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As the name itself suggests, community-based marketing is all about building a community around one’s product or brand. Such a community thrives based on shared values, open communication, shared experiences, and feedback.
One major area where this type of marketing strategy flourishes is building local connections. Businesses need to have a strong local presence to improve visibility. Tapping into a community’s specific needs is a quick way to eliminate competitors.
So, how can a business strengthen its position in the local community? By figuring out community-based marketing as this article will discuss. We have listed four ways in which this marketing strategy helps build local connections.
Building Trust Through Local Engagement
The two hallmarks of community-based marketing are trust and authenticity. They are also the key elements of a successful business.
Just like charity begins at home, true commitment to one’s business cause also starts locally. When brands participate in local events, support charity organizations, and sponsor initiatives, they are showcasing authentic commitment.
This strengthens customer trust because clients want to know that brands care about them. When they feel like a company prioritizes their well-being and has their best interests at heart, that builds trust.
According to Business.com, it is trust that translates into loyalty and reduces churn rates. Businesses that can retain customers do not have to worry too much about shelving high costs to acquire new clients. It is always more cost-effective to maintain a loyal client base than to acquire new customers continuously.
There’s quite nothing like a local audience to increase customer retention. This happens through local word-of-mouth referrals. Customers are more likely to trust the testimonies and recommendations of those they know personally. This is genuine organic growth that has the power to boost reputation and create expansion opportunities.
Engaging With Local Issues and Causes
It has been rightfully said that customers don’t care about how much a brand knows unless they know how much a brand cares. One of the major ways to show that you care is to support and participate in local causes.
They are usually based on sentiments surrounding something that the local community highly values. When a company engages in a local charity event or social cause, it displays its desire to go beyond selling goods.
Customers know that the brand is not there just for making profits, but also for making a difference. One good example would be law firms that participate in local causes related to environmental concerns and public health. Currently, one concern that tops the list from both viewpoints is per- and polyfluoroalkyl substances or PFAS.
These chemicals are found to be toxic and ubiquitous, and their manufacturers have been sued in court. PFAS was used to manufacture Aqueous Film Forming Foam (AFFF), a type of firefighting foam used to put out liquid-fuel fires. According to TorHoerman Law, they led to health conditions like bladder and testicle cancer.
Even municipal water supply was found to be contaminated due to PFAS seeping into the soil. This is why the AFFF lawsuit was filed under two categories, namely personal injury and water contamination. Attorneys can organize educational sessions for residents to reach their local communities.
Boosting Local Brand Recognition
The journey of a thousand miles also begins with individual steps. Businesses cannot expect to enjoy a global presence if they’re inactive within their local communities.
Staying relevant locally helps a brand boost visibility and recognition. This can be done through active participation in local events, sports sponsorships, and fairs.
They are lucrative, as Statista reports – sports sponsorships generated a revenue of over $100 billion worldwide in 2023. The market is still growing and businesses can leverage it to gain a wider audience within one’s local community.
The truth is not all organizations make the effort toward local participation. This means it’s easy to set oneself apart from the competition. Local marketing campaigns make it possible for customers to interact with brands on a deeper and more personal level.
It’s only a matter of time before such businesses become thought leaders in their industry among local audiences. They will improve their market position and generate higher revenue.
Driving Customer Loyalty Through Personalization
There are numerous marketing cues that a business can pick up from a local community. It can manufacture products that meet the specific needs of local customers based on community values and local culture.
Be it locally or on a wider scale, personalization marketing has tremendous benefits to offer. McKinsey & Company states that it can reduce customer acquisition costs by a jaw-dropping 50%. Not only that but this tactic also increases ROI, which means it is cost-effective in the long run.
The reason personalization works is it assures customers that a business has their best interests at heart. They can witness that the company is working hard to meet all pain points and demands.
Loyalty and strong ties increase as businesses promote local offerings and highlight success stories. One simple yet effective tool to support this effort is loyalty cards for business, which reward repeat customers and reinforce a sense of belonging within the local community. These cards can be tailored to local buying habits and values, further deepening personalization efforts.
Finally, building meaningful partnerships that address local causes is also a key aspect of community-based marketing. When a company collaborates with local non-profits and other businesses, it broadens the business network and promotes unity.
An example would be law firms partnering with nonprofits to create awareness regarding legal justice. Current customers are looking for more than just brands that sell products. They want community leaders who drive growth through meaningful connections with customers and stakeholders.
Abhay is a Digital Marketing Guru and an accomplished entrepreneur with an experience of a decade working with various businesses varying from startups to established brands. He co-founded many companies like Logicsofts, PrintYo, CrazyRise and more. He is passionate about SEO and Online Data Analytics, which plays a vital role in any business to grow and mutate as per the data results.
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