Reasons small businesses do it better - NatWest is proud to support
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7 reasons small
businesses
do it better
NatWest is proud to supportThere for the customer
Flexibility can make dealing with a small
business easier and more satisfying.
Many big companies are burdened by
administration; too many decision makers
and managers can make change – even minor
adjustments – a slow process.
Small retailers don’t have this problem.
Free from time-consuming, decision-making
and consensus building, they move much
more quickly. They can respond to changes in
Larger businesses
VS Small businesses
Small businesses do
the local community, customer demand or the
13 million
national climate with more agility – and take
a personal approach when needed.
This also puts managers closer to
customers. As they’re at the front of their
it better because...
trade, small business managers can quickly
spot a consumer need, offer a solution
hours every week
are wasted in
they offer flexibility
and gather feedback without so much as
meetings
organising a focus group.
Agility in action
75.3%
The UK’s independent retailers have
responded to recession-conscious Brits’
needs by launching new product lines and
offerings. Fabric stores are up 44% and home
baking stores are up 50%, recognising the of UK businesses
Ready to innovate and with mend-and-make-do values of the squeezed
middle in a timely way that larger corporates employ no-one but
an open ear, they are free to often find trickier to master.
the company owners
respond to customer needs
Whatever you want from a small
business, there’s no one between you and the – so decision-
more quickly. business. So talking it through is easier – and
that’s got to be good news. making is swift.
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceIt’s difficult for Supporting the local economy
To see the role of small businesses in your local
big businesses community, you just have to follow the money.
to play an active
Every £1 spent with a local supplier is worth
£1.76 to the local economy, while it’s only
community role worth 36p if it’s spent outside the local area.
“Shopping locally not only supports
in the way that
15%
the shops on the high street, but the farmer
or manufacturer down the road too. And
independent local it puts the money spent back into that
shops can.
local economy, too” explains John Walker,
-of shoppers choose
National Chairman of the Federation of
Small Businesses.
Local heroes independent stores
The fact is, customers really value the
personal touch that comes with small
to support the
businesses, and that is why they support them. community.
In Bristol, local businesses have
Small businesses do
capitalised on this consumer support
250,000
by launching the Bristol Pound (£B), a
local currency redeemable in the city’s
independent businesses. Since it launched
it better because...
Bristol pounds in
last year, more than a quarter of a million
pounds sterling have been turned into
Bristol Pounds... a ringing endorsement
from local residents. circulation.
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceBig businesses spend
a fortune trying
Closer to a bargain
With small businesses there are fewer degrees
of separation between the business and its
£242.5m
The amount UK
to connect with
online presence. What appears on Twitter or
Facebook may well be written by the business
businesses spend
customers. But small owner, or someone integral to the firm, and
it’s likely to be timely – as in the case of the
on social media
retailers can be like famous New York bagel bakery who tweeted
whenever a new batch were hot from the marketing.
friends and family. oven. Locals followed, knowing they’d be
first in line.
Online presence
Small businesses enjoy stronger personal
relationships with customers. Britain’s
independent retailers are great at transferring
58%
of customers are
likely to take positive
the one-on-one relationship they excel at
into the digital space, too. In an age of call
centres and auto-forms, there’s something
reassuring about knowing you can tweet a action if a small
business helps them
Small businesses do
question about, say, late opening times to your
favourite shop, and receive an answer from
the person at the counter saying they’ll stay over social media.
open until you get there.
it better because... £0
they can make
The amount small
businesses have
to spend on social
media.
better e-buddies
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceFree to experiment
(and listen), small
Putting the excitement back
Because small businesses often don’t have
to appeal to the mainstream, they are able
44%
of people feel
retailers can offer to offer customers more inspiring, niche and
more exciting,
bespoke products. According to a recent
report by A Nation of Shopkeepers, some independent
interesting lines
44% of people feel independent retailers
provide an originality in products, that
shops provide
than big chains.
customers find lacking in chain stores. an originality in
products.
Britain’s small shops have taken to
heart Government High Street Tsar
Mary Portas’ challenge that shops should
8%
“experiment, try new things, take risks and
become destinations again” – and that’s great
news for customers.
The art of being artisan
Bread is a shining example of how being The rise in value of
interesting can drive sales. Speciality
bread – such as you might find in your speciality bread
local baker’s – grew in value by 8% while
VS
Small businesses do
pre-packed bread – as you night find in the
2%
supermarket – grew by just 2%.
“Local, independent businesses have
it better because...
smaller inventories to manage, meaning
fresher stock and niche products based on
The rise in value of
they sell more
local demands rather than mass trends,” says
Lee McPherson of LiveShopLocal.co.uk
prepacked bread.
interesting products…
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplacethey can offer
Small businesses do
it better because...
provenance
As more
customers want
Locally-sourced products
It’s no secret that provenance is the key for
customers seeking quality products. But trust
79%
of shoppers think
to know where
in the provenance offered by big businesses
took a killer blow earlier this year when locally sourced food
their purchases a number of supermarkets sold burgers
produced outside the UK that were found to supports the local
come from, small contain horsemeat.
That scandal boosted interest in buying economy.
businesses offer British from 40% to 49% in just three
50%
peace of mind. months. But it also increased interest in
locally sourced products.
An expert eye
According to Lee McPherson of
LiveShopLocal.com, big chains may use of shoppers think local
technology to track and trace provenance,
but there is nothing that beats the personal
food is better quality.
relationship for giving customers the
25%
security of provenance. For example, a
good fishmonger will often have a personal
relationship with the fisherman who caught
the batch of fish.
Locally-sourced products not only
have a more trustworthy provenance – they
of shoppers are happy
typically have lower carbon footprints too, to pay more for locally
having travelled less to get to your basket. All
that, and they support the local economy too. sourced products.
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceSmall businesses Expertise add value
Possibly the biggest advantage small
add value to businesses have over large ones is their
the shopping
33%
staff. In many cases the person serving the
customer has a stake in the business – while
experience by 75.3% of UK businesses employ no one but
Small
the business owners.
offering face- This is great news for customer service.
The business owner is likely to be an expert in of people think staff
to-face service the product they sell. Butchers are brimming
in chain stores are
from an expert. with recipes for their choice cuts; booksellers
businesses
can’t wait to recommend something a little
off-piste; florists have just the thing to make
less friendly.
your bouquet shine. For Lee McPherson of
46%
LiveShopLocal.com it’s about more than
do it better
expertise, it’s about adding value to the
shopping experience.
The personal touch
In business, little extras are worth a lot.
of people want high
street shops to know
because...
Research by Groupon and Kantar found that
they give
who they are and
46% of customers want high street businesses
to know who they are and what they want. For
small businesses with a small staff this is par
for the course. what they want.
better service…
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceSmall businesses do
30%
of people are more
it better because...
likely to shop in
small local shops in
the wake of stories
customers
about corporation
tax.
85%
trust sma33
A question of trust of shoppers like
It’s true – customers are more likely to trust
small businesses. The British Independent
small businesses for
Retail Association worked with ICM face-to-face service.
businesses
Research to poll 2,000 people and found that
almost a third (30%) said they were more
83%
likely to shop in small, independent stores
in the wake of stories about large businesses
avoiding paying corporation tax.
Tax allegations, a horsemeat scandal and
a faltering economy have given birth to a dim say small businesses
are reliable.
but pervading mistrust of large firms.
Future-proof your business
Likability is the holy grail: positive emotions
Free from mean happy shopping. If customers like and
corporate trust you they will remain loyal, and will
return. According to a study by Harvard
ties, small Business School a 5% increase in customer
retention can increase a company’s profits by
businesses between 25% and 95%.
offer welcome
And as loyalty is what small retailers stand
or fall on, they focus on making customers –
transparency. their regulars and occasional shoppers alike
– feel happy and well served.
Looking for the latest small business offers? Visit www.bizcrowd.com/marketplaceYou can also read
