New logo
Also known as: new logos
In short
A new logo is a company that becomes a customer of yours for the first time. The term comes from the idea of adding another company logo to your customer list.
Teams count new logos as a measure of customer acquisition. It is a count of accounts, so a small first deal and a large first deal each add one logo.
How new logos are used
New logo targets appear in sales quotas, board reports, and marketing goals. They answer a question revenue alone cannot: how many new companies chose us this period?
- Quota metric: Reps may carry a target for the number of new logos in addition to a revenue target.
- Growth indicator: A rising logo count shows market reach; a flat one with rising revenue means growth is coming from existing accounts.
- Segment tracking: Counting logos by industry or size shows whether you are winning inside your ICP.
New logo vs. expansion
A new logo is a first-time customer. Expansion is additional revenue from a customer you already have. Both grow revenue, but they depend on different motions: prospecting for the first, account management for the second.
Defining a new logo clearly
Edge cases cause arguments, so write the rules down.
- Returning customers: Decide whether a customer who churned and came back counts as new after a set period, such as twelve months.
- Subsidiaries: Decide whether a new division of a current customer counts as a separate logo.
- Pilots: Decide whether a free or paid trial counts at signing or only when it converts to a contract.
Example
Say a team closes four deals in a quarter: two first-time customers, one renewal, and one upsell. It has added two new logos. Revenue from the other two deals counts as retention and expansion.
Common mistakes
- Optimizing for count: Chasing small logos can drain support and raise churn.
- Ignoring quality: Track retention of new logos, not only how many you win.
- Inconsistent definitions: If sales and finance count differently, reports will never match.
New logo FAQs
What is a new logo in sales?
A new logo is a company that becomes a paying customer for the first time. Sales teams count new logos to measure customer acquisition, separate from renewals and growth within existing accounts.
What is the difference between a new logo and net new business?
A new logo is a count of first-time customers, while net new business is the revenue those customers bring. One new logo can bring a small or large amount of net new business depending on the size of the first contract.
Does a returning customer count as a new logo?
It depends on your internal rule. Many teams count a churned customer as a new logo only after a set period without a contract, such as twelve months. Whatever you choose, document it so sales and finance report consistently.
