From switching to online shopping to stocking up on grocery items, these are the post-pandemic changes in consumer behavior. And businesses that already provided this during the COVID-19 pandemic have a competitive advantage – they’ve already drawn customers toward their business.
But smaller businesses have a tight budget and can’t afford Amazon’s subscription fees. Furthermore, many start-up businesses don’t have a warehouse to stock up on in-demand products like big box stores such as Walmart.
This can be even more challenging when small businesses are located in small towns. However, these small communities also come with many benefits.
Downtown Nixa Mark Anderson discusses how small businesses in Nixa, Missouri can adapt to the ever-changing consumer behavior.
Growing a Small Business in Nixa
Nixa has a small population. Therefore, it’s easier for aspiring entrepreneurs to observe the residents’ consumer behavior, as opposed to a larger metropolis. But to learn more about customer spending habits, it’s important to understand common consumer behaviors.
Purchasing Power
Purchasing power is the pivotal moment when a consumer, driven by their budget, decides to make a purchase. Even if a product is exceptional and reasonably priced, without the necessary budget, a sale won’t happen.
Understanding the purchasing power of residents is paramount for business owners. It guides them in setting prices that align with the market’s financial capacity.
Group Influence
At times, despite a product’s popularity and glowing recommendations, people tend to stick with what they’re familiar with. Whether influenced by childhood memories of their parents using a particular product or swayed by a friend’s endorsement, group influence exerts a significant impact on marketing strategies.
Personal Preference
In some instances, people buy products based on personal preferences.
There are many reasons why they’d choose a different brand instead of the leading one, regardless of how they’re placed strategically in groceries; they probably dislike the scent or taste – or the products don’t adhere to their morals (i.e., non-vegan products).
Marketing Campaigns
When it comes to strategic product placements, the visuals on TV, ads, and posters wield considerable influence. Numerous ad services even enable businesses to target specific locations. That persistent commercial you see may well be tailored for Nixa residents. The question then arises: how can small businesses replicate such successful campaigns?
Building Relationships with the Community
Online marketing campaigns may be essential for business, but before the Internet surfaced, many relied on word-of-mouth.
Try it with the neighbors.
Befriend the Locals
Introduce the products to the neighbors first.
- Ask them for their feedback.
- Analyze their consumer behavior: what’s their budget for certain items? What do they constantly stock up on? How often do they purchase the products? Try focusing on those products to stock up on for returning customer’s to buy.
- If they have recommendations for improvement, take them positively.
- If the residents do like the products or service, ask them if they can help spread the word – perhaps others in the community will want to try it out as well.
Once they become customers, it’ll be easier to introduce the business on a bigger scale. After all, the community can already attest to the quality of the products and services.
However, gaining customers is one thing – but retaining them is another.
Cater to Customers
As stated, a great product doesn’t always equate to profitability – as people have reasons why they purchase specific products. Currently, the customer behavior trend leans towards online shopping.
If the budget allows, try partnering with delivery service platforms. For instance, food retailers can partner with Instacart; they support small businesses. To them, “small businesses are the heart of their communities.”
Summary
These days, people have the option to shop differently. While online shopping provides convenience that business owners should utilize, word-of-mouth remains an effective marketing strategy, especially in smaller communities – where they must build a reputation.
Thankfully, cultivating a brand reputation through word-of-mouth in Nixa is a breeze. With a closely-knit community, residents readily share their latest discoveries in businesses. Moreover, in small towns like these, neighbors actively support one another, contributing to the prosperity of businesses, regardless of their size.