6 Local small business marketing tips

As most small business owners know, it can be a challenge to grow a local business, especially if there are big competitors in the same market. So how does the local shop that specializes in sports equipment compete with the big box athletics store? And how does the neighborhood hardware store survive against the giant home improvement centers? Successful small businesses know that grassroots local business marketing is the key. 

1. Up your local small business marketing game online

Large or small, every business needs an online presence to compete locally. Kick up your marketing by emphasizing local products and highlighting local reviews on your website.

Why is this so important?  According to a 2023 Pew Research Center report, retail e-commerce in the U.S. reached $793.7 billion in the first three quarters of the year, accounting for 14.9% of all retail sales. This growth in online shopping presents an opportunity for local businesses to expand their reach and attract more customers.

If you are wondering how to promote your business locally, here are a few ideas to jump-start your local online marketing efforts.

The digital marketing agency Tinuiti recommends using hyper-local keywords, even down to neighborhoods and street names. Consider writing blog posts that are targeted to customers in specific areas. Do you own a retail shop, for instance, that’s within walking distance of several neighborhoods? Point out some of the attractions your customers will see along the way.

Make social media work for you. Hootsuite offers a host of suggestions for connecting with local customers. Think about using photos of your customers to show how they use your product or service.

Monitor local social media accounts. Many of these won’t allow advertising on their pages, but you can respond to people looking for recommendations.

2. Don’t leave your reviews to chance

The Pew Research Center survey found that more than 80% of Americans turn to online ratings and reviews when they are buying a product for the first time.

In addition, 46% of online shoppers say customer reviews make them more confident about their purchase decision, while 45% say reviews make companies more responsive to their customers.

Since reviews are so important to your business, it’s critical that they are favorable. Here are some tips to help you generate positive customer reviews.

1. List your business on several platforms, such as Yelp and Facebook, for customers to leave reviews.
2. Give your customers an easy-to-follow link – don’t make them work to provide their feedback.
3. Respond to negative reviews – just as you should to the good ones. This creates goodwill with customers and shows your concern for solving any problems.
4. Share positive reviews – they’re great for your bottom line.
5. Give favorable reviews to businesses you work with – they might just return the favor.

3. Become a household name in your local community

To round out your strategy for growing your business through local marketing, it’s important to become a trusted community partner. Building lasting bonds with local residents is fundamental to bringing in new and repeat customers. Here are some ideas to consider.

4. How to promote your business locally: Go for name recognition

Is there a local Little League team in search of a sponsor? Or a high school theater production that could use a donation? These were standard options before social media, but they’re still worthwhile today to build community goodwill.

5. Team up with local businesses

Look for ways your business would fit naturally with other local companies. Do you have a Pilates studio? Think about partnering with a local nutritionist for an evening of exercise and healthy eating information.

6. Promote local products

Another strategy that works is to boost and sell local products. One Dallas-based gift business told Forbes that although they source items from throughout the United States, they always stock gifts from Texas companies.

Want more business tips from other business owners? Check out the Hiscox Side Hustle to Small Business Podcast. We’ll see you there!

Frequently asked questions

What is local marketing?

Local marketing is a targeted strategy focused on reaching potential customers in a specific geographic area. It’s especially important for small businesses that rely on nearby foot traffic or community awareness. This approach combines digital and in-person tactics to build local visibility, such as optimizing your Google Business Profile, collecting customer reviews, sponsoring neighborhood events, and using local SEO techniques to appear in nearby search results. For content ideas that connect with your audience and support your marketing efforts, explore these 8 Content Marketing Tips for Small Businesses.

How to market a local business?

Marketing a local business begins with building a strong presence in your community—both online and offline. Start by ensuring your business information is accurate and consistent across all directories, especially Google, Yelp, and Bing. Utilize geo-targeted ads, location-based keywords, and social media posts that highlight your local relevance. One effective tactic is to build partnerships with complementary businesses nearby. Forming local alliances can help you expand your customer base and improve visibility through shared promotions. Learn how to do this with Hiscox’s guide: How to Form a Local Business Alliance. Additionally, 10 Local Marketing Strategies for Small Businesses offers tactical ways to connect with local consumers, from sponsoring community activities to optimizing neighborhood-specific hashtags.

How to advertise locally?

Advertising locally means using both traditional and digital channels to connect with people in your area. Digital tools like Facebook Ads, Google Ads, and Nextdoor allow for precise geographic targeting, ensuring your promotions reach local audiences. You can also invest in signage, flyers, local radio spots, or print ads in community newspapers to reinforce brand awareness. Combining these tactics with strong content marketing and community engagement will strengthen your local presence. For a broader perspective, check out 7 Popular Marketing Techniques for Small Businesses, which outlines effective strategies across industries.