Are Local Businesses Doomed?
A new blog post by Miriam over at SEO Igloo (which was actually sparked by a post from Matt McGee) really got me a bit riled up tonight.
As the former owner of a "main street" bicycle store, and more recently, an online shopping mall for hundreds of "unique mom and pop merchants" as well as someone who now earns a living helping other offline business owners grow their business thru local search marketing, I really don't buy most of their arguments at all.
In fact, I view it as an amazing opportunity for SMB's to market themselves online using local search which is unequivocaly the most cost effective (and trackable) marketing communications medium they've ever had access to.
Let's face it... How often do you drive around a neighborhood after the new yellow page books have been delivered and most of them are still on the ground days, even weeks later - soaking wet and useless. Your customers are certainly searching for you online and the quickest way to "doom" your business is to not be there when they're looking for you. Unfortunately though, many of them just don't understand this paradigm shift yet.
I agree that local small business owners need to gain awareness of the changes occuring both online and off. However, I certainly don't agree that all businesses are doomed because of competition from the Internet or big box merchants or Walmart.
Local businesses that offer a convienent location, outstanding value, exceptional customer service and know the proper way to maintain a relationship with their existing customers while constantly adding new customers will continue to thrive for a long time.
Just today as a matter of fact, I was speaking with the owner of a used book store that just opened up in a shopping center next to my son's daycare...
He's not worried about Amazon or any other online bookseller. He had thousands of books for sale but none of them cost more than $4. He's adding a free lollipop tree in the kids section of the store and he offers everyone free gourmet coffee and fig newtons as he cheerfully greets them the second they walk in the door.
One lady had a bunch of used kids books she wanted to sell but they were in pretty bad shape so he could only offer her $5 cash. Sensing her dismay, he explained that they weren't worth much to him due to their condition but that he'd be willing to give her a $25 store credit and donate the books to a local kids homeless shelter for her instead.
Any local business that cares about it's customers that much will always beat their competition - online and offline. People don't want the best price... they want the best experience. Deliver that consistently and you'll be just fine.
.
As the former owner of a "main street" bicycle store, and more recently, an online shopping mall for hundreds of "unique mom and pop merchants" as well as someone who now earns a living helping other offline business owners grow their business thru local search marketing, I really don't buy most of their arguments at all.
In fact, I view it as an amazing opportunity for SMB's to market themselves online using local search which is unequivocaly the most cost effective (and trackable) marketing communications medium they've ever had access to.
Let's face it... How often do you drive around a neighborhood after the new yellow page books have been delivered and most of them are still on the ground days, even weeks later - soaking wet and useless. Your customers are certainly searching for you online and the quickest way to "doom" your business is to not be there when they're looking for you. Unfortunately though, many of them just don't understand this paradigm shift yet.
I agree that local small business owners need to gain awareness of the changes occuring both online and off. However, I certainly don't agree that all businesses are doomed because of competition from the Internet or big box merchants or Walmart.
Local businesses that offer a convienent location, outstanding value, exceptional customer service and know the proper way to maintain a relationship with their existing customers while constantly adding new customers will continue to thrive for a long time.
Just today as a matter of fact, I was speaking with the owner of a used book store that just opened up in a shopping center next to my son's daycare...
He's not worried about Amazon or any other online bookseller. He had thousands of books for sale but none of them cost more than $4. He's adding a free lollipop tree in the kids section of the store and he offers everyone free gourmet coffee and fig newtons as he cheerfully greets them the second they walk in the door.
One lady had a bunch of used kids books she wanted to sell but they were in pretty bad shape so he could only offer her $5 cash. Sensing her dismay, he explained that they weren't worth much to him due to their condition but that he'd be willing to give her a $25 store credit and donate the books to a local kids homeless shelter for her instead.
Any local business that cares about it's customers that much will always beat their competition - online and offline. People don't want the best price... they want the best experience. Deliver that consistently and you'll be just fine.
.
Add a Comment
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Comment by Cory Grassell on November 18, 2009 at 9:25am - Local business are not doomed, but they need to have an online presence. In fact, search engine marketing is an opportunity for small, local business owners to compete with the "big boys." SEM is cost effective, manageable and affordable. Anyone can do it, unlike traditional advertising that requires mass spend to compete with national advertisers (billboards, magazines, newspapers, etc.). Also, we have research that suggests a majority of consumers search/research online for the products and services they need, but they go offline to make their purchases. Nearly 80 percent of purchase transactions occur within 15miles of the consumer home.
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Comment by Terri Greene on December 18, 2008 at 4:05pm
- I think there will always be a need for local business promotion. There is always going to be the need for instant gratification and having something immediately. There is lag time when purchasing on-line which is a definite disadvantage. Another missing link is knowing how to use online marketing to a local business' advantage. TMP Directional Marketing is an agency that specializes in local search solutions. If you have any further questions or need any feedback on promoting your business locally, I would first check out their website and maybe inquire for more information: http://www.tmpdm.com.
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Comment by Aaron Weiche on June 13, 2008 at 9:19am -
I read Matt's post the other day and was surprised that he write the angle he did. I think the root of it was his passion for small business and if anything pushing people to support small business. My guess is that is just came out wrong.
Great example, as with any business you can gain and build something great by listening and providing great service. If you can push price down to #3 or #4 on the customers list, you will get them.
(FYI - found the post via twitter)
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