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14 Ways to Improve Your Local Marketing Strategy

Audiences in specific neighborhoods want your business to build relationships with them. Here's how.

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Written by: Stella Morrison, Senior WriterUpdated May 23, 2025
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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While navigating the turbulent seas of marketing, don’t lose sight of one of your most important audiences: your local market. Reaching this group may require some targeted strategies. Local marketing is different from broader marketing efforts because it focuses heavily on building relationships within your neighborhood or a specific radius around your business.

What is local marketing?

Local marketing targets customers who live within a certain distance of a business’s location. It allows businesses to promote their products or services to current and potential customers in a specific city or ZIP code. Small businesses sometimes overlook this strategy, often taking their marketing cues from large national brands instead.

“What I love about local marketing, particularly from an agency owner’s point of view, is that no matter how large your company is, you’re always going to have more loyal customers in your local area,” said Aled Nelmes, CEO and founder of Lumen SEO.

Bottom LineBottom line
Local marketing is a smart retail marketing strategy for reaching prospects and customers within a specific radius of your business.

How to improve your local marketing strategy

Many local marketing strategies involve tailoring tried-and-true marketing tactics to attract nearby customers. While not every approach will be a perfect fit for every business, the following tactics can help you strengthen your local presence and connect more effectively with the community around you. Consider the following strategies:

1. Pinpoint your target audience.

The first and most important step in developing any marketing campaign is knowing your target audience

“You can’t market locally if you don’t first understand who you’re marketing to,” explained Nichole Williamson, chief strategy officer at Zilker Media. “Start by asking, ‘What does my customer care about? What problem are we solving for them?’ Knowing your audience allows you to develop messaging that resonates and design experiences that feel personal and intentional.”

Defining your target audience goes beyond basic demographics and market research. Consider what your ideal customer cares about, what motivates them and what types of content or messaging will appeal to them. Also, think about where they “hang out” digitally as well as physically. For example, are they active participants on Instagram or TikTok? Or is Facebook more their cup of tea? Do they attend local events or participate in community forums?

2. Find ways to engage your audience.

Once you understand your audience, the next step is to reach them in relevant and personal ways. This means building your local campaigns around their interests, behaviors and needs and using the platforms, messages and incentives most likely to resonate with them.

In both your traditional (print ads, flyers, etc.) and digital marketing strategies (social media outreach, email marketing campaigns), focus on what interests your audience. Use search terms they’ll likely use, and create advertisements that explain how your product or service solves a problem they’re dealing with.

Engagement often comes down to creating a sense of connection and relevance, even in small, unexpected ways. Aled Nelmes, CEO and founder of Lumen SEO, shared how subtle, psychology-driven cues can encourage people to interact with a business more naturally and meaningfully.

“My favorite [local marketing] examples have been a local café putting chairs and tables outside even if it’s raining to suggest they’re open from a distance,” Nelmes shared. “I’ve also seen a village shop offer a ‘postcode discount,’ the irony being that everyone within a 10-mile radius is within that postcode, but the consumer feels a sense of exclusivity nonetheless. It’s those psychological tricks that I’d suggest for long-term success over high-spend ads.”

3. Get involved in your community.

Local marketing isn’t just about advertising; it’s also about building real relationships. Find opportunities to show up in your neighborhood and support causes your customers care about. Attend local events, volunteer for community projects, or donate branded prizes to raffles and contests. These simple actions can improve your visibility and give people a reason to return to your business.

Williamson encourages businesses to make community involvement a part of their brand. “Sponsor the local high school football team. Host an educational seminar for other small businesses,” Williamson suggested. 

However, Williamson emphasized that true engagement takes more than just writing a check. “Community involvement builds visibility and credibility, both of which are essential for long-term loyalty.” 

4. Take advantage of local directories.

One of the easiest ways to drive local traffic is to ensure your business appears in local search results. You can do this by claiming and optimizing your listings on platforms like Google Business, Yelp and other industry-specific directories.

“Local directories are a powerful digital storefront,” Williamson said. “Ensuring your business is listed — and that the listing is accurate and up-to-date — boosts your visibility in local search and signals credibility to both search engines and customers.”

5. Gather and post testimonials.

Positive customer reviews are among the most effective tools for building trust in your local community. While people are often quick to share negative feedback, positive experiences can be just as powerful, especially when you make it easy for customers to share them.

Encourage satisfied customers to leave reviews on platforms like Google, Yelp or Facebook. If you receive great customer feedback in person, via email or on social media, ask if you can share it on your website or marketing materials. The more visible your happy customers are, the more likely others are to give your business a try.

6. Use local media.

Don’t underestimate the power of local media, especially in smaller communities. Local newspapers, radio stations and TV shows often have loyal, engaged audiences, and they’re always looking for stories with a community appeal.

Pitch a newsworthy event, sponsor a themed segment, or offer to be a local expert in your field. When you appear or are featured on local media, you can raise awareness, build credibility and drive more foot traffic to your business.

7. Run local search engine marketing campaigns.

Search engine marketing (SEM) is a powerful way to reach potential customers in your area. With tools like Google Ads, you can create targeted campaigns that drive both online traffic and in-person visits to your brick-and-mortar location.

Pay-per-click (PPC) ads and other location-based targeting options help ensure your business appears when local customers conduct searches for relevant products or services. These campaigns can help you get the most bang for your marketing dollar by reaching the right audience at the right time.

TipBottom line
Use Bluetooth beacons to send real-time promotions, coupons or alerts to the smartphones of nearby or in-store customers. This is a great way to drive foot traffic to your store and boost engagement.

8. Work on your search engine optimization (SEO).

Search engine optimization, especially organic SEO, helps your business show up in search results without relying only on paid ads. For best SEO results, you’ll need to create valuable content for your audience and optimize your website.

“Good local SEO ensures that when someone searches ‘best bakery near me’ or ‘community bank in Austin,’ you show up,” Williamson explained. “That means optimizing your Google Business Profile, using localized keywords, and ensuring your website is technically sound and mobile-friendly.”

Organic SEO takes time and consistent effort, and it could take months before you see real results. However, the long-term benefits can be enormous. As search engines continually change and refine how they present relevant local results, like nearby restaurants, service providers and shops, your SEO strategy becomes even more valuable.

9. Use social media to engage the audience.

Social media is a great way to connect with your local community in a way that feels both professional and personal. For best results, focus your social media marketing on the platforms your audience already uses, whether that’s Facebook, Instagram or Nextdoor, and use those social channels to answer followers’ questions, share updates and start conversations.

Consistent, authentic interaction can help build trust, help sustain and grow customer relationships, and help nearby customers remember your business.

10. Run contests or promotions.

Contests and promotions can be great tools for engaging a local audience. You can even go viral with a contest that captures interest quickly online. Get creative with your approach, and offer prizes your ideal customers will actually value. You can also tie promotions to local events, holidays or community causes to build goodwill and brand awareness.

Nelmes advises brands to reward more participants with tiered incentives instead of offering a single big prize.

“I recommend offering a 1st, 2nd and 3rd prize to increase the number of entries,” Nelmes shared. “You will also enjoy stronger word-of-mouth benefits following the competition, with more winners advocating for your now more generous brand.”

11. Establish yourself as an authority.

Positioning yourself as a trusted expert in your field can help you stand out from local competitors and build lasting customer loyalty. To do this, create relevant, helpful content on your website, blog and email newsletter that answers common customer questions or explains industry trends. This strategy builds credibility, supports your SEO efforts, and helps you stand out from the competition.

Nelmes points out that becoming an authority or noted expert doesn’t have to mean winning national awards. In a smaller local market, being the go-to provider in your niche can carry more value than broader recognition.

“Establishing yourself as an authority varies in importance depending on the size of your local area,” Nelmes noted. “You can gain authority in hairdressing by being the only hairdresser in your area, and therefore can often waste time trying to win national awards instead of developing new services to offer to your regular customers to increase lifetime value.”

12. Cross-promote with other local businesses.

Cross-promotion is a simple, mutually beneficial strategy where two or more businesses market each other to their customers. It helps each business expand its reach, attract new clientele and boost sales, all without significantly increasing marketing costs.

“There’s a reason theme parks place drink stands next to salty food restaurants; they grow each other’s demand, like a symbiotic relationship,” Nelmes explained. “The potential wins here are huge, and therefore collaborating with local brands is essential and very important.”

Nelmes encourages small businesses to think creatively about potential local partners. “In an ideal scenario, you would be located close to those partners, but a great social media campaign can bring brands closer together than ever,” Nelmes said.

He also recommends tying these partnerships to specific seasons or events to maximize engagement. “For example, a florist could partner with a local deli to offer a competition in which customers could win a Valentine’s Day experience. Watch how seasonality, social media and the power of two brands create more local interest than you’ve ever seen.”

13. Host or sponsor local events.

Hosting or sponsoring local events is a great way to raise brand awareness and connect with your community in person. Whether it’s a seminar, fundraiser, festival booth or neighborhood celebration, these gatherings let you meet potential customers, share your brand’s personality and create positive experiences people associate with your business.

Choose an event that appeals to your target audience and matches your brand values. You’re not just providing entertainment or information — you’re building relationships and trust that can lead to long-term customer loyalty.

14. Build a mobile-friendly website.

Local customers often discover businesses through mobile searches, whether they’re looking for a place to eat, shop or book a service. A mobile-friendly website helps provide a great user experience and is also a key factor in SEO, as search engines prioritize responsive, fast-loading websites.

Follow responsive web design best practices to ensure a smooth user experience across devices. Your site should automatically adjust to different screen sizes, with quick load times, clear navigation, clickable buttons and easy-to-read content.

Nelmes emphasized that mobile-friendly sites help consumers make more purchases.

“Whilst having a mobile-friendly website varies in importance depending on your target audience, you can’t deny that for all demographics, it’s becoming increasingly important, especially as users become more confident paying for and booking things online via their smartphone,” Nelmes explained.

Did You Know?Did you know
A responsive, mobile-friendly website makes it easier for potential customers to take action, whether that's calling your business, visiting your location or making a purchase on the spot.

Local marketing FAQs

What other ways can your business stand apart and attract more local patrons? Explore these frequently asked questions to identify other strategies that may work for your business.
Named after economist Vilfredo Pareto, the Pareto principle states that 80 percent of your results come from 20 percent of your efforts. For example, 20 percent of your marketing campaigns may drive 80 percent of your success, or 20 percent of your customers might account for 80 percent of your sales. With the Pareto principle in mind, track your marketing efforts to identify the strategies that produce the biggest returns. Once you know which campaigns or platforms fall into that top 20 percent, focus your time and budget there. This is especially important for small businesses with limited resources or little room for trial and error.
Measuring local marketing involves tracking both digital and in-store metrics. Collecting and analyzing data is key, and it can come from many sources. For example, the best POS systems can help you gather and evaluate in-person sales data. You should also monitor metrics like website analytics, digital marketing ROI and the insights gathered through your customer relationship management (CRM) software. The best CRM systems can help you track customer interactions, segment audiences and identify which local marketing efforts are driving conversions.
Local marketing can benefit any business with a physical location that relies on foot traffic. Restaurants, hair and nail salons, pharmacies, hardware stores, ice cream shops, gift shops, record stores, clothing stores and many others can attract more customers by using strategies that encourage nearby passersby to stop in. Local marketing is also essential for professionals who serve a specific geographic area, such as real estate agents, home service providers and healthcare offices.
While the term "local marketing" often evokes small businesses and community organizations, plenty of large or global companies use local marketing strategies to connect with specific regions where they want to boost brand recognition or drive sales. Here are a few successful campaigns worth studying:
  • Airbnb: In 2014, Airbnb shifted its focus from being a rental platform to becoming a provider of local travel experiences. To connect with individual regions and countries ― a sprawling mission, considering the size of the company ― Airbnb developed country-specific social media campaigns, distributed a print and digital magazine tailored to each region and hosted experiences for tourists led by locals.
  • Kit Kat: In Japan, the phrase "kitto katsu" — which sounds similar to "Kit Kat" — roughly translates to "you will surely win," a common expression of good luck. Nestlé embraced this cultural connection by creating a campaign that allowed Japanese customers to print personalized good-luck messages on Kit Kat bars and mail them to loved ones. By tapping into a local tradition, Nestlé strengthened emotional ties with customers in the region.
  • Nike: Nike has run multiple localized campaigns around the world. In China, the brand releases a Chinese New Year-themed shoe each year. In London, Nike launched its "Nothing Beats a Londoner" campaign to connect with young athletes across the city. The campaign highlighted diverse sports played by local youth — all wearing Nike gear — to make the brand feel personal, relevant and deeply rooted in the local culture.

Amanda Hoffman contributed to this article. 

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Written by: Stella Morrison, Senior Writer
Stella Morrison is a respected small business owner with a track record of award-winning success, having founded multiple ventures and earned honors for her work. She currently runs two companies, overseeing the staff, finances and a range of other responsibilities. Morrison's expertise spans everything from web development to brand management, making her a versatile leader in the business world. Beyond her own entrepreneurial pursuits, Morrison offers consultative services to companies on various business topics. In years prior, she worked in community affairs programming and trained young broadcast journalists in radio communication. She also reported for Greater Media Newspapers and wrote a column for the Chicago Tribune's TribLocal. Today, she often partners with the American Marketing Association, contributing to the industry's growth and development.
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