How to increase sales with proven growth strategies

Published Thursday 2 April 2026

Table of contents

• Strategies to increase sales
• Increasing sales to existing customers
• Finding new customers
• How to measure your sales performance
• Do the numbers on sales-boosting strategies
• Grow your sales with Xero
• FAQs on increasing sales

Key takeaways

• Prioritise selling more to existing customers first, as they're 60-70% likely to buy from you again compared to just 5-20% for new prospects, and acquiring new customers costs 5-25 times more than retaining current ones.
• Remove barriers to buying by streamlining your ordering process, offering multiple payment options, and making billing customer-friendly with flat fees or instalment payments to reduce friction points that stop purchases.
• Implement cross-selling and upselling strategies to increase revenue per transaction, which can boost sales and profits by 20% and 30% respectively by promoting related products or upgraded versions alongside current purchases.
• Build strong customer relationships through excellent service, loyalty programs, and regular communication, as improving customer retention by just 5% can increase profits by 25-95%.

Strategies to increase sales

Increasing sales comes down to two core strategies: sell more to existing customers, or attract new ones.

Start with existing customers, as this makes strategic sense for you and is often more affordable than finding new buyers. In fact, research shows that acquiring a new customer is consistently 5–25 times more expensive than retaining an existing one. Once you're good at maximising sales to current customers, each new customer you win becomes worth more. The money you spend on acquisition delivers a bigger payback.

Increasing sales to existing customers

Selling more to existing customers is typically faster and cheaper than finding new ones, as the likelihood of successfully selling to an existing customer is 60–70%, compared to just 5–20% for a new prospect. Anything you can do to make it easy for customers to spend money with you will help. For certain types of businesses, building deeper relationships also drives repeat purchases.

Reduce barriers to buying

Barriers to buying are friction points that stop customers from completing a purchase. Reducing these barriers is often the fastest way to increase sales.

Think about your purchasing process from the customer's point of view. Consider these questions:

• Identify obstacles: what might stop a customer from buying?
• Spot opportunities: what might entice them to spend more?

Make ordering easier

A smooth ordering process keeps customers from abandoning their purchase. Review these common friction points:

• phone responsiveness: is someone always available to answer?
• message turnaround: do you return enquiries promptly?
• quote speed: are you sending quotes in a timely manner?

Streamline these early steps so you don't leave opportunities on the table. Consider offering online ordering or standing orders for customers with recurring needs. Make checkout seamless with multiple payment options to help seal the deal.

Make billing friendlier

Customer-friendly billing encourages repeat business. Here are two approaches that work:

• flat fees: charge the same amount each month even when service levels vary. Clients who prefer cost certainty find this attractive.
• instalment payments: let customers pay for big-ticket items over time. This helps their cash flow and makes larger purchases more accessible.

You may need bill payment software or third-party services to offer this flexibility, but sympathetic billing can increase sales and build loyalty.

Build a customer service culture

Strong customer service turns one-time buyers into repeat customers. It also generates word-of-mouth referrals that bring in new business at no extra cost.

Here are ways to improve customer service:

• respond quickly: answer enquiries and resolve complaints promptly
• train your team: make sure everyone understands your service standards
• ask for feedback: use surveys or follow-up calls to learn what you can improve
• go beyond expectations: small gestures like handwritten thank-you notes or surprise discounts build loyalty

Great service differentiates you from competitors and gives customers a reason to come back.

Sales promotions

Sales promotions are temporary offers designed to boost short-term sales. They work, but they need to be done strategically. Blanket discounts bring more business but cut into your margin, which can threaten profitability.

Here are two smarter approaches:

• bundling promotions: customers "buy this and get that for half price." The discount only applies to part of the bundle, so you attract higher spend while protecting your margin. Research suggests the discount needs to be significant. A customer's preference for bundles is higher than for individual products only when the discount is 45% or more.
• loyalty-based discounts: ongoing sales from repeat customers outweigh the cost of the discount.

Create a loyalty program

A loyalty program rewards repeat customers and encourages them to keep buying from you. It increases customer lifetime value, and according to research by Bain & Company, improving retention by just 5% can boost profits by 25% to 95%.

Effective loyalty programs share these features:

• simple rewards: make it easy to earn and redeem points or discounts
• clear value: customers should see the benefit quickly, not after dozens of purchases
• tiered benefits: offer better rewards for your most frequent buyers. Tiered programs are highly effective. Studies show their average engagement rate is 48%, compared to 35% for non-tiered programs.
• easy tracking: use software to manage points and communicate with members

Even a simple program, like a punch card or a members-only discount, can increase repeat purchases.

Cross-selling and upselling

Cross-selling promotes related products alongside what the customer is already buying. Upselling promotes an upgraded or higher-end version of their current choice. Both increase revenue per transaction, with one report from McKinsey finding that cross-selling can increase sales and profits by 20% and 30%, respectively.

Here are ways to cross-sell effectively:

• in-store: co-locate related items on shelves or in displays
• online: show recommendations on product pages or at checkout
• in conversation: build suggestions into your sales scripts

Bundling (offering a discount on additional items) can help, but it's not always necessary.

Learn more in the guide Upselling techniques to increase revenue.

Expand your range of products or services

Expanding your range gives customers more reasons to buy from you. One way to sell more is to offer more.

Research what to add by considering these approaches:

• 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 yours

Consider both goods and services when expanding your range:

• Sell related services if you're a goods business: installation, training, or maintenance
• Sell related products if you're a service business: a hairdresser sells haircare, a web provider sells analytics tools

You can also repackage your existing offer:

• Reframe or rename a product for different customer segments
• Pitch to new markets: for example, a chocolate maker could target restaurants and caterers, not just retail customers

Get more tips in the guide Launching new products.

Relationship marketing

Relationship marketing focuses on building long-term customer connections rather than one-off transactions. It encourages repeat business and increases customer lifetime value.

Common relationship marketing tactics include:

• creating mailing lists or social media groups for regular communication
• sending newsletters with news, tips, and business updates
• running loyalty clubs with special privileges like early access, discounts, or giveaways
• hosting events such as information evenings, product launches, or exhibitions

Finding new customers

Finding new customers expands your revenue beyond what existing buyers can provide. Once you've optimised sales to current customers, focus on reaching new audiences to continue growing.

Know your competitors

Understanding your competitors helps you differentiate your business and find gaps in the market. You can't stand out if you don't know what you're standing out from.

Here's how to analyse your competition:

• identify direct competitors: who else serves your target customers?
• review their pricing: are you more expensive, cheaper, or about the same?
• assess their strengths: what do they do well that you could learn from?
• spot their weaknesses: where do customers complain? That's your opportunity.
• monitor their marketing: what channels do they use? What messages resonate?

Use these insights to position your business, refine your pricing, and craft marketing messages that highlight what makes you different.

Expand your presence (physical or online)

Expanding your presence puts your business in front of new audiences. You can grow physically, digitally, or both.

Physical expansion involves these strategies:

• Open new locations to reach people in different areas
• Start modestly: share a workshop, open a pop-up, or use shared office space
• Partner with a complementary business to reduce costs

Physical expansion requires capital, so plan your budget carefully.

Online expansion involves these strategies:

• Open an online store to sell beyond your local area
• Set up to serve clients remotely if you provide services
• Learn how your products or services are typically sold online

Going digital removes geographic limits and often costs less than opening a new location.

Broaden your marketing

Broadening your marketing means changing when, where, and how you speak to potential customers. Testing new channels and audiences can uncover growth opportunities you've been missing.

Experiment with digital marketing

Try social media and search marketing if you haven't already. You can test low-cost strategies and see what resonates with your audience.

Tap into word-of-mouth marketing

Word of mouth is one of the most effective and affordable forms of marketing. People prefer to buy from businesses that others recommend, and this is backed by research showing that online reviews can increase a customer's likelihood of buying a product by up to 270%.

Ask your customers to spread the word:

• for B2B services: tell clients you're looking to work with more people like them. It's a compliment and a request rolled into one.
• build it into your process: make referral requests part of your standard script so you never forget.
• consider incentives: offer rewards for referrals, but try the free approach first. People genuinely like helping businesses they trust.

Test new audiences

If you've been marketing to the same group, try reaching a different demographic. A web services supplier to small businesses could target sports clubs and charities. A commercial kitchen supplies business could open its offering to households.

Expanding your product range also helps you reach new customer segments. See the section on expanding your range above for tips on adding new products or services.

How to measure your sales performance

Measuring sales performance tells you which strategies are working and where to focus your efforts. Without tracking, you're guessing.

Here are key metrics to monitor:

• total revenue: are overall sales increasing month over month?
• revenue by customer: which customers spend the most? Are you maximising their value?
• conversion rate: what percentage of leads become paying customers?
• average transaction value: are customers spending more per purchase?
• customer acquisition cost: how much does it cost to win a new customer?

Review these numbers regularly. If a strategy isn't moving the metrics that matter, adjust your approach or try something different.

Xero accounting software can help you track sales and generate reports that show where your revenue comes from.

Do the numbers on sales-boosting strategies

Every sales strategy has a cost. Before you invest in growth, work out whether the returns will justify the spend.

Watch these expense categories:

• capital expenses: new tools, equipment, locations, or websites needed to execute your strategy
• operating expenses: additional inventory, freight, marketing spend, or sales commissions

Pay close attention to your margins. Increasing sales is only worthwhile if you can still make money on those sales.

Changes to costs or pricing will affect your margin. If discounting shrinks your margin, make sure the increase in sales volume delivers an overall increase in profit.

Grow your sales with Xero

Now that you understand the strategies for growing sales, it's time to put them into action. Whatever strategies you choose, track your results. Knowing what works helps you invest your time and money where it counts.

Xero helps you monitor sales performance, manage cash flow, and keep your finances organised as you grow. Get one month free and see how easy it is to turn sales strategies into profitable results.

FAQs on increasing sales

Here are answers to common questions about growing your sales.

How long does it take to see results from sales strategies?

Most strategies take four to 12 weeks to show measurable results. Quick wins like promotions or removing checkout friction can work faster, while relationship marketing and brand building take longer.

Which sales strategy should I start with?

Start with your existing customers. Reducing barriers to buying and encouraging repeat purchases is usually faster and cheaper than finding new customers. Once you're maximising their value, every new customer you win becomes worth more.

How much should I spend on marketing and sales?

While some guidelines suggest 2–5% of revenue, the average marketing budget across industries is closer to 9–10%, with B2B companies spending on the lower end (2–5%) and B2C companies spending more (5–10%). Track your return on investment and adjust based on what delivers results.

How can I compete with larger businesses?

Focus on what big businesses can't easily replicate: personalised service, local expertise, and faster decision-making. Build strong customer relationships and highlight what makes you different. Learn more in the guide how to compete with large retailers.