Competing with larger retailers and online stores: 7 strategies and marketing tools for small businesses

It's easy to think your small business can't compete with larger retailers and online giants with bigger marketing budgets and dedicated marketing teams. But with free or no-cost digital marketing tools for small businesses, social media platforms, and a few old-school small business customer engagement strategies, you can help level the playing field.

The good news? Consumers remain committed to small businesses. Two in three said they try to shop locally over large retail chains, and 57% are willing to pay more to support local businesses.

Competing with larger retailers often comes down to getting the word out. Marketing doesn't have to cost a lot or take a lot of your valuable time. With a few simple strategies, you can find your niche and begin attracting more customers.

Start with the right marketing tools for small businesses . Many tools are free or come with a low monthly subscription but still offer a strong return on investment (ROI). From email marketing solutions that provide personalized customer outreach to social media management platforms that streamline engagement across multiple channels, the right marketing tools can help your small business make a bigger splash.

Here are seven marketing strategies to help you compete with larger retailers and online stores.

1. Build your brand through social media

One of the most powerful marketing tools for small businesses is social media. Platforms such as Facebook, Instagram, and LinkedIn are effective free tools to help you target potential customers in specific areas, as well as niche audiences. Creating engaging social media posts is crucial. Use a mix of images, videos, customer testimonials, and interesting, helpful captions to draw in your target audience and create an effective marketing campaign.

Engage with your audience by responding to comments and messages promptly. Valuing customer feedback helps build a strong community and foster loyalty, and also makes your audience feel appreciated. Establish a consistent posting schedule to keep your target audience engaged. Social media management tools for small businesses can help you plan and automate your posts, ensuring you're posting even when you're busy with other parts of your business.

2. Use digital marketing

Digital marketing provides an excellent opportunity for small businesses to reach new audiences with minimal investment. Digital marketing includes online marketing methods, such as website content, digital ads and social media posts, and other types of technology for text messaging, and other channels. The channels and methods you choose will depend on your target audience, budget, and goals.

Creating a free website and claiming your Google Business Profile are low-to-no-cost ways to enhance your online presence. This helps ensure your business appears in local search results, making it easier for potential customers to find you.

3. Build your reputation

One of your most important marketing tools for small businesses is your reputation. A staggering 99.9% of customers consult reviews during their online shopping process. Positive reviews and word-of-mouth advertising can boost your credibility and attract more customers. Encourage customers to leave online reviews and always ask for in-person feedback. Reward referrals to expand your customer base while keeping your existing customers satisfied.

Responding quickly and authentically to each customer's comments and concerns shows you value their opinions. It can also differentiate your small business from larger retailers, which may not be able to give the same personal touch. Quick responses can help prevent negative experiences from escalating and turn a dissatisfied customer into a satisfied one.

4. Provide excellent customer service

Delivering quality customer service can set your business apart from larger competitors. Good customer service is all about consistently meeting or exceeding your customers' needs and expectations, and helping customers have a positive experience with your business. Make it easy for customers to communicate with you and provide quick responses. Always deliver on your promises and consider offering extras such as free delivery. Listen to your customers and quickly solve any issues. Offering a return or an exchange or additional discounts can keep customers happy.

Excellent customer service fosters loyalty and encourages repeat business. It also creates a personal connection that larger retailers simply can't provide.

5. Step up your design

People do judge a book by its cover. Be sure to make a good first impression by incorporating professional-looking designs for your logo, website, social media, advertising, signage, and other marketing materials ton elevate your brand, create a polished look, and help you compete with larger retailers.

You don't have to spend a fortune to get good results. Free design tools, such as Canva, use templates and user-friendly interfaces to make it easier to get good results. And in some instances, paying a professional to help with your design may be worth it to get the result you're looking for.

6. Reward customers for doing business with you

Rewarding customers for their loyalty can help your small businesses foster long-term relationships and drive repeat business. One way to do that is to implement a loyalty program where customers earn points or punches for every purchase they make, which can be redeemed for free or special products, discounts, or exclusive services. Seasonal promotions or birthday discounts can also create a more personal shopping experience, making customers feel valued and appreciated. Loyalty programs encourage repeat business and can also generate positive word-of-mouth advertising, as satisfied customers are likely to recommend your business to others.

Speaking of referrals, consider implementing a referral program to reward customers for referring friends and family. The reward doesn't have to be large. Even a sincere and personalized "thank you" text or email can go a long way to creating lasting relationships.

7. Engage with your community

Not only is engaging with and helping your community personally fulfilling and the right thing to do, it also offers a wealth of benefits for your small business. It helps build strong relationships with local customers, creating a sense of loyalty and belonging. When customers see a business actively participating in neighborhood events or supporting local causes, they may be more likely to choose that business over competitors.

Help where you can and with causes you’re passionate about. Consider donating time and resources to local causes and nonprofits, attending community events, planning fundraisers, or sponsoring local sports teams. Wear your company T-shirt when you volunteer for added visibility.

Setting your small business apart

Competing with larger retailers and online stores can seem difficult or even impossible. But with a few simple strategies, you can use your small, local status and unique benefits to your advantage. Focus on building a strong brand, engaging with customers, and creating meaningful connections within the community to carve out your niche and attract first-time customers who become lifelong supporters.

While the competition may be tough, the commitment to quality, community, and personal touch in service will always set small businesses apart and pave the way for continued growth and success.

About Snap Finance

Snap Finance harnesses the power of data to empower consumers of all credit types to get what they need. Launched in 2012, Snap’s technology brings together more than a decade of data, machine learning, and nontraditional risk variables to create a proprietary decisioning platform that looks at each customer through a more holistic, human lens. Snap’s flexible lease-to-own and loan solutions are changing the face and pace of consumer retail finance.

For more information, visit snapfinance.com.

Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. Talk with your local Snap sales representative for more details on which product qualifies at your store location. For more detailed information, please visit snapfinance.com/legal/financing-options.