Small Business Tips
The complete startup guide to local marketing
If you own a small, brick-and-mortar business, chances are a substantial percentage of your clientele come to you from your region. And no matter what kind of business you run, marketing your products or services to a regional audience can go a long way to boosting sales and patronage.
What is local marketing?
Local marketing, also known as neighborhood marketing, location-based marketing, local store marketing (LSM) or regional marketing, is an advertising strategy that’s aimed at consumers in a specific place. That can mean old-school techniques like running local print ads, sending residents coupons in the mail or tabling at a community event. Still, it can also mean using the latest digital marketing tools with a local focus.
The digital aspect is becoming more and more critical. According to a 2019 survey, 86 percent of consumers rely on the Internet to find local businesses. Also, nearly half of all Google searches in the world are related to local information.
A local marketing strategy is a compelling way to grow your business if you depend on consumers who live or travel in your area. It’s also an effective way to grow your business if you’re trying to expand into a new market or retain your place in an existing one.
For example, Tyler’s, a clothing company that got its start as a T-shirt shop in Austin, Texas, is now a successful national brand. But, it continues to profit from catering to a Texas audience on its website and in marketing materials. And Brooklyn-based ice cream brand Van Leeuwen has used PayPal’s mobile phone location data to issue push notifications to its customers, enticing them to stop by a nearby store.
Who should use local marketing?
Small businesses and early entrepreneurs often depend on local marketing campaigns to make strides in their communities. Restaurants and local retailers are key examples.
National companies and franchises can also benefit from these techniques. Whole Foods, for instance, whose stores span the country, and Wegmans, an eastern U.S. grocery chain, both use local marketing tools to promote specific stores.
A national business can benefit from gaining ground on a local niche market. But small businesses are more likely than large ones to rely on local marketing tools to meet their bottom line.
Why is local marketing effective?
No matter what kind of business you run, focusing on local audiences means creating loyal followers. Local customers have the potential to be repeat patrons, so they are the ones you want to build a strong relationship with. And shaping a trusting relationship with repeat customers is the golden ticket for small-business success.
Loyal customers are also more likely to offer word-of-mouth referrals to their friends and neighbors. This type of grassroots marketing is one of the best ways to generate new customers, according to 85 percent of small business owners in a recent survey. And that makes sense: it’s easier to trust a friend than a brand.
How to develop a local marketing strategy
Getting started with local marketing isn’t too different from other kinds of marketing. First off, you need to think strategically.
Understand your brand
- Define your values. What do you stand for? What message do you want to communicate to your potential clients?
- Figure out your unique personality and tone. Are you a home security company, for instance, that wants to communicate that you’re solid, serious, and reliable? Or a hip, funky salon with a sense of humor?
- Decide how you want your brand to look. The colors, fonts and styles on your website, logo and other materials can make you stand out. They also help people connect with the personality and tone you’d like to convey.
Get to know your target audience
- Who are you trying to reach? Elements to consider might include your customers’ age, gender, level of education, lifestyle and daily schedule.
- Where do they spend time? Consider, for example, where these people live, work, shop, eat, recreate or go to school. Find out where they get their news, what local events they attend and where they spend time communicating online.
Pick the best local marketing approaches for you
- Depending on who you are and who you’re trying to reach, specific strategies are going to work better for you than others.
- You’ll also want to meet your customers where they are. If they’re young and connected, they might be on Instagram or listening to podcasts. If they’re older and homeowners, they might be more likely to respond to an ad in a local publication.
Take advantage of digital tools
- There are tons of excellent apps out there that help small businesses develop sound marketing strategies and promote themselves.
- To gain local recognition, you’ll also want to start by creating a Facebook page that you post to often and use the Yelp app to keep your listing up-to-date and respond to customer reviews.
