It’s common for small business owners to focus on the local market and generate leads that way. Instead of aiming to conquer the international market, they focus on a local area and seek potential customers they can meet face to face. Some find local businesses more rewarding as a concept. Rather than shipping goods to some unknown people far away, you could be doing good things for the local community. And if things pick up and there’s room for scaling the venture, looking beyond a local audience will come naturally. So, how to tackle local lead generation?
What is local lead generation?
Local lead generation aims to find and target an audience in a specific location. Usually, new customers are close to where the business is located.
The focus is attracting nearby residents. Such a business would not be able to survive without local community support. Examples to use could be restaurants, gyms, grocery stores, and barbershops.
Local patronage determines whether local services can prosper. And while a business might have its fair share of already loyal customers, it still needs to consider the target audience. Ultimately, the goal is to find qualified leads for the good of the future of the business.
Pros and cons of local lead generation
A business owner might consider foregoing local lead generation. Instead, they set their sights on international lead generation because they don’t believe in local lead generation marketing efforts.
It’s true that local lead gen has some downsides, but the benefits outweigh the potential drawbacks of generating leads via local search and other means.
Let’s take a look at both the pros and cons of local lead generation.
Pros of local lead generation
1. Solid ROI
If you generate leads properly, you can expect a solid return on investment. Local lead generation means getting yourself out there and connecting with the local audience.
In a way, you become a trusted member of the community. The small efforts you put into generating leads to promote your local business lead to positive word of mouth.
If your customers are happy with the service, they will discuss it with their friends and family. And since it’s a local business, persuading someone to try it is much easier when they don’t have to travel too far from their local area.
Generally, local lead generation is more about focusing on a localized area. Instead of spending money and other resources that an average online business requires, you get to develop relationships with the locals.
2. Connection with locals
Speaking of relationships with the locals, the odds of generating high quality leads increase when you emphasize reaching out to local area residents.
A connection with a real person goes beyond just a single lead. As mentioned already, the end goal is to capture leads that will hopefully advertise the business to others. Building relationships is one of the most rewarding aspects of running a local business model.
Remember that your lead generation strategy should also be about building brand awareness. Some business owners go as far as sponsoring local events and involve themselves in the community even more, even if they have to spend money.
3. Targeted approach
Local lead generation helps build brand awareness, and it’s often through a targeted approach that a small business owner can take their venture to another level.
Meeting prospects face-to-face for dinner enables a more personalized approach. To have a conversation in real life offers much more than exchanging emails or having a phone call.
Those who see a business owner in person are more likely to trust them. Once the connection is established, it’s up to the business owner to turn these new leads into customers.
One final thing to mention about a targeted approach is that it is more cost-effective than reaching a broad audience.
Cons of local lead generation
1. Local competition
Local lead generation has some cons, too. It’s expected. Otherwise, businesses would focus entirely on local searches rather than expanding their marketing campaigns and going beyond local areas.
Competition is one of the standout problems in local lead generation. Other local businesses might have a better lead magnet or better products/services than you. They also might have had more time to establish themselves in the market.
Coexisting in a niche market is possible, but if the market is too narrow, your potential leads may go to another business.
2. Limited reach
Actively searching for qualified leads is an essential part of running a local business. The odds of customers just coming to you out of nowhere are more or less zero.
Limited reach is a significant obstacle that local businesses have to overcome. You have to maneuver in a small market and try to come up with various lead generation strategies.
Despite your local lead generation efforts, you still struggle to find a successful strategy. And even if you manage to find a prospect, there are still no guarantees that you will convert them.
While it’s true that the targeted approach works great for local businesses that want to focus on specific audiences, some niches are quite limited in how much they can realistically accomplish due to the available reach.
3. Regional problems
Regional problems are another instance of where local businesses might fall short. A local lead generation strategy can only go so far if an unforeseen event comes in and shatters all your efforts.
Take COVID, for instance. The global pandemic ruined many local businesses. Regional problems can vary from natural disasters like earthquakes to volcanic eruptions.
The change in a local government is also something to worry about. Some politicians may decide to push certain legislations that increase taxes or present other obstacles.
Ideally, local business owners ought to research the region before committing to a venture. Weigh all the potential risks and determine if the idea is worth it or if it would be better to open services online and operate without focusing on the local market too much.
Channels to generate local leads for your business
There are multiple sources to generate local leads for your business.
One platform might work better than the other, but it’s recommended to test different variations to see which one offers the best results.
1. Local events
Local events are a given. They create a perfect opportunity to meet potential customers face-to-face and ask them about their expectations.
Aspiring business owners can offer a free consultation and get to really study their target audience. It depends on the event type, but be sure to bring your business cards and distribute them when there is an opportunity.
2. Local media
Local traditional media might not be as popular as it once was due to the Internet, but it still offers an opportunity to get the word out about your venture.
Local media outlets like TV and radio stations or newspapers often have dedicated advertising sections. A catchy ad is bound to attract attention. And since it’s the locals who pay attention to local media, it makes even more sense to see how much you can accomplish via this method.
3. Local influencers
Local influencers are worth a shout as well. Even if you live in a relatively small area, it’s still bound to have some local celebrities that are held in high regard in the community.
A positive word from someone people know and trust makes a difference. Influencers with a large following become your partner.
If you can manage to persuade a local influencer, you will get access to their audience, unlike your potential competitors. Less competition is always a plus when trying to survive in a small and competitive market.
4. Social media platforms
A social media platform offers a method to generate leads for your business. There should be local groups that exist to connect like-minded people. For example, a local archery club or a book club.
It can be tricky to start a social media campaign from scratch to target locals. However, if you can bring value, like providing software and instructions on how to make Mac faster, to a local Apple community or an area to create hand-made jewelry for craft enthusiasts, you should be a shoo-in.
5. Local directories
Local directories and maps excel as far as marketing channels go. More often than not, they exist to target audiences that are not from around the area.
Think of tourists coming in for the first time and checking Google Maps and other directories to find a local business, such as a restaurant or a hotel, where they can spend time and money.
6. Networking
Networking with other local businesses enables long-term relationships that benefit both parties. So long as the partnership makes sense, it would be a waste not to connect.
As partners, local businesses should look to advertise each other on different channels so that both receive interested leads from each other.
Generating local leads online
A local lead generation revolves around meeting prospects in person and building relationships. Having said that, it doesn’t mean abandoning the online presence and generating leads there.
A simple landing page can be enough to drive traffic and turn it into paying customers. You can create a lead gen website that is not too flashed out. On the other hand, a proper website is a sounder option.
It will take a while to get the business ranking in search engines like Google, but it’s to be expected, given how tricky local SEO is, particularly in competitive niches.
Other than an emphasis on local SEO, you can run paid ads and get the word out on a search engine that way.
Ads that redirect prospects to relevant landing pages require a clear call to action button. Paid advertising accumulates costs quite fast, so it’s imperative to do everything right from the start.
If the site appears cheap or your target ads are misleading, don’t expect to see conversions. And the same applies to search engine optimization. So long as the keywords you aim to rank for are irrelevant, then your efforts will go to waste.
Conclusion
To sum it all up, a business that aims to target a local audience and persuade them to become regular customers should expect to put a lot of effort into generating local leads.
Thankfully, there are multiple ways to advertise goods and services, even in a relatively niche market. It comes down to creating a solid marketing strategy and working on those leads, even if it means talking to people individually.
FAQ
What is lead generation in the context of an online business?
Lead generation for an online business involves using strategies and tools to attract potential customers interested in your products or services. This can include local SEO, Google Ads, and engaging on social media platforms to generate leads.
How can local SEO improve lead generation for my business?
Local SEO optimizes your online presence to appear in local search results, making it easier for people in your local market to find your business. This can significantly increase high intent leads looking for specific services or products nearby.
What’s the advantage of using Google Ads for lead gen for local businesses?
Google Ads can target potential leads with high precision based on search engine queries, offering immediate visibility in search results. This paid ads approach can complement organic strategies by bringing in warm leads with a clear interest in your offerings.
Can social media platforms be effective in generating leads for your business?
Yes, social media platforms are powerful tools for lead generation, allowing businesses to directly engage with potential customers, showcase their value, and drive traffic to their lead gen site or main website. By creating relevant content and ads, businesses can attract and convert a diverse audience into leads.
How can local business owners generate leads offline?
Organic search results are important, but not enough for lead generation business model. Online tools can be used by a software company, but offline leaflets can also be locally effective.