How Small Businesses Build a Customer Base

by: Murad Ali

Building a solid customer base is a necessity of any small business. Often times these smaller businesses cannot compete effectively with larger companies in terms of resources. For example, Tom’s mini-Mart is not going to be a match for Farmer Jack’s Grocery Chain. The later will beat them in parking, prices and variety every time! Therefore, there must be something more than just price to attract and retain customers. The good news is that many small businesses have benefits that larger companies don’t have. They thrive in the realm of the “something else” that larger companies simply can’t accommodate.

The first step in building a customer base is to define who your customer is. This is called a psychological profile. Take a piece of paper and write down the qualities that many of your customers have. Make sure to include hobbies, personality, income, employment states, distance from store, etc. Then go through and circle the qualities that seem to fit the majority of your customers the best.

The next step is to use the psychological profile to develop a marketing plan on how to reach your population in the most cost effective manner. For example, if many of your customers live within the same neighborhood, have children engaged in local sports and are pressed for time then your marketing plan should try and appeal to them. You may decide to stop by the local baseball game and give away free drinks, offer local delivery, give discounts for family members, or send flyers door-to-door.

Once you know who your customer is and how to reach them you must determine how to write your advertisements. For our busy neighborhood consider the following, “Mom’s we know you are busy. That’s why Tom’s mini-Mart wants to give you a break. Call us and we will deliver your supper groceries in less than 30 minutes. If you don’t feel like cooking, then we will send you a family size delicious homemade meal fresh from our deli department.” The object is to write the advertisement so that it helps solve the problems of people in your market. If it makes them feel sad, happy or more convenient then you have done well.

Small businesses can compete because they are more convenient. Many times customers avoid large chains because they take so much time to navigate. Small business also has the ability to truly give good customer service. If you are unsure of how to maximize your marketing efforts then hire a good small-business consultant that charges reasonable fees.

About The Author

Murad Ali is a two time published author on economics and reform. He runs an heirloom farm, is a doctoral student and manages a consulting firm. To read more articles written by Murad please visit http://www.muradenterprises.org.