How to increase sales: Simple ways to grow your business

Published Tuesday 6 January 2026

Table of contents

• Understand your customers
• Strategies to increase sales
• Increasing sales to existing customers
• Optimise your sales process
• Finding new customers
• Use digital marketing to increase sales
• Measure and track your sales performance
• Do the numbers on sales-boosting strategies
• Track your progress and stay consistent
• FAQs on increasing sales

Key takeaways

• Prioritise increasing sales to existing customers first, as this costs 5-25 times less than acquiring new customers and delivers higher returns on investment.
• Remove friction from your sales process by streamlining ordering systems, offering multiple payment options, and responding to customer enquiries within 24 hours to eliminate barriers that prevent purchases.
• Implement cross-selling and product bundling strategies to increase average order value by suggesting complementary items and offering selective discounts on add-on products while protecting margins on core offerings.
• Track key performance metrics like sales volume, conversion rates, and average transaction value to make data-driven decisions and identify which strategies are working effectively.

Understand your customers

Know who you are selling to before you try new sales tactics. Understanding your customers' needs, challenges, and buying habits is the foundation of any successful sales strategy. When you know what they value, you can tailor your products, services, and marketing to resonate with them.

• Who are your ideal customers?
• What problems are they trying to solve?
• Where do they look for information?

Answering these questions will help you focus your efforts where they'll have the most impact.

Strategies to increase sales

Sales growth happens through two proven methods: selling more to existing customers or attracting new ones. Most businesses focus on existing customers first because it's more cost-effective, with some estimates suggesting that selling to current customers costs 5-25 times less than acquiring new buyers.

• Lower costs: Selling to current customers costs 5-25 times less than acquiring new ones
• Higher value: Each optimised existing relationship makes new customers automatically more profitable
• Better return on investment (ROI): marketing spend delivers bigger returns when you have maximised current customer potential

Increasing sales to existing customers

Reduce barriers to buying

Reducing buying barriers means removing any obstacle that prevents customers from purchasing. This includes simplifying ordering processes, offering flexible payment options, and building stronger customer relationships.

Identify purchase barriers by reviewing your customer journey:

• Process obstacles: Slow quotes, unanswered calls, complex ordering systems
• Payment friction: Limited payment options, unclear pricing, difficult checkout
• Communication gaps: Delayed responses, unclear product information, poor follow-up

Make ordering easier

Streamline your ordering process with these improvements:

• Responsive communication: Answer calls promptly and return messages within 24 hours
• Fast quotes: Send estimates within 2 business days to maintain momentum
• Online ordering: Offer digital ordering for 24/7 customer convenience
• Recurring orders: Set up automatic reorders for regular customers
• Multiple payments: Accept cards, bank transfers, and digital wallets

Make billing friendlier

Customer-friendly billing uses flexible payment structures to encourage repeat purchases:

• Flat fees: Charge consistent monthly rates for predictable customer budgeting
• Instalment plans: Split large purchases into manageable payments
• Flexible terms: Offer 30, 60, or 90-day payment options
• Automated billing: Use online bill payment software to manage recurring payments and reduce admin

Sales promotions

Strategic sales promotions boost revenue while protecting your profit margins. Simple discounting attracts customers but reduces profitability, so use targeted promotion strategies instead.

Product bundling combines multiple items with selective discounting:

• Partial discounts: Apply discounts to add-on items, not core products
• Higher spend: Encourage larger purchase amounts per transaction
• Margin protection: Maintain profitability on primary products while discounting extras

Loyalty-based discounts can work well when the value of ongoing sales more than covers the cost of the discount.

Cross-selling

Cross-selling promotes related products to customers during their current purchase. This strategy increases average order value by suggesting complementary items:

• Physical placement: Position related items near each other in-store
• Digital suggestions: Show "frequently bought together" items online
• Sales scripts: Train staff to recommend relevant add-ons during transactions

Bundling (offering a discount on the additional item/s) can help here but it's not always necessary. Cross-selling is different to upselling, where you promote an upgraded or higher-end version of a product or service your customer is buying.

Learn about upselling in the guide Upselling techniques to increase revenue.

Expanding your range of products or services

Product expansion increases sales by adding new offerings that serve existing customers' additional needs. Strategic expansion makes the most of your current customer relationships and market knowledge.

Research expansion opportunities through three key channels:

• Customer feedback: Survey existing clients about unmet needs and desired services
• Competitor analysis: Identify successful products similar businesses offer
• Supplier insights: Consult vendors about complementary products and market trends

Expand your offering to include both goods and services:

• A goods business can sell related services, such as installation, training or maintenance for their products.
• A service business can sell related products. For example, a hairdresser often sells haircare products. A web services provider might sell analytics tools.

Look at different ways of packaging your offer

Sometimes just reframing or renaming a service or product for different customers can have the same effect as expanding. Besides running a pop-up shop, a chocolate maker might pitch themselves as a supplier for restaurants and caterers, for example.

Get more tips in our guide Launching new products.

Relationship marketing

Relationship marketing builds long-term customer connections instead of focusing on single transactions. This approach works best for service businesses, business-to-business (B2B) companies, and high-value purchases where ongoing engagement creates repeat sales.

This is most often done by:

• creating mailing lists (or social media groups) for more regular communication
• circulating newsletters (weekly, monthly or quarterly) with interesting news, tips, and occasional business announcements
• loyalty clubs that give customers special privileges such as advance access to new products, special discounts, or prizes and giveaways
• hosting engaging events such as information evenings, product launches, exhibitions and so on

Optimise your sales process

A smooth sales process turns interested people into happy customers. Think of it as a journey with several steps, often called a sales funnel. The goal is to guide potential customers through each stage, from initial awareness to the final purchase, without any friction.

Look at each step of your process. Is it easy for customers to find information? Is your checkout process simple? Removing small obstacles can make a big difference in your conversion rates.

Finding new customers

New customer acquisition expands your sales by reaching untapped markets. Focus on this strategy after maximising sales to existing customers, as acquisition typically costs 5-25 times more than retention.

Expand your presence (physical or online)

Physical expansion increases sales by accessing new geographic markets. New locations expose your brand to local customers and workers, but require significant upfront investment and ongoing operational costs.

This can be a costly strategy, however, so you'll need some money on hand. It's also worth considering modest beginnings for your new branch. You might be able to share a workshop, open a pop-up shop, use a shared office space, or partner with a complementary business.

Expanding your presence online is often less costly than opening a new physical location. A retailer might open an online store. A professional services provider might set themselves up to serve clients remotely. Suddenly you're not so bound by geography. Take the time to learn how your types of products or services are typically sold online.

Broaden your marketing

Marketing expansion reaches new customers by diversifying your promotional channels, target audiences, and messaging strategies. This approach tests new markets without the costs of physical expansion.

Experiment with digital marketing

Experiment with social media and search marketing. If you haven't already, you can test pretty cheap strategies, and government programs sometimes offer free workshops, webinars and tutorials to help businesses get started.

Tap into word-of-mouth marketing

Word of mouth is one of the most effective and affordable forms of marketing. Many people prefer to buy something a trusted contact has recommended, so ask your customers to spread the word.

If you are a business-to-business (B2B) service provider, tell clients you would like to work with more people like them. Build these simple referral requests into your usual conversations or scripts so you remember to ask. You could go a step further and offer incentives for referrals, but try the free route first. People genuinely like to help other people that they like.

Expand the range of products and services you sell

We've already noted how a wider offering can crank up sales with your existing customers, but it can also make you relevant to a wider group of customers.

Think about what you're already good at and where else you could add value for prospective customers. For obvious reasons, the new products or services should fall within your existing field of expertise. Do some numbers to check the true cost of expanding in this way. And consider piloting new offerings before making permanent changes to your range.

Use digital marketing to increase sales

In today's world, a strong online presence is essential, and it can be simple and affordable. For example, the Australian government's Digital Solutions program has already helped over 60,000 small businesses with low-cost, high-quality digital advisory services.

• Be active on social media: Engage with your audience on the platforms they use most. Share helpful content, run polls, and respond to comments to build a community.
• Use email marketing: Keep your customers informed about new products, special offers, and company news. A regular newsletter can keep your business top of mind.
• Interact online: Respond to online reviews and comments, both positive and negative. This shows you value customer feedback and are committed to providing great service.

Measure and track your sales performance

Measuring your sales performance makes it easier to improve. Tracking your sales performance helps you understand what's working and what isn't. This allows you to make data-driven decisions instead of guessing.

Keep an eye on key metrics like sales volume, conversion rates, and average transaction value. By monitoring these numbers, you can identify trends, spot opportunities, and adjust your strategies for better results. Using accounting software with clear reporting makes it easy to see your performance at a glance.

Do the numbers on sales-boosting strategies

When exploring how to increase sales, make sure you also work out how to pay for that extra activity. Sales all come at a cost. Keep an eye on:

• Any capital expenses such as new work tools, equipment, physical locations or websites you may need in order to execute your sales strategy
• Increased operating (day to day) expenses such as more inventory, increased freight, extra marketing, more sales commissions and so on.

Pay particular attention to your margins. Increasing sales is all well and good but not if you lose your ability to make money off those sales. Changes to costs or pricing will likely affect your margin. If your margin is set to shrink, such as through discounting, then you'll want to make sure the uptick in sales is sufficient to deliver an overall increase in profits.

Track your progress and stay consistent

Increasing sales is an ongoing effort, so focus on consistent actions over time. The most successful businesses consistently apply and refine their strategies. Keep testing new ideas, tracking your results, and listening to your customers.

By staying organised and keeping a clear view of your finances, you can make smarter decisions that fuel growth. The right tools can simplify this process, giving you more time to focus on what you do best: running your business. With a solid plan and the right support, you can stay on top of your numbers and make better sales decisions. Try Xero for free to see how Xero’s online accounting software can support your business.

FAQs on increasing sales

Here are answers to some common questions about increasing sales.

How can I increase sales quickly?

To increase sales quickly, focus on high-impact, low-cost strategies. Offer a limited-time promotion or bundle popular products together. You can also reach out to your most loyal customers with an exclusive offer or launch a referral campaign to encourage word-of-mouth marketing.

What's the difference between cross-selling and upselling?

Cross-selling involves offering a customer a related or complementary product, like suggesting a phone case with a new phone. Upselling is encouraging a customer to purchase a more expensive or upgraded version of a product, such as a phone with more storage.

How much should I spend on sales and marketing activities?

There's no single answer, as it depends on your industry, business stage, and goals. A common guideline for small businesses is to allocate around 5-10% of revenue to marketing. Start small, measure your return on investment, and adjust your spending based on what drives the best results.

What are the most effective ways to convert leads into sales?

Effective lead conversion starts with a quick response time and clear communication. Understand the lead's needs, present a solution that solves their problem, and make the purchasing process as simple as possible. Following up consistently without being pushy is also key.

How do I know if my sales strategies are working?

Track key performance indicators (KPIs) like your sales conversion rate, average deal size, and customer lifetime value. Compare these metrics over time. If they are improving, your strategies are likely working. Customer feedback and surveys can also provide valuable insights.