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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Cold emailing is sending unsolicited emails to potential customers you haven't contacted before, aiming to start a business conversation.
A Call for Proposal (CFP) is a document that solicits proposals, often through a bidding process, for a specific project or service.
Ramp-up time is the period a new hire takes to get fully up to speed and become a productive member of your go-to-market team.
Lookalike audiences are groups of potential customers who share similar characteristics and behaviors with your existing, high-value customers.
Progressive Web Apps (PWAs) are websites that look and feel like native mobile apps, offering features like offline access and push notifications.
Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.
A sales kickoff (SKO) is an annual event for a sales team to celebrate wins, align on goals, and get motivated for the upcoming year.
Monthly Recurring Revenue (MRR) is the predictable, recurring income a business expects to receive each month from all active subscriptions.
Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.
Webhooks are automated messages sent by an app when a specific event occurs. They push real-time data to another app's unique URL.
Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.
Workflow automation uses rule-based logic to run a sequence of tasks that would otherwise require manual human effort to complete.
Account-Based Marketing (ABM) is a focused B2B strategy where marketing and sales collaborate to target and convert high-value accounts.
The FAB technique is a sales framework connecting product features to advantages and then to the specific benefits for the customer.
Persona-based marketing uses fictional customer profiles, or personas, to create targeted messaging for specific audience segments.
Lead scraping is the process of automatically extracting contact information and other relevant data about potential customers from online sources.
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Email marketing is a digital strategy where businesses send targeted emails to prospects and customers to build relationships and drive sales.
Pipeline coverage is a key sales metric. It's the ratio of your total open pipeline value to your sales quota for a specific period.
A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.
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Load testing is a type of performance testing that determines how a system behaves under both normal and anticipated peak load conditions.
A Simple Object Access Protocol (SOAP) API is a web service that uses XML to exchange structured information between different applications.
Content Rights Management involves controlling the use and distribution of copyrighted digital media to protect intellectual property.
Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.
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Regression testing ensures that new code changes don’t negatively impact existing features. It's a key step to maintain software quality after updates.
Key accounts are a company's most valuable customers, vital due to their significant revenue contribution and strategic importance for growth.
Intent data tracks a user's online behavior—like searches and site visits—to identify signals that they are ready to make a purchase.
A Content Management System (CMS) is software for creating, managing, and modifying website content without needing specialized technical skills.
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Sales automation uses software to streamline and automate repetitive, manual sales tasks, freeing up reps to focus on selling.
GDPR compliance means following the EU's strict data protection laws to ensure the secure and lawful handling of personal data.
A Target Account List (TAL) is a focused list of high-value companies that a business specifically aims to convert into customers.
Closed opportunities are potential deals that have concluded. They are categorized as either 'closed-won' (a sale was made) or 'closed-lost'.
An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.
Voice broadcasting is an automated system that delivers a pre-recorded voice message to a large list of phone numbers simultaneously.
An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.
Sales coaching is a process where managers help reps improve their skills and performance through personalized feedback, training, and guidance.
Network monitoring is the continuous process of tracking a computer network's performance and health to detect and resolve issues proactively.
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.
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Direct sales involves selling products directly to consumers in a non-retail setting, such as at home, online, or person-to-person.
Customer retention refers to the strategies and activities a company uses to prevent customer churn and encourage them to continue buying.
Cross-Site Scripting (XSS) is a web security vulnerability that allows attackers to inject malicious scripts into trusted websites.
Product recommendations are a marketing strategy that uses customer data to suggest relevant products, boosting sales and customer engagement.
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Process Builder is a Salesforce automation tool that lets you create 'if/then' business processes with a user-friendly visual interface.
A sales demo is a presentation where a sales rep shows a prospect how a product or service works and solves their specific problems.
Sales partnerships are strategic alliances where two companies co-sell products to expand their reach, generate new leads, and increase revenue.
Account-Based Selling is a B2B strategy where sales and marketing treat high-value accounts as markets of one, using personalized outreach.
De-duping, or data deduplication, is the process of eliminating duplicate copies of data within a dataset to improve accuracy and save space.
Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.
Serviceable Addressable Market (SAM) is the portion of the market your business can realistically serve with its current products and sales channels.
GPCTBA/C&I is a sales qualification framework for understanding a prospect's goals, plans, challenges, timeline, budget, and authority.
A Marketing Qualified Account (MQA) is a target company that has shown significant engagement, indicating it's ready for the sales team to pursue.
Competitive intelligence (CI) is the ethical gathering and analysis of market data to inform strategic business decisions and gain an advantage.
Event tracking is the method of collecting data on specific user actions, or 'events,' on a website or app, such as clicks or downloads.
Customer buying signals are the actions, behaviors, or statements a prospect makes that indicate they are moving towards a purchase decision.
“No Spam” is a commitment to sending only relevant, solicited messages. It means avoiding bulk, unwanted emails to respect the recipient's inbox.
Sales enablement provides sales teams with the necessary tools, content, and information to help them sell more effectively and efficiently.
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A demand generation framework is a strategic process for creating awareness and interest in your product, ultimately driving new business.
Warm outbound is a sales strategy for contacting prospects who've shown interest in your brand through prior engagement, like website visits.
A marketing automation platform is software that automates marketing actions. It helps manage tasks like email campaigns and lead nurturing.
Psychographics categorizes people by their attitudes, interests, and lifestyles, revealing the 'why' behind their purchasing decisions.
CRM integration connects your CRM software with other tools, creating a unified system for all your customer data and business processes.
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) software helps teams coordinate personalized marketing and sales efforts to land high-value customer accounts.
An enterprise is a large-scale organization, often a corporation, defined by its complex structure and substantial number of employees.
A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.
Demand generation is the process of creating awareness and interest in your products to build a pipeline of qualified leads for your sales team.
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.
Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.
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CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.
A Point of Contact (POC) is the designated individual or department that serves as the main hub for information and communication on a matter.
User interaction is any action a user takes within a digital interface, like clicking a button, scrolling a page, or filling out a form.
Sales prospecting software automates the process of finding, contacting, and tracking potential customers to help sales teams build their pipeline.
A lead list is a curated database of potential customers (leads) with contact information and other key data for sales and marketing outreach.
A sales coach is a mentor who trains and guides sales reps to enhance their skills, boost performance, and ultimately close more deals effectively.
Single Sign-On (SSO) is an authentication method allowing users to access multiple applications with one set of login credentials.
Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.
Total Addressable Market (TAM) represents the maximum revenue a company can earn by selling its product or service in a specific market.
SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.
Sales enablement content refers to the materials and tools that empower your sales team to engage prospects and close deals more efficiently.
Cross-selling is a sales tactic of encouraging customers to purchase products or services that are related to what they're already buying.
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A consumer is an individual or entity that buys products or services for personal use, not for resale. They are the final user in a supply chain.
“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.
Sales operations analytics is the practice of analyzing sales data to improve the efficiency and effectiveness of the entire sales process.
Inside sales is a remote sales process where reps sell products or services via phone, email, and other digital tools instead of in person.
Programmatic advertising uses AI and real-time bidding to automate the buying and selling of digital ad space, targeting specific audiences.
A value statement is a clear, concise declaration of the unique benefits a company provides to its customers, outlining its core purpose.
An Operational CRM is a system that automates and improves customer-facing business processes like sales, marketing, and customer service.
Lead scoring is the process of assigning points to leads based on their attributes and actions to determine their sales-readiness.
Lead enrichment tools are platforms that automatically add missing data to your leads, like contact info, firmographics, and buying signals.
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A knowledge base is a self-serve online library of information about a product, service, department, or topic.