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The Low Down on Consumer Confidence in Small Businesses

People trust people, not businesses. Here's how small business owners can leverage consumer confidence to help their business shine.

By Michaela WongPublished 3 years ago 3 min read
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Small businesses have been in the news all year — for reasons both good and bad. While many small businesses across the country have struggled to make ends meet, consumer confidence in these businesses is at a high of 75%, according to a recent data study.

Keep reading for the low down on how America's trust in small businesses compares to other US institutions, and how you can protect your own business by building consumer confidence.

A recent poll examined the notion that small businesses represent the "American dream" and are the backbone of our economy, with 29% of the public saying this was true. In the survey, 28% said their confidence in small businesses stems from their ability to be accountable to customers and to invest personally. Surprisingly, only 1% of respondents said that positive experiences with a smaller company had something to do with it.

The data show that Americans value small business’s ability to improve the economy and local communities more than large companies — likely because small businesses have a vested interest in improving the local economy of the community they are located in, and aren’t tied to things like impressing shareholders or other stakeholders in the way that large corporations are.

Businesses large and small should continue to be responsible for their decisions and make decisions that benefit members of the local community in order to boost consumer confidence. This could mean that larger companies follow the same business model as smaller companies that operate similarly to franchises or car dealerships, or as companies that invest personally in their employees, customers, and employees. No matter how big you are, it pays to stick to the basics of small business.

So how can you build confidence in your small business?

  • Transparency: Be candid about your products with customers and employees so that you can build mutual trust in your business.
  • Availability: Make sure to stay up-to-date with customer questions or feedback via platforms like Yelp so customers see you as an available, caring expert.
  • Consistency: Be ready to address potential issues with consistency or quality, and have a plan on how to acknowledge the issue without shifting blame on someone else.

And how can you do these three things?

  • Actively seek feedback: Use tools like email surveys to get feedback from your customers on what you could be doing better, or just provide opportunities to share their experiences with you.
  • Nurture relationships: Engage with your customers via social media or email marketing. You can also create rewards programs for returning customers to boost retention.
  • Create a mission statement: Your mission statement should be the answer to the “why” behind your business. Use this statement as a model to set your company values and strategy.

Make sure your employees and customers know what your business is all about and share information on how you can use your feedback to improve it. Even better: implement these ideas and make it clear to your customers that you know them and How they appreciate their feedback. Building a healthy relationship with customers could not only lead to them turning to you in the competition, but also create loyal customers who trust you to provide personalized service and a positive experience.

Small businesses have long been the backbone of the American economy, and it’s clear that the public sees them that way too. The most successful small businesses are starting to take the necessary steps to ensure that consumers have confidence in them.

Seeing as small businesses employ nearly half of the people in the U.S., it’s important that we focus on reinvesting in our local communities by shopping small and supporting local businesses. If you’re a local business owner, think about how you can level up your business by being transparent, available, and consistent with your service.

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About the Creator

Michaela Wong

Michaela Wong is a content creator who focuses on career development and small businesses. She is a graduate of San Diego State University with a background in digital marketing.

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