How to Use Being Small to Your Advantage: 11 Ways to Win Customers from the Big Guys

By Kristie Parker

Have you ever told a white lie?

Sure. We all have.

“I would have been here sooner but traffic was horrible.”

“I have to leave early for a doctor’s appointment.”

“Bangs look great on you!”

We do it to make people like us, to spare someone’s feelings, or to avoid an irritating lecture.

Let Go of the Oppressive Cloak of Perfection

If you’ve ever referred to your one-person team as “we”, had your 8-year-old niece pose as your assistant on the phone, or told someone you were “out with clients” when you were really making calls from your car in the CVS parking lot just to get some privacy. I feel you.

Sometimes it can be tempting for small business owners to give the impression of being larger than we are so that people think we’re just as good as the other, bigger guys. We often equate big business with successful business.

In a vast ocean of yachts, no one wants to be the vulnerable little dinghy. Luckily, that’s not your only option. What if you could be a jet boat? Those bulky yachts require a crew, can’t fit in small spaces, and maintenance is crazy expensive. Big businesses deal with complex issues like expensive overhead, hiring and overseeing a large staff, and pressure from investors.

On the other hand, a jet boat, while still powerful, is sleek, nimble, and able to operate in deep and shallow water. We have skills, but we can also be fun, flexible, and dedicated to our clients. Staying unapologetically and intentionally small can actually work in our favor.

Stop trying to make it seem like you have a big team. It’s okay to answer your own phone, use your living room as your office, or hire your dog as your CFO.

People don’t care how how big your business is. They care that you provide a solution to their problem, that you respond quickly, with care and kindness. And that you appreciate them.

Let Your Personality Radiate

You are your biggest business advantage. Flip the script. Quit thinking that being small is a barrier to success. You’re going to be successful because you’re a small business.

Shall I show you how?

#1 Our Clients Trust Us

When I travel for more than a night or two I like to stay in an Airbnb instead of a hotel.

A lot of Airbnb hosts will provide little gifts or amenities like snacks or a bottle of wine, but in my experience nothing gets more rave reviews than a guidebook. You might think that Yelp, TripAdvisor, and the million other online review sites have taken the place of a guidebook, but you’d be wrong.

Guests love getting the 411 on experiences and restaurants from a trusted local. It’s insider information that you don’t have to scour the internet for, so it saves time and you don’t have to weed through 1-star reviews from tourists complaining that “it rained too much” or “the waitress looked too much like my ex.”

“While skills and expertise can be replicated, it’s damn near impossible to replicate someone’s personality and style.” - Paul Jarvis, author of Company of One: Why Staying Small is the Next Big Thing in Business

Provide a Guidebook

How might your business provide a “guidebook” to your customers? How can you offer them valuable advice and recommendations?

Your website provides an ideal place to lead a potential customer through your step-by-step process with crystal-clear language and captivating images.

Don’t assume it’s obvious. A newcomer has questions and they need a road map. Be their tour guide and they’ll see you as a trustworthy expert.

Phil Barden, author of Decoded: The Science Behind Why We Buy, explains that customers appreciate when we anticipate their needs because it shows we care. We don’t want them to get lost.

“Understanding your customer’s life and figuring out what she’ll want next – whether it’s a product alteration, a faster way to check out, or more excitement – before she even knows she wants it tames impatience and creates a bond.”

#2 Stories are Powerful

People buy things from companies whose values align with our own. We want to know not just what you do, but why you do it. When customers feel that you act similarly to them they are interested, instead of jealous or resentful of your success.

Sally Hogshead, author of How the World Sees You writes, “To get people to ‘fall in love’ with your ideas, don’t rely solely on numbers and data. People can tune out this type of input relatively easily. But if you communicate with a story or experience, you create an emotion.”

Let Your Audience Connect With You

Sometimes, a piece of your story will shoot an arrow into a customer’s heart. They’ll think, “Me too!” Now you’ve piqued their interest and engaged them.

My husband is a lifelong New York Giants fan, and because we no longer live in New York, when he spies a fellow big blue fan in Florida the connection is even stronger. You could be selling snow shovels, but if you’re wearing a Giants hat, my man’ll buy one.

This doesn’t mean you have to wallpaper your shop with favorite movie posters, but when you share something interesting about yourself you open the door to customers connecting with you on a personal level.

How did you start your business? And why? Wouldn’t it draw visitors closer to you if they understood your journey or shared some of your experiences?

#3 We Use Our Personality to Shine

When you work in the scratchy wool-turtleneck confines of corporate America you have to play by someone else’s rules, robbing you of creativity and autonomy. Working for yourself comes with challenges too, but you can tackle them in unconventional ways.

As Paul Jarvis, author of Company of One says, “Personality – the authentic you that traditional business has taught you to suppress under the guise of “professionalism” – can be your biggest edge over the competition.”

In his book, Jarvis describes why small businesses can’t hide behind being boring vanilla ice cream, they need to be pistachio. Sure some people might not like you, but you don’t need a huge audience. You need a loyal one that will appreciate and understand the value of your version of pistachio.

Surprise and Delight…And Free Booze Never Hurts

We can use unique and fun tactics to delight our visitors. I remember having dinner at Barn Joo, a Korean gastropub in NYC. Customers who make a reservation get to spin a wheel to win prizes. It’s their little version of pistachio.

It’s unexpected and clever because not only is it exciting but tons of their Yelp reviews mention it. That free cocktail I won is an amusing way to say, we appreciate you scheduling your dinner with us.

#4 Stellar Customer Service

According to a Harris Interactive survey, 9 out of 10 Americans are willing to spend more money with companies that offer great customer service.

We have a massive advantage here because we deliver one-on-one personal interactions with our customers. We remember their lunch orders, their dog’s name, and where they went for vacation. Sharing conversation is bonding and customers want to shop with brands who know and support them.

Listen

Big businesses hire insanely expensive marketing teams to question and poll customers to find out what they want. We just talk to people – for free.

Our clients are accessible to us because we’re not locked up in a glass tower. If we want to know if they’d like a gluten-free bread option on our lunch menu, we’ll read the room.

Focus on the experience

A huge advantage for us is that we don’t have to live in the exhausting (and expensive) revolving door of obtaining new clients. According to Forbes.com, it costs 5x more money to attract new customers than to keep current ones.

Big businesses constantly need to grow in order to satisfy stockholders and investors who want to see positive returns on their investments. They’re forced to fire people, make cheaper products, or cut corners to make more money.

Small businesses can focus on consistent quality service because we’re not bound by quarterly reports and we can make decisions not on investors’ opinions, but based on our customers’ feedback and we can imagine what would make our experience special if we were the customer.

“Regardless of what you’re selling, your long-term profitability is largely dependent upon your ability to keep current customers, rather than your ability to acquire new ones…When it comes to keeping your existing customers, customer service is three times more important than price.” – Geoffrey James, Inc. magazine

#5 You Don’t Have to be Everywhere

While big businesses are pumping tons of money into global advertising, you only need to be where your customers are, geographically and online.

Most people Google stuff, so having a website is a great way to “meet” new customers and introduce them to your service. According to Junto.com 81% of people perform some type of online research before making a large purchase.

But if most of your client base aren’t regularly on SnapChat, Instagram, Twitter, then you don’t have to waste time there either.

Supply your audience with information on your products and services. The best way to use it, a faster way to turn it on, what to do to maintain it. You can do this through a “How it Works” page on your website, an email newsletter, or a printed handout.

And never underestimate good ol’ fashioned face-to-face convos at farmer’s markets, conventions, neighborhood barbeques, the gym. Since our small businesses don’t require us to attract thousands of new clients, we can focus on creating relationships with a handful of cool people who truly get us.

#6 Unexpected Gifts

There’s a natural pet market in my neighborhood. It’s not a franchise, it’s owned by a woman who’s lived in the area for years. Because the shop sells specialty items and doesn’t do high volume like some big-box stores the prices are a bit more expensive, but people love shopping there.

The first time I went in, the cashier was friendly, engaged me in conversation and handed me a gift bag at checkout. Inside were a handwritten note welcoming me to the neighborhood and a coupon for $5 off my next purchase. It was a thoughtful gesture and made me feel special.

Customers Will Advertise for You

They also offer dog grooming, and included with a bath and haircut, at no extra cost, is a photoshoot. Often with the dogs wearing sunglasses or hairbows and “posing” in front of a cardboard beach scene.

It would be time-consuming for the market to post all of the photos along with clever captions and tags, but they don’t need to. The “after” shots are hilarious and adorable, making customers eager to plaster them all over their own Facebook pages.

It Works for Referrals Too

When I was growing a personal training business I created client swag bags for the holidays. I contacted my favorite local businesses and asked if they’d donate a coupon or sample product. It worked and I ended up with a potpourri of fitness loot: protein powder, jump ropes, custom water bottles, gift cards for workout apparel, snack bars. I included a holiday card in each bag with a coupon to give to a friend entitling them to a free training session with me.

Clients were thrilled with the free stuff and several paid it forward – passing along my coupon.

This doesn’t often work well for big corporations. The jelly-of-the-month club comes off cheap and impersonal when it’s handed down by the boss’s assistant’s intern, but it’s delightfully unexpected when it’s gifted with love from your neighborhood dry cleaner, baby-sitter or housekeeper.

#7 Stay in Touch

When you spend your money with a business, it feels good to be recognized and appreciated.

Reach Out and Touch Someone’s Inbox

When my husband and I owned a CrossFit gym we offered one discount per year, and we only offered it to a specific audience – previous members. We sent them personal emails on January 1st letting them know that old friends are the best friends.

New business is nice, but we’d rather have a friendly face return to the gym because that’s who our business was built by. It never failed. We always received responses from people who said they had been thinking about coming back and this was the little nudge they needed.

“Only the companies and brands that create human connection are going to succeed. This is extremely true with email. You might get short term benefits from very promotional content, but honest, human, and personalized content creates a following for the long term.” – Henni Roini, EMEA marketing manager

According to Salecycle, 59% of people say marketing emails influence their purchase decisions. 73% of millennials prefer communications from businesses come from email.

Nurture Your Relationships with Clients

Most people don’t buy the first time they engage with your business, so it’s important to have a system for following up, and you don’t have to be all pushy and spammy about it.

I’ve heard people say that nurturing a relationship with a customer is the key to loyalty. Nurturing means caring for or protecting something while it’s growing. This is why our follow-up system is called a lead nurture list. When someone expresses interest in our service, their name and contact information goes on the lead nurture list.

Then we follow up with a personal note just to see how someone’s doing. Sometimes we offer to take a look at their website and offer suggestions free of charge or pass along content we think they’ll enjoy, like helpful articles or blog posts relevant to their industry. Maybe they’ll eventually hire us and maybe they won’t. It still feels good to keep in touch.

One Step Further

The relationship doesn’t end when a customer makes a purchase. A personal email a few weeks later asking if they’re enjoying their product or service lets them know you appreciate and remember them. It may just make someone feel warm and fuzzy which is a reward in itself, but it can also lead to a testimonial or if the results are negative, can be valuable feedback that lead to improvements.

#8 Don’t Send a Robot to Do an Owner’s Job

How infuriating is it to speak to a rep who can’t issue an apology when a major mistake has been made or a refund when there’s clearly extenuating circumstances?

Oh my God, nothing gets me red hot faster than an automated phone system. I’m convinced that some companies use them because they want us to get exasperated and hang up so they don’t have to deal with us.

A typical scenario goes something like this:

Automated Robot Voice: Tell me why you’re calling. You can say things like: account summary or pay my bill.

Me (feeling dumb talking to a recording): I was charged twice for the same item.

Robot: “I’m sorry that is not a valid option. Goodbye.

Grrrr…

Streamlining processes and utilizing technology is great, but too much automation alienates the customer. When a guest has a problem they want to explain and be offered a resolution. Too often companies handle customer problems by bypassing the human connection and letting robots deal with them. But people want to be heard so they can be empathized with.

When a customer has a problem this is exactly when a small business owner needs to be available. We want to solve their problem with a sense of ease. This creates loyalty.

We may not be able to compete on price but we can always win at treating customers with kindness and patience.

Responsiveness From a Real Person

I was passing through Perry, GA, staying at an Airbnb for one night. The owner of the small studio rental lived on the property.

I had a delightful stay, complete with a full breakfast compliments of the host – eggs, bread, tomatoes fresh from the garden. As I toasted the bread, the smoke alarm went off.

I opened a window and aired out the room. I would have forgotten about that tiny detail altogether but as I backed out of the driveway to continue on my road trip, the owner came running toward the car apologizing for the inconvenience of the alarm.

She handed me an envelope – inside was a handwritten apology letter and a $20 bill to cover the cost of lunch. I would stay there again in a heartbeat.

#9 Niche Down and Make Your Process Crystal-Clear

It can be tempting to offer tons of options so you don’t lose out on customers, but studies show that people don’t want to be bombarded with choices. More sales are made when options are clearly understood and the purchase process is simple.

Make the Sale. People Expect It.

I once went to a small local spa to use the infrared sauna. I had read up on the benefits and was prepared to sign up for a monthly package.

When I arrived the owner launched into a sales presentation boasting of the wonders of the body toning machine, microcurrent facials, myocalm treatments (huh?), and a conductive forehead mask (I’m not making this up). She even tried to get me to buy my own electrotherapy stimulation device. Lucky me!

She never asked me what my problem was or why I was there.

After her long-winded speech, I told her I just wanted to use the infrared sauna. She said, “The first session is free!” and led me to the locker room.

She spent so much time “impressing” me with all of the offerings that she never even thought to sign me up for a monthly package of sauna sessions, the very thing I came in for. I left without buying anything. Face palm.

Make it crystal clear that you understand their problem, then offer the solution. Invite them to become a customer.

People hate obstacles and wasting time. Our lives are hectic enough. We want to be swaddled like a baby burrito, protected by a trustworthy expert so that we can let our guard down, hand over the reins, and be taken care of. Ahh…

Your Turn

Don’t leave them hanging. Show your customers where to go next. What is your service and how do you collect payment? Make it obvious and easy to understand. Your visitors will appreciate it.

“If you communicate clearly and purposefully, your listener is less likely to feel overloaded or confused. They feel more confident in you, and more confident in your message. Your communication is more likely to influence your listener’s actions, because they will fully absorb what you’re saying. They can receive the full value of your message.

Best of all, they can appreciate why you are the person who is best suited to help them reach their desired result.” – Sally Hogshead

Less Choices = More Sales

I can spend 20 minutes scrolling Netflix, Hulu, and Prime Video only to determine there’s nothing to watch, but the real problem is there’s too much to watch and all those options are just information overload. Endless choices make me feel like there’s a perfect movie out there and I’m on some anxiety-ridden Choose Your Own Adventure to find it.

Have you ever heard of the jam experiment? Researchers set up a table in a grocery store.

It displayed 24 different jams. 60% of people in the store stopped to look at the display, but only 3% of people actually bought any jam. Then a table of 6 jams was set up. Only 40% of customers stopped to check it out, but 30% made a purchase.

Research suggests that we receive 5x more information now than we did 30 years ago. We are overloaded with data and choices which increases anxiety. The stress of weeding through 30 versions of jam is just too overwhelming so we walk away instead of buying.

Attract Your Target Audience

Small businesses have fewer customers so we can limit options to those preferred by our favorite clients. Not only does that let our best people know that we aim to understand and please them, but through reviews and recommendations it also attracts more customers just like them so we can build an audience that appreciates and raves about our service and products.

This is especially effective now that trust for businesses is so low. People are relying more on word of mouth and online reviews than ever before because we’re listening less to what the companies say about themselves.

As Kit Yarrow noted, “Positive comments create an illusory snowball effect. Our “herd instinct” kicks in, and what shoppers may have liked, they tend to like a lot more after reading positive comments.”

#10 We Can Pivot

Small businesses can make changes quickly. We want to keep our services relevant so we’re always asking ourselves how we can make it better, not how we can make it bigger.

We ask for feedback from our clients, and we take interest in new information and data so we can improve. Staying on top of industry trends keeps us well-informed.

I recently read an article that featured a lawyer who had a tough time standing out in a sea of contract lawyers. Then she noticed that there was a group of potential clients who weren’t being served.

She started specializing in creating and customizing legal contracts specifically for unconventional small business owners like podcasters, online course creators, and social media professionals.

She’s young and her age could seem like a disadvantage since it means she doesn’t have as much corporate experience as her older colleagues, but she leveraged it by relating to her target audience of young business owners and uses her knowledge of social media platforms to stand out.

What’s Changed in Your Industry?

How can you leverage your small business so that what at first seems like a disadvantage is actually quite appealing to your specific audience?

Or consider: What is something that used to be totally fine, but is now a pain point in your industry? Is it waiting in line? Fewer people printing photos? A demand for vegan options?

Is there a simple way for you to solve that problem or improve your customers’ experience?

#11 People WANT Small Businesses to Succeed

Do you know why people hate the band Nickelback so much? A researcher in Finland did an exhaustive deep dive and determined it’s because “This band has been so successful at mimicking the rock genre that they lost any sense of authenticity.” – Salli Anttonen

In other words, they’re imitating what they think rock is supposed to sound like, but it’s void of personality, creativity or rebellion – the things people like about music.

When you give people your genuine self, they recognize it. People choose to work with small businesses because we give them attention and we want them to truly enjoy the result. Satisfaction with big business has never been lower. We assume they’re all Nickelbacks because the higher-ups hide behind boardrooms and quarterly reports when we want to see them greeting customers and solving problems.

We love to root for the underdogs because those are the businesses that we equate with authenticity and they want, need, and appreciate us as customers.

Your Definition of Rich is the Only One That Matters

“RICH: Able to afford all the things and experiences required to fully experience your most authentic life.” – Jen Sincero, You Are a Badass at Making Money: Master the Mindset of Wealth

As small business owners we have control and autonomy in our lives. As our experience grows we take on clients who make our hearts swell and avoid the vampire energy-suckers, curating the audience who understand and love our service, and we can be more selective about the projects we accept and clients we choose to work with.

We’re not shackled by someone else’s view of success since we believe that real success is living on our own terms. This is in contrast to big businesses who grow for the sake of growth and often result in spending and making decisions based on profit alone.

Instead, when we implement a streamlined billing procedure or tighten up our client follow-up system we get to decide how we spend the free time we’ve just created.

Should we add another client project? Go camping? Take tennis lessons?

Marketing strategist Sean D’Souza made a conscious decision to keep his business small. He’s highly sought after and could book clients 24/7 but he doesn’t. Instead he makes $500,000/year. No more, no less. This allows him to pay his bills, increase savings, and take a 3-month vacation every year. A real, totally unplugged vacation.

That’s his version of rich. What’s yours? What do you need to do to get there?