Net Revenue Matrix

The Net Revenue Matrix is a 2x2 matrix used to analyze and categorize the net revenue of different business segments or products. It helps businesses identify which segments are performing well and which need improvement, aiding in strategic decision-making and resource allocation.

At a very high level, the Net Revenue Matrix is used in the context of business, finance, marketing.

Net Revenue Matrix quadrant descriptions, including examples
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What is the Net Revenue Matrix?

A visual explanation is shown in the image above. The Net Revenue Matrix can be described as a matrix with the following quadrants:

  1. High Revenue, High Growth: Products generating significant revenue and showing strong growth potential. Example: A new tech gadget with increasing sales.
  2. High Revenue, Low Growth: Products generating significant revenue but with limited growth potential. Example: A mature product with stable sales.
  3. Low Revenue, High Growth: Products not currently generating much revenue but with strong growth potential. Example: A new service in a growing market.
  4. Low Revenue, Low Growth: Products underperforming both in terms of revenue and growth potential. Example: An outdated product with declining sales.

What is the purpose of the Net Revenue Matrix?

The Net Revenue Matrix is a strategic tool used by businesses to evaluate the performance of various segments or products based on their net revenue. The matrix is divided into four quadrants, each representing a different level of revenue performance. By plotting segments or products into this matrix, businesses can easily identify which areas are generating high revenue and which are underperforming.

For example, a company might use the Net Revenue Matrix to analyze its product lines. The top-left quadrant (High Revenue, High Growth) would include products that are generating significant revenue and showing strong growth potential. The top-right quadrant (High Revenue, Low Growth) would include products that are generating significant revenue but have limited growth potential. The bottom-left quadrant (Low Revenue, High Growth) would include products that are not currently generating much revenue but have strong growth potential. The bottom-right quadrant (Low Revenue, Low Growth) would include products that are underperforming both in terms of revenue and growth potential.

By categorizing products or segments in this way, businesses can make informed decisions about where to invest resources, which products to promote more aggressively, and which ones might need to be phased out or restructured. This matrix is particularly useful for businesses looking to optimize their product portfolio and improve overall profitability.


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What templates are related to Net Revenue Matrix?

The following templates can also be categorized as business, finance, marketing and are therefore related to Net Revenue Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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