5 Ways Small Businesses Can Profit From America's Staycation Summer

Key Summary

• Capitalize on "Staycationers": With many Americans cutting back on travel due to rising costs, small businesses have a unique opportunity to capture local spending by pivoting their marketing toward those staying home.
• Prioritize Engagement and Convenience: Businesses can attract customers by shifting from product-focused sales to offering memorable in-store experiences, limited-time seasonal bundles, and seamless services like click-and-collect or local delivery.
• Leverage Local Partnerships and Targeting: Small business owners can maximize their reach by using geo-targeted social media ads and collaborating with neighboring businesses to cross-promote services and tap into new, local audiences.

Small business owners have a huge opportunity on their hands: Americans are staying closer to home over the summer. According to Monster’s Staycation Summer Report, 52% of Americans say rising living costs are causing them to stay home more often, and 39% are cutting back on vacations entirely.

Although tighter consumer pockets are not ideal for businesses, those consumers enjoying a “staycation” aren't necessarily spending less; they’re looking to spend differently and locally. Whether you run a restaurant, a hair salon, or a florist, every type of small business should lean in. Here are five ways to attract more local customers and capture their wallets over the summer.

1. Sell Experiences, Not Products

Consumers are looking for memorable experiences and emotional connections as much as tangible products. Research from PwC found that consumers will pay up to a 16% premium for a great customer experience. Plus, Gitnux reports that 91% of consumers say they have more positive feelings about businesses after attending events and experiences.

So rather than simply promoting your usual products or services, consider how you can create memorable moments through local events and in-store experiences. For example, a florist could host a weekly “Build A Summer Bouquet” workshop, giving customers a chance to learn new skills and take their personalized work of art home.

2. Use Limited-Time, Seasonal Offers

Give local customers a reason to visit sooner rather than later. To do this, create urgency and FOMO (the fear of missing out) with limited-time offers, such as one-time-only summer promotions or exclusive seasonal deals. You could even create a unique “staycation” bundle of products.

For example, a bookstore could launch a "Summer Reading Challenge" or offer a limited-edition "Staycation Reads" bundle that’s only available throughout the summer, which encourages customers to visit the store before the promo ends. Restaurants could create a limited-time seasonal menu, or offer takeaway picnic baskets featuring their best-selling dishes at a more affordable price - perfect for local families and couples looking for a summer date night idea.

3. Emphasize Convenience

Many people staying home during the summer may still be trying to balance work and family life. They’re busy and may lean towards businesses that make their lives a little easier. So, highlight the ease and convenience of buying from your business - this could be through click-and-collect options, local delivery services, online booking, and grab-and-go product bundles.

4. Target The Locals

Don't just market to anyone near and far, in the hope that it magically attracts customers through your door. Target people in your local community. They’re more likely to visit your business than people located in another city or suburb! Here are a couple of ways to do this:

• Use geo-targeted social media ads. You don’t need a big budget for this - it can cost as little as $5 per day to run ads that reach people in your local vicinity and drive brand awareness to your summer promotions.
• Post about your business in your local Facebook community groups (just be sure to read the group’s advertising rules first).
• If you have a neighborhood newspaper or online newsletter, put a listing in there, too.

5. Partner With Other Businesses

Around 39% of consumers repeatedly buy from the same businesses. So, collaborating with another small business can be a great way to cross-pollinate your audiences and introduce your brand to new potential customers. You could run a joint giveaway, a workshop or event, or offer a discount code that customers can use at the other business.

For example, a local wine store could partner with an art gallery to run “Sip and Paint” painting nights. Or, a pet store could pair up with a local dog trainer to host puppy training classes or socialization events.

Now is the perfect time for small businesses to think outside the box and capture local consumer spending. They may be watching their budgets, but they’re still looking for fun, enjoyable ways to spend the warmer months. Businesses that focus on seasonal promos that offer ease, convenience, and memorable experiences may create new loyal customers and enjoy a more profitable summer.

Connect with an Old National Small Business Banker for more insights to help your business grow.

This article was written by Chelsea Tobin from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.