Reaching new customers and retaining existing ones is a perpetual challenge for businesses. The shape of that challenge, however, can differ significantly depending on the size of the organisation.

While headline tactics such as hyperlocal marketing often remain the same regardless of scale, the reasons for using them and the way they are deployed are not – nor should they be. For SMBs, who have far smaller budgets than global brands, a localised approach to their marketing provides a way to amplify one of their strongest assets, a natural connection to their local community. This strength is increasingly valuable at a time when consumers are actively choosing to support independent businesses. In this context, hyperlocal is not simply a marketing tactic but a mindset that allows smaller businesses to compete with their much larger competitors.

Starting with a personal touch

In an online society which has long prized highly curated personas and branding, consumers are increasingly rejecting this kind of slick perfection in favour of real people – whether that be in relation to the influencers they follow (enter the anti-influencer) or the brands they support. In other words, people are no longer just buying products. Instead, they’re looking to connect with and understand the people behind the brand.

SMBs have a distinct advantage in this regard, as their leadership is often much closer to the front running of the business when compared with those responsible for much larger entities. Therefore, rather than having to try and retrofit a sense of the personal into their marketing, SMBs can lean into this from the get-go and build a stronger connection with their audiences.

One way of doing this is by taking advantage of the fact many social media sites, such as Nextdoor, allow small ventures to operate both a personal and a business profile. By doing so, SMBs can enjoy the additional benefits offered by business pages while also the sense of human connection with locals and the authenticity that is afforded by a personal page, emphasising the fact that their business leaders are also part of the local community.

Hyperlocal marketing means operating within the community

Narrowing focus on hyperlocal marketing, this tactic allows businesses to draw on the customs and personal interests of their local customers, demonstrating they truly understand their audience.

This could include tailoring messaging to reflect local events and quirky seasonal traditions (like the Obby Oss festival in Cornwall, for example) that larger brands might overlook. By speaking the same cultural language as their customers, businesses can foster a deeper sense of connection and belonging.

It’s also worth noting that hyperlocal doesn’t have to mean narrow. As small businesses expand, this approach can be scaled for different locations by adapting the same principles for each new community. This enables SMBs to retain the intimacy and personal feel of a small business while also reaching a broader audience.

Greater agility in responding to local needs and trends

Operating at a hyperlocal level also allows SMBs to spot and respond to changes in customer behaviour, seasonal demand, or community concerns far more quickly than national or global brands. Whether it’s introducing a product based on local feedback, adjusting opening hours for a neighbourhood event, or supporting a local cause, this agility helps businesses stay relevant and valuable to customers.

This nimbleness can also build stronger brand advocacy. Customers notice when a business takes their specific needs seriously and acts promptly. It signals that the business is listening, engaged and invested in the community’s wellbeing.

Staying true to the roots

The lure of large-scale expansion is undeniable; however, small businesses shouldn’t underestimate the power of staying rooted in their communities. Hyperlocal marketing isn’t just about sales, it’s a philosophy that keeps customer relationships at the heart of business growth. By combining personal storytelling with precise community engagement, SMBs can stand out not by outspending the competition but by out-connecting them.

In a market with giants, the very thing that makes a small business small – proximity, familiarity and personal investment – can actually be its greatest competitive advantage. Growth and locality aren’t mutually exclusive and with the right strategy, they can strengthen each other, ensuring that as the business footprint expands, so too do its community roots.

Gareth Walton is Head of EMEA Sales at Nextdoor.