The Role of Community Engagement in Small Business Success

Standing out from the competition, boosting brand recognition, increasing your customer base, and generating sales are common goals for small business owners. However, finding and implementing the strategies to achieve these goals is not always easy. With small businesses representing over 97% of employer businesses in Canada, finding ways to stand out in a crowd is key—that’s where community engagement can come into play.

While your initial focus on finding success as a small business may be on traditional methods like social media and marketing, it’s important not to overlook the impact of community involvement and how it can add to your growth strategy. Below, we’ve outlined how community engagement can positively impact a small business, as well as practical strategies for implementing it effectively.

Increases Visibility

When competing with big-box stores and other local small businesses, implementing strategies to maximize your business’s visibility among potential customers is key. Signage, banners, flyers, and more, can lead to greater consumer awareness of your business, which is important for attracting potential customers. Once the public knows your business exists, you can hook them in by showcasing your small business’s products and services.

It’s important to recognize that unless your business is located in a popular tourist destination or you actively get “out-of-towners,” the majority of your customers will likely be local residents who either come across your business while passing by or actively search for businesses near them. Reaching this customer base via community engagement can be a great way to increase your reach of potential future customers.

While there are several reasons why increasing your small business’s viability is a helpful way to generate success, it is also a good way of reaching consumers who are already seeking out small businesses. A survey by Interac in 2021 revealed that 75% of Canadians placed more importance on shopping at small businesses due to the pandemic. However, that momentum stuck around, as a 2022 RBC survey found that Canadians allocate 30% of their budget to shopping at small businesses, and 70% of Canadians plan to spend more time at local small businesses in the future. Informing your community about your small business and how they can support you can be a great strategy to surge customer growth.

Helps Form Relationships with Potential Customers

Creating long-term customer relationships can be a reliable strategy for building customer loyalty. However, achieving loyalty often requires developing trust with your customers, which can take time. Research shows that 88% of customers who trust a brand will buy from them again. Therefore, establishing relationships with your target audience is crucial for earning and maintaining that trust. A great way to form relationships is by engaging with your community members. Meeting them and hearing their needs can be great icebreakers and help you understand your target audience more.

Cultivates a Positive Brand Image

From a community member’s perspective, seeing small businesses support their community can place your business in a positive light. It can tell the public that you care about your community and are willing to contribute your time and efforts to them. When community members have the opportunity to meet you and your team, it can further humanize your business. This positive perception of your small business can help increase authenticity, word-of-mouth marketing, a positive reputation, and more.

Ways Small Businesses Can Engage in Their Community

Now that we’ve outlined the role of community engagement, let’s explore some of the ways you can implement it in your growth and success strategy. While the town/city you’re located in will impact the extent of your efforts, turning to online local community event pages and finding small business associations to join can be great places to start.

Sponsor a sports team:

One effective strategy to increase visibility and engage directly in your community is to sponsor a local sports team. By doing so, you can gain exposure to a large audience, at least as big as an arena or a full set of bleachers! As spectators focus on the game, they may also notice your logo displayed on the players’ uniforms or on a prominent banner. This increased visibility can help generate interest and demonstrate your willingness to support others in your community.

Host a workshop or themed night in your store:

It’s a night out on the town and your small business is where it’s at! At least, that’s what you can aim for by hosting an information-based workshop or a fun themed event. The ability to showcase your small business in this light while also incorporating your branding and the products/services you offer can help create buzz and interest.

The type of small event you hold in your store will depend on your business, the size of the store, and any necessary permits you may need. Planning ahead is a must when it comes to hosting, as you want to ensure you have enough time to promote the workshop/event through social media or printing flyers. You may also choose to design and print materials to use during the special night that have your logo and brand colours to help increase brand recognition.

Support charitable initiatives:

Supporting local charities that are near to your heart and/or that relate to your small business can be a meaningful way to show you care and contribute to your community’s well-being. By getting involved in initiatives aligned with your values and mission, you can positively impact and help address important issues in your area. Of course, the goal of participating in these initiatives should be driven by genuine compassion, but by shining a light on matters that are important to you in your community, you can let potential customers know more about you and what you support.

A survey revealed that 90% of Canadians believe a business’s authentic support for a cause is more important than the amount of money or other support it provides. Consumers also expect brands they support to be socially responsible. Participating in a charitable initiative can help you connect with those who also support a cause, which can be a great way to attract more customers who align with your small business’s values.

Participate in local events or trade shows:

This may take some research, but finding local events coming to your town or contacting local event committees to see what’s on the schedule can be a great way to get ahead so that you can participate. Whether it’s a local festival, farmers market, or fundraiser, getting your small business out there and getting to know the crowd of community members can be a great introduction.

Trade shows also offer a great space to showcase your small business’s products/services to an audience. It not only allows you to meet other businesses in and outside your industry, but you can also generate leads and create brand awareness. Trade shows are also a chance for you to gain valuable feedback from potential customers, which you can implement in your marketing strategy or directly into your products/services.

Visit The UPS Store for your Small Business Needs

The UPS Store is here to help support your small business, from printing to shipping to mailbox rentals and more. With our Small Business Solutions, our team at a location near you can help take your business to the next level. Visit us today!