Measures the revenue generated from additional services beyond the core product offering.
What it Measures ?
How much money comes from add-on services.
Relevant StakeHolders
Sales, Product Managers
Why it Matters ?
Increases revenue from premium and value-added services.
In-depth Use Case / Real-world Example
Revenue from Value-Added Services calculates how much additional revenue is earned from services such as extended warranties, upgrades, or training. For example, if ₹2 lakhs of revenue is generated from these services, it shows how well a company is monetizing its service offerings. This KPI is significant in manufacturing where value-added services like product maintenance, training, or consulting can contribute significantly to overall revenue.
Sample Formula
Revenue from Add-On Services / Total Revenue