Product Development KPIs & Benchmarks

Product Development Metric Definitions, Benchmarking Data & Reports

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Showing results 1 through 31 of 154 records
Net Promoter Score (NPS) Net Promoter Score (NPS) measures, on a scale of 1-10, how likely a customer is to recommend a company to a friend, family member or coworker. NPS is calculated by subtracting the percentage of detractors (those who rate the company from 0-6) from the percentage of promoters (those who rate the company from 9-10). See data (148)
Research & Development Expense as a Percentage of Total Revenue The total amount of research and development-related expense divided by the total revenue earned by the company over the same period of time, as a percentage. See data (118)
Customer Satisfaction Index (ACSI) A customer survey scale from 0 - 100, derived from a combination of 3 questions (0 - 10) measuring different aspects of customer experience. This metric was developed and is maintained by the American Customer Satisfaction Index (ACSI) group. See data (96)
First Pass Yield (FPY) The difference in units produced (output) by a manufacturing process over a certain period of time compared to the units that went into production (input) over the same period of time – i.e., output vs. input. See data (67)
Three-year Rolling Average R&D Expense The total yearly average for R&D-related expenses for the company over a three year period of time. See data (36)
Cycle Time: Time to Market The number of days required to place a product on the market to be sold, from the conception of the product/service (ideation) until it is available for purchase by the public. See data (31)
New Product Revenue as a Percentage of Total Revenue The total dollar amount of revenue generated from products introduced to the market in the last three years divided by the total dollar amount of revenue generated over the same period of time, as a percentage. See data (16)
Product Management Headcount Ratio The number of company-wide employees divided by the total number of product management employees working for the company. See data (15)
New Product Operating Income as a Percentage of Total Operating Income The total dollar amount of operations-related income (EBIT) generated from products or services introduced to the market over the last three years divided by the total operations-related income generated over the same period of time, as a percentage. See data (12)
Average Annual Base Salary: Product Managers The average annual base salary for product managers working for the company over a certain period of time. See data (12)
Percentage of New Products Launched on Schedule The total number of new products that are launched by the scheduled launch date divided by the total number of new products launched over the same period of time, as a percentage. See data (11)
Percentage of New Products On Budget The total number of new products that adhere to their allotted product development budget divided by the total number of new products developed over the same period of time, as a percentage. See data (11)
New Product Profits as a Percentage of Total Profits The total dollar amount of profits generated from products introduced to the market in the last three years divided by the total dollar amount of profits generated over the same period of time, as a percentage. See data (10)
Total Expense: Research & Development The total expense incurred by the Research and Development function over a given period of time. See data (10)
Average Revenue per Customer The total revenue generated by a product or service, or a line of products/services, over a certain period of time divided by the number of customers for that product/service. See data (9)
New Product Kill Rate The total number of new products that are killed, or prevented from being further developed, prior to launch (i.e., at any phase of the product development life cycle) divided by the total number of products undergoing development over the same period of time, as a percentage. See data (9)
Percentage of Defective Units The number of units produced over a certain period of time that had defects divided by the total number of units produced by the manufacturing group over the same period of time, as a percentage. See data (7)
Customer Acquisition Cost (CAC): All Channels Total marketing and sales expense (wages, advertising spend, overhead) per new customer acquired through marketing channels over the same time period. See data (6)
R&D Return on Investment The total dollar amount of revenue generated from a company's R&D pipeline divided by the total R&D expense over the same period of time, as a percentage. See data (5)
Product Development Expense as a Percentage of Revenue The total Product Development expense divided by the total revenue generated by the company over the same time period, as a percentage. See data (4)
Return on Development The total dollar amount of revenue generated by the new product multiplied by the new product's gross margin divided by the total product development cost incurred over the same period of time. See data (3)
Engineering Hours per Project The total number of engineering hours expended during the development of a new product. Segment this metric by industry (i.e., automotive, software, consumer good, etc.) and product type for better comparability. See data (3)
Support Tickets Opened per Thousand Customers The total number of customer support requests, or tickets, opened over a certain period of time divided by each one thousand customers, or end users. See data (3)
Total Expense: Product Development The total expense incurred by the Product Development function (across all products) over a certain period of time. See data (3)
Returns as a Percentage of Items Sold The number of customer returns processed divided by the total number of units sold over the same period of time, as a percentage. See data (3)
Cycle Time: Product Improvement Implementation The number of months required to develop, test and launch an improvement to an existing product, from the time the product improvement is approved for development until the improvement is implemented and available publicly. See data (2)
Product Breakeven Time The number of months required to recover the full investment of developing a new product through profits generated by sales or licensing. See data (2)
Total Volume: Products Launched The total number of new products or services launced over a given period of time. See data (1)
Sales Representatives per Product Manager The total number of Sales representatives divided by the total number of product managers working for the company at the same point in time. See data (1)
Engineers per Product Manager The total number of engineers divided by the number of product managers working on a certain product or line of products. See data (1)

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