Small businesses are uniquely placed to adopt several unique sales techniques given the variety of circumstances they face. They usually have an advantage in this regard over larger corporations which enables them to be nimble and respond better to customer needs.
Let’s look at the specific sales techniques small businesses usually adopt. I have also collated the situations where a specific sales strategy will apply based on my interactions with other small business owners
There are 8 broad sales strategies that are tailor made for small businesses to adopt
Story Telling as a strategy as a part of the sales pitch
Share your business’s origin story, your passion for what you do, and any challenges you’ve overcome. This is a sure fire way to evoke an emotion into the sales process. The following situations are best suited for a story telling sales strategy to be adopted by a small business owners
- Brand Building
- New product introduction
- Addressing customer pain points
- Building trust
- On social Media for engagement
- To humanize the brand
- To drive content marketing
An example of this sales strategy is in a small family-owned restaurant I frequently visit. They share the story of how it was founded by grandparents and has been passed down through generations. They emphasise the tradition and love that goes into every meal, creating a warm and welcoming atmosphere that resonates with customers. This has helped them increase sales every year and has helped these business owners to open multiple outlets.
Local Engagement Activities driven by small business owners
Leverage your local presence by actively engaging with the community. Small businesses experience an increase in sales from local patrons if they are involved in the local community. Typical situations where this sales strategy can be deployed are
- Grand Openings
- Anniversaries
- Community events or sponsorships
- Holiday or festive seasons
- Special promotions
- Addressing Local issues
An examples of this is a neighborhood bookstore that hosts book clubs, author events, and participates in local book fairs. By actively engaging with the local literary community, they have become a beloved hub for local residents. This has helped the bookstore improve their sales overall.
Personalised sales approach integrated into the sales process
Tailor your sales approach to individual customers. Listen to their specific needs and provide personalized solutions, emphasizing how your product or service can address their unique requirements. In order to do this, the sales team and sales reps need to be adequately trained in the offering and must be in a position to get a deep understanding of the customer problem The ideal situations where this sales strategy can be applied are
- Targeting high value customers or if it is a VIP offering
- When the product is complex or if the decision making process is complex
- Typically in a B2B sales process
- When there are unique customer problems
- In recurring business or a subscription model
- Custom made or artisanal products
- Luxury products
An example of a boutique clothing store comes to mind where the owner takes the time to measure and understand the preferences of each customer, providing custom-fit clothing that perfectly suits their style.
Another modern day example is the case of software sales in a business-to-business sales transaction where the seller must understand all nuances of the customer before recommending a tailor made configuration.
Nurturing long term relationships with existing customers
Focus on building long-term relationships rather than short-term sales. Encourage repeat business and loyalty by offering incentives, exclusive deals, and rewards to your most valued customers. Some situations where this sales strategy is applicable are listed below
- Service Based businesses
- Multiple repeat purchases
- When you have loyalty programs
- High ticket value sales
- For business partnerships
As an example, a local gym offers a loyalty program where members receive free classes & sessions after attending a certain number of sessions. This encourages members to keep coming back and build long-term relationships with the gym. The gym membership sales has seen a spike over the years and they have been successfully in opening multiple locations.
Networking locally with other small businesses
Build a strong local network of customers, partners, and advocates. Personal connections can lead to valuable referrals and opportunities. This is a very under-estimated sales strategy that is often overlooked by small business owners.
Attend local business events and engage with the local business community.
These initiatives will help build a self sustaining sales channel for the business as the partnerships see more success. Small business owners should look at networking locally in the following situations as an ideal sales strategy
- For establishing local partnerships
- For sourcing locally
- For Community involvement
- Educational services
- Event sponsorships and hosting
- To gain competitive insights
- To be a part of local associations
I know a coffee shop that partners with a local bakery to provide pastries, creating a mutually beneficial relationship. They also actively participate in local Chamber of Commerce events, forging connections with other businesses in the area.
Educational selling by combining sales and marketing
Educate your customers about the value and benefits of your offerings. In this sales strategy, you provide valuable information, answer customer questions, and position your business as a trusted source of knowledge in your industry. Situations where educational selling works best as a sales strategy are
- For new or innovative products
- For a highly involved purchase process
- Sales involving Technical and industry expertise
- When extensive customer consultations are needed
- If the market is a specialized niche
- When safety and compliance are primay needs
To illustrate an example, there is an organic grocery store in my neighbourhood that offers workshops on healthy eating and hosts dietitian sessions for customers.
These events not only educate customers but also position the store as a reliable source of nutritional information. They have been able to dramatically improve the sales of their top of the line organic products by deploying this sales strategy
Upselling and Cross Selling similar to large companies
When appropriate, offer additional products or services that complement the customer’s purchase. Small businesses can increase their average transaction value by suggesting relevant add-ons. Typical situations where this sales strategy work are
- When there are product bundles
- If there are renewals and upgrades
- As a technique during customer service interactions
- When the offering has extensive personalisation and customisation options
- If there are replenishment items frequently purchased
A typical example of this is where you see SaaS products upselling value added services along with the subscription to the SaaS product to increase sales.
Loyalty programs to lock in successful sales
Implement loyalty programs that reward customers for repeat business. Small businesses can create simple but effective loyalty programs that encourage customers to return. This sales strategy can be best suited for the situations below
- To boost repeat purchases
- When the market is very competitive
- When the value earned from the customer’s lifetime is high
- When there is a focus on driving new customer acquisition
I know a local restaurant that offers a loyalty program where customers earn a free dinner after crossing a certain spend value on any of their branches. This encourages repeat business and customer retention.
Additional Growth strategies that small businesses can deploy
In addition to the above sales techniques, there are 5 growth strategies that small businesses can adopt to improve sales and ensure their business growth continues.
These growth strategies have been well documented and researched by the Harvard Business Review and are sure to yield results to any small business owner who adopts them
- Market Development
- Market Penetration
- Market Segmentation
- Product Expansion
- Diversification
There is a relevant article here that goes into the details of these strategies along with examples to give you more information.
Timeless Sales tips that always help increase sales
We have covered the above techniques and strategies that small businesses can use to increase sales. There are some additional timeless tactics which always yield good results over time. Consider these practices as investments over a longer period of time.
- Use customer feedback to make improvements and demonstrate that you value their opinions.
- Position your product or service as a solution to a specific problem your customers face.
- Be open and transparent with customers. Small businesses often benefit from building trust through honest and straightforward communication.
- Encourage satisfied customers to leave positive testimonials and reviews.
- Send personalised thank you notes or emails to customers after a purchase.
- Highlight what makes your business unique and how it differs from larger competitors.
In addition to the above points, there are 11 things that small businesses do frequently that help them grow consistently. There are also 9 other sales strategies that small businesses can use to help them grow and increase sales.
With these sales techniques, strategies and tactics, a small business should be equipped to figure out the right approach to increase their sales