New Product Revenue Contribution
Percentage of total revenue generated from products or features launched within the last 12–24 months
What is New Product Revenue Contribution?
New product revenue contribution is the percentage of total revenue that comes from recently launched products. It shows how much growth depends on innovation rather than existing lines.
A healthy share shows the business is renewing its offer, while a very low share can suggest ageing products.
How this KPI is measured
- Function
- Marketing
- Sub-function
- Product Marketing
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- %
- Measurement frequency
- Quarterly / Annual
- Formula
- (Revenue from new products / Total revenue) × 100
How to calculate it
Divide revenue from new products by total revenue, and multiply by 100.
For example, if total revenue is 10,000,000 and 1,800,000 comes from products launched in the last two years, the contribution is (1,800,000 / 10,000,000) x 100 = 18%.
Define what counts as new, such as launched within a set number of months, and keep the definition consistent.
Where it is used
Assessing innovation
See how much revenue comes from new launches.
Evaluating launches
Judge whether launch marketing is working.
Planning the portfolio
Balance new and established products.
How to improve it
Tips and common mistakes
- New product revenue may cannibalise existing products. Check net growth.
- A rising share is not always good if core products are declining.
- Allow time for launches to ramp up.
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