Business owners should play the local connection for growth

Many businesses have a hidden advantage that they often overlook: the power of playing the “local card.”

Successful businesses thrive on strong relationships and real, in-person interactions with their customers. This approach offers a unique opportunity to connect, shine, and engage with the community. For small, local businesses, especially those competing against larger national companies, being small actually can be a significant advantage.

While larger corporations benefit from scaled-up processes, heightened brand awareness and increased savings, it is the nimble, community-oriented small businesses that truly resonate with local consumers. Delivering personalized, excellent customer service is crucial, and when customers choose to shop locally, they are investing in their own community.

Local sales taxes collected support the neighborhood and city where you live, funding essential services such as schools, parks, police, firefighters, and infrastructure.

With online shopping and big box stores as competition, it’s clear that being a local business carries a lot of weight and competition these days. However, as consumers trend toward local options, the time is ripe to lean in to this advantage and here are a few tips that may help you.

Get neighborly with your customer service and add a personal touch to your responses. 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 a quote, here’s an example of how you might want to personalize the message:

“Thank you for reaching out to us. 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 and is passionate and detail-oriented in her work. Give us a call if you have any questions!”

Your customer is more likely to feel like they’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.

Another good idea is to try to harness the power of reviews from local customers. With so many eyes on online reviews, it has the same importance as word-of-mouth references.

Another important tool is to optimize for local search engine optimization. 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 for local search queries.

In the community, promotions can be a big local advantage. Book a booth or investigate sponsorships for community events such as festivals or chamber fairs. Bring awareness to your business with special offers or giveaways for attendees.

Get your social media game working locally. Use hometown geographic hashtags, join local Facebook groups and networks, and run contests or giveaways to reach your surrounding audience.

Becoming more involved in your community can be a way a local business owner can positively impact your community by more directly taking part in community decisions. Your expertise is something you can share 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 the future of the place you live and your reputation as a trusted thought leader. Consider attending public forums and open houses, small business association meetings or serving on advisory committees or a local board.

Donating your time, money, or even items for a charity fundraising auction are great ways to show support. Supporting a cause that resonates locally can be a great way to engage and have visibility with residents. And make sure you also shop locally to create a bond with your community and fellow business owners.

In the words of Steve Jobs, “When we support local businesses, we're supporting our neighbors, our friends, and our families.” That’s a word worth spreading.

• Steve J. Bernas is president and CEO of the Better Business Bureau and can be reached at sbernas@chicago.bbb.org.