Linking Business Processes
Common Language and Best Practices
- New product revenue: The percentage of revenue generated from products and services introduced during the past two to three years. This metric is used to determine how much an organization is spending on "new" innovations. It can often assist an outsider in determining the viability of an organization.
- On-time launch: Product launches that meet or beat the target launch date. This metric assists organizations in determining the effectiveness of a company's ability to get products to market on time. This is not only important to customers but also stockholders. If a deadline or launch is missed, it definitely means a loss in revenue ? sometimes a large revenue loss if a competitor beats the company to market.
- Repeat business ratio: The percentage of revenue from existing clients. This is a critical metric for inferring customer loyalty and satisfaction. In addition, repeat business tends to be more profitable than new business because the costs of marketing, sales and services delivery to well-known customers are less.
Preview Integrated Entity
- Market share is defined as the percent of a given market sold to or owned by a company out of the whole as a result of its success in marketing effectiveness, product characteristics, pricing, cost, delivery time, quality and many other factors. Market share is affected by the type of industry and number of competitors, and can indicate the stage of a product's life cycle (introduction, growth, maturity, decline).
- Customer share is defined as a company's sales of a given product or set of products to a given set of customers, expressed as a percentage of total sales of all such products to customers. When looking to acquire or merge, an organization needs to review the product lines of the corresponding company to identify if the products are similar/competitive and can assist in growing market share, or if the products are in addition to what the organization offers today, which can assist in growing customer share.