What Local Businesses Teach Us About Smarter Branding

A person’s experience in a local store — whether it is a bakery, auto repair shop, or some other type of store — will leave an impression based on the personality of the store. This personality is developed by how employees greet people, how problems are resolved, and how consistently their expectations are met. In contrast to large corporations, which study such things as customer engagement and social sentiment, smaller stores use a much simpler process to develop their brands; they listen to their customers. This is where smarter branding begins.

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The Authenticity Of Local Brands

No amount of money will help a large corporation establish a local presence. The tone of a local brand develops from its ties to the local community and its daily interactions with that community. Small business owners know many of their customers by name, remember their preferred products and services, and promptly respond to any issues their customers may encounter. Their brand does not rely on marketing campaigns; their brand is based on their presence in the community.

The Human Element of Branding

In today’s automated world, a personal touch is becoming increasingly hard to find. However, local stores are able to provide a human element that many larger stores cannot. Large corporations pay consultants thousands of dollars to develop “relatable” advertising campaigns.

Local businesses merely exist in a manner that allows them to relate to their customers. Many local businesses support local charities and/or sponsor local sports teams. Some local businesses send handwritten thank-you notes to their customers. All of these actions build upon each aspect of their local brand identity. This illustrates the lesson that branding is not only seen by consumers, but felt by them as well.

Consistency = Reliability

There is a fine line between appearing polished and appearing authentic. Local businesses do not require the perfect aesthetic or viral content. Consistency is key, and consistency builds quite reliability over time. Consider the aroma of the local café and the music playing at the local hardware store each and every morning. These small consistencies create familiarity, and familiarity builds trust among consumers.

Listening as Branding Strategy

Perhaps the most valuable aspect of branding lies in the fact that local businesses do not simply sell goods and services, but also listen to their customers. When a customer of a local store has a complaint about a product, the complaint is viewed as a relationship management issue, not merely as feedback. The local store responds rapidly to its customers’ concerns as each concern represents a valued customer relationship. Smarter branding is developed using the same methodology. Data is essential; however, data devoid of empathy is nothing more than noise. 

Where Does Your Brand Belong?

Brand identity consists of two distinct elements: what you sell and where you belong. Local businesses understand this concept far better than any large corporation. The identity of a local business is directly linked to the geographic area in which it conducts business, the culture of that area, and the common experiences that exist within that area. A local surf shop will feel different from a local coffee roaster in a remote mountain town, even though both businesses are selling similar products.

Place-Based Brand Identity

The geographic location in which a business operates provides its brand identity with texture. Texture in a brand identity enables consumers to emotionally attach to the brand, which in turn enables the creation of stories that can only be told from that specific location. No large corporation can replicate the same sense of place-based brand identity that exists with local businesses.

Growing a Business Without Growing Out of Touch

One of the least understood skills of local entrepreneurs is adaptability. Markets evolve, suppliers are replaced, and customers come and go. However, successful local businesses are able to adapt without abandoning the fundamental aspects of their business. When a local bakery adds gluten-free muffins to their menu, they are not abandoning their traditional baking methods — they are expanding their offerings. 

When a local mechanic begins offering electric vehicle maintenance, they are signaling a desire to expand their services, while maintaining their roots. Smarter branding adapts, but maintains its tone, story, and value proposition.

Lessons Learned From the Streets

When examining various industries, even those that appear unrelated to your industry, you can learn valuable lessons in unexpected ways. For example, by looking at a dumpster rental business competitor insights, you can understand how hyper-local companies gain market share through trust and visibility as opposed to mass advertising. Hyper-local companies utilize localized search engine optimization (SEO), direct referrals, and local reputation, all of which are cornerstones of powerful branding. These types of examples illustrate that when you study what helps small businesses succeed in their neighborhoods, you are likely to uncover timeless principles applicable to developing stronger, scalable branding.

Scaling Your Local Mindset

All large brands began locally. Somewhere along the line, a founder personally answered customer inquiries, personally packed boxes, and personally shook hands. The problem is that as businesses grow, they tend to lose the personal relationships that helped build their initial success. The solution to this challenge is not to reminisce about the past, but to incorporate the personal aspects of your business into your operational systems. Utilize automation to improve efficiency, but preserve your ability to tell stories and engage with your customers in a personal manner. Think of your local mindset as a compass for your future growth; it will guide you toward what truly matters when your business operations become complex.

The Value of Building Trust Among Consumers

Regardless of the size of your brand, your ultimate goal is to create the same level of trust among consumers that exists between local businesses and their customers. Creating this level of trust among consumers is not flashy. It is not quick. However, it is the foundation of every lasting brand story.

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Conclusion

Local businesses demonstrate that branding can be powerful and uncomplicated. Local businesses are able to build strong brand identities based on their human interaction with their customers. Regardless of whether you are a new startup seeking to differentiate yourself in the marketplace or a large corporation expanding globally, the same principles of local branding apply to you.