


While much of the talk around geofencing has focused on driving foot traffic with an ad delivered to a nearby customer, a growing number of retailers are recognizing opportunities with geofencing after stores close or when a location has shut its doors for good.
Today’s Local marketing must bring together and blend both traditional, internet and mobile marketing strategies.  It needs to be a comprehensive plan that works to drive traffic within a specific geographical area to your business where a specific product or service is offered.
A joint study by BIA/Kelsey and Manta found that, for the first time, small businesses truly grasp the impact their customer base has on their long term business viability. The study surveyed nearly 1,000 small business owners (SBOs) and found they now spend more than half of their time and budget focused on existing customers, recognizing that it can be up to ten times more costly to acquire a new customer. Further, a repeat customer spends 67% more than a new one.
There are nearly 28 million small businesses in America, and they are making a formidable impact on the U.S. economy. Small businesses provide 55% of all jobs and account for 54% of all U.S. sales.
These findings are in stark contrast to previous studies showing that small business owners’ primary focus was on customer acquisition, says the report. A 2012 BIA/Kelsey study found that SBOs focused on customer acquisition vs. retention at a 7-to-1 rate, with more than 37% spending over half of their budget on customer acquisition and only 6% spending more than half of their budget on retention.
According to the recent survey, 61% of SBOs  generate 51%+ of their annual revenue from repeat customers rather than new customers. This is reflected in how SBOs spend their time and money, says the report. 62% of SBOs spend the majority of their annual marketing budget to retain existing customers with less than half going to new customer acquisition.
Similarly, SBOs spend the majority of their time and effort investing in existing customer relationships, with 56% of them spending less than 25% of their time and effort on marketing related to customer acquisition.
The study further supports this new alignment, revealing that channels where SBOs will increase time spent, notably email and Facebook, are those best suited to engaging existing customers.
|
Media Used by SBOs for Advertising and Promotion |
|
|
Media |
% of Respondents |
|
Facebook Page |
52.1% |
|
Email Marketing |
39.4% |
|
Newspapers |
32.2% |
|
Direct Mail |
31.7% |
|
Sponsorships |
31.2% |
|
Source: BIA/Kelsey, Manta, April 2014 |
Existing customers can also be leveraged to gain new customers through digital word-of-mouth, such as customers writing reviews, checking in, and posting stories and photos of their experience with businesses. A loyal existing customer can be a brand champion and an important source of new revenue, especially since it can cost up to ten times more to acquire a new customer than to retain an existing one.
Small businesses clearly understand the economics of their existing customers as the benefits of loyalty marketing are proven with increased customer spending and higher retention, yet few SBOs even have a program in place. According to the study, only 34% of SBOs have a loyalty program, while the majority do not. When asked about the purpose of their customer loyalty program, those who had one answered that they want to “Improve customer relationships†(39%) and “Grow revenue†(36%).
|
SBO Loyalty Program Utilization |
|
|
% of Respondents |
SBO Loyalty Program Situation |
|
34% |
Have a program |
|
54% |
Are NOT digital (paper, verbal, other) |
|
46% |
Are digital |
|
66% |
Don’t have a loyalty program |
|
Source: BIA/Kelsey, Manta, April 2014 |
Moreover, says the report, the majority of SBO loyalty programs are offline rather than online, failing to take advantage of technologies that enable seamless implementation and deeper customer insights. Only 46% are in some type of digital form, like an email list, while 31%
are paper-based, and 17% verbal/word-of-mouth or in another form.
The report concludes by noting that customer loyalty can bring big benefits to small businesses:
For more about the study, please visit Manta here.
Brands trying to split their time and resources between paid ads and organic content marketing should be aware that one may be more effective than the other. According to a survey by UX firm Bunnyfoot and Econsultancy, 36 percent of consumers didn’t realize the first few entries in Google SERPs were paid ads.
Many articles like the one you are about to read by Dave Evans have been written on this subject and one of the best solutions is in implementing and onsite community on your site. Follow the link at the end of the article to start understanding why….
With advancements in digital technology, consumers have the ability to be “tuned in†at all hours of the day. They have access to email, websites, and social media—regardless of their physical location. Ironically, this group of intentionally “tuned in†people can quickly become involuntarily “tuned out†by the sheer volume of digital interactions and their fleeting nature.© 2025 One Big Broadcast | All rights reserved
