Small businesses all over the country need our support. This is especially important for our local small businesses that are the backbone of our economy. Small businesses have to compete with big brands for the attention of local buyers. That can be difficult for those with a limited marketing budget.
As much as consumers try to buy local products, a level of trust is required before purchasing from small businesses. It’s important for small businesses to know how to encourage consumers to buy local.
Buying locally is a term used to describe the act of purchasing from companies that are established in the country. These businesses can be big or small.
In this article, we look at the South African consumer and what you can do to get more people to buy your locally made products.
Traits of the South African Consumer
According to a survey by McKinsey and Company, the following showcases the behavioural shifts among South African consumers.
1. Consumers Search for Savings
South African consumers are working hard to reduce their spending in various ways. Consumers are comparing prices, seeking out sales and promotions, delaying purchases and shopping at multiple retailers to get better deals.
2. Brand Loyalty (If the Price is Right)
Local consumers are being careful when it comes to the brands they are loyal to. They have not abandoned the brands but shop around to find retailers that sell the same products at lower prices. Others are purchasing in small quantities and waiting until the products are on sale or buying only at a discount.
3. Once They Trade, They Don’t Go Back
Local buyers have indicated that once they trade down and buy cheaper, they are unlikely to go back to their original brands. The survey indicated that amongst those who traded down, the most vulnerable categories were pasta, bottled water and household cleaning supplies.
In comparison, a small fraction of local consumers have decided against trading down in categories such as alcoholic beverages and cosmetics.
4. Local Shoppers Use Various Channels and Find Value at Discounters
Most local consumers have chosen to shift towards modern retailers, moving away from the smaller independent retailers (small businesses). One cause of this shift is the introduction of e-commerce services. Businesses that provide e-commerce solutions for their customers are more likely to have customers than those who don’t.
The behaviours outlined in this survey are just a few of the contributing factors to the buying behaviour of local consumers. For small businesses looking to encourage more people to buy local, you need to come up with a comprehensive strategy.
How to Encourage Shoppers to Buy Local
Here are some strategies for getting more buyers to purchase your local products or services.
1. Create a Website with a Blog
Many small businesses still don’t have a website for their stores. You need to find an affordable website building platform and start your website. Once you have the right website, you need to include a company blog. The blog will be used to keep content on your website and keep it fresh for your customers.
Blogs are also a great way to provide additional information to your customers on how to use your products or services.
2. Engage with Customers on Social Media
Social media engagement is extremely important when building a brand. Locally, there are many more smartphone users than before. This means that you need to leverage social media to build your community.
Additionally, most social media platforms have tools and resources to help you run ad campaigns. Leverage these tools to create campaigns that encourage engagement and purchases.
3. List your Business on Local Online Directories
You need to leverage free listing services for local small businesses. Companies such as Google and Bing have offerings for small businesses that want to list on their platforms. Being registered on an online directory will mean you can leverage the positive reviews customers leave to get more customers.
4. Offer Discounts and Promotions
Attract more local customers by offering a range of discounts, coupons or special offers. Discounts and coupons are a great way to engage with your customers and turn them into loyal patrons.
5. Loyalty Programmes
Loyalty programmes are designed to encourage shoppers to come to your store through incentives. Also, they are a great marketing strategy which can be tailored for each customer or made generic for everyone.
Using these tips you can begin developing a comprehensive strategy for getting consumers to buy your locally made products.
To speak to an expert, visit SME Advice and book an appointment.