To achieve growth, it is essential for brick-and-mortar stores to prioritize their local customer base. By implementing a well-planned local store marketing (LSM) strategy, businesses can effectively engage their target market and establish enduring connections with the appropriate individuals consistently.
Local store marketing, also referred to as neighborhood marketing, is the utilization of various tactics to attract customers in a particular geographical region. Generally, this region is limited to a 5-mile radius around the physical store. The primary objective of LSM is to establish a connection with the community rather than aiming for a wide-ranging impact.
In order to plan an LSM strategy, business owners must first identify the unique aspects of their local community. This entails gaining a deep understanding of the residents in the surrounding neighborhood(s) in order to tailor messages specifically to them and drive higher sales.
LSM is not only popular among small businesses but also proves to be highly efficient for franchisees and large-scale businesses with physical stores.
When you directly connect with potential customers in the local area, your message becomes more customized, resulting in increased foot traffic and greater chances of gaining repeat customers. These repeat customers perceive you as an essential element of the community and tend to spend 67% more compared to first-time visitors.
Local Marketing Ideas to Drive Traffic and Online Engagement
1. Engage on social media
While storefront signage could potentially attract new customers, chances are that your target audience spends more time online rather than walking past your local store. Given that the majority of internet users spend over two hours per day on social media, social platforms offer numerous possibilities for directly engaging with consumers in your vicinity.
By maintaining an active social media presence for your local store or stores, you provide community members with the chance to contact you, even if they are not physically present in your area. As your responses increase, your level of customer engagement will also increase, and your dedicated followers may also become loyal shoppers in your physical store.
It may be beneficial for certain businesses to form Facebook groups for their local customers. If you have a team member who can effectively moderate, creating these groups can showcase your ability to build community and offer valuable content to residents. Adapt your social media marketing plan to incorporate the platforms your target audience primarily uses.
2. Create a customer loyalty program
In local store marketing, it is crucial to reengage shoppers as a means to compete with ecommerce stores. To achieve this, it is essential to offer ongoing value that encourages customers to return to your physical location after their initial visit. Implementing customer loyalty programs can effectively facilitate this process.
To motivate consumers to participate in loyalty programs, it is essential to offer continuous rewards that demonstrate the superior value they can receive from shopping with your brand compared to others. Some examples of effective reward systems may include:
- A coffee shop offering a free drink every 10 visits.
- An auto repair shop offering a discounted service once every five oil changes.
- A grocery store with a tiered loyalty system that allows customers to increase ranks and get better freebies the more they spend.
3. Collaborate with locals
Collaborating with local businesses and entrepreneurs is an excellent way to cultivate brand awareness within existing customer bases. Not only do local collaborations show your commitment to lifting up your community first, but they also help you instantly build trust.
There are various ways in which collaborations can occur. For instance, a local bakery and ice cream parlor can join forces to produce a dessert that is only available for a limited time. Similarly, a gym and med spa may collaborate on a social media giveaway. In the wedding industry, professionals often engage in cross-promotion by featuring each other on their respective websites.
When considering partnerships, it is important to choose carefully. The most beneficial collaborations arise from working with local brands that you trust, who have similar values and target audiences, and who can consistently refer customers to your business.
Both options fall under the beauty industry, but it would be more logical for a luxury hair salon to collaborate with a high-end nail salon rather than a budget tattoo parlor.
4. Take part in local events
Your potential customers expect more than just words when you claim to be committed to the community; they want tangible proof. Participating in community events, including both nonprofit and for-profit gatherings, presents an excellent opportunity for local store marketing.
By having a booth or conversing with individuals at community events, you establish a connection between your face and your brand, resulting in a more personable perception of your company. In fact, a substantial portion of business leaders, approximately 84%, credit event marketing as a key contributor to their brand’s triumph. When it comes to local marketing, the dominance of in-person connections remains unparalleled.
Sponsoring events is a way to demonstrate your financial commitment to the community beyond your brand and can serve as a substitute for physically attending an event when your team is constrained by time limitations.
5. Reach to local press
Gaining positive press coverage holds a significant benefit for businesses as it can attract a large number of local customers due to the high level of trust the majority of Americans have in their local news outlets.
Sending out press releases whenever your business has newsworthy information is essential for gaining press coverage. However, developing relationships with local journalists can be more effective in the long run as it leads to continuous consideration for local listicles, expert quotes, and other online mentions.
By frequently being mentioned and linked on news sites, which usually hold high page authority on Google, your search engine ranking for relevant local searches can be increased.
6. Create a referral program
Referral programs involve customers taking on the role of brand ambassadors, essentially becoming marketers. These programs offer incentives to customers for promoting your business and spreading awareness through word of mouth. When a friend refers a company, new customers are four times more likely to engage in business with them.
Referral programs are both easy to put into practice and one of the least expensive local marketing strategies available. For instance, if you run a hair salon in your community, you have the option to establish a referral program that offers a discount to existing clients who refer a friend to your establishment. Simultaneously, you can provide a discounted rate to new clients visiting your shop for the first time.
7. Start using email marketing
Email marketing is very beneficial for local businesses as it allows them to keep in touch with former customers and enhance their other local marketing strategies.
Email marketing is utilized by over 85% of local businesses due to its affordability and simplicity, making it an attractive option compared to other forms of marketing. Additionally, it provides the opportunity to establish a personal relationship with individuals on your email list.
One way to nurture leads is by sending them newsletters, promotions, or links to articles on your website. A personal touch is also valued by recipients. Emails that include personalized subject lines are more likely to be opened, with a 20% higher open rate compared to emails with general subject lines.
By utilizing email marketing, you have the ability to enhance your other marketing strategies such as loyalty and referral programs. Keeping in contact with your existing customers and advertising your referral and loyalty programs can be achieved through your email communications.
In order to begin email marketing, it is necessary to create an email list. To expand your email list, you have the option to provide an incentive at your store such as a free item, a gift upon purchase, or a discount. Additionally, you can place email sign-up forms on your website and share them in your social media posts.
8. Network at local events
Participating in local events offers a great opportunity to engage with local customers. It allows you to create brand recognition, establish personal connections with both existing and potential customers, and potentially increase your overall sales.
There are several effective ways to approach local events. You may choose to personally organize a local event, establish a booth at a local trade show, or provide sponsorship for a local event.
One way to demonstrate community support and enhance your company’s image is by sponsoring a local sports team. This will result in your name being displayed at sporting events throughout the year. Another option is to contribute to a non-profit organization and participate in activities such as community clean-ups. By adopting this approach, your company will showcase its commitment to giving back to the community.
If you own a lawn care business, auto repair shop, or cleaning company, implementing each of these local marketing ideas will attract attention to your business and demonstrate the genuineness of your brand to the local community.
Side notes
In order to attract new customers, it is necessary to tailor your marketing strategies towards reaching out to the customers in your immediate vicinity. Rather than investing resources on potential customers located more than 50 miles away from your business, concentrate on those who can consistently generate physical traffic at your establishment.
