The resilience, tenacity and passion that small business owners have shown over the past couple of years has resounded across the nation. No one needs to tell you how challenging it has been and continues to be – you’re living and breathing it.
Growing up watching her father run a small business, Jee Moon, Vice President of Merchant Marketing and Business Insights, APAC at American Express developed an appreciation for the dedication and hard work that goes into running one each and every day.
Passionate about helping small businesses bounce back, Jee opens her playbook to share practical tips that operators can apply as you look to recalibrate for growth.
Backing the small business sector
At American Express we’re helping our small business merchants attract our high spending Card Members as well as giving them valuable access to big business advantages that they wouldn’t ordinarily have access to using the might of our marketing engine and global network.
In Australia, 80%1 of American Express merchants are small businesses. We’re working hard to create growth opportunities for small business operators from our annual Shop Small campaign that spotlights their importance and incentivises our Card Members to spend with them, through to our new Dream Backers competition, which will give one lucky small business owner the chanc e to have their boldest business dream realised. We’re championing small businesses in recognition of the important role they play within our economy and our communities.
There are some key actions that your small business can consider as you look ahead:
1: Attract Good, Better, Best Customers
It’s important to invest precious time behind impactful activity across the right customer segment. All customers are welcome, but those who come back often and spend big – the Best Customers – are needed to bounce back quicker.
American Express Card Members report spending 1.7x more than Non-Card Members, with 68% of Card Members stating they’re more likely to return to an American Express accepting merchant2. This means that Amex Card Members spend more and they’re loyal customers – and that’s exactly what the small business sector needs more of.
Review your target audience against marketing resource investment to assess whether time and energy is being spent on attracting the Best Customers or if your focus needs to shift to maximise return.
2: Make Bigger Players Work for Small Businesses
As a small business owner, you can tap into the expertise of government, industry and partners. While owners are used to flying solo, you can access support and a wealth of knowledge if one knows where to look.
Government resources equip small businesses with step-by-step guides and planning templates to make business and marketing planning a little easier. Industry associations provide small businesses the opportunity to network and learn from others in the sector.
Consideration should also be given to how targeted messages can be amplified across partners’ networks. Through Amex Offers for example, which provides Amex Card Members with special discounts and promotions for spending with select businesses, one operator realised a 59% increase in the use of Amex Cards, that hadn’t previously been transacted at that small business in the 12 months prior. The business owner also saw a 75% uplift in the average Amex transaction size as a result of being promoted by the American Express network.3
Thinking creatively and laterally, you can leverage big businesses to drive your small business’ marketing. Consider how your existing relationships could be leveraged to increase brand awareness and get new customers through the door.
3: Provide the Freedom to Choose
With the pandemic accelerating the use of digital payments, reducing any customer friction is essential. Enabling consumers to pay using their preferred payment method results in a better consumer experience.
With greater awareness around the value of customer choice, we have seen acceptance of American Express grow and it’s stronger today than ever before.
Our collective responsibility looking ahead
Small businesses like yours are the backbone of our economy – they are the heart and soul of the communities where we live and work. It’s up to us to collectively support small businesses to reinvigorate our neighbourhoods. We encourage everyone to shop small and shop local to help our diverse communities get back on their feet.
Operational resilience and business growth will require more than just opening doors this year. As a small business operator, you have repeatedly shown you have grit, passion and an ability to adapt to the toughest of conditions.
But you shouldn’t do it alone. We need to all lean into our responsibility to back small business. Our communities need to support the small operators along their local highstreets. Together, it’s our hope that we’ll come out as a society stronger than ever before.
Footnotes
1: American Express commissioned internet panel survey conducted in July – August 2019 based on purchases made in the 6 months prior to the survey. Definition of American Express® Card Members: Respondents who reported that they have an American Express Card and that they used that Card to make accommodations or tourist attractions purchases in the prior 6 months, restaurant purchases in the prior 3 months, and/or retail purchases in the prior 6 months. Definition of Non-Card Members: Respondents who reported that they do not have any type of American Express Card and that used Visa, MasterCard, or debit Cards to make accommodations or tourist attractions purchases in the prior 6 months, restaurant purchases in the prior 3 months, and/or retail purchases in the prior 6 months.
2: American Express commissioned internet panel survey conducted in July – August 2019 based on purchases made in the 6 months prior to the survey.
3: American Express internal proprietary data 7 June 2021 – 8 August 2021