Consumers have a strong affinity for local businesses: a 2024 survey found that Americans are willing to spend an average of $150 extra each month to make sure their local shops survive. Local businesses are able to foster strong brand loyalty — something that online brands can tap into with the right strategy.
There are several reasons why local businesses inspire this level of loyalty. First, they are perceived as deeply rooted in and responsive to the community's needs. This often means they employ local people, give back to local causes, and attract customers (and, therefore, revenue) to the area. Online businesses can be local, too: here’s how.
Humanize your brand and team
Temu, Amazon, and Alibaba are all massive, featureless e-commerce sites that consumers turn to for convenience. These brands aren’t worried about showing their human side, and it’s why many consumers prefer to support merchants they can greet by name.
Use your e-commerce site and social media pages to showcase the names and faces that make your company tick. “You are human, not a faceless corporation with drones delivering dinner plates,” wrote Peta O'Brien-Day, a brand messaging strategist. “Let people see you. Let them imagine you doing a happy dance (or, you know, knock yourself out and actually do one!).”
In addition to showcasing your team in your content, make sure you empower your team to respond to direct messages, host live video chats, and reply to comments to keep the conversation flowing.
Personalize every element of the shopping experience
A big reason why consumers prefer local businesses is the personalized attention they receive. “More than 80% of surveyed retailers reported that customers come into their shops to socialize with their staff, ask for recommendations on products or for help in picking out a gift,” wrote Finance & Commerce.
Dozens of tools can help you personalize the e-commerce experience and deliver the same level of care and attention. For instance, a product recommendation engine can suggest products based on browsing history, past purchases, and items in their cart. Other tools are designed to use historical data to show relevant content based on customer interests and past interactions.
You are human, not a faceless corporation with drones delivering dinner plates. Let people see you.
Peta O'Brien-Day, Words by Peta
Personalization can be implemented in everything from email outreach to website design and layout. This process depends on collecting data; make sure you get permission and avoid overdoing it, which can come across as intrusive.
Experiment with geo-targeting
Geo-targeting is another way to personalize your brand to a specific local audience. Geo-targeting is a marketing technique that allows you to deliver content or advertisements to users based on their location.
Geo-targeting can help increase conversions by translating content into other languages, matching local currencies, serving specific offers locally, and adapting your marketing to be relevant to a specific area. You can use this tactic through native geo-targeting options on your Google Business Profile, using location-specific hashtags on social media, and using location-based apps and services like Foursquare or Yelp to reach local customers.
Partner with local influencers
Some brands tap into members of their target community to facilitate local connections. “Influencers with an active geo-specific community following can provide the authentic, relatable tone their audiences respond to, with relevant geographic messaging,” wrote Danielle Wiley, CEO of Sway Group.
Local micro-influencers are a great resource for online businesses. Smaller influencers are often more affordable and have high engagement rates for their specific niche.
[Read more: How Micro-Influencers Can Benefit Your Small Business]
Sponsor a local event
Putting boots on the ground and hosting an event yourself may not be feasible, but you can sponsor an event in your target community to a similar effect. Consider donating free products to a local charity, sponsoring a local sports team, or providing a specific discount for nonprofits in the area. Local businesses are often lauded as pillars of their community. Look for ways you can give back even if you’re not physically present.
[Read more: State of American Business 2025]
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