here are some crucial insights that capture the essential 20% of learning which will provide you with 80% understanding of marketing small local businesses, based on the Pareto Principle or 80/20 rule:
- Understand Your Target Market: One of the biggest mistakes that local businesses make are thinking that their solution is for everyone. Sure, you can probably shoehorn every person into some application for what you do, but in most cases 80% of your customers can be grouped into one segment (mothers of multiples, empty nesters, parents of children in 3rd or 4th grade, local business owners, accountants, etc.)
The foundational concept of any marketing strategy per any marketing education program you will ever take in, is knowing who your customers are, understanding what ails them, knowing what they need, and how you can meet those needs. A lot of times you can extract this from your customer database but if your database is a mess, or it’s scant on customer details, you can carry out market research to understand the demographics, preferences, and behaviors of your current (and potential) customers.
- Develop a Unique Selling Proposition (USP): Identify what sets your business apart from the competition. This means that knowing your audience (point 1) what can you do better than anyone else can? This doesn’t mean that you need to run a market research study to uncover what that actually is, but it does mean that you need to do a little navel gazing.
Your USP should clearly communicate the unique benefits or value that customers will get from your product/service, which they can’t get elsewhere. For example, consider a chiropractor. A lot of chiropractors think of themselves as generalists because one chiropractor can solve a lot of the same problems as the next…that’s the reality of market competition. But, what about the chiropractor that helps body builders recover from sports injuries? Now there’s something to work with!
Instead of thinking about your customers as anyone with a pulse (since anyone can benefit from chiropractic, in theory) think about who you either (a) really click with or (b) enjoy serving the most or (c) who you are passionate about serving. What is your own personal history or reason for getting into your profession? Who do you have great conversations with? Who makes coming to work a pleasure? Who raves about how much you’re helping them? Those people are likely your power base of customers — and don’t worry about narrowing it down too much, I promise that there are enough “power base” customers out there to help your business thrive.
Here are some ideas to get you started (again based on a chiropractor because I feel like healthcare and wellness entrepreneurs have the hardest time with this, but think about it in the context of your own business):
Do you work with athletes, young professionals, post-natal mothers and/or their babies? Are you a whole family chiropractor (you take a comprehensive and holistic approach to their health as a unit) or do you prefer helping people one on one? Do you specialize in a specific type of solution, e.g. people who get chronic headaches? People who are recovering from major trauma or surgeries?
If you’re a lawyer, do you specialize in family law cases involving the adoption or custody of foster care children? Do you help people get out of DUIs? If you’re an accountant, do you enjoy helping people catch up on 3-5 years of past due taxes? Do you help people who have employers or properties out of state? Are there particular states where you have a history unpacking complicated tax situations (e.g. New York to Connecticut, New York to Texas, Texas to California, etc.)
- Leverage Local SEO: This does not mean what 100% of “cheap” marketing gurus will tell you that it means. Every marketer who is not performance based, but who wants to get paid will tell you that you need to work on your SEO. In fact, a ton of marketing companies specialize in creating marketing sites for a particular type of business (e.g. veterinarians, chiropractors, etc.) and just shop that model around with the promise of creating fresh content to help you rank “in the search engines.” This should be a crime.
The most important thing that you can do for local SEO is #1 make sure your Google My Business page is completely set-up & accurate. Your next mission is then to get all of the reviews humanly possible on that page. (Covered later)
Use Social Media: Use social media platforms to connect with customers, promote your products or services, and build your brand. Which platforms you use will depend on where your target customers spend their time.This sounds great, and it’s awesome if you have the time and buckets of creativity, but if you’re looking for strategies that offer a high ROI, most of the time social is not a worthwhile investment for local brands. This is true because(1) it’s difficult and/or expensive to keep coming up with fresh ideas and content
(2) there is typically very low engagement, because the topics you share aren’t particularly shareable
(3) You don’t really have an audience that is going to care. Unless you do. I’m talking about more than 7 Likes on a post, on a regular basis.- Email Marketing: Build an email list and use it to keep in touch with your customers. You can send out newsletters, special offers, and updates about your business. The most effective offers that I’ve seen vary by business but the key is usually having a well segmented list. That means knowing what your customers have purchased in the past and offering them the same, or next logical service. You don’t even have to necessarily offer a discount, you just say (I’m paraphrasing, don’t say this exactly),
“Hello Beloved,
We hope you enjoyed (service).
When are you coming back to get more of this awesome sauce?
Love, Us”
or
“Howdy Partner,
A lot of people who got (the thing you bought) also really loved (another thing). Here’s what they’re saying (1-2 sentences from a review).
I think you might really be into it. Heck, maybe that’ll become your new fave…wanna give it a try?
Here’s a link to book an appt.
Love, Us”
- Networking and Partnerships: Let’s say you own a karate studio and you have a few classes for school aged kids. Now let’s also say that there’s a math tutor in the same plaza (or nearby). It costs virtually nothing to stop in and ask them about their business and see if there’s an overlap there.
If you vibe, maybe you’ll make a new BFF. But also, you can try out options like setting up a little affiliate kickback between business owners. Maybe offering a package deal between your businesses where parents get a discount if they sign their kids up for both — or even just an intro discount for the other.
Now if you really get along well, you could try sharing expenses for events, co-hosting events together, sponsoring school events, or sharing a booth at local events (think farmer’s markets), etc.
I’m just riffing here, but you get the point.
There are few marketing opportunities as effective as networking with other local businesses and forming partnerships. These can be an excellent way to reach more customers and increase your visibility in the community. Plus, making adult friends is super hard, entrepreneurship is lonely, and it could be really awesome to have an adult friend who understands the hustle. - Content Marketing: Share valuable, relevant content with your audience. This can help you establish authority, improve SEO, and keep people engaged with your brand. This is particularly useful if there are seasonal or community events that take place which are of interest. This is one of the occasions where you can promote your content on social but contrary to the idea of just posting it on your page, seek out community pages and share your content there…don’t be overly promotional as you are focused on creating value with a little hat tip about how your business is useful in solving the problem they’re reading about.
Example: You own a popular math tutoring franchise and the school year is about to end. This is a perfect opportunity to share some tips to parents about how to prevent learning loss over the summer. Of course, this will include a recommendation that they book a free consultation, but make sure that what you offer is actually relevant.
And don’t limit yourself, you can take this content offline by posting on local bulletin boards and handing out information. - Customer Service: Excellent customer service can set your business apart. Satisfied customers are likely to be loyal, make repeat purchases, and recommend your business to others.
- Online Reviews and Reputation Management: Encourage satisfied customers to leave positive reviews online, and respond promptly and professionally to any negative feedback. (See point about about local SEO) This is not as difficult as you might think. Here’s a cute story to help you remember:
Picture yourself in the world of customer interaction, donning a cape of courtesy and a hat of helpfulness.
Your mission? To gather the shiny stars of Google My Business reviews.
But how, you ask?
Well, it’s a bit like baking a perfect soufflé – timing and technique are everything. Let’s say your customer, Jane, walks out of your store, her face brighter than a freshly painted sunflower thanks to your fantastic service. Seize the day! With a hearty laugh, point towards the metaphorical ‘Review Us on Google’ sign (bonus points if you actually have one). Say, “Jane, if your smile were a Google review, we’d be a solid 5-stars!”
Now, you’ve planted the seed. But we all know that finding the review button on Google can sometimes feel like finding Waldo in a crowd of candy cane lookalikes.
So, make it simple. Send Jane a thank-you email with a direct link to your Google My Business page.
You could say, “Jane, we’re on a quest to become the ‘Lord of the 5-star Reviews.’ Could you help us on this epic journey?” Before you know it, those Google stars will start rolling in faster than a snowball down a hill, and you, my friend, will bask in the glory of your ever-growing online reputation. Mission accomplished!
By focusing on these areas, you should be able to develop a solid foundation for marketing your small local business.
Remember to Measure and Adjust. Keep track of what works and what doesn’t. Use this data to refine your marketing strategy over time. Remember, the best marketing strategies are flexible and adapt to changes in the market and customer behavior. Always keep learning and adjusting your strategy as needed.
If you would like this information in a Downloadable Checklist with action items, shoot me an email.