What our survey told us
To help prepare for the roll out of the Love Local Strategy, Moyne Shire surveyed businesses and consumers to find out why they buy local, what the barriers to buying local are and how we might overcome those.
Key findings for business respondents:
Business owners believe that quality of products or services is the major factor influencing decisions to buy local.
Limited numbers of customers is the major challenge local businesses face (54%)
100% said they were “very likely” to buy from local businesses
Major factors influencing decisions to buy locally were:
Desire to support the local economy (100%)
Desire to support local jobs and economy (100%)
Quality of products/services (100%)
Customer service (100%)
Key findings for consumer respondents:
Almost 70% said they were “very likely” to buy from local businesses
The key things consumers currently source outside their local area that they’d prefer to source locally if they could included:
- Groceries
- Dining experiences
- Clothing
- Gifts
- Entertainment and recreation
- Clothing was most commonly purchased outside the region
- Major factors influencing decisions to buy locally were:
- Desire to support the local community (93%)
- Convenience (86%)
- Desire to support local jobs and economy (76%)
- Personality of local suppliers (52%)
- Quality of products/services (52%)
- Word of mouth is the most likely to influence consumers’ decisions to buy local (72% followed by previous experience of the business, 69%).
What the research says
Research in Australia and internationally suggests that people who are most likely to buy local are those who own homes or property in the local area and have stronger ties to the community.
Whilst most consumers understand there are sound economic and environmental reasons for purchasing local products and services, in reality they care more about themselves – their health, the quality of the product or service they are buying, convenience and the ‘novelty factor’ (uniqueness of the product or service).
Perhaps more so than any other generation, millennials value local products and services. Millennials – people aged 24 to 39 in 2020 – value authenticity and self-expression and want to wear and own things that set them apart.
However, the Coronavirus (COVID-19) pandemic has had considerable impact on buyer sentiment. The virus has pushed consumers to adopt new behaviours and habits that many believe will continue in the longer-term.
- An increasing focus on health and hygiene
- A rise in ‘conscious consumption’ (consumers are more interested in environmental sustainability)
- A growing love for local.
- Greater consumer comfort in online purchasing. If possible, adding an online purchasing option for your business can increase sales and competitiveness.
Source: Accenture COVID-19 Consumer Research, March and April 2020.
Human connections
People value human connectivity. They value relationships. Attentive, personalised service makes shoppers feel understood, cared for and connected with the business.
Key takeaways for business:
Find ways to tell your back story (eg on your website and social media) to promote the human side of your business.
Find ways to connect more deeply with your customers and employees.
Use social media to express your business personality and character.
Take your customers ‘behind the scenes’ on your website and in social media.
Where appropriate, provide opportunities for consumers to visit your production facilities to see how products are made.
Capture customer details for later relationship-building communications (eg newsletter)
Capture and remember details about customers for future purchases (eg how they like their coffee, whether they prefer face-to-face or email contact, etc.)
Quality
Most consumers are willing to pay more for a locally-produced product because of a perception of superior quality. Consumers tend to associate higher price with higher quality. This is particularly the case in regional areas.
Key takeaways for business:
Don’t be afraid to charge a premium price for your premium product. (Remember that an inferior product or service can be very damaging to your brand.)
Demonstrate how your product or service delivers premium value (eg fresher ingredients, greater understanding of local issues, fast turnaround, etc.)
Provide assurances to minimise risk (eg introduce warranties and guarantees, etc.)
Where appropriate, leverage the ‘bespoke’ qualities of your product or service. Talk about the love and care that goes into developing your product or the attentive, personalised service you provide.
It’s better for the environment
The rise in consumer interest in buying local provides opportunities for businesses to show how they align with their customers’ values. Specifically, some of the perceived advantages of buying local are:
- Fewer ‘food miles’
- Fresher produce
- Know where food comes from
- Less packaging
- Seasonal produce.
Key takeaways for business:
Encourage re-usable bags and packaging (and creating your own re-usable bags and packaging).
Promote the use of locally-derived products via story-telling on your website and social media.
Redefine your relationships with ecosystem partners. Are there opportunities for cross-promotion?
Use seasonal produce or ethically-sourced materials wherever possible and then promote the fact.
It helps the local economy
Many locals are concerned about the state of their local economy – whether they will continue to have access to products and services, whether there are local jobs available, etc.
Key takeaways for business:
Find new ways to connect with the local community (eg sponsorship of local clubs or events, personal involvement in local groups, etc.)
Build your brand around people – provide flexible working options, employ locals, procure goods and services locally, etc.
Encourage loyalty through customer retention or loyalty programs geared specifically for local people.
Assert your ‘localness’ through geo-positioning (digital marketing).
It’s convenient
As important as community, quality, environment and local economy are to consumers, their purchasing decisions in the end will come down to “what’s in it for me?” As a local business, you can make life easier for local customers.
Key takeaways for business:
Find out what your customers what or need from you and show them how you can solve those problems or meet those needs.
Remove as many ‘barriers’ as you can – make it easier for your customers to find you (in person and online) and offer a great experience.
Some final marketing tips
Commit to marketing as a daily business function.
Know your non-negotiable business values and build your brand around those.
Apply your marketing messages consistently.
Avoid giving in to the temptation to try to be all things to all people – instead, identify your ideal customer and then work to develop an authentic relationship with them.
Get to know your ideal customer as well as you possibly can. Understand how you meet their needs, solve their problems or fulfil their fantasies/daydreams.
Benefits before features – always! By this, we mean focus on the benefits your products or services create for your customers, rather than focusing on the features of your business, product or service.