The Future of Local Business in a Digital Age

Even though local businesses are still often able to maintain their small-town feel and customer appeal, they are not immune to the power of today’s digital marketplace. 

When you understand how factors such as the internet and social media are changing the overarching commercial landscape, you will be in a better position to prepare your own business for the future.

Digital payments and transaction security are changing

Now that cash is being relegated to the back burner for the majority of businesses, shoppers are embracing other ways to pay that have turned out to be faster, easier, and more secure. 

Instead of being subjected to the vulnerability that accompanies carrying quantities of hard currency, today’s buyers are readily switching to other methods, including paying with credit and debit cards, by bank transfer, or even via their smartphones using built-in Apple Pay, Google Pay, or PayPal digital wallets. 

When using these alternative methods, people are likely to spend more freely and can effortlessly keep track of purchases via electronic receipts.

Consumers can harness the power of the digital wallet to speed through their purchase in just a few seconds. However, the appeal of digital wallets goes beyond their convenience. The contactless technologies that are the foundation of this payment option also ensure that security remains a top priority. 

At every step of the purchase, customer payment details are protected from interception and theft by robust tokenization and encryption procedures. These make sensitive payment data unusable to hackers. 

Meanwhile, anti-fraud tools screen the payment before it is allowed to go through, providing parties with an additional safety precaution.

As digital transactions continue to grow in popularity, local businesses are coming to terms with the added security challenges that accompany them. 

At their foundation lies the necessity to be in full compliance with the Payment Card Industry Data Security Standard (PCI DSS), a set of measures put forth by the major players in the finance industry designed to protect the integrity of cardholder data. 

Full adherence requires that all businesses that take credit card payments, regardless of their size or scope, create and maintain comprehensive physical and digital security protocols and practices that can be regularly measured and evaluated.

Some companies, including smaller local sellers, are going above and beyond PCI DSS requirements to provide more robust protections for themselves and their customers. 

For instance, many are now choosing to implement an extra precaution known as two-factor authentication. This furnishes another layer of verification that customers must go through before being allowed to log in or make a payment. 

This, combined with address verification tools, helps to ensure that a shopper is actually who they claim to be.

Ecommerce is driving online visibility

Although brick and mortar stores still rely on foot traffic and have not totally forsaken the advantages of small-town print and media ads, most have seen the writing on the wall. 

In keeping with the inexorable trend towards social media and online engagement, they are adopting a broader and more digitally-based strategy to get the word out about what they have to offer. Already, over $650 billion per year is being spent on digital advertising, a figure that shows no signs of decreasing anytime soon.

The evidence is hard to refute. Consider, for instance, that eight out of 10 customers now use the internet to search for a local business at least once per week. 

Entrepreneurs looking to maintain the relevance of their small stores simply cannot afford to ignore the power of the online search or to wall themselves off from the ecommerce and in-person sales that it will provide.

Another superpower that many modest companies are discovering is multi-channel marketing. 

In addition to making products available for people to directly see and touch in their physical stores, these operations are now simultaneously showing them off in virtual online marketplaces where they can either be purchased and delivered to a buyer’s door or bought later in a face-to-face interaction. 

Recent research by Harvard Business Review shows that a full 73% of shoppers use multiple channels when making purchases. 

Companies with a robust multi-channel presence are able to retain 89% of their customers. This compares to only 33% by businesses with a less diversified approach.

Customer engagement and sustainability trends are transforming

Now more than ever, it is vital to establish and regularly update presences on popular social media sites such as TikTok, Instagram, and Facebook. 

One study underscored this when it indicated that over 77% of businesses are now regularly using these platforms to reach their customers on a regular basis, through their textual and digital content as well as via the positive reviews of happy customers.

What’s more, these platforms can now provide direct links to a business’s ecommerce platform without even requiring the shopper to click away. 

This has led 41% of businesses to now use social media to drive revenue into their coffers. This seamless link between engagement and action helps to explain why social media has experienced such a meteoric rise in popularity with both users and the businesses that are vying for their attention and retail dollars.

Social media platforms also provide places where like-minded consumers can bond over the causes they support. 

As concerns about the environment and climate change rise among many shoppers, businesses whose brands focus on sustainability can share their commitment to the planet, furnishing powerful insights into their brand and inspiring potential customers to spend their money on products from a retailer with compatible beliefs.

While digital marketing has a broad reach, it can also help smaller companies to form bonds with others in their area. 

The results often are mutually beneficial relationships that may spawn events that appeal to an expanded local customer base and the ability to problem-solve and strategize about concerns that are important to local customers.

Loyalty is inspired through enriched, personalized relationships. With the reach and specificity that social media offers, even micro-companies can make themselves and their brand a household word with their target demographic. 

A curated shopping experience combined with ongoing engagement and dialogue enables social media to forge bonds between shoppers and companies that lead to long-term loyalty and powerful referrals.

The key to brand loyalty is trust, and social media helps to deliver this by virtue of social proof. The truth is that even the most polished marketing campaign often pales in comparison to the power of content that is generated by other users. 

When a customer reads testimonials created by people who they perceive to be similar to themselves, they will be far more likely to make a purchase.

Operational efficiency and inventory trends

Companies aiming for maximum operational efficiency must now take multi-channel marketing factors into consideration. 

Since customers are now demonstrating their preference to view and purchase products on various platforms instead of just one, sellers need to create an infrastructure that supports direct in-person as well as ecommerce sales. 

Offering consumers numerous payment choices and flexible options also helps to create the friendly, client-centered multi-channel buying atmosphere that today’s shoppers are increasingly demanding.

It is always easier to retain an existing customer than to recruit a new one. Furnishing varied and personalized buying options is a highly effective way for smaller companies to make the most of every marketing dollar by retaining the vast majority of their clients.

Another way to ensure shopper satisfaction is when you can keep the delivery promises that you made at the time of purchase. 

Modern cloud-based technology can now take the guesswork out of order fulfillment, allowing you to see in real-time where a shipment is and to notify customers in the event of any disruptions or changes. 

Keeping these lines of communication open at all times prevents frustration and misunderstandings and enhances your overall relationship.

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