In the recent issue of CEO Magazine, there was an important article in the back or the magazine that has a useful tool in forecasting revenues for 2023.

So, if you’re still pondering your sales forecast for the rest of this year, read on. Otherwise, read on for next year, or midyear adjustments.

NRR is Net Revenue Retention, or the sales coming from customers that you had at the beginning of 2022.

ENCR is Earned New Customer Revenue, the revenue that you’d like to get from new customers in 2023.

Figuring these two out might give your bookeeper a headache, but it seems doable. We’re going to talk to our Solutions Forum members and see what they think about how easy it is split their revenues into the two buckets.

Other things, such as your promotion budget, flow from this revenue breakdown.

If you’re leaning on existing customers for the bulk of your 2023 revenues, you’re going to use ‘reminder’ promotions that you’re still here and you’d like their business.

On the other hand, if you’re tilting towards new customers that you don’t have yet, you may have to find out what media and people influence them to buy from you, tune up your Unique Selling Proposition and use promotional vehicles designed to attract new customers. Maybe add some sales reps, inside and out.

The two sets of promotional vehicles might not be the same, and the messages surely won’t be the same.

So, it’s one more thing to ponder, folks.