Sales strategies can make or break your small business. Without a clear plan in place, you can waste time chasing the wrong customers. But when you have a solid strategy, everything falls into place: you focus on the right people, deliver the right message, and close more deals.

If you’re scratching your head as to what makes a good strategy, we’ve got you covered. 

We’ll walk you through what a sales strategy is, why it’s important, and how to create one that works for your small business. Whether you’re a small biz novice or looking to refine your approach, you’ll find practical tips, tools, and examples to help you achieve your sales goals.

What is a sales strategy and why does it matter?

You wouldn’t play a big match without a game plan, so why would you start a business without a sales strategy? A sales strategy is your road map that guides your sales efforts, helping you focus on the right customers, channels, and tactics to achieve your sales goals.

For small business owners, a well-thought-out sales strategy is essential because it ensures you’re making the most of your most precious resource (your time). When you have a strategy, instead of trying to sell to everyone, you target the people who are most likely to buy from you, which increases your chances of success.

Why does it matter?

• It improves efficiency: A clear strategy helps you work smarter, not harder.
• It makes your sales more consistent: You’ll have a structured approach to follow, making it easier to replicate your successes.
• You’ll achieve better results: By focusing on your ideal customers, you’re more likely to close deals and grow your revenue.

How does it work? 

Say you run a gluten-free bakery. Instead of targeting everyone in your neighbourhood, you could focus on health-conscious consumers and people with dietary restrictions. This targeted approach not only saves you time but also makes your marketing and sales efforts more effective.

Building your sales strategy step by step

Creating a sales strategy is as easy as 1-2-3-4. Try these four steps to a winning strategy:

1. Know your audience

At the heart of any good sales strategy is an understanding of your customers’ needs. Who are they? What do they want? What problems can your product or service solve for them? So you need to map this out.

How to get started

Do you have a buyer persona? If you don’t, it’s time to create one:

• Outline the key details about your ideal customer. Include demographics, buying habits, and pain points.
• Talk to your existing customers to learn what they value most about your business.

For example, a pilates studio might find that their ideal customers are young mums aged 25-40 who are looking to get back in shape post-pregnancy.

2. Set clear goals

Goals give you something to aim for and help you measure your progress. Make sure your goals are specific, measurable, and achievable.

Examples of sales goals:

• Increase revenue by 25 per cent in the next six months.
• Acquire 20 new customers this month.
• Upsell to 10 per cent of existing clients.

3. What’s your unique selling proposition (USP)?

Your USP is what sets you apart from your competitor. It’s the reason customers should choose your business over others.

What are the unique benefits of your product or service? Once you know this, you can sell the benefits to customers instead of only the features.

For example, my local coffee shop’s USP is, “We source our beans from sustainable farms and organic-roast them in-house, benefitting you and the environment.”

4. Pick your sales channels

Not all sales channels are created equal. Choose the ones that align with your business and your customers’ preferences.

Common sales channels:

• Online platforms (e.g. Shopify, Etsy)
• Social media (e.g. Instagram, Facebook)
• In-person sales (e.g. Markets, pop-ups)

As an example, if your business provides handmade wares you might find Etsy and Instagram a good fit to reach your customers, as well as selling in person at local markets. 

Proven sales strategies for small businesses

Once you’ve built the foundation of your sales strategy, it’s time to put it into action. Here are some tried-and-true strategies that work for small businesses.

Relationship selling

Sales are about building trust and creating lasting relationships. People buy from those they like and trust, so focus on making genuine connections with your customers.

3 steps to relationship selling:

1. How well do you understand your customers’ needs? This is the foundation stone of your customer relationship, so spend some time thinking this though.
2. Follow up after the sale to ensure they’re satisfied.
3. Personalise your interactions whenever possible. An easy way to do this is to send personalised thank-you emails to clients after completing a project, along with a quick survey to gather feedback.

Upselling and cross-selling

When you upsell or cross-sell you encourage your customers to buy additional or higher value products or services.

How to upsell:

• Offer a related product or service at checkout.
• Highlight premium options during the sales process. For example, a hairdresser could offer a discounted treatment or blowdry to clients booking a haircut.

Referral programs

Word of mouth is one of the most powerful marketing tools for small businesses. A referral program rewards your existing customers for bringing in new business.

How to implement:

• Offer discounts, freebies, or other perks for successful referrals.
• Make it easy for customers to share your business with their networks. e.g. A pet supplier might offer free samples or discounts for every new client referred by an existing customer.

Measuring your sales strategy’s success

A sales strategy isn’t something you set and forget. You need to track its effectiveness and make adjustments as needed. This ensures you’re always moving in the right direction.

Why measurement matters

Tracking your sales strategy’s performance helps you understand what’s working and what needs improvement. It also ensures your efforts are delivering a strong return on investment.

Metrics to measure:

• Conversion rates: Do you know how many leads turn into paying customers? This is your conversion rate, and it shows you how effective your sales process is. Tracking conversions will help you see your strike rate but also can provide information as to where your customers are dropping out in your sales funnel.
• Average deal size: What is the value of your typical sale? By understanding your average deal size you will know how many customers you need to hit your targets. Plus, you’ll find out what customers to upsell or target for greater sales.
• Customer acquisition cost (CAC): This is how much it costs your business to acquire a new customer. Keeping this low ensures profitability.
• Customer lifetime value (CLV): How much do your customers spend over the lifetime of their relationship with your business? Understanding the total revenue a customer brings to your business will give you an idea of their loyalty. A high CLV indicates strong loyalty and repeat purchases.

Tools to help:

• Google Analytics for tracking website performance and user behaviour.
• HubSpot CRM for managing leads and monitoring sales.
• Pipedrive for visualising your sales pipeline and tracking deals.

Example: You run an online retail store selling homewares. Your sales platform allows you to track conversion rates. You notice that customers who receive free shipping are more likely to complete a sale.

Avoiding common sales strategy mistakes

Even the best-laid plans can go pear-shaped. Dodge a bullet by avoiding these mistakes.

• Not understanding your audience: Without a clear picture of your customers, your sales efforts will miss their target.
• Overcomplicating your strategy: Start simple and refine as you learn what works.
• Failing to follow up: Many sales are lost because of poor follow-up. Make it a priority to stay in touch with leads. For example, a tradie that doesn’t follow up with potential clients after an inquiry might miss out on bookings. So, follow up on leads immediately with a call or email to secure the job.

Nurturing existing customers

While acquiring new customers is essential, nurturing the ones you already have is just as important, if not more so. Existing customers are easier to convert and more likely to make repeat purchases, making them a valuable asset for your business.

Why focus on nurturing?

• Lower cost: It’s significantly cheaper to retain existing customers than to acquire new ones.
• Increased loyalty: Happy customers are more likely to stick around and recommend your business to others.
• Higher lifetime value: Nurtured customers tend to spend more over time, boosting your revenue.

How to nurture your customers

• Stay in touch: Keep the conversation going after the sale. Try emails, social reach outs and personalised messages. Tools like Mailchimp can help you manage email campaigns and even SMS reach outs.
• Deliver real value: Can you offer your existing customers exclusive deals, helpful content, or loyalty rewards to show your appreciation? For example, a café could create a loyalty program where customers earn points for every purchase and redeem them for a free coffee or discounted meal deal. Sending out a newsletter with tips or sneak peeks of new products or services is another good way to keep customers engaged.
• Listen to feedback: Stay on the front foot. Be proactive about addressing customer feedback so you can resolve any issues or seize any opportunities.

The bottom line is, a well-thought-out sales strategy is your ticket to sustainable growth. By understanding your audience, setting clear goals, and using proven techniques, you can build a sales process that works for your small business.

Resources:

• How To Create A Sales Strategy
• How To Build A Sales Funnel