Which do people prefer: the personality of a Small Business or the anonymity of a Large Company? It’s interesting when you start to compare the two. The advantages and disadvantages to the business entities and their customers. The personality of a small business can be a double-edged sword, whereas that personality plays a large role in why their customers choose them in the first place, but it can also be the reason why those customers take it so personally when they have an unsavory experience. The anonymity of a large company, however, always seems to work to the advantage of the business entity.
Many small business owners are seeking the answer to this mystery, and many make strides to create anonymity between their business and their customers in an attempt to duplicate the systems or the sales of a much larger company. In many situations this can be advantageous, but in other situations it can be a fatal mistake.
The truth is this: although many consumers do prefer to handle some transactions or some aspects of a transaction anonymously, this anonymity is not the main reason behind any company’s success. Large companies, especially retailers, succeed on a large scale because they operate on a large scale. They succeed because they can offer convenience and overly competitive pricing. Their operations can be streamlined. Their margins can be very low, as long as their volume is very high. The anonymity of the successful large company is not the actual reason for their success; it is just a biproduct of operating at such high volume. The consumer expects less with a mindset of “I’d complain, but who would listen?”. They’re not wrong. The company knows this, and they use it to their advantage.
This anonymity cannot be duplicated by most small businesses, and in most cases should not even be attempted. Whether your business is retail based, service based, or manufacturing based, the personality of a small business is arguably its most valuable differentiator in an economy that is increasingly digital, automated, and anonymous. Streamlining some of your operations can certainly be advantageous, but don’t ever let them replace your personal touch as a business.
If a consumer is shopping locally, consider why they are doing so. They are choosing experience over convenience. They are seeking a product they need to see, touch, or test. They want a human opinion on their options before they purchase. They want to know who they are doing business with. They want to support our local economy. They frequent the shop because they appreciate the personality that the small business has to offer. Whatever their reason is, it is the responsibility of the small business to offer all of the things that a large company cannot.
When the owner of a business remembers your name, when the clerk at the hardware store recalls the ongoing project you have been shopping for, when the server at your favorite restaurant is pleased to see you and your family return, when the barista or bartender offers you “the usual”; these are the reasons that people choose to shop local. These are the reasons people choose to live in small communities. They can’t be duplicated by a large company. They can’t be created with an algorithm. They are created organically when your business becomes a part of the community.
Local consumers not only prefer the relationship created by the personality of a small business, but they also value the accountability that is created by transacting with a member of their community. Local businesses cannot hide behind anonymity. They often are held to higher standard than a large company. When dealing with a large company it is unlikely that you know the company’s representative personally. It is also unlikely that the representative you are dealing with is the ultimate decision maker. When dealing with a small business you most likely know the owner, manager, or employees of that establishment. Your review of that business, good or bad, doesn’t just disappear into the ether. It is shared with your neighbors. It may impact how many other members of the community choose to shop there.
Do people always prefer the personality of a small business over the anonymity of a large company? No. But as a small business you must play off your strengths and accept that anonymity is not an option for most. The consumers who are choosing the small business probably did so, at least partly, because of the personality that small business offers. No one chooses Amazon, Walmart, or Google because they love their anonymity or lack of accountability. They choose them for a better price or a faster delivery date.
You can’t offer what they offer. But they will also never be able to offer your familiarity, sense of community, and individual personality.
In a world of Starbucks, be a Divi Tree. In a world of computers, be a human. In a world of anonymity, be personable.
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