There is an interesting Forbes statistic, that says 99.9% of businesses in the United States are small businesses and also that three in four Americans rely on small businesses for their needs because they think the products and services they offer are difficult to find elsewhere.
Another statistic is that we must lay out for contrast is that 20% of small businesses fail within year one. 30% of businesses will have failed by the end of year two.
If this intrigues you, you should head over here to read my detailed study of small business failure across industries.
There are a few crucial questions you need to be asking yourself to ensure you as a small business owner can survive the market and be a part of the small set of businesses that are successful. All of these relate to acquiring new customers
How can I acquire more customers?
How can I grow my small business?
The rest of the article will give you tried and tested strategies to adopt which will ensure that your small business can acquire more customers, it can grow, survive and succeed over time.
It’s no secret that consumers like to shop small. In fact, 47% of Americans shop from small businesses at least twice a week. So, how can your small business capture a share of that market? Here’s my take.
Enhance customer service through personalization
Did you know that 54% of American consumers shop small because of their customer service experience? If that’s not convincing enough, a survey on the effect of the COVID-19 Pandemic on affection toward small businesses found that 32% of UK consumers shop small because of personal interactions with staff.
People want the human touch.
Small businesses are perfectly placed to provide high-quality, unique products and services to a global population that desires increasingly personalized customer service and interactions. Don’t believe me? According to a McKinsey report, 76% of consumers emphasize that personalized communications are pivotal in influencing brand consideration.
So, how can you implement personalization to enhance your customer service? I recommend the following strategies:
- Understand your audience:
- Analyze customer data to create buyer personas.
- Prioritize segmentation for efficient personalization.
- Create an omnichannel approach:
- Maintain a unified view of customer interactions across channels.
- Enhance customer service by considering past interactions.
- Use technologies like generative AI for personalized and relevant conversations.
- Personalize any communication:
- Use first names in communication.
- Utilize customer data to personalize sales practices and avoid generic messages.
- Leverage technology:
- Embrace machine learning and algorithmic personalization.
- Utilize chatbots for data collection and tailored recommendations.
- Provide choices:
- Provide various customer support channels.
- Use data collection to narrow down customer choices (don’t tell me you’ve never clicked on the “related items” section while shopping online).
Learn the art of delegation to get more done
Hiring the right people when you run a small business is challenging. However, there is always the option of outsourcing different work processes. And there are three powerful reasons why this practice is vital for the growth of your small business.
- Greater bandwidth: When you delegate tasks with the increasing demands of your small business, you have more free time to focus on core competencies.
- Charting the future: Freed-up bandwidth lets you focus on your business’ vision and goals, ensuring you don’t stray off the track.
- Faster TAT: The turnaround time for your products or services from inception to market is reduced drastically.
It’s how Bill Gates said, “The best leaders are the ones who know how to delegate.”
Hear it from the expert:
Gene Marks, from the Marks Group, a technology consultancy, talks about how it was just him and his dad in the beginning: “He was doing sales, and I was doing service. When he passed away, I took it over, realized I couldn’t do it all, and hired some new employees. I’ve learned that you can make a lot more money when you have other people doing it for you.”
Know your customers, not just through data
We don’t spend enough time understanding the audience. I think many of us do it every three months or every year. But audience tastes change, and data isn’t the only thing you should look at.
I. Diverse hiring
- If marketing decisions are left to people who do not represent your target audience, hear the buzzer ringing!
- Step into your customers’ shoes. When they relate to your brand, word-of-mouth advertising will weave its magic wand for you (think social media testimonials)!
- A diverse, inclusive team is better at innovation and promoting revenue growth.
Hear it from the expert:
“A more inclusive culture within company leadership enables brands to represent a larger audience better, connect with various communities, grow, and succeed. Beyond the diversity of people in leadership, as investors, and within a consumer base, diversification of revenue streams is also key in the startup ecosystem,” says Kendra-Bracken Ferguson, Founder-CEO at BrainTrust.
II. Data-powered insights
Leverage data to get actionable insights into what people want.
- Learn about the voice of the consumer (VoC) by gathering your product reviews from various online and offline sources. It will give you an overview of customer pain points. If you improve that, acquiring more customers is a no-brainer.
- You can also look at your store/website/app analytics to understand the demographics to tailor your products or services for the audience. This will help define buyer personas and product market fit.
- You can also hire mystery shoppers to analyze the experience of interacting with your business.
Carve out YOUR niche and own it
Shed the perspective that business is a dog-eat-dog world. It gives too much focus on competition and too little on your business.
Find your key differentiator
- By creating a unique solution to a problem, your customers will see how different you are, increasing your perceived value.
- They won’t compare you to a brand they already use, boosting brand retention.
Hear it from the expert:
Monica Feid, co-founder/COO of Bizcom Associates, found that the key differentiator for the growth of Mr. Gatti’z Pizza in Texas was invoking nostalgia, as people had been visiting the place for decades for a familiar experience, along with the food.
She said, “Business growth can be tricky… the key is harnessing those memories in a what’s-new kind of marketplace… There’s an entire what’s-old-is-new-again journey happening. I guess that’s the best part of this whole walk down memory lane. Here’s to the power of nostalgia.”
If I’m still not convincing you, take it from Henry Ford, who said, “The competitor to be feared is one who never bothers about you at all but goes on making his own business better all the time.”
Continuously learn new marketing techniques
If you want to promote your business, Gary Vaynerchuk from Wine Library has an opinion. He says, “Focus on social platforms over things like direct mail or radio ads, not because direct mail and billboards are “dead,” but because other channels are a better deal. And getting that “bang for your buck” is important when you’re operating on a small budget.”
- Get a website that works well: 1 in 3 small business owners don’t have a website at a time when over three-quarters of shoppers visit the brand’s website first before visiting the physical location.
- Try something new: Explore new-age online marketing methods like contacting nano-influencers representing your target audience. You can also use Google Ads, where people search for your products or services.
Network the unusual way
I’ve heard the term ‘networking’ tossed around when people speak about business growth. Sure, you can attend events and conferences. But what are the odds of someone remembering your business unless you have a better-than-average elevator pitch?
Let me tell you a few unusual yet effective ways of networking.
- Apply for business awards: Not only does it look good, but winners are frequently offered the opportunity to provide live demonstrations on local stations. This results in significant exposure at a relatively low cost.
- Host interesting events: Another excellent way to network is to host events or conduct webinars. Offering something unique and in-trend is a great way to build brand awareness. Let’s say you’re into the coffee business. Host a blind date where people are literally blindfolded. Posting on social media gets them a freebie. You get the point.
Use the reach of media to your advantage
When I say “media,” I’m not talking about social media. I’m talking about sources like magazines, newspapers, and podcasts that help people get to know you better, not just through what you sell. To be feature-worthy, you must position yourself correctly and ‘do’ something worth writing about. Customers will follow.
- Be active on websites such as HARO: HARO is a platform where reporters worldwide look for sources for their stories. You can pitch to be a source for their articles and get featured. For example, if a journalist is working on a vegan + bohemian restaurant review, and you have one, you can pitch to get your quote in.
- Create a media kit: A media kit provides a good overview of your business, with stats, client names, visuals, etc. Build one and open it to the public to create a good first impression.
Trust the good ol’ referral programs
People trust other people more than they trust ads and promises. While customer testimonials are a great modern-day referral alternative, don’t underestimate the power of referral programs, which have a 54% lower cost per lead than other channels.
- Ask for referrals at the right time: When a customer is most excited about a product, you can ask for referrals. Don’t let their buzz fizzle out.
- Offer referral rewards: A good referral program is a win-win. Your customers would refer more proactively if they were getting a reward, a discount, or a privilege by doing so.
Get new partners and sign up new collaborations
You could collaborate with businesses with a similar customer base. For example, if you sell candles, you could partner with a business selling flowers and get a mutual benefit. I’ve seen this method instantly increase potential and help small businesses build a support network.
- Diversify and expand: Increase your partnerships across different sectors and regions until you get the desired result. Don’t forget to celebrate and announce new collaborations. It goes a long way in creating a good image in the customer’s mind.
Hear it from the experts:
Rauff Kaufman, the bestselling author of “Uplifting Service,” spoke about Westin and its partnerships. He said, “At the Westin Hotel in Singapore, over twenty framed certificates hang on the wall announcing ‘Partnership Agreements’ with key customers and suppliers. Both parties agree to call upon one another as supplier or vendor of first choice, to provide new and special services to each other before offering them to others, and to do all possible to help build each other’s business. This results in a strengthening of both parties and their potential to increase business and customer satisfaction.”
Discounts, partnering with other brands, and referral offers are the classic ways of increasing customers in the short run. But these quick fixes work better in collaboration with a robust business strategy.
When you find yourself wondering, “How do I grow my small business?” Remember the tips above. All the best!