BBB Business Tip: How the local factor gives your business a competitive edge

For small, local businesses, especially those competing with larger companies operating on a national scale, there’s always an advantage: the local factor.

Where larger corporations can compete with scaled-up processes, heightened brand awareness, and even increased savings, it’s the nimbler, community-oriented small businesses that resonate with local consumers. (The familiar term “mom-and-pop shop” often captures this spirit.) When customers shop local, they’re investing in the place they live:

“When you support a local business, you also support your town, city, and neighborhood by paying sales tax. The sales tax money is used to support public schools, parks, roads, and sidewalks, as well as fund public service workers, like firefighters.” (U.S. Chamber of Commerce)

After navigating the last few years of economic flux, it’s clear that being a local business carries a lot of weight these days. As consumers trend toward local options, the time is ripe to lean into this advantage. This begs the question: As a small business owner, are you playing the local card?

Here are eight tips on how to lean into the local factor to drive success for your company.

1. Get neighborly with your customer service

Whether it’s a job quote, text message or face-to-face interaction, small businesses resonate on a deeper level by being neighborly, relatable, and more accommodating. For example, if a house painter was scheduling a visit to give you a quote, which message would you want to receive:

1. Thank you for reaching out to us. We’ve confirmed your appointment on March 9 to learn more about the project. Please visit our website or call our main number with any questions.

2. Thanks for considering us for your painting needs. Our painter Heather will visit your home on March 9 and is excited to hear about your project. She’s tackled various indoor and exterior paint projects with us is passionate and detail-oriented in her work and loves mountain biking in her spare time. Give us a call if you have any questions!

The second response incorporates a personal touch – you feel like you’re working with a person and not a faceless company. These subtle adjustments in tone can make a big difference in creating trust.

Small businesses can leverage personal interactions like these where larger operations can’t. Although not every business can tailor individual responses and experiences for each customer, empower your team to emphasize personalization when possible.

2. Encourage reviews from the locals

Reviews must be a priority for local businesses; here’s why:

“21% of consumers used the internet to find information about local businesses on a daily basis in 202e.” (Statista)

With so many eyes on online reviews, it’s clear they’re just as important as word of mouth. After doing business with customers, ask them to write a review. Encourage them to share details about their experience and to give a shout-out to the member of your team who helped. These testimonials can be powerful promoters for your business on impactful platforms like BBB.org and Google.

Pro tip: BBB encourages businesses to be responsive to their customers. Here are some thoughts on how to gain a competitive edge by responding to customer reviews.

3. Market locally

You have the opportunity to target your marketing to local customers in a variety of ways; here are six recommendations:

• Optimize for local SEO: Make sure your business name, address, and phone number (with area code) are listed everywhere online: your BBB Profile, your website, Google profile, online business directories, and social media pages. This helps your business appear on search engine results pages (SERPS) for local search queries.
• Diversify your local ad placement: Expand your marketing initiatives by looking into local advertising opportunities with billboards, local news outlets/publications, chambers of commerce, local blog posts, and affiliate programs.
• Tailor your promotions to local events: Book a booth or look into sponsorships for community events like conventions, trade shows, and festivals. Bring awareness to your business with special offers or giveaways for attendees.
• Get your social media game working locally: Social media platforms can be powerful locally. Use local geographic hashtags, reach out to local influencers, join local Facebook groups and networks, and run contests or giveaways to reach your local audience.
• Set up a referral program: Word of mouth can have a big impact on creating new leads and creating awareness. Get people talking about your business and turn your most loyal customers into advocates for your business with a referral program.
• Increase the use of your phone number: If you’ve got staff to take the calls, advertise your local phone number and show your willingness to connect with customers.

BBB pro tip: Here are seven local, low-budget marketing ideas.

4. Be a community leader

As a small business owner, you can positively impact your community by more directly taking part in community decisions. Your expertise is the thing to inform local community initiatives, building projects, events, and in some cases, even local legislation.

By being an active member of local leadership, you’re doubling down on both the future of the place you live and your reputation as a trusted thought leader. Here are some opportunities to investigate:

• Public forums and open houses
• Small business association meetings
• Your local chamber of commerce
• Industry fairs and trade shows
• Advisory committees
• Serving on a local board of directors

5. Support a cause that resonates locally

Supporting a local charity or cause shows your commitment to your community. When you donate time, money or resources, you’re demonstrating that you want to be part of something bigger, something that enriches your community for years to come.

Get started by researching the causes in your area to see if there’s one that aligns with your business’s values. To take it a step further, consider doing this with your employees to explore an issue that brings the team together.

Some ideas to consider:

• Find time for your team to volunteer with an organization
• Donate a percentage of your sales to a cause
• Host or sponsor an event; sell tickets
• Provide meals or supplies
• Donate auction items for fundraisers
• Assist in local disaster relief efforts when they occur
• Adopt practices that align with specific values, e.g., a builder might use upcycled materials or reclaimed wood for custom projects to promote sustainability

BBB pro tip: What to consider before supporting a charity.

6. Look to your local employees

You can’t get any more local than your employees. Whether they’re working onsite or remotely, they’re on the front lines, interacting with customers, making sales, and providing services. You can’t be tapped into your community's local needs without them, so look for ways to strengthen these important relationships as you work toward your goals as a team.

Not only can putting your employees first have a big impact on the long-term success of your business, but it can also create a ripple effect with your community when word spreads about your reputation as an employer.

7. Buy local

Just like some restaurants source locally, many businesses can do the same. Buying local parts, supplies, services, and goods means you’re stimulating your local economy, including supporting local jobs. In other words, you’re investing in your people (some of which may be your customers).

“Successful small businesses put money back into their local community through paychecks and taxes, which can support the creation of new small businesses and improve local public services.” (Forbes)

In addition to strengthening the goodwill and integrity of your community, there are even more advantages:

• Cost savings in shipping and storage
• Reducing your carbon footprint
• Building and strengthening business relationships
• Improved oversight of your suppliers’ ethical standards
• Addressing last-minute inventory/supply chain shortfalls
• Local discounts

8. Lean on BBB

BBB is a trusted resource for millions of local consumers every year. If you haven’t already, get listed with BBB today.

And, if you’re a business that values an honest and ethical marketplace built on trust, make your local community stronger: Apply for BBB Accreditation today.

Get more tips from BBB

For more information to help your small business, check out the BBB business news feed and the BizHQ.

BBB Great West + Pacific contributed to this article.