The Big Interest in Small-to-Midsized Businesses
Between the shaky economy and concern over how successful sales will be for the upcoming holiday season, operators of small-to-midsized businesses may feel overwhelmed, discouraged or just “not great.” If you own a local independent business, take heart. Your neighborhood consumers may be more interested in what you have to offer than you think.
Surprising findings about consumer opinions
In a recent Media Post commentary, Ray Schultz called attention to a survey that was conducted by ActiveCampaign last August which concluded that 60 percent of consumers had negative opinions regarding large, brand-name stores. (Of this figure, 69 percent were members of Gen Z and 51 percent were Baby Boomers).
Shoppers and the holidays
Going further, 84 percent of those surveyed stated they planned on shopping locally during the approaching holiday season. Findings like this and those cited above should therefore give independent business owners a feeling of optimism and a more positive outlook. (Reminder: Small Business Saturday is November 26—a little under two months away—so now is the time to start planning.) Here are three steps to put in place for making the relationships with your customers even stronger:
1. Learning about your customers
If you own a small-to-midsized business, take inventory—not of stock, but your database of customers. What have they purchased from you? Do they like a particular product that they’ve bought more than once? Questions like these can serve as a guide to having a better handle on how to market to each segment of your customer base—particularly your most loyal shoppers.
2. Discovering your “high value customer” segment
As you take inventory, you may find some interesting points you've overlooked. Approximately 65 percent of your revenue, for example, will come from repeat customers. Additionally, 10 percent of these shoppers—known as “high value customers”—tend to spend three times as much as the average customer who has made one or only a few purchases from your business. Think of this segment as the fan club of your business. Treat these customers with special, personalized care.
3. The power of personalization
Going beyond addressing your customer by his or her first name in your next email blast, recommend a product or service that might be of special interest to them. Check the records of what they bought from you in the past. What do they seem to need on a regular basis? What do they want? (And keep in mind that a supposed “want” for one customer may actually be a “need” to another.) While you also want to keep other customers up to date on what you have to offer, paying particular attention to your high value segment will strength the bond—even bypassing pricing…
Would customers pay more—in this economy? Yes!
Apparently, the majority of customers will pay an extra amount of money for a product or service from a small-to-midsized business than a lower price at a big box retailer. According to Mr. Schultz, 60 percent of consumers are willing to pay more—provided the customer experience is positive. That’s why making the shopping experience as personalized as possible has literally no price tag.
As you can see, your small-to-midsized business can be more successful by building and maintaining a strong relationship with your customers. If you want to increase your visibility and promote your goods and services even further, consider Raydeus Local—a full-service marketing platform that specializes in supporting small businesses. From email marketing to review monitoring, among many other services, your local business will receive the proper attention to be seen, noticed, and remembered.
Contact Raydeus Local to learn more.