New research by iStock shows that small businesses must act to capitalise on good intentions and consumer trust
London, 8. December 2020 – A new survey by iStock, a leading global source of visual content, has found that more than half of UK consumers (54%) believe it’s important to support small and local businesses who are struggling during the pandemic, but only 35% of those respondents have actually changed their shopping behaviour to do so. In fact, 51% admitted to having increased the amount of shopping they do with large retailers and brands since the onset of the pandemic. Most of them (69%) due to convenience – the fact that they can get most things they need in one place.
The research on consumer attitudes towards small and local businesses was conducted as part of the Visual GPS global consumer research initiative by iStock in partnership with YouGov. It surveyed 5,227 consumers across the UK (2,062), Germany (2,158) and France (1,007) at the beginning of November, when many countries went into lockdown for the second time this year.
Compared to the other countries, Britons are generally more supportive of small business (54%), with slightly less in France (50%) and only 41% in Germany believing it is important to support local businesses who are struggling during the pandemic.
The majority (68%) of people who have increasingly shopped with small businesses have done so because they want to actively make a contribution and support them. This is particularly the case for women (72%) and Millennials (77%).
The opportunity for small businesses
While the desire to help and support the local economy is clearly there, small businesses have to act to convert supporters into shoppers. As much as 86% of consumers say they don’t feel personally addressed and valued by marketing efforts, so small businesses have to improve their communication with potential customers. They certainly have the advantage in terms of trust and customer loyalty with almost a third (30%) of consumers saying they feel cared about when shopping with small businesses – compared to only 2% of people who feel cared about by large retailers.
“The good news is that overall, consumers feel three times more likely to be personally addressed and valued by small businesses compared to large retailers” commented Jaqueline Bourke, Head of EMEA, Creative Insights at iStock. “Leveraging this stronger personal connection and the fact that almost a quarter (23%) of consumers are more likely to shop with small or local shops if they see their values reflected, opens up many possibilities and opportunities. We have seen similar attitudes reflected in our Visual GPS research from earlier in the year, which showed that six in ten people prefer to buy brands that are founded by or represent people like themselves.”
Attracting new customers with smarter communication
iStock has put together a few actionable tips for small businesses to improve communication and marketing content with potential customers and convert goodwill into shopping behaviour:
— Convenience: This is the number one reason for consumers to shop with large retailers. Small businesses should focus on demonstrating how shopping with them can be just as convenient. An example could be to use their marketing to highlight delivery and return options, a wide product range, or a variety of payment options.
— Smart targeting: GenZ and GenY in particular are passionate about supporting the local economy. They are also most likely to react to different forms of marketing and, to no surprise, social media is the channel they use most. Video and image ads on social media have an impact on almost half of GenZ and GenY so small brands should ensure to activate those channels and target younger generations.
— The right content: Sustainability and funny content tie for first place in the types of content consumers want to see these days. Small businesses who source locally or are particularly eco-friendly can use this to their advantage in their marketing. With the pandemic taking a toll on everyone, a quarter of consumers want to see content that reflects their current lives and experiences. Only 8% want to see content that shows someone they aspire to be and would much rather see themselves reflected in marketing content and visual representation. Examples of diverse content can be found at https://www.istockphoto.com/diversity.
|Content consumers would like to see from brands||Overall||GenZ||GenY|
|Content that reflects me/ my life experiences||25%||29%||36%|
|Content that shows someone that I aspire to be||8%||19%||14%|
|Funny content that makes me laugh||31%||33%||36%|
|Content that shows equality and diversity||23%||39%||36%|
|Content that focuses on sustainability||31%||45%||38%|
|Content that shows the brand is tech savvy||11%||17%||17%|
|Content that shows physical wellbeing||14%||16%||19%|
|Content that focuses on mental wellbeing||20%||31%||27%|
To learn more about Visual GPS and how businesses can improve their storytelling, please visit the iStock blog.
The survey was conducted by YouGov on behalf of iStock between 9th and 18th November 2020. YouGov surveyed 5,227 consumers in total, 2,062 in the UK, 2,158 in Germany and 1,007 in France.
iStock is a leading global source of visual content offering small to mid-sized businesses and individuals a powerful way to make their message stand out to consumers. iStock offers over 125 million premium-quality stock photos, illustrations, vectors and videos sourced from the crowd and available via simple, affordable pricing. Combining iStock’s exclusive global contributor community with parent company Getty Images’ extensive resources and creative trends expertise, iStock further delivers market leading quality, curating distinct and authentic creative stock content only available at www.istock.com.
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