Based on a report published by the U.S. Small Business Administration, a total of 833,979 small businesses closed between March 2021 and March 2022. While this is an example of cash flow issues, inadequate business planning, fierce competition, and the inability to afford strong marketing campaigns, these variables aren’t the only reasons for such a low survival rate of 30.5%. More often than not, the truth is that many businesses lack community outreach in order to help them stay afloat. When they’re down, they typically look to cutting costs rather than reaching out to the people of the surrounding area in order to encourage new clientele and business. In today’s blog article, we’ll shed light on how community outreach can be such a powerful and effective tool for small businesses to rely on, not only to survive but to also grow and thrive.
Why Community Outreach Matters More Than Ever Before
It’s common knowledge that building and nurturing a loyal customer base is what allows a business to achieve sustainable growth. However, as the demands of 21st century continue to develop, it’s not as easy as it once was to maintain the same level of consumers year after year. As time has gone on, customer’s expectations have gone beyond just products or services. Nowadays, they’re more interested in businesses that align with their values and contribute positively to society’s overall well-being.
In a market where one in five businesses fail within the first year, showcasing your willingness to help the world beyond the bottom line encourages people to emotionally connect with your brand and stay with you through the volatility of the economy. Therefore, if you want your small enterprise to withstand the test of time and cultivate a community of loyal clients, it’s essential that you invest in community outreach programs.
How Supporting Your Community Can Drive Business Growth
#1- A way to cultivate deep ties with local residents
Being involved in various community outreach programs, such as: hosting fundraising events for charity or volunteering for local community service activities, can help create a sense of belonging among residents in your business’ local area. According to a study conducted by Nielsen Consumer LLC, 56% of respondents are willing to pay more to brands committed to social value. The reason behind this is simple… people want to know that the brands they are purchasing from care more about making the world a better place than increasing their profits.
#2- Increases brand awareness
No matter how uncertain this may seem, it’s evident that active involvement in different local events can significantly increase your brand’s exposure. On one hand, you’re getting your brand’s name in front of a local populace who may not have come across your business otherwise. On the other hand, activities such as these allow you to foster positive association within the community. By becoming more active with the local residents, your brand has the potential to be viewed more favorably — encouraging long-term connections, success, and growth.
#3- Inspires positive word-of-mouth
In an era where businesses utilize online ads to reach customers and boost sales, word-of-mouth marketing still remains highly invaluable. The Nielsen 2021 Trust In Advertising Study found that 88% participants said that they trust recommendations from friends and family members over random ads on their social media accounts. These referrals from trusted individuals remain extremely effective in encouraging new and returning customers. For that reason, we suggest participating in different community improvement programs so that your local residents can see your business in a positive light and be more inclined to recommend it to others.
#4- Allows you to better gauge customer desires
When in doubt, assessing the preferences of your customers is key to helping your businesses stand out and be relevant. From improving services and deploying effective marketing strategies to participating in different community events, you’re more likely to gain insights into what your customers truly want and need. By taking these steps, you’re able to partake in helpful opportunities that allow you to gather feedback from the local population. Based on the information you receive, you’re capable of adapting your offerings accordingly so that they meet the local demands.
#5- Amplifies your online exposure
We’re here to explain how showcasing your commitment to local causes can boost your online presence. By sponsoring various community activities and sharing them on different online platforms, including your website, you empower the local population and are more likely to receive site visits and social media followers. Through these forms of engagement and love from local community, your business’ visibility has the potential to amplify across online channels, including major search engines… eventually translating into leads and repeated sales.
#6- Gives your business a unique edge over competitors
As the social conscience of our society continues to grow, active community involvement is a great way to be involved and differentiate yourself from your competitors. It’s been proven that businesses that care about the community are preferred over those that only focus on profit. Our professional recommendation is to become a part of the community and forge emotional connections with your customers in order to build a unique brand identity that serves the local populace with heart and integrity. While it does take additional effort on your part, it will not only benefit your business, it will also leave a lasting positive impact on the community around you.
#7- Enhances customer loyalty
As a small business owner, you know that having a loyal customer base greatly benefits your success in many ways. For instance, it provides your business with a dependable revenue stream, ensuring a continual cash flow no matter what the economy brings. Which there’s no better way to encourage your customers’ loyalty than active community involvement. By taking part in local events that benefit the people, you foster a sense of trust and connectedness with your customers, increasing the likelihood of word-of-mouth marketing and helping you acquire more business in the long run.
#8- Creates opportunities for collaboration
It goes without saying that collaborating with renowned organizations and individuals can greatly improve your brand’s credibility, expand its reach, and help it thrive in a highly competitive market. Thus, community outreach programs are the perfect opportunities to find local companies and influencers that share the same values as you, encouraging collaboration on initiatives that strengthen your brands and contribute positively to the community.
#9- Helps your business adapt and grow
Aside from customer retention and new sales opportunities, active participation in community outreach programs is another way to stay up-to-date on local trends. Rather than reading about changes in articles on the internet, you’ll be able to identify any shifts in consumer preferences and changes in local spending behavior first-hand. This learned data can help you identify any larger shifts in the market, allowing you to adapt your business accordingly to achieve success and sustain growth.
Winding Up
Times have changed from brand names taking priority to the wellbeing of the consumer who is participating in the service or transaction. Instead of buying stuff just for the sake of it, people nowadays want to know their money is going to a good place — one that benefits the wellbeing of their community. With that being said, there are so many benefits for your small business to gain by actively participating in numerous community outreach programs. By building strong local relationships and fostering consumer loyalty, these programs can help your business experience significant growth and allow you to make a positive impact on the world as a whole.