New Business Revenue
Revenue generated solely from net-new customers in a period
What is New Business Revenue?
New business revenue is the total value of closed-won deals from first-time customers. It shows how much growth comes from winning new customers rather than selling more to existing ones.
A business needs new customers to grow, so this measure shows how well acquisition is going.
How this KPI is measured
- Function
- Sales
- Sub-function
- Revenue Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Sum of closed-won deal values from first-time customers
How to calculate it
Add up the values of closed-won deals from first-time customers in the period.
For example, if 30 new customers signed deals worth 900,000, new business revenue is 900,000.
Define a first-time customer clearly, and keep new business separate from renewals and expansion.
Where it is used
Tracking acquisition
See progress winning new customers.
Balancing growth sources
Compare new with existing revenue.
Setting new business targets
Give sales teams clear goals.
How to improve it
Tips and common mistakes
- New business is often more costly than expansion.
- Watch the mix of new and existing customers.
- Include only signed deals.
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