How to increase sales with practical growth strategies

Published Thursday 2 April 2026

Table of contents

• Why increasing sales matters
• Set realistic sales goals
• Understand your customers
• What causes sales to decline
• Strategies to increase sales
• Track and measure your sales performance
• Manage your finances to support sales growth
• Use Xero to support your sales growth
• FAQs on how to increase sales

Key takeaways

• Focus on existing customers first since it costs five to 25 times more to acquire new customers than to retain current ones, and start by reducing purchase barriers like complicated ordering processes or inflexible payment terms.
• Use cross-selling to promote related products alongside current purchases, which can increase sales by 20% and profits by 30% without needing to find new customers.
• Set specific, measurable sales goals by reviewing your past performance data and breaking annual targets into monthly milestones to track progress effectively.
• Track key metrics including revenue growth, customer acquisition cost, and average order value using your accounting software to identify which strategies actually work and improve your bottom line.

Why increasing sales matters

Sales growth drives business sustainability, profitability, and long-term success. Without consistent revenue growth, businesses struggle to cover rising costs, invest in improvements, or weather economic downturns.

Increasing sales helps you:

• Improve cash flow: More revenue means more flexibility to pay bills, invest, and handle unexpected expenses.
• Build business value: Growing businesses are worth more if you ever want to sell or attract investors.
• Create opportunities: Higher revenue funds new hires, better equipment, and expansion into new markets.
• Stay competitive: Businesses that don't grow often fall behind competitors who do.

The good news: you don't need a massive marketing budget to increase sales. Small, strategic changes to how you sell to existing customers and attract new ones can deliver meaningful results.

Set realistic sales goals

Sales goals give you clear targets to work toward and a way to measure progress. Without specific goals, it's hard to know which strategies are working or where to focus your efforts.

Here's how to set achievable sales targets:

1. Review current performance: Look at your sales data from the past six to 12 months to establish a baseline.
2. Identify growth opportunities: Consider which products, services, or customer segments have the most potential.
3. Set specific targets: Define exactly what you want to achieve, for example, 'increase monthly revenue by 15%' rather than 'sell more'.
4. Break goals into milestones: Divide annual targets into quarterly or monthly goals to track progress.
5. Use your financial reports: Monitor actual results against targets and adjust your approach as needed.

Start with modest, achievable goals. Small wins build momentum and help you learn what works before pursuing larger targets.

Understand your customers

Understanding your customers is the foundation of every effective sales strategy. You can't sell more if you don't know what your customers actually want, need, and value.

Research what your customers need

Gather insights directly from the people who buy from you:

• Ask questions: Talk to customers about what they like, what frustrates them, and what else they need.
• Review feedback: Look at reviews, complaints, and support requests for patterns.
• Watch buying behaviour: Notice which products sell well together and which get abandoned.
• Survey your audience: Send short surveys to learn about preferences and unmet needs.

Use your sales data to spot patterns

Your transaction history reveals valuable insights about customer behaviour:

• Purchase frequency: How often do customers buy, and what triggers repeat purchases?
• Average order value: What do customers typically spend, and what increases that amount?
• Product combinations: Which items are frequently bought together?
• Seasonal trends: When do sales peak and dip throughout the year?

Use these insights to tailor your sales strategies to how your customers actually behave, not how you assume they behave.

What causes sales to decline

Declining sales often signal underlying problems you need to address before growth strategies can work. Identifying the root cause helps you choose how to solve it.

Common reasons sales decrease:

Pricing isn't competitive

Customers compare prices easily, especially online. If your prices are significantly higher than competitors without clear added value, sales will suffer. Review competitor pricing regularly and make sure customers understand what makes your offering worth the price.

Marketing doesn't reach the right audience

Even good products don't sell if potential customers don't know about them. If your marketing isn't reaching people who need what you offer, or your messaging doesn't resonate, sales will decline. Test different channels and messages to find what works.

Product or service quality issues

Quality problems lead to negative reviews, fewer referrals, and lost repeat business. If sales are dropping, check whether customer complaints or returns have increased. Address quality issues before investing in marketing.

Lack of customer engagement

Customers who feel ignored or undervalued stop buying. If you're not staying in touch between purchases, competitors who do will win their business. Regular communication and responsive service keep customers coming back.

Use your financial reports to spot declining trends early. Catching problems quickly gives you more options for fixing them.

Strategies to increase sales

Increasing sales comes down to two approaches: selling more to existing customers, or attracting new ones.

Start with existing customers. It's often more affordable than finding new ones. In fact, data shows it costs five to 25 times more to acquire a new customer than to retain a current one, and makes strategic sense. Once you're good at maximising sales to current customers, each new customer you attract becomes automatically worth more.

The money you spend on acquiring customers delivers a bigger payback when your existing customer value is already optimised.

Increase sales to existing customers

Selling more to existing customers is typically the most cost-effective way to grow revenue. These customers already trust you, so removing purchase barriers and building deeper relationships can deliver quick wins.

Here are proven tactics to increase sales from your current customer base.

Reduce barriers to buying

Reducing barriers to buying removes friction that stops customers from completing purchases. Think about your purchasing process from your customers' point of view.

Ask yourself: what might stop a customer from buying? What might entice them to buy more?

Make ordering easier

A complicated ordering process loses sales. Streamline these critical steps:

• Answer promptly: Return calls and messages quickly so customers don't look elsewhere.
• Send quotes fast: Delayed quotes give competitors time to step in.
• Offer online ordering: Let customers buy when it suits them, not just during business hours.
• Set up standing orders: Automate recurring purchases for regular customers.
• Simplify checkout: Remove unnecessary steps and offer multiple payment options.

Make billing friendlier

Flexible billing encourages repeat business by reducing financial friction for your customers.

• Flat fees: Charge the same amount each month for predictable costs, even when service levels vary.
• Instalment plans: Let customers spread big-ticket purchases over time to ease their cash flow.
• Flexible payment terms: Offer options that match how your customers prefer to pay.

You may need accounting software or third-party payment services to provide this flexibility, but sympathetic billing often pays for itself through increased sales.

Run strategic sales promotions

Strategic sales promotions boost revenue without destroying your margins. Simple discounting brings more business but cuts into profitability. Smarter approaches protect your margins while still attracting customers.

• Bundling: Offer deals where discounts apply to part of the bundle, increasing total spend while limiting margin loss. Be aware that one study found the preference for bundles is higher than for individual products only when the discount is 45% or more.
• Loyalty discounts: Reward repeat customers with exclusive pricing, where ongoing sales volume offsets the discount cost.

Cross-sell related products or services

Cross-selling promotes related products or services alongside what customers are already buying. According to McKinsey, it can increase sales and profits by 20% and 30% respectively, adding value to each transaction without needing to acquire new customers.

Ways to cross-sell effectively:

• Product placement: Position related items together on shelves, displays, or website pages.
• Sales scripts: Train your team to recommend complementary products during conversations.
• Bundling: Offer discounts on additional items to encourage larger purchases.

Cross-selling differs from upselling, where you promote an upgraded or higher-end version of what the customer is already buying.

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

Expand your range of products or services

Expanding your product or service range gives existing customers more reasons to buy from you. Research opportunities before investing in new offerings.

Research what to add:

Consider these approaches to identify new offerings:

• Ask customers what else they need from you.
• Ask similar businesses what they sell that you don't.
• Ask suppliers to suggest products that complement your current range.

Consider adding services to products (or vice versa):

Here are some options:

• Product businesses: Offer installation, training, or maintenance services.
• Service businesses: Sell related products (a hairdresser might stock haircare products; a web developer might offer analytics tools).

Repackage existing offerings:

Sometimes reframing a product or service for different customers works as well as creating something new. A chocolate maker could pitch themselves as a supplier for restaurants and caterers, for example.

Get more tips in the guide Launching new products.

Build stronger customer relationships

Relationship marketing shifts your focus from one-off sales to connecting with customers long-term, encouraging repeat business. For example, research shows that 73.6% of consumers purchase more frequently because of a brand's online community, demonstrating how connecting with customers costs less than constantly finding new ones.

Common relationship marketing tactics:

• Create mailing lists or social media groups: Stay in regular contact with customers between purchases.
• Send newsletters: Share useful tips, news, and occasional business announcements weekly, monthly, or quarterly.
• Run loyalty programmes: Offer special privileges like advance access to new products, exclusive discounts, or prizes.
• Host engaging events: Bring customers together through information evenings, product launches, or exhibitions.

Attract new customers

Attracting new customers expands your revenue potential beyond your current customer base. Once you've optimised sales to existing customers, focus on reaching new audiences.

Expand your presence (physical or online)

Expanding where you're present puts your brand in front of new audiences. You can grow physically, digitally, or both.

Physical expansion options:

Consider these approaches:

• New locations: Open branches where your target customers live and work.
• Lower-cost alternatives: Share a workshop, open a pop-up shop, use coworking space, or partner with complementary businesses.
• Test before committing: Start small to validate demand before investing heavily.

Online expansion options:

Explore these digital approaches:

• Open an online store: Reach customers beyond your local area.
• Offer remote services: Serve clients anywhere without geographic limitations.
• Learn your market: Research how similar products or services are typically sold online.

Broaden your marketing reach

Broadening your marketing reach helps you connect with potential customers in new ways.

Experiment with digital marketing

Test social media and search marketing with low-cost strategies to see what works for your audience. Digital channels let you reach more people without a large upfront investment.

Tap into word-of-mouth marketing

Referrals are one of the most effective and affordable ways to find new customers, as research shows 88% of consumers trust recommendations from friends and family more than any other type of advertising.

• Ask directly: Tell satisfied customers you're looking for more clients like them.
• Build it into your process: Make referral requests a standard part of your customer conversations.
• Consider incentives: Offer rewards for successful referrals, but try asking first since many customers are happy to help.

Test new audiences

Expand your reach by targeting adjacent customer groups:

• Example: A web services provider for small businesses could also target sports clubs and charities.
• Example: A commercial kitchen supplier could open their range to households.

Try new products or services for new markets

New products or services for new markets can attract customers who wouldn't otherwise consider your business.

Before expanding your range:

• Identify your strengths: Consider where else you could add value based on what you already do well.
• Calculate the true cost: Factor in development, inventory, marketing, and operational changes.
• Pilot before committing: Test new offerings on a small scale before making permanent changes.

Track and measure your sales performance

Measuring sales performance shows you which strategies work and where to focus your efforts. Without tracking, you're guessing.

Key sales metrics to monitor

Focus on these essential measurements:

• Revenue growth: Compare sales month-over-month and year-over-year to spot trends.
• Customer acquisition cost: Calculate how much you spend to gain each new customer.
• Customer lifetime value: Estimate the total revenue a typical customer generates over time.
• Conversion rate: Track what percentage of leads or enquiries become paying customers.
• Average order value: Monitor how much customers spend per transaction.

Use financial reporting to track progress

Your accounting software provides valuable sales insights:

• Sales reports: See which products, services, or customer segments generate the most revenue.
• Trend analysis: Identify seasonal patterns and growth or decline over time.
• Profitability tracking: Understand which sales actually contribute to profit after costs.
• Cash flow visibility: Monitor how sales translate into actual money in your account.

Review your metrics regularly. Monthly check-ins help you catch problems early and double down on what's working.

Manage your finances to support sales growth

Managing your finances ensures your sales growth actually improves profits. Every sales strategy has costs, so track them carefully.

Watch your expenses:

Track these cost categories:

• Capital costs: New tools, equipment, locations, or websites needed to execute your strategy.
• Operating costs: Additional inventory, freight, marketing spend, and sales commissions.

Protect your margins:

Increasing sales doesn't help if you lose money on each sale. Pay attention to how costs and pricing changes affect your profit per sale.

If your margin shrinks through discounting, make sure the increased sales volume delivers an overall profit increase. Use your financial reports to track whether growth strategies are actually improving your bottom line.

Use Xero to support your sales growth

Growing your sales is easier when you have clear visibility into your business finances. Xero helps you track sales trends, understand which products or services are most profitable, and make data-driven decisions about where to focus your efforts.

With automated invoicing, multiple payment options, and real-time reporting, Xero removes administrative friction so you can focus on what matters most: building customer relationships and growing your business.

Get one month free and see how Xero supports your sales growth.

FAQs on how to increase sales

Still have questions about growing your sales? Here are answers to common concerns.

What are the main ways to increase sales?

There are two fundamental approaches: sell more to existing customers through cross-selling, upselling, and relationship building, or attract new customers through marketing, expanded reach, and new offerings. Most businesses benefit from doing both.

How can I increase sales quickly?

Focus on your existing customers first. Reducing purchase barriers, running targeted promotions, and asking for referrals can generate results faster than acquiring new customers. Review your pricing and payment options for quick wins.

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

Upselling promotes a higher-end version of what the customer is already buying. Cross-selling promotes related products or services alongside their purchase. Both increase transaction value from existing customers.

How much should I spend on marketing to increase sales?

Typical marketing spend varies by business stage; for example, growing small businesses often spend 7% to 10% of revenue on marketing, while more mature businesses might spend 4% to 7%. Start small, track your return on investment, and increase spending on channels that deliver results.

How do I measure if my sales strategies are working?

Track key metrics including revenue growth, customer acquisition cost, average order value, and conversion rates. Compare results before and after implementing new strategies. Use your accounting software's reports to monitor trends over time.