Incremental revenue

What is incremental revenue?

Incremental revenue is revenue that would not have occurred without a particular intervention. In Flockr it is the primary measure of value: how much additional revenue shoppers exposed to Flockr generated, compared with what comparable shoppers who were not exposed would have produced.

How is incremental revenue worked out?

From the same two groups attribution uses. Flockr takes the share of the Flockr group’s orders that exceeds what the baseline order rate would have produced for the same number of sessions, treats those as the incremental orders, and values them at the group’s average order value. The figure is shown with a tilde — ~£25,500 / mo — because it is an estimate, not a counted total.

What does ‘incremental’ mean, and what does it not mean?

It means orders above what the baseline rate would have produced for the same number of exposed sessions. It does not mean Flockr caused those orders. The model is observational: it has no holdout group telling it what those same shoppers would have done without Flockr, and the exposed group is higher-intent by construction. Incremental revenue is a careful estimate of additional value, read as an upper bound, not a proof of causation.

How is incremental revenue different from total revenue?

Total revenue is everything the store takes. Incremental revenue is only the slice estimated to be additional — the orders beyond what would have happened anyway. A store can have large total revenue and modest incremental revenue, because most purchases would have occurred regardless. Isolating the additional part is the whole point.