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.
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.
Sales workflows are a set of automated actions that streamline the sales process, helping teams engage leads consistently and close deals faster.
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An Applicant Tracking System (ATS) is a software application that manages your entire hiring and recruitment process from a single dashboard.
Lead scraping is the process of automatically extracting contact information and other relevant data about potential customers from online sources.
An account is a company or organization that you're targeting for sales. It can be a prospective, current, or even a past customer.
Objection handling is the process of responding to a prospect's concerns or hesitations about a product or service to move a deal forward.
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The Dark Funnel describes customer buying activities that are untrackable by companies, such as private chats and word-of-mouth referrals.
Monthly Recurring Revenue (MRR) is the predictable, recurring income a business expects to receive each month from all active subscriptions.
Dynamic pricing is a strategy where businesses set flexible prices for products or services based on current market demands and other factors.
The FAB technique is a sales framework connecting product features to advantages and then to the specific benefits for the customer.
CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.
An elevator pitch is a short, memorable summary of what you do, designed to be delivered in the time it takes to ride an elevator.
A System of Record (SoR) is the authoritative data source for a specific type of data. It acts as the single source of truth for an organization.
An Operational CRM is a system that automates and improves customer-facing business processes like sales, marketing, and customer service.
Progressive Web Apps (PWAs) are websites that look and feel like native mobile apps, offering features like offline access and push notifications.
Total Addressable Market (TAM) represents the maximum revenue a company can earn by selling its product or service in a specific market.
A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.
Programmatic advertising uses AI and real-time bidding to automate the buying and selling of digital ad space, targeting specific audiences.
Sales enablement technology refers to software and tools that equip sales teams with the resources they need to close more deals efficiently.
A messaging strategy defines what your brand says, how it says it, and where it says it to connect effectively with your target audience.
Mobile compatibility ensures your site or app works flawlessly on mobile devices, like smartphones and tablets, for a seamless user experience.
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A product champion is an internal evangelist who drives a product's adoption and success by ensuring it solves real problems for their team.
A Point of Contact (POC) is the designated individual or department that serves as the main hub for information and communication on a matter.
Account mapping is comparing your customer list with a partner's to find common prospects and unlock new sales opportunities.
Revenue Operations (RevOps) is a business function that aligns a company's sales, marketing, and customer service teams to drive predictable revenue.
Logo retention is a key B2B metric that measures a company's ability to retain its customers, or 'logos,' over a specific period.
Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.
Customer relationship marketing is a strategy for building lasting connections with customers to foster long-term loyalty and engagement.
CRM integration connects your CRM software with other tools, creating a unified system for all your customer data and business processes.
Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.
Sales enablement content refers to the materials and tools that empower your sales team to engage prospects and close deals more efficiently.
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A canary release is a deployment strategy where new software is rolled out to a small user group first, minimizing risk before a full release.
Lead enrichment adds third-party data to your raw lead lists, creating fuller prospect profiles for more effective and personalized outreach.
Lead generation is the process of identifying and cultivating potential customers for a business's products or services.
Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.
A Request for Information (RFI) is a formal process for gathering information from potential suppliers before issuing a more detailed proposal.
A sales coach is a mentor who trains and guides sales reps to enhance their skills, boost performance, and ultimately close more deals effectively.
A landing page is a standalone web page created for a marketing campaign. It’s where a visitor “lands” after clicking an ad or email link.
Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.
Customer centricity is a business approach that puts the customer at the heart of every decision, aiming to build loyalty and long-term value.
Audience targeting is the process of segmenting consumers into specific groups to deliver more personalized and relevant marketing messages.
An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.
Intent data tracks a user's online behavior—like searches and site visits—to identify signals that they are ready to make a purchase.
User-generated content (UGC) refers to any form of content, like images, videos, or text, created and shared by users on online platforms.
Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.
Rollback procedures are a set of steps to restore a system to a previous, stable version after a failed update, ensuring minimal disruption.
Account-Based Marketing (ABM) is a focused B2B strategy where marketing and sales collaborate to target and convert high-value accounts.
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The lead qualification process is how you determine which prospects are most likely to become customers by evaluating them against specific criteria.
User interaction is any action a user takes within a digital interface, like clicking a button, scrolling a page, or filling out a form.
Warm outbound is a sales strategy for contacting prospects who've shown interest in your brand through prior engagement, like website visits.
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.
Responsive design is an approach where a website's layout adapts to the user's screen size, providing an optimal experience on any device.
Network monitoring is the continuous process of tracking a computer network's performance and health to detect and resolve issues proactively.
Customer buying signals are the actions, behaviors, or statements a prospect makes that indicate they are moving towards a purchase decision.
Intent-based leads are potential customers whose online actions—like searches or content engagement—signal a clear interest in buying a solution.
Stress testing is a type of software testing that determines a system's robustness by pushing it beyond its normal operational capacity.
Account-Based Everything (ABE) is a strategy aligning sales, marketing, and success teams to focus on a specific set of high-value accounts.
Lookalike audiences are groups of potential customers who share similar characteristics and behaviors with your existing, high-value customers.
Technographics is data that outlines a company’s technology stack, helping B2B teams identify prospects based on the software and hardware they use.
Affiliate marketing is a performance-based model where affiliates earn a commission for promoting another company’s products or services.
An API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other and exchange information.
A sales lead is a potential customer—an individual or organization that has shown interest in your company's products or services.
Serviceable Addressable Market (SAM) is the portion of the market your business can realistically serve with its current products and sales channels.
Sales intelligence is technology that gathers and analyzes data to help salespeople find and understand prospects and existing clients.
Sales objections are reasons or concerns raised by a potential customer as to why they are hesitant or unwilling to make a purchase.
SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.
Sales and marketing analytics involves measuring and analyzing performance data to maximize effectiveness and optimize return on investment (ROI).
Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.
Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.
Lead enrichment tools are platforms that automatically add missing data to your leads, like contact info, firmographics, and buying signals.
A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
End of Day (EOD) refers to the close of business hours. It's a common deadline for tasks and reports to be completed before the workday ends.
Data enrichment is the process of enhancing raw data by adding missing information from other sources, making it more complete and actionable.
“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.
Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.
Buying intent is the collection of online cues and behaviors that signal a prospect is actively researching and moving toward a purchase decision.
Lead routing is the automated process of distributing incoming leads to the right sales reps based on predefined criteria.
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Outbound sales is when reps proactively contact potential customers through cold calls or emails to generate leads and build a sales pipeline.
A Letter of Intent (LOI) is a document declaring the preliminary commitment of one party to do business with another, outlining the chief terms.
Contact discovery is the process of finding accurate contact details for potential leads, including names, emails, phone numbers, and job titles.
Copyright compliance is adhering to laws that protect creative works. It involves legally using content by obtaining permission or licenses.
A RESTful API is a web service interface that uses HTTP requests to access and use data, adhering to the constraints of REST architecture.
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A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.
Account-Based Marketing (ABM) software helps teams coordinate personalized marketing and sales efforts to land high-value customer accounts.
Triggers are predefined conditions that, when met, automatically launch a workflow or action, ensuring timely and relevant outreach.
A sales methodology is the framework that guides how your sales team approaches the entire sales process, from prospecting to closing deals.
Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.
Webhooks are automated messages sent by an app when a specific event occurs. They push real-time data to another app's unique URL.
Marketing Operations (MOps) is the engine of a marketing team, managing the technology, processes, and people to run campaigns effectively.
A Marketing Qualified Opportunity (MQO) is a lead vetted by marketing as a genuine sales opportunity, ready for direct sales follow-up.
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A lead list is a curated database of potential customers (leads) with contact information and other key data for sales and marketing outreach.