Bringing the Mom and Pop Shop Into the Digital Age
You’ve heard this story before – a local business that thrived for decades is now struggling to keep its doors open. Its customers, who the shop owners relied on for steady business, now flock to large chains and online retailers in search of cheaper prices and two-day shipping.
As mom and pop shops across the United States struggle for survival, longtime business owners are asking themselves, is this the end for us little guys?
While it seems that small businesses are on the decline, here are the facts:
- Family-owned businesses contribute 57% of the GDP and employ 63% of the U.S. workforce
- 90% of U.S. businesses are family owned
- Small businesses generate 53% of all U.S. sales
With this in mind, how can small businesses, with changing customer habits and unprecedented competition, not only compete against larger businesses, but also win?
Easy – by evolving alongside their customers and embracing marketing in the digital age.
If your business is struggling to stay afloat, here are six digital strategies you can use to level the playing field.
55% of consumers will research online before making a purchase.
1. Attract new customers with an online storefront.
Potential customers may learn that you sell derby hats by walking past your storefront, but without an online presence, you are invisible to the online population.
Without a website, the majority of consumers will never learn that your business provides the solution to their needs.
The first step to building an online presence is making a website. If you want to do this yourself, there are many online resources that will help. Regardless of which resource you choose, aim to have a website that is:
- Optimized for search results, so customers can quickly find you on search engines such as Google or Bing
- Mobile friendly, which allows customers to easily view your website on mobile devices
- Informative, so customers know what to expect when visiting your physical storefront
If building a website makes you nervous, consider hiring a digital team to do the heavy lifting for you. Just ensure your website can be easily updated so you can make changes without the help of a developer.
2. Differentiate your business by emphasizing your advantages.
Think mom and pop shops have no advantages over large businesses?
Amazon’s customers may be addicted to two-day shipping, but consumers still love the convenience of a same-day pickup.
As a small business owner, it is your job to identify these advantages and emphasize them throughout your website.
Some advantages may include:
- Convenience: Does your store have an outstanding return policy or complimentary gift wrap? Perhaps your customers never have to wait in line because of your mobile point-of-sale system. Identify these points and emphasize them.
- Expertise: Have you ever asked a big-box employee for advice on a home improvement project? While these friendly associates mean well, nothing beats the expertise of a shop owner with decades of experience. Highlight your team’s experience and expertise.
- Community Character: If customers are searching for specialty products, a shopping mall is likely not at the top of their list. Shoppers on the hunt for unique items prefer stores that reflect the character of the local community and products they’re unlikely to find anywhere else. Use these advantages to your benefit.
- Neighborhood Involvement: If your business gives back to the local community, be sure to promote this. American customers love supporting causes and 94% of consumers would switch brands in order to be associated with a good cause.
3. Bring in additional foot traffic through paid advertising.
It’s not enough to have a great website – you also need to ensure your website is in front of customers when they need it.
While SEO increases the likelihood that your website will appear higher within search engine rankings, paid advertisements ensure your website will be at the top of the list.
To get started, read Hubspot’s beginner’s guide to pay-per-click advertising. Remember, if the material is too daunting, consider hiring a team to manage digital advertisements for you.
4. Use email marketing to convert visitors into repeat customers.
Now that you understand how to use digital marketing to get new customers, it’s time to tackle your next problem: getting your new customers to come back. An easy tool for converting visitors into repeat customers is email marketing.
To get started:
- Select an email provider. Then, set up a system for capturing email addresses. (For example: Use an email-based rewards program or a simple paper-and-pen newsletter sign-up list.)
- Next, put together a campaign that’s easy to digest within 11 seconds (the average time users spend reading an email).
But, before you send make sure you personalize emails according to what
your customers want to receive! Irrelevant, catch-all email blasts are
sure to be reported as spam.
One easy process for personalizing emails is to:
- Ask customers which types of emails they prefer to receive. (Community events? Store promotions? New products?)
- Segment your email database according to these categories.
Although personalized emails take more effort, the payoff is worth it – personalized emails typically deliver higher conversions than emails that aren’t.
5. Take advantage of catered bank services for small businesses.
Don’t be hesitant to work with your bank. They can have some of the best tools for taking your business to the next level. Research what your bank has to offer for small businesses, and compare it to other banks or credit unions.
Look for accounts that have a high annual percentage yield to help you accrue some serious gains over time, strengthening the stability of your small business – avoid ones with high fees.
You don’t have to stop there. Take advantage of your bank’s mobile app, and link multiple accounts for a more consolidated view of your finances. Pay bills and track spending patterns to gain an even better understanding of your business and how it operates.
Before starting a social media account, learn where your customers are spending their time.
6. Be friendly… and social.
Social media is no longer just an avenue for sharing cat photos. Platforms such as Facebook and Instagram have become an essential tool for digital marketing.
Before starting an account, learn where your customers are spending their time. If you start a Snapchat account but your customers use Facebook, your social efforts will be a waste of time.
For an easy guide on how to get started, read Moz’s Beginner’s Guide to Social Media.
Get Started Now
While the plethora of digital tools may seem daunting, the most important takeaway is to get started today so your business is visible to digital consumers. Remember, you can always hire a professional to guide you as you acclimate to new technology.
No matter the size of your business, or where you are going, our business banking accounts offer solutions to help get you there. Explore your options on our Small Business Banking website to learn more.
Bringing the Mom and Pop Shop Into the Digital Age
This blog post was published by Axos Bank on February 21, 2019 and last updated on January 11, 2023.