By Greg Davies, Group CEO of Tendra Technical Services.
We now have more choice than ever when it comes to sourcing products and services – but despite the almost endless options across the globe, local specialism remains a hugely important asset for businesses.
In fact, a wealth of research shows us that when a company is trusted, recognised and embedded within a community, this positively influences client trust, purchase behaviour and loyalty. Yet the type of operational efficiency and brand awareness that is required to elevate a company to the next level of growth often requires a wider geographical presence.
So, how can companies integrate – and even benefit from – local specialism and national scale?
Community connection
Successful small businesses have developed approaches which enable them to build trust, credibility and relevance with clients within their local area. The best among them deploy localised messaging, attract positive reviews, and ensure presence and participation within their community, and this pays off according to research, with a Productivity Council report showing a 20% increase in the use of local suppliers among Midlands SMEs over a two-year period.
This is supported by industry-specific studies, such as that published by Software Advice which showed almost 70% of UK supply chain companies were looking to switch to using companies closer to home in 2024.
Not only can this alignment with a particular area enhance visibility, it can also create the emotional connection – a vital aspect of buying for companies as well as individual customers. In fact, those with strong CSR strategies have an advantage of between 8% and 14% over their competitors, depending how social-minded their potential clients are, according to NEOMA Business School.
The national advantage
Yet for all the benefits of being intrinsically linked with a particular area, there comes a time in the growth journey of successful businesses where they begin to think about expanding, perhaps even operating on a national basis or acquiring businesses across different regions. And that is when leaders will want to position their products or services as readily available, and the brand as significant and credible.
There are advantages to national scale: with visibility extended beyond a small geographical area, companies can build a much stronger reputation without reliance on a limited pool of target customers. Furthermore, operational efficiencies and logistics allow for better pricing strategies, enabling businesses to effectively compete with larger market players.
A balancing act
Both research and anecdotal evidence show us brands can seem impersonal or disconnected if they are ‘too national’ but lacking in credibility, reach or growth potential if ‘too local’ – so those looking to avoid both perceptions must seek a happy medium: maintaining local credibility whilst showcasing their national strength.
It is a concept which has been coined as ‘glocalisation’, describing a strategy whereby businesses adapt their commercial approach to fit local needs.
Through a combination of local specialism and national scale, companies can establish emotional connections with clients through local engagement, while also enhancing recognition and awareness nationally. This means they can compete on a local level through strong community links, and a national scale through their size and resources – but only if their strategy is carefully balanced, with enough emphasis on community engagement, trust-building and local insight to build connection and loyalty, and an equal weighting placed on realising the operational and logistical benefits of scaling nationally.
Because if that balance is off, companies risk losing their reputation they built in the beginning without ever achieving the success associated with national growth.
