Why Local SEO Is Indispensable to Small Businesses - CO— by the U.S. Chamber of Commerce

Local SEO leverages search engine optimization tools to make your business stand out in map- and location-based searches, allowing customers in your area to more easily find you. — Getty Images/Chainarong Prasertthai

With the rise in map-based searches, local search engine optimization (SEO) presents an opportunity for small businesses to enhance their visibility on maps and attract local customers. Backlinko reports 86% of people discover local businesses through maps, highlighting the significance of local SEO in connecting businesses with their target audience.

Why small businesses need local SEO

Local SEO has benefits for small businesses looking to improve their digital marketing strategies. Here are seven reasons small businesses should utilize local SEO.

[Read more: 4 Search Engine Optimization (SEO) Practices Every Small Businesses Must Know]

Increasing local brand awareness

By optimizing your company's online presence for local search intent and engaging with your target audience through social media, you can expand your visibility and attract more customers. Creating locally relevant content through blog posts or social media updates showcases your ties to the community, further contributing to building brand awareness and fostering customer loyalty. When small businesses appear in local search results, they gain credibility and are more likely to attract local customers, particularly when they receive positive reviews.

Creating a cost-effective marketing strategy

Local SEO is a cost-effective marketing strategy, which enables small businesses to target local customers and track the effectiveness of their efforts. By using tools such as Google Analytics, you can monitor website traffic and identify the keywords driving visitors to your website. Local SEO's biggest advantage is its ability to reduce marketing costs by tailoring and optimizing websites, leveraging online resources, and avoiding costly ad campaigns or print materials.

Building trust and credibility

You can gain credibility and trust from your target audience by appearing in local market search results, which is more appealing to potential customers. Local SEO utilizes the addition of local backlinks — links from other local businesses and websites pointing to your website — to cultivate trust and credibility. Backlinks demonstrate to search engines that your website is trustworthy and authoritative, further enhancing your reputation as a brand. Appearing in local search results and accumulating local backlinks establishes reliability and credibility for current or potential customers.

[Read more: How to Ensure Your Business Website Is SEO-Optimized]

By attracting relevant traffic through local SEO strategies, you increase the likelihood of sales and ultimately achieve better conversion rates.

Staying ahead of the competition

Effective local SEO strategies allow small businesses to gain a competitive edge. Optimizing your online presence for local searches leads to an increase in visibility and can help you stand out among your competitors. You can ensure that your business reaches your target audience, making it more competitive in the market.

Increasing local traffic

The main goal of SEO is to drive more traffic to your online profile or website, increasing the chances of sales and spreading awareness of your business. Local SEO specifically targets relevant traffic from your area, resulting in visitors who are more likely to respond to your content. This localized traffic consists of potential customers who connect with your content and ads. By implementing these SEO strategies and creating localized content that resonates with your target consumer, you can attract more traffic from your desired customer base.

Improving conversion rates

Conversion rates — or the percentage of website visitors who complete a desired action like making a purchase — aren't always higher because of increased traffic. However, with local SEO, you are already targeting potential customers who are more likely to convert. By attracting relevant traffic through local SEO strategies, you increase the likelihood of sales and ultimately achieve better conversion rates. If you want to improve your conversion rates, the key is to implement effective local SEO tactics that bring in interested and potential customers, increasing the opportunity for successful conversions.

Achieving long-lasting rankings

The impact of SEO results is longer-lasting compared to other traditional marketing methods. While maintaining updated information and optimizing local SEO is necessary, once you achieve high rankings in search engine results pages (SERPs), you are likely to retain that position for a significant period of time. Google tailors its search results to meet customer requests, so targeting a specific local audience through local SEO can result in long-lasting SERP rankings. Ranking on the first page of search results is crucial for building trust in your customers and driving web traffic.

[Read more: 9 Free SEO Tools for Your Business]

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.

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Published June 27, 2023