The Miracle on 34th Street Strategy

Every year small towns (and sometimes not so small towns) engage in shop-local campaigns. These campaigns are especially prevalent during the important holiday season, beginning on Black Friday and ending just after New Year’s. Given our current environment, I think there’s no time better than the present to get the message out to shop local first.

Generally, these campaigns are spear-headed by a local chamber of commerce, downtown business association or other business group. The intent is to convince people that shopping local, rather than taking their business out-of-town or to a “big box” store, is better for the local health of the community. and they’re absolutely right!

From Maine to California, rural and suburban communities across the country fight the disease of retail leakage. The rational arguments always make sense: spending local supports law enforcement and fire protection; local services and local organizations need strong local merchants for their survival. Shopping local keeps local people employed, creating an overall better quality of life.

These messages resonate for some. But, to really make the campaign work, local businesses must be proactive, savvy marketers. The lure of low low prices and huge selections at urban and suburban malls, in addition to the ease of shopping on the net, create stiff competition for local shops.

Here are 5 marketing ideas that will keep the home-fires burning and local cash registers ringing:

Send ‘em to Gimbels. Remember the classic movie Miracle on 34th Street? The plot-twister came when Macy’s Santa sent a mom to Gimbels because they had a better quality ice-skate. Rather than lose business, the tactic gave Macy’s a positive reputation as the “store that cares”. For a shop-local campaign, local businesses need to work together to keep the dollars at-home. Knowing where certain products can be purchased locally keeps people at home – and makes local businesses helpful consultants to local consumers.

Don’t compete on price. What if you have a WalMart next door? You can’t compete on price, so you need to beat them at service, selection or something else. This isn’t just about being fast and reliable – it’s about attitude. You and your people need to get to know your customers. There’s a new kind of customer-focus called immersion, in which you literally live out your customer’s lives for a brief period in order to know them intimately – to the point of knowing what makes them breathe. At many big companies today, executives arrange to spend an entire day or week with a customer, living with them, going to work with them, understanding their likes, dislikes, cares and concerns. That’s immersion. While you probably will never have the luxury of doing this kind of under-cover work, you can get to know your customers on a first-name basis. You can get to know them personally. You can take time to be helpful, kind and interested. You can go the extra mile to make a lasting impression. People shop on price alone when there’s nothing else to compare. Give them something else to think about. Marketing is about perceptions, and perception is truth in marketing. If your service is outstanding, then your entire business (including price) will be deemed outstanding. If it’s not so great or inconsistent – then customers have no reason to be loyal. So, make service your primary product. And, oh yeah, smile – then smile some more.

Market to your base. In every business base-customers are the bread-and-butter. With this in mind, local businesses need to collect data on their customers year-round and market to their base year-round. Utilize e-mail, e-zines, flyers, direct mail – anything to keep the focus on the local business. Cultivating the base is the best way to keep customers from sending their money down the line. Also, keep this in mind – it costs nine-times more to attract new customers as it does to market to your existing customers. Do what you have to do, like creating a premiere customer club or something like it, to keep them coming back over and over. Have a program where you actively seek referrals. Give your customers something of value for letting their friends know about you. In the world of small business no words are more magical than, “Joe sent me”.

Be unique. Carry items, or offer services, that are not easily found. By getting to know your local base you will also understand what they need. Provide for those needs – and then some. Local shops have the opportunity to differentiate in ways that the chains can’t, stocking specialty items that won’t be found in the malls. Sell locally produced products. Sell imported products. Stand out. Be unique.

Have a great website. There are some small businesses that don’t have a website. That’s a mistake. Not only should every business have one, but it needs to allow for people to buy from you on the web. Make it easy for your customers to buy from you. Offer incentives to get them to purchase via the net. People’s buying habits have been eternally changed due to the internet, so use it to your advantage. Also, be different. Offer in-store specials via your web-site, enticing customers to visit personally rather than just virtually. Do some internet-only offers. Get them used to going to your website frequently. Maybe even create a members-only section on your site, where custmers can get special offers and educational material that well be of benefit. Remember, be more than just a place to purchase something, position yourself as a consultant and provide so much value that they’ll never want to leave town.

All too many shop-local campaigns have relied heavily on communicating the “good for the community” rationale for staying local. That’s fine, but shopping isn’t rational. It’s predominantly emotional. Thus, campaigners need to connect emotionally. You can’t throw out the basics of your marketing – you must communicate the benefits that your customer will receive. How does shopping local solve a problem for them? How will they save money or receive more value? What’s in it for them, personally, to shop Main Street versus hitting the highway? In each of these tips there is an emotional appeal that, if implemented, will yield great results.