According to a recent poll by Groupon, two-thirds of shoppers prefer to shop with local businesses over larger retailers – proving that you should never underestimate the competitiveness of small, local businesses when considering your competitors. Being a successful business owner includes a lot of anticipation and planning of your environment, assets, and competitors. While most of the spotlight is often on larger companies, thanks to their limitless pockets and vast resources, local and community-run businesses are rapidly making a case for themselves in the business arena, and proving just why businesses need to focus on local promotion.
Local Businesses Are More In Tune With Their Local Customers
Approximately, 7.8 percent of Americans aged 18-64 years old own or manage an established business that provides them an income, according to Gem’s 2018 Global Report. In recent years, more attention and capital have been directed at encouraging local entrepreneurship – and it has worked. Whether they are driven by the need to be their own boss or a better work-life balance, or they are inspired by their unique business idea, local residents are embracing entrepreneurship like never before. This also means they are apart of the market their business is targeting – i.e. their local community. This gives them a connection and inside track on what customers want from their business.
Customers Tend To Swivel Towards Local First In Their Search
Customers value a connection. They want to feel like they are part of something special. It is the same ideal that has driven the success of subscription membership models in recent years. Support for local businesses has also grown exponentially. Customers want to support local businesses, and by extension, their local economy, as they realize just how beneficial the success of local businesses is to the community and their lives. This is why 46 percent of all Google searches are for local information, and 88 percent of local searches on a mobile device end up visiting the store within 24 hours, according to a survey by Nectafy. Furthermore, 50 percent of customers searching for results ‘near me’ result in store visits to local businesses, which highlights the importance of businesses capitalizing on the use of local business directories, resources, and local SEO.
The Laser Precision Of Local Businesses Means They Stand Out
Another reason local businesses stand to be highly competitive is their targeted marketing tactics. Too often, businesses try to widen their appeal as much as possible by believing that mass appeal equals higher profit margins. However, targeted marketing provides local businesses with more flexibility and the chance to personalize their products and interactions with their intended market – something customers will value highly.
This is not to say that mass marketing and strategies are not effective. However, they do carry a higher risk profile of missing the mark, and inefficiencies on the market research and advertising front. With many local businesses knowing what resonates with the customers, they can provide first-class service and differentiated customer service.
Local businesses are an important part of society. They contribute to the economy, community identity, and well-being of their communities. While historically seen as the underdog, you should never make the mistake of underestimating the value – and competitive power – of local businesses. With a unique appeal and strength, they can easily lead the market if they have the know-how.