In tough economic times, small businesses can struggle. Big multinational chains often have the scale to undercut local competitors and survive even when times get tough.
What can small businesses do to retain and attract customers in a competitive market?
Identify your business’s advantages
Think about what your business can offer that a multinational operator cannot. For example, you might have the edge on:
Local knowledge
Close relationships with customers
Personalised service
Easier parking
Specific products and services
Immediate availability of products
An excellent loyalty scheme
Community support
Local events
If you’re not sure what your big selling points are, ask your customers.
Show off your advantages online
Leverage your business’s selling points through your online presence. While it might be prohibitively expensive to build a whole new office or store frontage, your online shop-front can be impressive at a fraction of the price.
Step up your social media activity, paying particular attention to sites where local people are active. Invest in outstanding photography, too.
Embrace Innovation
In today's digital age, using technology to your advantage can be a game changer. Integrate modern solutions into your business operations. For example, use a mobile ordering system, offer online booking, or implement a customer relationship management (CRM) system. Technology can help streamline your services and improve customer experience.
Invest in reviews
Can you find a way to nudge your best customers into providing online feedback? Positive reviews are a vital tool for small businesses to grow their customer base.
Make it easy for people to leave reviews – send them an email reminder with a link included.
Address negative reviews immediately and professionally.
Consider an incentive to provide a review, such as a free extra item immediately or a $5 discount code off their next order. Alternatively they could go in the draw to win a bigger prize. This may also encourage them to shop with you again.
Be boutique
Lean into being small. Customers are willing to pay more for businesses that employ great people, provide quality service and a high-end experience. Invest in providing a polished experience for all your customers.
Build a brand story
People love stories and they love to support businesses with a purpose. Develop a compelling brand story that resonates with your target audience. Highlight your origins, your values, and what you stand for. This will not only help to differentiate your business from larger competitors but also foster a deeper connection with your customers
Appeal to ethical customers
Many shoppers are happy to pay more for sustainable, ethical products and services. Have measurable sustainability credentials and show them off whenever you can.
Engage with the Local Community
Get involved in local community events or sponsor a local sports team. This can increase your visibility, promote goodwill, and strengthen your connection with the local community.
Educate Your Customers
Use your online platforms to educate your customers about your products or services. This could be blog posts, how-to videos, or FAQs. The more knowledgeable your customers are, the better decisions they can make.
We’re here to help
Remember, running a small business doesn't mean you can't compete with the big guys. It's all about leveraging your strengths and providing exceptional value to your customers.
For more ideas that are tailored to your business, we can help. Drop us an email or give us a call – we’d love to hear from you.
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