Black Friday and Cyber Monday will soon be upon us. But what about Small Business Saturday? Taking place in the UK on December 2, it’s an annual event designed to encourage small businesses to tout what they do, while also inspiring the rest of us to consider making purchases or ‘buy locally.
It’s that time of year when Black Friday marketing kicks into high gear. Open your mailbox and you will see it groaning under the weight of special offers. The same goes for social networks, television and the press. Black Friday ads are everywhere. There is no way out.
So here is the question. Taking place just days after this media blitz, can Small Business Saturday really provide a platform for SMEs to make their voices heard? I spoke to Michelle Ovens, CEO of both Small Business Saturday And Small UK businesses discover.
Retail sector sluggishness
Self-described as a grassroots, non-commercial activity, Small Business Saturday has been running in the UK for eleven years. This year’s event takes place against a backdrop of continued economic uncertainty. In the retail industry, sales were down slightly year-on-year in October after a much steeper decline of 1.1 percent the previous month. Meanwhile, inflation – the scourge of the retail sector – stood at 4.7 percent in October, down sharply from the previous month but still well above an optimal level.
All the more reason perhaps for the big names to focus on moving stock by promoting Black Friday deals, but as Ovens points out, discounts aren’t something small, local retailers can afford to do.
“Don’t get involved in Black Friday. It doesn’t help small businesses,” she says. This is mainly aimed at large companies. Small businesses can’t do big discounts.
Indeed, granting discounts to generate a few extra sales would be counterproductive, she argues, as the main objective of most consumer-facing SMEs is to maximize their revenue during the peak period. Christmas to provide a necessary financial cushion for the quieter times of the year.
Marketing help
So how can small businesses take advantage of Small Business Saturday?
Well, there are some marketing benefits. The organization is inviting small businesses of all types – not just retailers – to register on its business search website and will also provide a range of marketing materials and support. A national tour – in partnership with BT (British Telecom) offers further marketing opportunities as well as workshops and mentoring. Also supporting this initiative, American Express is offering cash back on purchases made from small businesses.
Ovens says small businesses should take the opportunity to promote themselves at a time when a national campaign is drawing attention to what they do. “There’s a lot to be said for small businesses telling their story,” she says.
Collaborations
So what does this mean in practice? After all, a local store, or perhaps a small manufacturer or web design agency, won’t necessarily have a big marketing budget. “You can talk to local media,” says Ovens. “Or spread your message on social media.
It may not be as simple as it seems. Yes, social media offers free advertising and a way to interact with potential customers, but only if you do it right. This requires not only some knowledge of how social media works, but also time – a commodity that is often in short supply. The same goes for maintaining relationships with local media and providing angles that journalists can use.
The marketing support provided by Small Business Saturday can help, but Ovens suggests businesses can also spread the marketing load by working with others. “You can club with your neighbors,” she adds.
This could involve actively promoting each other’s businesses or collaborating to host special events. “You can share the marketing and share the costs,” adds Ovens.
More fundamentally, collaborating with peers also offers businesses a way to step outside of their own bubbles and talk to others about common problems and how to solve them.
It can sometimes feel like you’re the only person facing particular challenges,” says Ovens. “So it’s helpful to talk to others. So find a tribe of people you can just chat with. There are many networking groups.
Give customers a call to action
But ultimately, to increase sales, small businesses need to attract new customers. Ovens says existing customers can play a role through the power of advocacy. “You need to encourage your existing customers to share their experience, ask them to tell their friends. Give your audience a call to action.
And Ovens says small businesses tend to generate positive sentiment. They are local. They offer a personalized service, accompanied by advice on the products they sell. They know they need to maintain a loyal customer base and this translates into superior service levels. They go the extra mile. “And that’s the case whether you’re a web designer or a window cleaner,” says Ovens.
Initiatives such as Small Business Saturdays are not a silver bullet, but they serve to remind customers of the importance of their local merchants. The challenge for SMEs is to use the opportunities created by increased awareness to tell their own story.