit a customer's day-to-day life will increase purchase rates. And what you'll see here in the screenshot is we have a model where each feature has a link that pops up and it shows the customer the benefit or the specific feature, and essentially how it doesn't change their day-to-day life. And by showing this, we were able to drive a significant increase in purchase rates and get more customers from free to standard and standard to our premium additions. So that's one example of how upsell strategies can really fuel growth. The second example is cross-sell. This is where an existing customer that's using a product, let's say product A, maybe JIRA, buys a complimentary product. It could be Confluence on Trello or Adson. And as your customers are using more product, they're getting more value and that drives more revenue. One example of an experiment we launched sometime back is we surfaced relevant product integrations to customers to help them get more value faster and result in adoption of more products. In the screenshot, you can see we have JIRA and we took a segment of customers, developer audience who are more likely to use our other products like Bitbucket and surfaced that in the customer journey. It wasn't blocking what they were doing but more like a complimentary and a path we created for customers. And what we saw was this helped drive significant uplift in new product, Mao, which is monthly active users for Bitbucket. So this is one example of how we can surface other complimentary products or apps to drive cross-sell. The third strategy is user expands. So think of your team members. Let's say you're using a product, Confluence, and you really liked the product. Now you want more and more team members to use it. So you might go and click on an invite button and then 10 other folks are now starting to use your products and collaborating. So it's more natural, immediate way to make teams more productive and then drive virality. One example of an experiment we tried for user expands is our hypothesis here was if we allow users to invite collaborators within context invites, it'll increase collaboration and drive more monthly active users. Here in this example you could see, we introduced a contextual touch point in Confluence. Whenever you at mention and start typing a name, if you see less than two folks, names of less than two folks showing up that are already using your product, we introduce a tab at the bottom that says invite this team member or add this team member to Confluence. And once you invite, the user gets an email, they click on a link, they actually come back and start using Confluence. So that's one example of how we use contextual user invite features to drive virality for products. And this experiment led to a double digit percentage uplift in invites. The fourth strategy is product integrations. Oftentimes you have these products that you're already using, for example, slacks of the world or zooms of the world. And by building these integrations with third party, we can not only enhance value for our customers but also essentially create a new channel for revenue. Some of you may have seen this or if not I would highly encourage, we have plugins for Slack where you can actually create tickets, you can change statuses, you can invite folks and collaborate on Confluence without actually going to our product itself. That way users don't have to leave Slack, they can still use the same product and still work on Atlassian products. And the key here is to build that integration between the products so that your customers get more value. This is an example where we essentially build product integrations with apps like Slack and the hypothesis was by doing so this will increase productivity and retention. We also have an offer with Slack where we Atlassian customers get a discount for buying Slack. So we ran this experiment and what we saw was the important thing was also building the integration at the same time because if you don't build that integration and you just have an offer, customers really can't use both the products effectively. So once we built that, we saw that millions of monthly notifications are now being driven through Slack and that also contributes to a revenue share for Atlassian. So that's another strategy of how we do revenue expansion through integrations. Now, you've seen a few different strategies around upsell, cross-sell, user invites, partnership integrations. There are a few things that are really important when you think about these strategies in PLG companies. And I want to talk about three key takeaways that you can take and start experimenting with this to drive revenue expansion. The first one is we at Atlassian, we invest in growth teams and growth strategies to drive revenue expansion. We have teams that drive upsell, we have teams that drive cross-sell, user invites for different Atlassian products and their focus is really driving that part of the funnel. And because we are able to do that, you can see on the chart on the right side, the percentage of sales and marketing that Atlassian has compared to some of other companies, the Slack of the world, the Zoom of the world is quite low. Which means that because we're spending less on this, we are able to invest a lot more in R&D to really drive the product-led growth flywheel. We run experiments throughout the year, just last year we ran over 100 experiments to drive revenue expansion. So that's where a lot of these growth teams come into play. So the key takeaway being really investing in revenue expansion experiments. The second takeaway here is have strong set of guiding principles when you think about executing these strategies. Oftentimes, small innovation can drive the most meaningful impact for your customers. However, without a set of these principles, you really can't achieve success. Listen to your gut, talk to customers. If you're able to do A-B tests, get data, that's awesome. But for some of the critical strategic decisions, definitely use data. Think about confidence-building experiments and ideas over process, and then shipping on outcomes versus shipping on time. It's okay if you have to push your feature release or an experiment by a week or two, as long as you're really focused on understanding the customer needs and then tying that back to a testable hypothesis that you have confidence on. That can really deliver an outcome for you. And the third takeaway here is know your metrics by heart. And it doesn't matter if you're just an intern or an APM or associate PM or a senior PM or at a leadership level, a VP or a chief product officer at a company. It's really important that you know your metrics for your business by heart. First one is around the comprehensive funnel view. Having a better understanding of your product health, the customer segments can really help you define the product roadmap and strategic priorities. If you know there is a problem at one step of the funnel, if you know that the kind of a customer, let's say business customers who are from a specific function, if you see a drop out there, now you can really think about does it make sense to build something to improve the experience for that segment of customers. So really knowing your funnel in and out is the first aspect of knowing your metrics by heart. The second one is focus on insights, not just data. Small insights can lead to step changing businesses and customer outcomes. You can't stress the importance of this enough, you know, having experienced this in the last 12 to 13 years. In oftentimes, we have analytics teams that have monthly insights meetings with our product teams and we look at the insights that are coming out and then we ideate on experiments or ideas that can really move the needle. So make it part of your product management craft that this every, you know, depending on how big your analytics team is, sometimes you're able to, you know, do it yourselves, but sometimes you really need to have a strong team who can get you those insights. And then the third one is OKRs, which are your objectives and care results for essentially mapping your goals for the quarter and for the year and then having business reviews, which could be, let's say monthly business reviews or quarterly business reviews for your product. Sometimes, you know, this may not be the process of the companies you work at, but you can actually create a process like that and you can get the right stakeholders from marketing, from analytics, you know, kick it off and then you can go through the metrics on a monthly basis, how you're doing, you know, if you need to make any trade-offs or adjustments as part of it. So really, you know, start thinking about how you can monitor and measure the effectiveness of these strategies by heart. So those are the three key takeaways and this is especially important when you think about revenue expansion in product-led growth companies. With that, I want to thank all of you for coming here. I know, and listening to this talk and feel free to connect with me on LinkedIn, Twitter. I have a sub-stack where I also share some of my newsletters and strategies on product-led growth as well as medium. Thank you, everyone.