Portfolio Health Metrics

Portfolio health is measured by the combination of product-level metrics that together indicate whether the multi-product pipeline is functioning as a system. A healthy portfolio has growing attach rates, balanced product mix, strong cross-sell pipeline, and increasing average deal sizes driven by multi-product deals. An unhealthy portfolio shows declining attach rates, concentration in one product, and flat or declining deal sizes.

1. Multi-Product Deal Percentage What percentage of deals include more than one product? If this percentage is growing, the team is selling the portfolio effectively. If it is flat or declining, cross-sell enablement needs investment. Target: 40%+ of deals should be multi-product for a mature portfolio company.
2. Expansion Revenue Ratio What percentage of total revenue comes from existing customers buying additional products versus new customer acquisition? A healthy B2B SaaS portfolio targets 30-40% expansion revenue. If expansion is below 20%, the product portfolio is not being leveraged for growth — new customer acquisition is carrying the entire load.
3. Product Cannibalization Check Are new products growing at the expense of existing ones? Track whether deals that include the new product have smaller line items for existing products. Some cannibalization is expected during product transitions, but unintended cannibalization — where a new product competes with rather than complements the portfolio — needs strategic intervention.