I don’t know if it’s just a Detroit thing, but there seems to be an increasing value in being a local company serving local customers. This is not to say that there isn’t value in having national or international customers. And maybe it’s more obvious here as the community bonds and works together to try to rebuild Detroit and the state economy. But, I do think there is something to be said for companies reaching out to serve local customers instead of always looking out to the horizon.
Meaning in Community
As a community, we have shared experiences which lead to shared stories and a sense of loyalty (even if they’re often most vocally shared by supporting sports teams). In the Detroit area, it’s hard for people from elsewhere in the country to understand the history and the passion of the people here. The state economy is down. The population of the city of Detroit has been shrinking. There has been a lot of talk of the brain drain as college graduates and other people leave the state to seek work. But the people here see hope and opportunity to build something new together.
Other cities and towns have their own stories and history. By being part of a community, by not only selling to the community, but helping to build something for the community, there is an opportunity for businesses to grow within that community.
Sustainability
With gas prices rising, it costs more to ship goods (and more to drive to stores that are further away). There’s also a rising movement to consume goods and services that were produced locally as a means to sustain the entire community. As someone who consults in digital marketing, I obviously think there’s potential in reaching a wider audience (that’s further away), but there also is great potential in reaching a local audience with digital means. By starting local, I think companies have an opportunity to grow a loyal following that can help them expand in the future.
Compete on Service
It is very difficult to provide excellent customer service when your customers are far away (not impossible, just very difficult). It is much easier to provide great customer service in person. Local companies have an opportunity to compete on service (at least for products and services where good customer service is valued). You may not be able to compete with the Walmarts of the world on price and cost structure, but you probably know more about each of your customers than they do (although probably have more data on their customers in general). Spend the time to get to know your customers and your community (both online and offline). Find out how you can help and you may be surprised with the help you receive as well.
What do you think? Can local companies compete?
(photo by katmere, on Flickr)