Indicates the portion of total revenue generated from first-time buyers within a given period.

What it Measures ?

How much of your revenue comes from new customers.

Relevant StakeHolders 

Sales Analysts, Growth Teams

In-depth Use Case / Real-world Example

This metric shows how much of a company's income is coming from new customers, not repeat or returning clients. It is calculated as: (Revenue from New Customers ÷ Total Revenue) × 100. For manufacturers, especially those selling to enterprise clients or distributors, this KPI reflects marketing and sales effectiveness in reaching fresh audiences and converting them. For instance, if a precision tooling manufacturer generates ₹3 crore in total revenue in a quarter and ₹60 lakh comes from new clients, then 20% of its revenue is from new customers. A high percentage indicates strong market penetration and successful customer acquisition strategies, such as lead nurturing campaigns, trade show targeting, or new market expansion. However, very high values over extended periods may suggest issues with customer retention or lack of repeat orders. On the flip side, if most of your revenue comes from existing clients, there may be untapped growth potential in new segments or geographies. This KPI also helps measure the ROI of demand generation campaigns. For example, if you launched a content-driven campaign for the food processing sector and saw a spike in new customer revenue from that vertical, the campaign’s success is validated. Comparing this metric across channels—referrals, inbound marketing, paid ads—helps determine which strategies bring the most profitable new business. In manufacturing, where customer acquisition costs can be high and deal cycles long, this KPI is essential for sustainable growth planning and pipeline diversification.