What You Might Be Missing About Loyalty And Local Businesses

What You Might Be Missing About Loyalty And Local Businesses?

As a company focused on local businesses, it’s easy for us at Glue to understand why this segment is worth the attention and resources we invest in nurturing it. But interactions with others in the technology and business arena has taught us that this point of view isn’t shared by all. In fact, when it comes specifically to loyalty technology, more than a few seem to think that targeting large enterprises is the only effective business model.?

The focus on major brands is often fueled by misconceptions regarding market size, companies’ willingness to invest in technology, and other factors. That’s why we’ve decided to share some insights on what makes local businesses a worthy target audience for technology companies and business investors in the loyalty field. Here’s why aiming for seemingly smaller businesses can yield more significant profit margins.??

Local Businesses Are The Natural Market For Loyalty Clubs

The first reason to direct loyalty products towards the local business sector is very simple: local businesses have more to gain from such tools. Harnessing loyalty platforms can significantly impact their bottom line, and 61% of such businesses state that more than half of their sales come from returning customers.?

Building a positive sentiment towards businesses using loyalty programs can boost sales for any business, but mainly small ones that create a real relationship with audiences. Effective loyalty technology can do wonders for businesses and encourage them to invest more in these technologies.?

The Businesses Are Small, But Not The Market?

Those drawn to enterprises often target large businesses thinking they can yield more profit for startups and investors. They ignore the fact that 99% of companies aren’t big brands but instead local businesses, creating a massive market that any prominent tool can significantly benefit from.?

The same goes for establishments’ ability and interest to allocate resources to the cause. It’s a mistake to assume that small businesses aren’t interested in technology and have an outdated approach. Studies show that 65% of small businesses are more likely to invest their money in advanced technologies like AI-based automation. Considering what we’ve mentioned earlier regarding the profit they see from effective tools, there’s every reason to believe that choosing local businesses as the target audience for a digital loyalty platform is a smart move.??

Local Businesses Loyalty Insights Serve Big Brands?

Even if big brands are the chosen target audience, leaving local businesses out isn’t wise. Major brands can learn a lot by watching what works for smaller businesses, making local businesses an educational “laboratory” for small-scale loyalty initiatives that will also benefit enterprises.?

Not only that, but local businesses are also very natural business partners for large brands. Many brands will feature their products or even acquire smaller companies to add new capabilities and services. Loyalty clubs used by such businesses tell us interesting facts about customers’ preferences and behaviors, creating a shorter, more effective path towards market success for brands of all sizes.?

In conclusion, while it’s important to zoom in and focus on specific companies, making that decision based on business size isn’t always recommended. It’s crucial to consider the market as a whole, the benefit your product can offer, and what you’ll learn about the target audience in the process. In the case of loyalty technology, failing to give smaller businesses the proper attention and loyalty tools ends up costing everyone money and missed opportunities.?