Impacted Revenue

What Is Impacted Revenue?

Impacted Revenue represents the potential revenue lost due to friction at any point in the customer journey. These are the moments where users encountered an issue—be it a login failure, payment issue, product availability, tech issues that stopped them from continuing down the funnel.

These friction points don't just disrupt the user experience—they directly impact your bottom line.

What Kind of Friction Are We Talking About?

Friction can show up anywhere:

A malfunctioning “Add to Cart” button
A buggy checkout step
A login error
A slow-loading product page
A confusing or unresponsive mobile interaction

When users encounter these issues and drop off, they don’t complete their purchase. Impacted Revenue helps quantify how much money you’re losing because of that.

How Is Impacted Revenue Calculated?

We use the formula below:

Impacted Revenue = (Conversion Rate to purchase) × (Number of affected sessions) × (Average Order Value)

Here’s how it breaks down:

Conversion Rate to purchase: This is your baseline—the percentage of sessions that didn’t encounter the issue and converted successfully.
Affected sessions: These are the sessions where the issue occurred and the user didn’t move forward.
AOV (Average Order Value): Your typical order size, used to estimate the potential value of each missed conversion.

By applying the conversion rate of healthy sessions to the number of sessions that were interrupted by a specific issue—and multiplying that by your AOV—we surface the monetary value of missed opportunity.

Why It Matters

Impacted Revenue isn’t just a diagnostic tool—it’s an action plan:

Prioritize fixes by business impact, not just user complaints.
Spot friction areas that are quietly draining your revenue.
Make a clear business case for technical and UX improvements.