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.
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User-generated content (UGC) refers to any form of content, like images, videos, or text, created and shared by users on online platforms.
Webhooks are automated messages sent by an app when a specific event occurs. They push real-time data to another app's unique URL.
Application Performance Management (APM) monitors and manages an application's performance, availability, and the experience of its end-users.
Account-Based Everything (ABE) is a strategy aligning sales, marketing, and success teams to focus on a specific set of high-value accounts.
A Letter of Intent (LOI) is a document declaring the preliminary commitment of one party to do business with another, outlining the chief terms.
A buying signal is any action from a prospect that indicates they are interested in making a purchase, helping sales teams prioritize leads.
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.
ABM orchestration aligns marketing and sales actions across channels to deliver seamless, personalized experiences to high-value accounts.
Docker is a tool that packages applications and their dependencies into isolated environments called containers for easy deployment and scaling.
A Content Management System (CMS) is software for creating, managing, and modifying website content without needing specialized technical skills.
Warm outbound is a sales strategy for contacting prospects who've shown interest in your brand through prior engagement, like website visits.
Key accounts are a company's most valuable customers, vital due to their significant revenue contribution and strategic importance for growth.
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A custom API integration is a bespoke connection between software, enabling them to communicate and share data to meet unique business requirements.
A Customer Data Platform (CDP) centralizes customer data from all sources to create a complete, unified profile for each individual customer.
SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.
Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.
A sandbox is an isolated testing environment where new or untrusted code can be run safely without affecting the host device or network.
A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.
De-duping, or data deduplication, is the process of eliminating duplicate copies of data within a dataset to improve accuracy and save space.
Consultative selling is an approach where salespeople act as expert advisors, diagnosing customer needs to provide the most suitable solutions.
Customer Acquisition Cost (CAC) is the total cost a business spends to gain a new customer. It includes all sales and marketing expenses.
Content Rights Management involves controlling the use and distribution of copyrighted digital media to protect intellectual property.
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Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.
Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.
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GPCTBA/C&I is a sales qualification framework for understanding a prospect's goals, plans, challenges, timeline, budget, and authority.
Demand is the economic principle describing a consumer's desire and willingness to purchase a specific good or service at a particular price.
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Product-Led Growth (PLG) is a business strategy where the product itself drives user acquisition, conversion, and expansion.
Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.
SEO, or Search Engine Optimization, is increasing the quantity and quality of traffic to your website through organic search results.
Lead generation is the process of identifying and cultivating potential customers for a business's products or services.
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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.
Revenue forecasting is the process of estimating a company's future revenue, using historical data and market trends to guide strategic planning.
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Net Revenue Retention (NRR) is the percentage of recurring revenue kept from existing customers, including upsells, downgrades, and churn.
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Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.
Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.
Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.
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Order management is the end-to-end process of tracking customer orders from placement to fulfillment, ensuring a seamless customer experience.
A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.
Affiliate marketing is a performance-based model where affiliates earn a commission for promoting another company’s products or services.
Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.
A Point of Contact (POC) is the designated individual or department that serves as the main hub for information and communication on a matter.
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Chatbots are AI-powered programs that simulate human conversation. They interact with users via text or voice, typically for customer support.
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.
Revenue intelligence is the process of collecting and analyzing customer data to provide insights that help sales teams make smarter decisions.
Sales enablement technology refers to software and tools that equip sales teams with the resources they need to close more deals efficiently.
A sales dashboard is a visual tool that centralizes and displays key sales data, metrics, and KPIs to help teams track performance and goals.
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Inside sales is a remote sales process where reps sell products or services via phone, email, and other digital tools instead of in person.
A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.
Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.
Intent data tracks a user's online behavior—like searches and site visits—to identify signals that they are ready to make a purchase.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
Lead routing is the automated process of distributing incoming leads to the right sales reps based on predefined criteria.
Programmatic advertising uses AI and real-time bidding to automate the buying and selling of digital ad space, targeting specific audiences.
Single Sign-On (SSO) is an authentication method allowing users to access multiple applications with one set of login credentials.
Event tracking is the method of collecting data on specific user actions, or 'events,' on a website or app, such as clicks or downloads.
A demand generation framework is a strategic process for creating awareness and interest in your product, ultimately driving new business.
An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.
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Total Addressable Market (TAM) represents the maximum revenue a company can earn by selling its product or service in a specific market.
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A sales demo is a presentation where a sales rep shows a prospect how a product or service works and solves their specific problems.
A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.
Gamification applies game mechanics like points, badges, and leaderboards to non-game activities to boost engagement and motivate users.
Product recommendations are a marketing strategy that uses customer data to suggest relevant products, boosting sales and customer engagement.
Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.
White labeling is when a company puts its own branding on a product or service that was actually produced by a different company.
Marketo is a marketing automation platform used by B2B marketers to manage lead generation, nurturing, email marketing, and analytics.
Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.
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.
Scrum is an agile framework that helps teams structure and manage their work through a set of values, principles, and practices.
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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Marketing Operations (MOps) is the engine of a marketing team, managing the technology, processes, and people to run campaigns effectively.
Sales development is the process of identifying and qualifying potential customers to create a pipeline of sales-ready leads for closers.
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