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How to Convert Local Businesses into Customers

Stuart Crawford

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Partnering with other local businesses on initiatives that provide mutual benefit can be a win-win. You can often create more value than separately.

How to Convert Local Businesses into Customers

Most people are doing it wrong.

They're sending generic emails, dropping by with business cards, or making cold calls that go straight to voicemail. And they wonder why local businesses aren't buying.

Local business owners are bombarded with 17-25 sales pitches EVERY SINGLE WEEK.

And 97% of those pitches fail miserably.

I know because I've been on both sides of this equation. I've built multiple businesses by mastering the art of converting local businesses into high-ticket, long-term clients. And I've sat in the chair of the local business owner, watching salespeople crash and burn with the same tired approaches.

What I'm about to share isn't theory. It's the exact process that's generated millions in client revenue across 30+ industries. A process so effective that businesses now come to ME asking to become clients.

In the next few minutes, I'll explain the fundamental shift you must make in your approach. This shift will transform you from “another annoying salesperson” into the obvious solution provider that local businesses can't wait to work with.

Are you ready to stop wasting time on methods that don't work and start closing deals that both you and your clients will celebrate? Let's dive in.

Key takeaways
  • Identify ideal local customers to establish focused, mutually beneficial relationships.
  • Understand consumer behaviour to tailor marketing strategies addressing local business needs.
  • Craft a clear core value proposition highlighting specific benefits for local partners.
  • Utilise in-person visits and networking to build trust and foster long-term connections.

Identify Your Ideal Local Customers

Localising Paid Advertising

The first step is identifying the local businesses you want to target and create relationships with. Ask yourself:

  • What types of companies have needs closely aligned with what I sell?
  • Are there specific verticals or service-based businesses I'm best positioned to help?
  • What business sizes or models make the most sense as ideal partners?
  • Are there local businesses I am already interested in based on existing personal connections?

Drill down on who your perfect potential local customers are. The more niche you can get in defining your ideal customer profile, the better.

For example, if you sell workplace ergonomic products, good targets include physical therapy clinics, chiropractor offices, standing desk retailers, or yoga studios.

Or, if you have an ecommerce business selling dog products, local pet groomers, dog walkers, veterinarian offices, and pet supply shops could all be solid matches.

Put yourself in the shoes of those ideal customer types and consider what pains or challenges they face that your business can help solve. Thinking through this alignment will help you refine your outreach.

Consumer Behaviour Analysis

Understanding the subtle aspects of consumer behaviour can significantly enhance your ability to convert local businesses into loyal customers.

Using data analytics tools, you can gather important insights into your target area's demographic trends and purchasing patterns.

These insights help tailor marketing strategies that directly address the needs and expectations of local business owners.

It's essential to continuously monitor these trends to refine your targeting efforts and improve conversion strategies.

Observe interactions on social media channels and customer feedback forms for deeper analysis. These platforms can reveal significant patterns in business preferences and unmet needs.

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Use surveys and polls to gather direct insights from local business owners about what services they would find most valuable.

This proactive approach to understanding consumer behaviour guides refined marketing strategies and helps tailor products and services to the local demand, fostering better engagement and customer satisfaction.

Craft Your Core Value Proposition

Once you've identified some target customers, craft a core value proposition focused on them.

In other words, what is the main benefit these local companies will gain from doing business with you? How will partnering with you make their lives easier?

Maybe you can save them time with your product or service. Perhaps you can increase their revenue by driving new sales and customers. Or you could reduce costs in their operations or supply chain. There are ways you can improve customer retention and satisfaction.

Get clear on the #1 way working with you will help ideal prospects achieve their goals. Then, distil this core value into a simple, compelling message.

For example:

“We help local veterinarians reduce appointment wait times and increase patient satisfaction.”

Our digital marketing services help local restaurants get more bookings and repeat business.

Lead with this core benefit in your outreach and marketing. The more specific you can make your value prop to local prospects, the better.

Effective Email Marketing Campaigns

Crafting impactful email marketing campaigns is key to engaging local businesses effectively.

Start by segmenting your audience based on industry and specific interests. This allows for the creation of personalised content that resonates. Timing is also critical; sending emails early in the week might yield better open rates than at weekends.

Incorporate direct calls to action, encouraging immediate engagement, such as signing up for webinars or scheduling meetings.

Regularly evaluate your strategy based on performance metrics like open and click-through rates to enhance results over time.

To further boost the effectiveness of email marketing, incorporate A/B testing to compare different email formats and messaging. This lets you discern which styles elicit the most engagement, allowing for continuous optimisation.

Personalise your emails by using the recipient's name and specific details related to their business, which can significantly increase open rates and drive meaningful interactions.

Social Proof and Testimonials

Leveraging Social Proof And Testimonials

Leveraging social proof through customer testimonials can significantly enhance your credibility with potential clients.

Encourage satisfied local business clients to share their positive experiences. Display these testimonials prominently on your website and marketing materials. Online reviews on platforms like Google and Yelp also serve as valuable endorsements.

By highlighting the success of past collaborations, you can build trust with prospective local partners who may be hesitant to engage initially.

Leverage Existing Connections

Don't start totally from scratch. Think through people you already know who work at potential local customer businesses.

Is your college roommate now managing the downtown location of a boutique fitness studio chain? Does your neighbour own a plumbing company operating in your town for decades?

Tap into your existing network and warm leads. Even if those connections aren't senior decision-makers, they can get your foot in the door and pass your outreach on to the right people.

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A warm introduction goes much further than a cold call or sales email to a generic company address.

Let people in your network know that you want to connect with certain local businesses. Ask if they have any contacts who fit the bill.

People are often happy to facilitate introductions that could lead to mutual benefit. Leverage the relationships you already have to generate referrals and warmer prospects.

Show Up In-Person Routinely

How To Reach Customers With Retail Marketing Strategies

Especially in the beginning stages, focus on consistently showing up in person to build local business relationships. Physical, real-world presence helps make vital human connections that online interactions often lack.

When would be convenient times to stop by potential customer locations? Is there a slower period on certain days of the week or times of day when management has more flexibility to chat?

Early morning or afternoons before the late-day rush may work well for restaurants. When appointment books are less packed, weekdays could be ideal for service businesses like salons or clinics. Whenever the owner or decision-maker tends to be around, find ways to engage in person.

When you visit:

  • Have plenty of business cards and marketing materials ready to leave behind. This gives them something to reference when you're not there.
  • Come prepared to discuss your value proposition, listening closely to their pain points.
  • Offer helpful advice and information, more than just an immediate sales pitch. Provide value whether or not they become customers soon.
  • Be gracious with their time. Don't overstay your welcome.
  • Follow up consistently after your initial conversations. Check in periodically to continue nurturing the relationship.

Regular in-person visits demonstrate commitment and give space for trust to develop organically. And you're at the top of your mind next time a relevant need arises.

Host or Sponsor Relevant Local Events

Hosting, sponsoring or partnering on local events is another way to build community connections and reach potential SMB customers.

You can:

  • Host an exclusive VIP dinner for local prospects and referral partners. This creates valuable face time in an informal setting.
  • Sponsor a booth or table at an existing chamber of commerce, networking event or industry trade show.
  • Organise an in-person workshop or class local businesses would find interesting.
  • Partner with a complementary local business on a special event or promotion.

Position yourself as an engaged supporter of your local community. Find opportunities to provide value and exposure for brands you want to start relationships with. Being an event collaborator gets your foot in the door and raises awareness.

And, of course, being present at live events allows you to connect in person. Follow up effectively afterwards with any promising prospects you meet. Events let you start nurturing relationships that will enable business visits and networking to grow.

Create Useful Local Content

Content marketing is another powerful tool for attracting and engaging local SMB prospects. Develop resources and information that speak directly to their needs and interests.

For example, you could create:

  • A local business spotlight series on your site highlighting successful companies making an impact.
  • Industry trend reports on challenges specific to certain verticals and tips to capitalise on opportunities.
  • Lists or guides with local data, like “The Top 10 Most Instagrammed Restaurants In Atlanta.”
  • Live or virtual workshops on topics relevant to ideal customer groups.
  • Email newsletters or social media content focused on local content.
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Think through the types of information that your dream prospects and referral partners would find most interesting. Then, provide that value in the form of consistent content.

Include focused CTAs (calls to action) within each piece of content to drive potential customers to take the following steps, like downloading a resource kit or scheduling a consultation. Provide applicable local content that fuels ongoing engagement.

Understanding Local SEO

Optimising for local SEO is a powerful way to increase visibility and attract potential customers.

Ensure your business is listed on Google My Business with accurate details, including operating hours and contact information.

Use location-specific keywords in your web content to boost search rankings in local queries. Encouraging satisfied clients to leave reviews can also improve your local search profile.

Regular updates to your website, such as adding blog content focused on local issues, can further enhance your SEO efforts.

Run Local-Focused Paid Ads

Paid Ads Vs Organic Results 6539A28B795Dc

Paid advertising allows you to target prospects on the platforms they use frequently, raising your visibility precisely. Sponsored posts on Facebook, Instagram, LinkedIn ads, and Google Ads can all be leveraged to connect with local audiences.

Some tips for optimising local paid ad campaigns:

  • Target ads geographically using zip codes or city/region names.
  • Use relevant local keywords and industry terms prospects search for.
  • Spotlight your location, proximity, and community knowledge.
  • Link to landing pages showcasing local content offers and value props.
  • Retarget engaged visitors across sites and nurture leads with helpful content.

The beauty of digital ads is the ability to segment audiences and deliver hyper-specific messaging. Especially as you're first looking to enter a local market, paid ads can help efficiently generate awareness and interest.

Digital Tools for Networking

Utilizing digital tools for networking can extend your reach and deepen connections with local businesses.

Platforms like LinkedIn offer opportunities to connect with industry professionals and join relevant groups. Virtual networking events and webinars can also provide platforms to share expertise and engage directly with potential clients.

You can leverage these tools to maintain a digital presence that complements your in-person efforts, keeping your business top-of-mind for local prospects.

Partner Creatively With Complementary Local Businesses

Partnering creatively with other local businesses on initiatives that provide mutual benefit can be a win-win. Together, you can often create more value than separately.

Some examples of local business partnerships to consider:

  • Co-hosting a free webinar or workshop covering a topic that would be helpful to prospects of both businesses. This lets you align your brands as thought leaders, gain shared exposure to each other's audiences, and build authority.
  • Cross-promoting special offers or events to each other's email subscriber lists and social media channels, expanding collective reach.
  • For instance, you can get product placement at complementary businesses and stock your protein bars for sale at local gyms.
  • Offering discount codes or incentives to customers of strategic partner brands. For example, a 10% off code for your massage studio is offered to yoga studio customers.
  • Working together on local PR campaigns or news stories highlighting multiple businesses positively.

Brainstorm creative ways to partner with local companies that are already serving your target customers. This builds ties in the community and compounds awareness for all involved.

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Provide Exceptional Service

Providing exceptional service and value to the customers you do land is essential. Your reputation will make or break you locally, especially in the early days.

Go above and beyond to deliver for clients and craft remarkable customer experiences. Get testimonials. Then, leverage happy customers from within your targeted niche to organically reach others they connect with locally.

Most local business owners talk to each other and pay close attention to buzz within their industry circles. Doing great work for current customers and having their advocacy means far more than any advertisement could.

When small business owners are thrilled with your service and results, they'll proactively help you convert others like them without you asking.

Your customer experience is your best marketing.

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Consistency and Patience Are Key

Implementing the strategies above takes time, consistency and patience. You likely won't sign up dozens of local business customers overnight.

Focus on playing the long game, building relationships and trust with consistency first. As you gradually convert initial customers within a niche, ask for introductions and referrals to similar businesses they associate with locally.

Momentum typically snowballs slowly at first. But if you diligently stick with the strategies that work, your local referral network, authority and customer base will grow. Remain patient and persistent through the ups and downs.

In Closing

Winning over local small businesses to become devoted customers requires creativity, nuance and persistence. However, the effort could vastly impact your brand and bottom line.

I hope this guide has outlined helpful strategies for converting more local companies within your ideal niches into customers and fans.

Please feel free to reach out with any other questions! I'm always happy to help fellow business owners strengthen local connections and partnerships.

Now get out there, keep showing up consistently, focus on building trust, and soon, you'll be part of your community's inner circle of preferred partners.

FAQs About Converting Local Businesses Into Customers

Here are some frequently asked questions about converting local businesses into ongoing customers:

What's the most cost-effective strategy for reaching local companies?

In-person visits, networking and leveraging existing connections are the most budget-friendly tactics. Paid digital ads also allow you to target precisely for optimised spending. Sponsoring local events and workshops and creating comprehensive content will take more time and resources but can be very effective. There are options for nearly every budget.

How can I tell if a local prospect I'm pursuing is uninterested?

If your outreach goes unanswered after several thoughtful follow-ups, it may be time to redirect focus elsewhere. You can also gauge reactions in person based on body language and their engagement with learning more. Please don't force it; some local businesses won't be an ideal fit.

What metrics should I track for local conversion efforts?

Track engagement metrics like email open rates and content downloads specific to local prospects. Monitor phone and in-person visit numbers and sales-qualified leads in your pipeline. Ultimately, the revenue and customer retention generated from local accounts over time are the most critical KPIs.

How can I incentivise referrals to expand my local customer base faster?

Offer current happy customers discounts, bonuses or enhanced services for successfully referring you to other local businesses. Make referrer rewards tiered based on the size and value of the new account they bring on. This incentivises your evangelists to grow your regional footprint proactively.

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Written By
Stuart Crawford
Stuart Crawford is an award-winning creative director and brand strategist with over 15 years of experience building memorable and influential brands. As Creative Director at Inkbot Design, a leading branding agency, Stuart oversees all creative projects and ensures each client receives a customised brand strategy and visual identity.

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