Shoppers Boost the Local Economy on Small Business Saturday

#ShopSmall

American Express launched Small Business Saturday in 2010 to encourage holiday shoppers to patronize local/small businesses on the Saturday after Thanksgiving.

This is the seventh year and every year, merchant participation and public response have been bigger and better than the previous year. In 2015, 95 million US consumers purchased something as part of Small Business Saturday, for a total estimated financial impact of $16 billion.

This year, the official FB page has 3.5 million likes...the Twitter account has 56.5k followers...the Instagram account has 22.5k followers.

Not only does Amex provide downloadable marketing materials for small businesses, it also has a lookup function to find participating businesses in the local area, wherever you are.

A Google search for "Small Business Saturday" returned 45 million+ results today. The majority are local media outlets publicizing participants (this year and previous years). So if you have gifts to buy or want to enjoy a meal out, Small Business Saturday is a good opportunity to vote with your wallet and make a difference to the local economy.

Marketing With Pokemon Go

The Pokemon Go phenomenon might be a summertime spike or something more lasting, but while it's popular, marketers are jumping on the bandwagon.

Pokemon Go is a new smartphone game based on the old Pokemon characters, with the special twist that players wander in the real world looking to "capture" characters in various locations. Here's what the Pokemon website says about the game:

Get on your feet and step outside to find and catch wild Pokémon. Explore cities and towns around where you live and even around the globe to capture as many Pokémon as you can. As you move around, your smartphone will vibrate to let you know you're near a Pokémon. Once you've encountered a Pokémon, take aim on your smartphone's touch screen and throw a Poké Ball to catch it. Be careful when you try to catch it, or it might run away! Also look for PokéStops located at interesting places, such as public art installations, historical markers, and monuments, where you can collect more Poké Balls and other items.

Local businesses are excited about the number of potential customers coming to their premises in search of wild Pokemon characters. Several restaurants and bars reported super increases in sales after investing about $10 for "lure" packages. Businesses can become "poke stops" to boost the user's stock of balls, attracting foot traffic in the process. It's a matter of harnessing high interest and engagement to shape customer behavior, at least increasing awareness of the brand or location and at best, gaining trial and purchasing.

Nonprofits are also part of this craze. From nature preserves to museums and beyond, organizations are taking the opportunity to invite visitors to catch Pokemon characters with them. Although not all places are happy about being involved without first being asked, some nonprofits are suggesting that advocates organize Pokemon Go walking tours to raise money for charity.

Go Pokemon Go!

More about Marketing to Millennials

So many marketing plans target Millennials that it's worth looking at some recent research about this key market segment.

• As shown in the Pew Research data at left, Millennials have a very positive view of the role of small businesses in America, and the role of technology firms. Millennials are, like the rest of the nation, not as positive about the upside-impact of national news media.

• Millennials are using their ever-ready smartphones for all kinds of functions, not just selfies but of course mobile banking as well.

• Loading prepaid cards with money to spend is another Millennial behavior. 

• Eating out -- but at distinctive fast-casual places -- is part of the Millennials' routine.

• Personality is a big part of the appeal to Millennials when they consider foods and beverages. No big, boring, bland corporate stuff backed by conventional advertising, please.

Small Business Saturday Is Almost Here

Small Business Saturday was started in 2010 by American Express to encourage shoppers to buy from small and local businesses.

By now, social media marketing is a standard for this themed holiday shopping day, which falls between Black Friday and Cyber Monday.

On Twitter, @ShopSmall has nearly 50,000 followers. On Facebook, Small Business Saturday has nearly 3.5 million likes. On Instagram, it has nearly 12,000 followers.

Businesses and shoppers are encouraged to use #shopsmall and #SmallBizSat to identify social media posts related to Small Business Saturday.

Publicity is helping spread the word, as well. Search for "Small Business Saturday" and you'll see more than 229 million results. Some are links to small businesses and some are links to news stories, local commentaries, and more. The Small Business Administration is also spreading the word. I'm doing my part on Saturday!

How Well Do You Know Your Customers?

Small businesses often try harder to cozy up to their customers because each relationship is so valuable, both in terms of short-term transactions and over the entire period of their business connections.

Community banks, for example, generally have deep roots in local areas and can get to know consumers and commercial customers very well.

Noah Bank, a tiny four-branch bank that targets Korean-American businesses, talks the talk (see newsletter at left) and walks the walk. It understands the complex professional and personal relationships that keep its business customers going and contribute to their financial success. Its officers are always out and about in the community, meeting with customers and listening to them talk about their situation and priorities.

Close customer contact like this also demonstrates a deep interest in customers and builds a strong foundation of mutual trust and respect.

Banks of all sizes, in particular, are seeking to rebuild trust and differentiate themselves in a meaningful way to retain customers and attract new ones. Citibank's European marketing director recently said that banks must "try harder." Consumer brand leaders such as Apple, she points out, can be good role models for banks, because these firms are known for their ability to identify and satisfy customer needs: "We need to elevate our holistic product to the level of leading consumer brands-to meet and exceed requirements. Give people a reason to choose you over rivals."

How can a marketer (especially a small business) find out about customer needs? Start by doing your homework on the customer, the industry, and the overall business environment. Think about the value your goods or services might add, depending on what individual customers need. Be knowledgeable and prepared before you see any customer.

Sales expert Geoffrey James suggests a few strategic questions during conversations with customers, such as: "Please tell me how your company uses widgets [insert your product category]." Then you can ask about challenges, based on your knowledge of this industry, such as "In my experience, inventory of widgets that are stored for some time might degrade before being used in production or operations. Have you experienced this?"

2d Annual Small Business Saturday

American Express started the first Small Business Saturday in 2010 to encourage shoppers to buy from small, local businesses. This year, it's again promoting the day as a way to support small businesses all over the country.

There's a FB page with more than 2 million "likes" where consumers can learn more, pledge to buy from small biz on Saturday, and see who else is supporting the movement (FedEx, dozens of chambers of commerce, and many other corporations and civic groups).

TV, newspapers, blogs, and other media are spreading the word, giving the day more play and encouraging people to buy what they need and want from small, local firms. Wilmington, Delaware even switched its Christmas parade from Black Friday to Small Business Saturday to bring crowds of shoppers past the doors of local businesses. Great idea!

Marketing a Small/Local Business: Thrifty-Plow

Being located in a snow-belt area, I'm a prime customer for driveway plow services. These tend to be owner-operated and hyper-local.

Because this has been one of the snowiest winters on record in my area, plow services have been overloaded with work. To get and keep customers, any plow service must emphasize personalized marketing and reliable service delivery. This is the story of one local business that gets it right.

Earlier this month, I received the newsletter (top) from Bruce, the owner of Thrifty-Plow, who has been clearing my driveway for the past 3 years. Because the current bill (below) was so much higher than usual, Bruce wrote a lengthy explanation of why and how he changed his services to cope with the unprecedented wintery mess.

Now why is this smart marketing? First, Bruce prepared his customers for the big shock of the biggest bills he's ever sent us. He reminded us of the conditions he (and we) faced in clearing driveways, explained in detail how he did a good job despite the major obstacles. He described the scope of his services and what he must do to be sure the job is complete--and closed with a reminder that his rates are as low as he can make them.

The bill, handwritten, detailed every service Bruce provided so customers could figure out what he did and what he charged for each service. Then, because my driveway is among the last to be plowed, Bruce applied a 20% discount "for waiting."

Smart marketing: Even the bill reinforced the value that Bruce provided for the money I pay. Although Bruce had to spend extra time plowing the extraordinary snowfall, he included my discount to show that I received extra value because I'm his customer.

Bruce didn't need colorful materials or flashy logos to get or keep my business. Bruce has no Facebook page, no Twitter feed. I don't care whether his bill is hand-written or computer-generated. In fact, I wrote him a thank-you note along with my check. He keeps the "brand promise" of Thrifty-Plow: He always gets the job done at a reasonable price.