What is New Business Development Sales? A thorough explanation of 16 sales techniques and tips to increase closing rates.

What is new business development sales?

New development sales refers to sales activities to new customers with whom we have no previous business relationship. Activities include not only approaching new industries, but also establishing sales channels, such as developing overseas markets.
The purpose of conducting new acquisition sales is to generate sales and to help the company grow. This is very important for a company to continue to grow because only with sales can the company pay salaries to employees and other business expenses, and invest in the future by improving products. It is also a risk hedge in case of churn of existing customers.

Difference from existing sales (route sales)

Existing sales (route sales) are often compared to new business development sales.

business model	feature	important skill
New Development Sales	Focus on attracting new customers and approaching untapped markets and potential customers	Ability to gain trust in a short period of time ・Accurate understanding of customer needs and ability to make proposals ・Negotiation skills
existing business	Aiming to prevent churn, maintain and strengthen relationships of trust with existing customers, and receive repeat and additional orders	Ability to maintain trust over the long term ・Listening skills to recognize and address changing customer needs

New and existing sales complement each other, and a good balance between the two will enhance the company's overall sales force. New business development enables the development of new markets, while existing business development enables the establishment of a stable revenue base.

Difference between outbound sales (push type) and inbound sales (pull type)

There are two main types of new business sales methods: outbound sales and inbound sales. Inbound sales is a sales method that aims to provide information that matches the customer's interests and needs so that the customer naturally becomes interested in the company and makes contacts such as making inquiries or purchases on his/her own. This is sometimes referred to as pull-type sales. Outbound sales, on the other hand, is a sales method in which a company directly and proactively approaches customers to acquire potential customers. It is sometimes referred to as push sales. It is best to choose (or combine) the best method for your products, services, target audience, and business situation.

Two types of new business sales methods	summary	concrete example
Outbound sales (push)	Direct and proactive approach to customers from the company side to acquire prospective customers	-Dive sales -Mail sales -Telemarketing
Inbound sales (pull type)	By providing information that meets the interests and needs of customers, we aim to create a situation in which customers naturally become interested in the company and make contact with us through inquiries and purchases on their own.	・Web site management ・Online and offline advertising ・Exhibitions

In addition, some inbound and outbound sales measures require collaboration not only with the sales department, but also with the marketing and back-office departments. The degree of collaboration with each of these departments also determines whether or not a deal is closed.
Related article>> What is inbound sales? A Thorough Explanation of the Differences from Outbound Sales, Methodology, and Benefits

16 new business development sales techniques

New business sales techniques (outbound sales and push sales)

1. Dive (door-to-door) sales

Dive-in sales is a sales technique in which you visit prospective customers without making an appointment in advance. Unlike e-mail sales and telemarketing sales, offline sales allow potential customers to experience products and services firsthand and make proposals directly to decision makers, depending on the product. However, it has disadvantages such as high travel costs and the fact that many companies "do not accept door-to-door sales," so it is no longer a major method.
Related article>> 20 tips for successful door-to-door sales! Thorough explanation of each step  

2. Tele-appointment (telephone sales)

Tele-appointments are a sales technique in which a list of potential customers is prepared in advance, and calls are made to potential customers on the list to set up appointments for business meetings and send materials. While it is possible to call directly to customers whose products or services are likely to sell, it requires experience and ingenuity to produce results, as many customers are unable to talk to key people who are important in making purchasing or contracting decisions, or refuse to make tele-appointments in the first place.

3. MAIL (DM) SALES

In e-mail sales, sales e-mails are sent to an e-mail list of potential customers. The content of these e-mails varies widely, including the sending of information materials and seminar invitations. It is important to create and distribute e-mails of various genres and determine the pattern of e-mails with high open and reply rates. It is also a good idea to send emails with titles and contents targeted to each industry and business category, so that they are easily perceived as personal matters. If you have a large list, it is an advantage to be able to send out simultaneous mailings at low cost, but a disadvantage is that the response rate, such as replies and opens, tends to be low.

4. Posting

Posting is a sales method in which paper media such as flyers summarizing information on the company's products and services are sent to the addresses of potential customers. Once an address is registered, information can be sent to that address on a regular basis. On the other hand, printing and delivery costs are incurred, and there is a high possibility that the flyers will not be seen and will be discarded after being sent.

5. Business app

In recent years, business-specific appcan also be used to conduct sales activities. Typical examples include LinkedIn andEight. LinkedIn is the world's largest business-specific social networking site app, where business people from a wide range of industries and business sectors are registered. Eight is a business card management tool from Japan that allows users to create new contacts through mutual acquaintances and directly communicate with them. Eight is a business card management tool from Japan.

6. Sending letters

Depending on the industry of the clients to be approached, sending letters may be effective. This is because the use of letters is becoming less common with the advancement of digitalization, making it easier to differentiate yourself from other companies. A creative approach to the envelope will attract interest and increase the open rate. However, since the cost of paper, printing, and postage, as well as the time required to prepare and send the letter, this method should be selected after determining whether the letter sending is expected to be effective.

New business sales techniques (inbound sales and pull-type sales)

7. Web site

By posting information about the company's products and services on the website, the company fosters interest and concern among prospective customers and conducts sales activities targeting users who have made inquiries or downloaded materials. It is important to note that when operating a website only, it is difficult to increase the inflow of traffic if the company is not well known; to increase inflow via the web, we recommend using SNS and paid advertising in combination.

Websites include corporate websites and owned media. In particular, owned media often refers to media channels that are operated by companies themselves and specialize in a single theme. Increasingly, companies are operating these sites as separate websites from their corporate websites. Through owned media, the company transmits its unique values and information, and provides useful content to site visitors to let them know about its expertise and improve brand recognition and sales. Regularly updating content increases search engine evaluation (SEO) and increases the number of visitors to the website not only by the company's name and service name, but also through various keywords. The effectiveness of content can be further enhanced by addressing topics of high interest to potential customers and providing solutions to their problems.

Although launching and operating a website is resource-intensive, it is likely to be a powerful source of traffic as long as you keep publishing regularly, and many companies, regardless of size, are operating their own websites. Many companies, regardless of size, operate their own websites because they are likely to be a powerful source of traffic as long as they continue to regularly communicate.

8. SNS OPERATION

According to a research report published by Dentsu Inc., Internet advertising expenditures are growing steadily every year from 2020 to 2024. It is no exaggeration to say that how effectively Internet advertising is used to create touch points with users will determine the growth of companies. Typical examples include listing advertisements displayed on search engines such as Google and Yahoo, and SNS advertisements on social networking services such as YouTube and Instagram. In addition, in recent years, the demand for video advertising has been increasing year by year and is a recommended sales technique.

9. Internet Advertising

Internet advertising has been used by many companies in recent years. According to a research report published by Dentsu Inc. in 2021, Internet advertising expenditures will surpass mass advertising in 2021, and the market is growing. It is no exaggeration to say that how effectively companies utilize Internet advertising and create touch points with users will determine their growth. Typical examples of Internet advertising include listing ads that appear on search engines such as Google and Yahoo, and SNS ads on social networking services such as YouTube and Instagram.

10. Exhibition

Exhibitions are an opportunity to make direct contact with decision makers in various industries with whom you would not normally have contact. By participating in an exhibition, you will be able to appeal the merits of purchasing or signing a contract, as they will be able to experience your company's products and services firsthand. However, in addition to labor costs, exhibition expenses range from several hundred thousand yen to several million yen, so it is important to participate in an exhibition that your company's target audience will visit.

11. Sponsor/Co-host seminars

Seminars (webinars) are a sales technique to share in-depth knowledge and information about your products and services, and to gain the trust of participants to generate sales. The key to success is to provide information within the seminar that is based on a specific theme and that helps participants solve the issues they face. It may also be effective to co-sponsor the seminar with a partner company that shares the same objectives. In both cases, a certain amount of cost and effort are required, so it is recommended to plan and implement the seminar with clear objectives.

12. Offline Advertising

In addition to the aforementioned Internet advertising, offline advertising is also effective in attracting new customers. Typical examples include newspaper, outdoor billboards, and hanging advertisements on trains. While they can be expected to increase awareness among a wide range of users, their disadvantage is that they are not as targeted as Internet advertisements.

13. PUBLIC RELATIONS AND PR

This is a method of having information about your company published in a variety of media. Many companies use this method because it is effective in increasing name recognition and branding, and since there is a wide range of media, including BtoB, BtoB, and industry-specific media, it is important to select media that are compatible with your products and services.

Other new business sales techniques

14. Word of mouth and referrals from existing customers

When existing customers are highly satisfied with a product or service, they will voluntarily recommend it to their friends and acquaintances, or leave high ratings on word-of-mouth websites. Word of mouth and referrals are an ideal method of new business development because they are cost effective and have a high probability of closing a deal and making a purchase.

15. Alliance Sales

Alliance sales is a sales method in which multiple companies work together to develop new customers. By developing alliance sales, companies can acquire customers in industries that they cannot develop on their own, or improve the efficiency of their sales activities by sharing resources.

16. Agency

If your company does not have enough resources, but you want to accelerate the speed of business expansion, one option is to use an agency. By forming a partnership with an agency, you can create touch points with companies and customers that you cannot reach on your own, while minimizing risk.

New Development Sales Process

Although there are differences depending on the product, business phase, and other factors, the following is a rough process for BtoB new business development sales.

1. Preparation

Based on market research, sales strategies are developed and the direction of sales activities is determined. Market research is an important process that is key to success, especially in new business sales. Effective market research methods include the use of online research tools, competitor analysis, and customer interviews. Combined, these methods enable you to accurately identify the needs and trends of your target market and lay the foundation for your sales strategy.
If you set a direction such as, "This quarter, we will focus on this industry and approach from this company with this strategy," or "We will approach from this segment (customer category)," it will be easier to conduct sales activities themselves and verify the effectiveness of the strategy. If there is a bottleneck, such as a lack of lists, it may be necessary to take measures such as cooperating with a specialized firm to order highly angled lists.

2. Approach

Attempt to create contacts with customers through various sales methods such as phone calls, e-mails, and visits, aiming to introduce your company's products and services and obtain appointments. Select the most appropriate new business development sales method that best suits the situation of the client and your company.

3. Negotiations

We listen to customers' needs and issues, and make proposals that lead to solutions to their problems. In order to increase the closing rate, it is important to be aware of building and improving trusting relationships with customers.

4. Contract signing

We conclude the contract with the client's agreement. We aim for smooth contract conclusion by negotiating contract terms and preparing necessary documents. In recent years, online contract signing and other methods have made it possible to conclude contracts speedily, so we encourage you to take advantage of this service.

5. Follow-up

Provide post-contract follow-up to increase customer satisfaction. By building good long-term relationships with customers, it is easier to lead to ongoing transactions, referrals, and upsells.
Related Articles>>Standardize sales processes to raise the level of sales force! Purpose and Significance of Standardization and 3 Key Points

Five tips to increase the closing rate of new business sales

1. Prioritize building a relationship of trust.

It is extremely difficult to close a deal after a single contact. Build a relationship of trust with your future clients through persistent contact and follow-up. In addition to asking if they have any problems and making suggestions, it is also important to provide information when you think it is necessary. Even if you do not immediately receive an order, by building a relationship of trust, there is a possibility that they will consider your product when they are dissatisfied with their current product. For example, suppose there is a competitor that offers a product with comparable functions and price. If it is difficult to differentiate between the two in terms of features and price, which one is more trustworthy will be a major factor in the decision to sign a contract or make a purchase.
The accumulation of little things, based on pleasant communication such as answering any questions in a polite and easy-to-understand manner and responding quickly (response), will lead to gaining trust.

2. Understand the true needs of customers

In your interactions with prospective customers, strive to understand not only their superficial requests, but also the issues they really want to solve and their true needs. Drawing out latent needs that customers themselves are unaware of will differentiate you from other companies and bring you closer to closing a deal and making a purchase. Therefore, interview the customer from various angles according to the product, such as the customer's problems, the reasons for those problems, and possible solutions. The goal of the initial contact should be to gain trust and understand the issues, and if the company's products and services seem to be a good fit, it is recommended to provide a brief explanation if necessary and aim to make an appointment for the next time.

3. Make proposals from the customer's perspective

Make proposals tailored to the customer's problems and issues based on what you have heard from the customer. Confidence in the company's products and services tends to lead to one-sided proposals from the sales representative, but make proposals while staying close to the customer's concerns and situation, and explain in an easy-to-understand manner what part of the product will help solve their problems. Using data and case studies will make your proposal more persuasive.
In addition, customers generally want to know both the advantages and disadvantages of a proposed product or service. They can consider signing a contract only after all their doubts and concerns about the product have been resolved. Therefore, providing customers with the information they seek in a polite and prompt manner will bring you much closer to closing the deal.

4. ROTATE PDCA CYCLE AND KEEP IMPROVING

Once you have closed the deal, analyze why you were able to close the deal. By doing so, you will be able to grasp the tips and winning strategies for new business development, which you can apply to the next round of new business development. The appealing points of a product or service to the seller may not always be the deciding factor for the customer. Some customers may be attracted to the parts of the product or service that are not appealing to them, and end up signing a contract or purchasing the product or service. Since customers' needs and the market are constantly changing, keep brushing up your sales techniques and proposal methods to continuously improve your closing rate.
Related article>>Improve the quality of your sales activities and achieve your goals!

5. UTILIZE SALES DIGITAL TRANSFORMATION TOOLS.

By utilizing sales digital transformation tools, you can efficiently manage customer information and sales activities, and expect to improve the closing rate in new business development. For example, in the case of door-to-door sales, the more customers you visit, the more deals you can close, but the premise is that you must visit potential customers who have the potential to close a deal. Therefore, when making a list, prioritize the customers to be approached so that you can conduct efficient sales activities that allow you to visit as many customers as possible. We recommend using tools such as CRM, SFA, and sales engagement to accumulate and manage customer information, including customers with whom you have closed deals in the past and customers with whom you have yet to reach out. By doing so, the entire sales process can be streamlined.
Related article>>
What is the difference between CRM and SFA? A thorough explanation of the differences in functions and roles, and how to choose the right one!
What is sales engagement? Thorough explanation of 10 recommended tools and their features!

Points to keep in mind when conducting new business development sales

Ensure internal collaboration

Sales activities are team players, not individual players. Ensure collaboration among teams. By doing so, customer information and patterns of success and failure in new business development sales will be accumulated throughout the department, improving the sales capabilities of the entire organization. It will also eliminate the problem of gentrification that tends to occur within a sales organization. When sharing information, we recommend the introduction of sales digital transformation tools such as CRM and SFA that specialize in information sharing.
Related articles>>
Three advantages of internal information sharing and problems caused by lack of information sharing.
Enhance your team's sales force by sharing sales know-how! Key points to disseminate the know-how of top salespeople

No pushy sales

If you are too conscious of achieving numerical targets, you will tend to make one-sided sales pitches. Sales representatives should take the stance that they are partners in solving the customer's problems, listen carefully to what the customer has to say, build a relationship with the customer, and try to make the most appropriate proposal that meets the customer's needs.

IMPROVE CUSTOMER EXPERIENCE (CX)

WHEN CONDUCTING NEW BUSINESS SALES, BE AWARE OF INCREASING CUSTOMER EXPERIENCE (CX) SATISFACTION. CUSTOMER EXPERIENCE IS THE EVALUATION THAT CUSTOMERS HAVE OF A COMPANY DURING THE PROCESS OF RECOGNIZING A PRODUCT OR SERVICE, THEN PURCHASING IT AND CONTINUING TO USE IT. WHEN SALES REPRESENTATIVES ARE AWARE OF THE NEED TO IMPROVE THE CUSTOMER EXPERIENCE, THEY WILL BE ABLE TO PROPOSE PRODUCTS AND SERVICES WITH AN ATTITUDE OF BEING ATTENTIVE TO CUSTOMER ISSUES.

IF YOU WANT TO ACHIEVE RESULTS IN NEW BUSINESS DEVELOPMENT SALES, WE RECOMMEND INTRODUCING "UPWARD"!

 WE DEVELOP AND PROVIDE "UPWARD," A SALES DIGITAL TRANSFORMATION TOOL THAT SUPPORTS MAXIMIZATION OF THE VALUE OF CRM/SFA FOR OUTSIDE SALES AND DOOR-TO-DOOR SALES. BY USING "UPWARD," CUSTOMER INFORMATION, BUSINESS MEETING HISTORY, AND ACTIVITY REPORTS CAN BE EASILY AND SEMI-AUTOMATICALLY ENTERED, MANAGED, AND UTILIZED WITH A SINGLE SMARTPHONE. IN ADDITION TO THE AUTOMATIC CREATION OF REPORT FORMATS ON THE "UPWARD" APP USING THE AUTOMATIC LOCATION INFORMATION DETECTION FUNCTION, SALES REPORTS CAN BE EASILY GENERATED IN A SHORT PERIOD OF TIME USING VOICE INPUT AND THE BUSINESS CARD SCANNING FUNCTION.

The data entered daily is visualized on a map, allowing users to intuitively know which customers to visit next. Anyone can strategically visit not just the "easy-to-get-to" places, but the places that really "need to be visited.

Click here to download service introduction materials for UPWARD, a mobile CRM for outside and in-home sales

*Explanation of its use in new business development sales is from 3:40 to
For example, customer information dedicated to new business development can be displayed on a map with a single tap for more efficient sales activities.

SUCCESSFUL EXAMPLES OF NEW BUSINESS DEVELOPMENT SALES THROUGH THE INTRODUCTION OF UPWARD

We hope you will find the tips and hints for the digital transformation new business development at each company in this UPWARD case study.
Toyota Corolla Akita Co. Visualization of customers by maps and activity log enable both "offensive" and "defensive" sales.
[SophiaMedi Corporation] Increased the number of interviews by 150 per month, maximizing the volume of activities and shifting from "quantity" to "quality" based on the accumulated data.

Finally.

New business development sales can maximize results by understanding customer needs, approaching them with appropriate methods and tips, and using tools. We can also support the realization of effective new business development through the use of UPWARD. If you are interested in improving the efficiency of new business sales by promoting the digital transformation outside sales, please feel free to contact us. We hope this article will be helpful to you in your new business development.

Click here to download the service introduction document of "UPWARD," a mobile CRM for outside salespeople and door-to-door salespeople.