Net new business is revenue generated from acquiring entirely new customers or by selling new products and services to an existing client base. This is distinct from recurring revenue from current contracts, as it focuses on creating completely new income streams that drive growth. Ultimately, it's a critical measure of a company's ability to expand its market presence and ensure its long-term health.
Net new business is the lifeblood of any company, serving as the primary driver for revenue growth. It's essential for offsetting customer churn and ensuring long-term stability. By consistently acquiring new clients, a business can increase its market share, enhance its reputation, and maintain a competitive edge in the industry.
Generating net new business requires a multi-pronged approach that combines acquiring new customers with expanding existing relationships. Effective strategies focus on targeted outreach and creating new value for both new and current clients.
While both metrics measure sales success, they offer different perspectives on a company's growth trajectory.
Internal structures can create significant roadblocks. Compensation plans may not reward prospecting, leading to sales team complacency and a lack of accountability for generating new opportunities. This focus on existing accounts can dull the skills needed to win new clients.
Market dynamics also present major hurdles. High customer churn can easily outpace new client acquisition, while over-reliance on a few key accounts creates vulnerability. Meanwhile, competitors are always targeting your top clients, making growth a constant challenge.
Measuring net new business success requires tracking specific KPIs that reveal true growth beyond overall revenue. These metrics help gauge the effectiveness of your sales and marketing efforts in expanding your customer base. By monitoring these key indicators, you can ensure your acquisition strategies are outpacing customer churn and contributing to long-term stability.
How does net new business differ from upselling?
Net new business involves selling entirely new products or services to existing clients. Upselling focuses on increasing revenue from a current product by upgrading a plan or adding seats, which is typically considered expansion revenue, not net new.
Is net new business only about acquiring new logos?
Not exclusively. While acquiring new customers ("new logos") is a primary component, net new business also includes revenue from cross-selling entirely new products or services to your existing client base. It's about creating fundamentally new revenue streams.
Why prioritize net new business if it's more expensive to acquire?
While costlier, it's essential for long-term stability and market expansion. It offsets inevitable customer churn and reduces dependency on a few large accounts. This focus prevents stagnation and mitigates risk over time, ensuring sustainable growth.
Trigger marketing uses customer actions or events to automatically send highly relevant, personalized messages at the perfect moment.
Application Performance Management (APM) monitors and manages an application's performance, availability, and the experience of its end-users.
A buying signal is any action from a prospect that indicates they are interested in making a purchase, helping sales teams prioritize leads.
Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.
A Representational State Transfer (REST) API is a web service that uses a simple, stateless architecture for systems to communicate online.
Microservices is an architecture where apps are built as a collection of small, independent services that communicate with each other over APIs.
Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.
Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.
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Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.
A Marketing Qualified Opportunity (MQO) is a lead vetted by marketing as a genuine sales opportunity, ready for direct sales follow-up.
Objection handling is the process of responding to a prospect's concerns or hesitations about a product or service to move a deal forward.
A buying committee is a group of stakeholders within an organization who are jointly responsible for making major purchasing decisions.
Progressive Web Apps (PWAs) are websites that look and feel like native mobile apps, offering features like offline access and push notifications.
Data enrichment is the process of enhancing raw data by adding missing information from other sources, making it more complete and actionable.
Account-Based Marketing (ABM) software helps teams coordinate personalized marketing and sales efforts to land high-value customer accounts.
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A sales intelligence platform is software that provides sales teams with data and insights about prospects to help them sell more effectively.
Generic keywords are broad search terms that lack specific details like brand or location. They attract a wide audience with less specific intent.
“No Spam” is a commitment to sending only relevant, solicited messages. It means avoiding bulk, unwanted emails to respect the recipient's inbox.
A Marketing Qualified Lead (MQL) is a prospect who has shown interest based on marketing efforts but isn't yet ready for a sales conversation.
Outbound sales is when reps proactively contact potential customers through cold calls or emails to generate leads and build a sales pipeline.
Lead enrichment adds third-party data to your raw lead lists, creating fuller prospect profiles for more effective and personalized outreach.
Stress testing is a type of software testing that determines a system's robustness by pushing it beyond its normal operational capacity.
A value statement is a clear, concise declaration of the unique benefits a company provides to its customers, outlining its core purpose.
The marketing mix is the set of marketing tools a company uses to sell products, defined by the 4Ps: Product, Price, Place, and Promotion.
Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.
A sales methodology is the framework that guides how your sales team approaches the entire sales process, from prospecting to closing deals.
X-Sell, or cross-selling, is a sales strategy of selling additional, related products or services to an existing customer base.
Demand generation is the process of creating awareness and interest in your products to build a pipeline of qualified leads for your sales team.
GPCTBA/C&I is a sales qualification framework for understanding a prospect's goals, plans, challenges, timeline, budget, and authority.
Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.
A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.
A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.
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Workflow automation uses rule-based logic to run a sequence of tasks that would otherwise require manual human effort to complete.
Sales enablement technology refers to software and tools that equip sales teams with the resources they need to close more deals efficiently.
“End of Quarter” (EOQ) refers to the final weeks of a business quarter when sales teams rush to meet quotas, often leading to a flurry of deals.
Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.
An Account Development Representative (ADR) identifies and qualifies new business opportunities, creating a pipeline for account executives.
User interaction is any action a user takes within a digital interface, like clicking a button, scrolling a page, or filling out a form.
A Simple Object Access Protocol (SOAP) API is a web service that uses XML to exchange structured information between different applications.
Channel partners are third-party firms that help market and sell a company's products or services, acting as an indirect sales force.
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Voice broadcasting is an automated system that delivers a pre-recorded voice message to a large list of phone numbers simultaneously.
Marketo is a marketing automation platform used by B2B marketers to manage lead generation, nurturing, email marketing, and analytics.
Technographics is data that outlines a company’s technology stack, helping B2B teams identify prospects based on the software and hardware they use.
A use case is a detailed description of how a user interacts with a system to achieve a specific goal, outlining the steps from start to finish.
Net Revenue Retention (NRR) is the percentage of recurring revenue kept from existing customers, including upsells, downgrades, and churn.
Closed Won is a CRM status for a sales deal that has been successfully concluded, resulting in a signed contract and a new customer.
Contact data is the set of details, like names, emails, and phone numbers, used to get in touch with a person or business for outreach.
No Cold Calls is a sales strategy that replaces unsolicited calls with warm outreach to prospects who have already demonstrated interest.
A commission is a service charge paid to an agent for a transaction. It's typically a percentage of the sale, rewarding performance directly.
Accounts Payable (AP) is the money a company owes its suppliers for goods or services bought on credit. It's listed as a current liability.
A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.
Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.
Customer relationship marketing is a strategy for building lasting connections with customers to foster long-term loyalty and engagement.
Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.
Serviceable Addressable Market (SAM) is the portion of the market your business can realistically serve with its current products and sales channels.
Psychographics categorizes people by their attitudes, interests, and lifestyles, revealing the 'why' behind their purchasing decisions.
Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.
Mid-market companies are businesses larger than small businesses but smaller than large enterprises, often defined by revenue or employee size.
Feature flags let you remotely control features in your app without new code. This enables safe testing, gradual rollouts, and quick rollbacks.
Lead generation software helps businesses automate finding and capturing potential customers' contact information to build sales pipelines.
Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.
The lead qualification process is how you determine which prospects are most likely to become customers by evaluating them against specific criteria.
Buyer’s remorse is the sense of regret or anxiety that can arise after making a purchase, often questioning if it was the right decision.
A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.
An API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other and exchange information.
The awareness stage is the first step in the buyer's journey, where a potential customer realizes they have a problem or an opportunity to explore.
Event marketing is a strategy where brands engage directly with target audiences through live events like trade shows, conferences, or webinars.
Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
Affiliate marketing is a performance-based model where affiliates earn a commission for promoting another company’s products or services.
Enterprise Resource Planning (ERP) is a system of integrated software that businesses use to manage and automate their core day-to-day processes.
Lead scoring is the process of assigning points to leads based on their attributes and actions to determine their sales-readiness.
Site retargeting is a marketing strategy that shows ads to people who have previously visited your website but left without converting.
A channel partner is a company that works with a manufacturer or producer to market and sell their products, software, or services to customers.
An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.
Objection handling in sales is the process of responding to a prospect's concerns about a product or service to move the deal forward.
Customer Acquisition Cost (CAC) is the total cost a business spends to gain a new customer. It includes all sales and marketing expenses.
Docker is a tool that packages applications and their dependencies into isolated environments called containers for easy deployment and scaling.
An enterprise is a large-scale organization, often a corporation, defined by its complex structure and substantial number of employees.
Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.
Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.
Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.
Chatbots are AI-powered programs that simulate human conversation. They interact with users via text or voice, typically for customer support.
Shipping solutions are services or software that streamline the logistics of getting products to customers, from label printing to final delivery.
A sandbox is an isolated testing environment where new or untrusted code can be run safely without affecting the host device or network.
A talk track is a script that guides sales reps during calls. It ensures they cover key points and maintain a consistent message with prospects.
"Smile and dial" is a high-volume sales tactic where reps make numerous cold calls from a list, often with little to no prior research.
Average Revenue per User (ARPU) is a key performance indicator that calculates the average revenue generated from each user or subscriber.
The FAB technique is a sales framework connecting product features to advantages and then to the specific benefits for the customer.
Audience targeting is the process of segmenting consumers into specific groups to deliver more personalized and relevant marketing messages.
Cross-Site Scripting (XSS) is a web security vulnerability that allows attackers to inject malicious scripts into trusted websites.
Email marketing is a digital strategy where businesses send targeted emails to prospects and customers to build relationships and drive sales.
Integration testing is a software testing phase where individual modules are combined and tested together to verify their interaction.
Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.
Copyright compliance is adhering to laws that protect creative works. It involves legally using content by obtaining permission or licenses.
Learn about business development representative, including skills and qualifications for BDRs, & roles and responsibilities of a BDR.