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.
Precision targeting is a marketing strategy that uses data to identify and reach a highly specific audience most likely to convert.
Customer retention refers to the strategies and activities a company uses to prevent customer churn and encourage them to continue buying.
Cloud storage is a service model where data is stored on remote servers and accessed from the internet, rather than on a local drive.
CPQ (Configure, Price, Quote) software is a sales tool for creating accurate, configurable quotes for complex products and services.
Demand capture is the strategy of engaging potential customers who are already actively looking for a solution that your company provides.
CI/CD, or Continuous Integration/Continuous Delivery, automates software builds, tests, and deployments for faster, more reliable releases.
Sender Policy Framework (SPF) is an email authentication method that lets you specify which mail servers can send emails on behalf of your domain.
Customer Acquisition Cost (CAC) is the total cost a business spends to gain a new customer. It includes all sales and marketing expenses.
A firewall is a digital barrier that protects a network by monitoring and controlling traffic, blocking unauthorized access and malicious content.
A nurture campaign is a series of automated messages designed to build relationships with potential customers and guide them toward a purchase.
Competitive intelligence (CI) is the ethical gathering and analysis of market data to inform strategic business decisions and gain an advantage.
Cold calling is a sales technique where reps contact potential customers who have had no prior interaction with their company or product.
“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.
A sales quota is a time-bound sales goal for a rep or team, measured in revenue or units sold, to be met within a specific period.
Click-through rate (CTR) is a metric that measures the percentage of people who click on a specific link, ad, or call-to-action.
Customer data analysis is the process of examining customer information to uncover insights that drive business decisions and improve experiences.
Sales prospecting techniques are methods used by sales teams to identify, contact, and qualify potential customers, also known as prospects.
A sales pipeline is a visual representation of where prospects are in the sales process, from the first contact to the final sale.
Customer Success is a business strategy focused on proactively helping customers achieve their goals with your product or service.
Git is a distributed version control system that tracks changes in code, allowing developers to collaborate and manage project history effectively.
CRM data is the information businesses use to manage customer relationships. It covers contact details, purchase history, and communication logs.
Video selling uses personalized video messages to engage prospects, build rapport, and guide them through the sales funnel to close more deals.
The 80/20 rule, or Pareto Principle, posits that 80% of results come from just 20% of the effort. It's a key concept for prioritization.
AI data enrichment uses artificial intelligence to automatically enhance and update raw data, making it more complete, accurate, and valuable.
Regression analysis is a statistical method for estimating the relationships between a dependent variable and one or more independent variables.
Call analytics is the practice of analyzing phone call data to extract insights, track key metrics, and improve overall business performance.
"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.
Process Builder is a Salesforce automation tool that lets you create 'if/then' business processes with a user-friendly visual interface.
Account Click-Through Rate (CTR) is the percentage of individuals from a target account who click on a link in an ad, email, or on a webpage.
A marketing budget breakdown is a detailed plan that allocates your total marketing funds across various channels, campaigns, and activities.
Time on site, or session duration, is a key web metric that tracks the total time a visitor spends on your website during a single visit.
Contract management is the process of creating, executing, and analyzing contracts to maximize performance and minimize financial risk.
Sales Engineers blend deep technical knowledge with sales acumen, demonstrating a product's value and solving customer problems to drive revenue.
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.
No Forms is a method for capturing lead data directly from your website visitors' profiles without requiring them to fill out any forms.
A trusted advisor is an expert who builds a deep client relationship by consistently prioritizing their best interests over any single transaction.
Lead routing is the automated process of distributing incoming leads to the right sales reps based on predefined criteria.
Social selling is the art of using social media to find, connect with, build relationships with, and nurture sales prospects.
Text message marketing is a strategy where businesses send promotional messages, offers, and updates to customers via SMS or MMS.
Customer Retention Cost (CRC) is the total amount a company spends to keep an existing customer over a certain period of time.
Social proof is a psychological phenomenon where people assume the actions of others reflect correct behavior for a given situation.
Economic Order Quantity (EOQ) is the ideal order quantity a company should purchase to minimize its total inventory-related costs.
Churn, also known as customer attrition, is the rate at which customers stop doing business with a company over a given period.
Funnel analysis is a method for understanding the steps users take to complete a goal, revealing where they drop off in the conversion process.
SFDC stands for Salesforce Dot Com, a popular cloud-based CRM platform that helps companies manage their customer interactions and data.
Email deliverability is the ability for your emails to successfully land in your recipients' inboxes instead of their spam folders.
Multi-threading allows a single CPU core to run multiple independent threads (or tasks) at the same time, boosting efficiency and performance.
Key Performance Indicators (KPIs) are measurable values that demonstrate how effectively a company is achieving its key business objectives.
A Unique Selling Point (USP) is the distinct feature or benefit that sets your product, service, or brand apart from the competition.
Going dark is when a once-responsive prospect suddenly stops all communication, leaving you wondering what went wrong.
A Data Management Platform (DMP) is a tech platform used to collect and manage data, mainly for digital marketing and advertising campaigns.
A sandbox is an isolated testing environment where new or untrusted code can be run safely without affecting the host device or network.
Subscription models are a business strategy where customers pay a recurring fee at regular intervals for access to a product or service.
Loss aversion is our tendency to feel the sting of a loss more acutely than the pleasure of an equivalent gain.
Lead response time is the duration between a potential customer showing interest and your team's first point of contact with them.
Annual Recurring Revenue (ARR) is the predictable income a company expects to receive from its customers over a one-year period.
A Statement of Work (SoW) is a document that outlines a project's scope, deliverables, and timeline. It acts as a contract between parties.
Copyright compliance is adhering to laws that protect creative works. It involves legally using content by obtaining permission or licenses.
Personalization in sales means tailoring outreach to a prospect's specific needs, interests, and context to make communication more relevant.
Real-time data processing is the method of analyzing data the instant it's generated, enabling immediate actions and decision-making.
A warm email is a message sent to a prospect with whom you have a pre-existing connection, like a mutual contact or a prior interaction.
Learn about BAB formula, including implementing BAB in sales strategies, crafting an effective BAB pitch, & comparing BAB with other sales frameworks.
A digital strategy outlines how your business will use online channels, data, and technology to achieve its goals and connect with customers.
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.
Reverse logistics is the process for goods moving from the customer back to the seller, covering returns, repairs, recycling, and disposal.
Ad-hoc reporting is the creation of one-off reports to answer specific business questions as they arise, providing instant, targeted insights.
Account-Based Marketing (ABM) benchmarks are key metrics used to measure the performance and success of your targeted account strategies.
API security is the practice of protecting application programming interfaces from attacks, preventing data breaches and unauthorized access.
Deal closing is the final step in a sales cycle. It's when a prospect signs a contract and officially converts into a paying customer.
Email verification is the process of confirming that an email address is valid and deliverable, which helps improve campaign performance.
Customer experience (CX) is a customer's total perception of your business, based on every interaction across the entire customer lifecycle.
Compounded Annual Growth Rate (CAGR) measures the mean annual growth of an investment over a specified period of time longer than one year.
Scalability is a company's ability to handle increased workloads or market demands without a drop in performance or a spike in costs.
User testing involves observing real users interact with a product to identify usability issues and improve the overall user experience.
Direct mail is a marketing method where businesses send physical promotional materials directly to potential customers' mailboxes.
Account mapping is comparing your customer list with a partner's to find common prospects and unlock new sales opportunities.
Video email involves embedding a short video directly into an email. This lets recipients watch your message without leaving their inbox.
User Experience (UX) refers to a person's overall feelings and perceptions while interacting with a product, system, or service.
A/B testing is a method of comparing two versions of something, like a webpage or email, to determine which one performs better with your audience.
Customer buying signals are the actions, behaviors, or statements a prospect makes that indicate they are moving towards a purchase decision.
Corporate identity is the visual and verbal persona of a company, encompassing its logo, color palette, communication style, and core values.
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.
Learn about business development representative, including skills and qualifications for BDRs, & roles and responsibilities of a BDR.
Learn about bottom of the funnel, including maximizing conversions at the funnel's end, & strategies for nurturing bottom-funnel leads.
Analytics platforms are tools that collect and analyze data from various sources, helping businesses track key metrics and make informed decisions.
Voice broadcasting is an automated system that delivers a pre-recorded voice message to a large list of phone numbers simultaneously.
Learn about B2B data enrichment, including benefits of B2B data enrichment, implementing B2B data enrichment strategies, B2B data enrichment vs. data cleaning.
A Service Level Agreement (SLA) is a contract defining the level of service between a provider and a client, including metrics and penalties.
An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.
Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.
A sales cycle is the series of steps a company takes to close a new customer. It starts with prospecting and ends with a signed deal.
Payment processors are companies that handle card transactions, connecting merchants with the banks needed to complete a sale.
A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.
A Representational State Transfer (REST) API is a web service that uses a simple, stateless architecture for systems to communicate online.
A Content Management System (CMS) is software for creating, managing, and modifying website content without needing specialized technical skills.
Multi-touch attribution is a marketing analytics method that credits multiple touchpoints on the customer journey for a conversion.
Objection handling in sales is the process of responding to a prospect's concerns about a product or service to move the deal forward.
Buying criteria are the specific requirements and standards a customer uses to evaluate products or services before making a decision.
Learn about bad leads, including identifying bad leads, warning signs of bad leads, impact of bad leads on sales, & strategies to minimize bad leads.
Retargeting marketing is a digital advertising strategy that targets users who have previously interacted with your website or brand online.