Local lead generation targets potential customers in your community.
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Since you're learning about local lead generation, you might find Bardeen's AI automations for sales useful.
Did you know that 97% of people find local businesses online more than any other source? For businesses that operate locally, local lead generation is the most effective way to gain new customers.
That’s because local business lead generation targets potential customers in a specific area that you serve. Running national campaigns doesn’t make sense because you would be advertising to people who will never become customers.
So if you’re feeling the pain of not having enough leads right now, let me show you a better way. This guide will give you an introduction to local lead generation and show you how to improve your marketing using AI lead generation tools like Bardeen.
What is local lead generation?
Local lead generation is a marketing strategy that involves finding and engaging with business leads in a specific geographic area. The goal is to advertise only to people who are in a location that the business serves.
Common tactics of local lead generation include:
- Local SEO
- Social media
- Paids ads with location targeting
- Geofencing ads
- Email marketing
- Local partnerships
- Direct mail
Local lead generation is great for small and local businesses that rely on foot traffic. You can target search terms like “dentist in Nob Hill”, serve display ads to people in a specific city or zip code, or use Google Maps to identify leads nearby.. It also works for larger businesses with multiple locations, such as healthcare or childcare organizations.
With Bardeen, you can automate your local lead generation strategy using pre-built templates such as:
Save information from Google Maps search results to Google Sheets
How does this playbook work?
Researching businesses on Google Maps is time-consuming. This playbook extracts data from search results, like business name and address, and automatically adds it to a Google Sheet.
How does this playbook work?
Saving Google Maps locations to Notion is a multi-step process. This playbook scrapes location data from a Google Maps card and creates a new linked Notion page with the information – in just one click.
What are the differences between national lead generation and local lead generation?
Local lead generation strategies are different because they focus on location-based marketing tactics like local SEO and geotargeting. National lead generation strategies cast a wider net by targeting a broad audience with general messaging.
The table below illustrates some key differences between local lead generation vs national lead generation:
Local lead generation is a good fit for businesses that rely on foot traffic or are otherwise limited by physical location. For example: restaurants, retail, landscaping, real estate, home improvement, healthcare, and childcare.
National lead generation is better suited for businesses that operate nationally (such as big box retailers and franchises), or businesses that are not limited by location (such as ecommerce or SaaS).
Learn more about sales prospecting automation to effectively reach and engage with both local and national prospects.
Why is local lead generation important?
Lead generation is an essential part of every revops, marketing and sales engine. Think of it this way: businesses need revenue and you need leads to generate revenue. Therefore, you need some kind of lead generation strategy if you want to sustain or grow your business.
Local lead generation can contribute significantly to a business's revenue, with some studies indicating it can drive up to 50% of total revenue. And in B2B scenarios, a large portion (around 27%) of local leads are already considered sales-ready.
Local business lead generation is important because it helps you be more targeted with your marketing and avoid wasting money on leads that are not in your target demographic. For small or local businesses, running a national lead generation strategy won’t produce the results you need. It is best to niche down and focus on engaging with your local community.
Remember, with Bardeen, you can automate lead generation and spend more time building relationships that matter.
Effective strategies for generating local leads
Now that you know the basics of lead generation for local businesses, I want to show you some great tactics and strategies you can use. Remember, you want to be as specific and targeted as possible. The goal here is to keep your pipeline full of the right type of leads - and don’t hesitate to use data enrichment to get the full picture about them
Here’s how you can do that:
1. Optimize your website and business listings for local SEO
You probably know how important it is to optimize your website for Google searches. But when it comes to lead generation for local businesses, the goal is to appear frequently in local searches. That means targeting terms like “pediatricians in San Mateo” or “dentist near me.”
Local SEO is super important because around 98% of consumers search online for local business information. And of those searches, about 80% lead to conversions.
So how can you optimize your business for local searches?
- Create local business listings on platforms like Google My Business and Yelp.
- Make sure your website includes your business name, address, and phone number (NAP) on every page.
- Create individual pages for each product or service
- Create individual pages for each location
- Optimize page content and metadata for local search terms
Once you’ve done all this, it’s just a matter of keeping your site updated with fresh content and making adjustments as search habits evolve.
2. Using social media to connect with local customers
Social media platforms like LinkedIn, Facebook, Instagram, and TikTok provide excellent opportunities to engage with potential customers in your local community. In fact, approximately 60% of consumers discover new businesses through social media. It’s also true that around 91% of local searches happen on Facebook.
So here’s what you can do to connect with your customers on social media:
- Choose platforms where your target customers are most active
- Use geotagging to reach customers in your immediate area.
- Create a strong social media presence by regularly posting relevant, engaging content and interacting with your followers.
- Consider running social media ads with geotargeting to reach more users in your specific geographic area.
Once you’ve got your strategy nailed down and you’re getting more leads than you know what to do with, use automation tools like Bardeen to engage with potential customers more efficiently:
How does this playbook work?
Need to quickly pull data from a LinkedIn profile? This playbook scrapes key information from the active LinkedIn profile tab, giving you structured data in seconds.
How does this playbook work?
Gathering data from Facebook profiles is time-consuming. With one click, this playbook extracts key information from a Facebook profile page, giving you structured data for research and analysis.
How does this playbook work?
Tracking Instagram followers and following is time-consuming. This playbook scrapes follower/following data from an Instagram profile and saves it to Google Sheets in one click, making it easy to analyze your audience.
3. Participating in community events and sponsorships
When advertising to a local audience, know that you are going against other local businesses. That means local reputation is super important so you need to build some goodwill within your community.
Here are some things you can try:
- Get involved in your local community and organize community service events like trash pick up or canned food drives
- Sponsor local sports teams or charities
- Sponsor community events like block parties and music festivals
- Consider hosting your own events to attract potential customers
For example, a local real estate agent could sponsor a neighborhood block party or host a first-time homebuyer seminar to connect with potential clients and boost your reputation in the community.
4. Utilizing targeted online advertising for local audiences
Targeted online advertising allows you to reach potential customers in your local area who are most likely to be interested in your products or services. Platforms like Google ads and Facebook lead ads offer robust targeting options, including geographic location, demographics, and interests.
Similar to local SEO, this is all about reaching only the customers in your community. For example, a local pet store could create a Google ads campaign targeting pet owners within a specific city or zip code, using keywords related to pet supplies and services. This type of approach can get you about 20% more clicks than non-targeted ads campaigns.
But on top of being more effective, local ads are also less competitive which makes them more affordable. In fact, the average cost per click (CPC) for local ads can be as low as $0.54 while the average CPC for national campaigns is closer to $0.77.
Measuring and optimizing local lead generation efforts
Local lead gen campaigns are not set and forget it. You want to continuously monitor performance, use lead generation software to scale, and find ways to improve performance. If you skip this part, you could end up wasting money or letting good leads slip through the cracks.
These tips will help you optimize your campaigns for better performance:
1. Setting realistic goals and benchmarks
First things first, you need to define what success looks like. When you’re just getting started, success could be as simple as more website visits or more social media followers.
But as time goes on, you’ll want to set more specific goals such as “lower my customer acquisition cost by 10%” or “increase phone calls by 25% in the next quarter.”
Establishing clear, achievable goals is crucial for measuring the success of your local lead gen efforts. Consider factors like your industry, target audience, and historical performance data when setting these targets.
Next, you’ll want to identify which metrics to keep track of and set benchmarks to review your progress.
2. Key metrics for measuring local lead generation success
From there, you can set some metrics, or key performance indicators (KPIs), to gauge how well your ads are performing. Some common KPIs to consider include:
- Keyword rankings - This tells you if you are ranking for the desired keywords. You want to aim for spots 1 - 10 to get the most visibility.
- Social media engagement - This tells you how well your content is resonating with your audience. You should start to see more followers and comments over time.
- Lead count - This is simply a measure of how many leads your campaigns are generating. This tells you if people are responding to your marketing.
- Conversion rates - This tells you what percentage of visitors took the desired action, such as making a phone call or booking an appointment. It indicates how effectively your website and landing pages turn visitors into leads.
- Customer Acquisition Cost (CAC) - This is the total cost of acquiring a new customer, including all marketing and sales efforts. It helps you keep track of your marketing ROI.
Keeping track of these metrics will tell you how well your lead generation campaigns are going and if you need to make changes. For example, you may decide to test new ad copy or social media content if things aren’t trending in the right direction.
3. A/B testing and optimizing landing pages and ad copy
A/B testing involves creating two versions of a landing page or ad copy and comparing their performance to determine which one resonates better with your target audience. By continuously testing and optimizing these elements, you can improve your conversion rates and generate more qualified leads.
For example, a local restaurant could create two versions of a Facebook ad promoting a new menu item, each with different images and copy. By monitoring the click-through rates and conversions for each ad, they can determine which one performs better and use those insights to inform future ad campaigns.
4. Regularly analyzing and adjusting strategies based on data
Consistently monitoring and analyzing your local lead gen data allows you to identify trends, pinpoint areas for improvement, and make informed decisions about your strategies.
Use tools like Google Analytics to track website traffic and user behavior, and consider investing in a customer relationship management (CRM) system to manage and analyze your leads.
A local real estate agency, for example, might notice that their social posts about a certain neighborhood generate a high number of leads. Based on this data, they could focus on creating more content tailored to this audience segment to drive even more qualified leads.
By tracking key metrics, setting realistic goals, testing and optimizing your campaigns, and regularly analyzing your data, you can continuously improve your local lead gen efforts and drive more qualified leads for your business.
Up next, we'll explore how to overcome common challenges in local lead gen.
Overcoming common local lead generation challenges
Local lead generation can solve a lot of marketing problems for businesses. But that doesn’t mean there aren’t challenges to navigate. Obstacles such as local competition, limited budget, and a lack of brand awareness can hold you back.
But by addressing these challenges head-on and implementing effective solutions, you can find success with lead generation for local businesses.
1. Standing out in a competitive local market
In a crowded local market, it's crucial to differentiate your business from competitors. Focus on highlighting your unique selling points, such as exceptional customer service, high-quality products, or specialized expertise.
Take Cafe Juayua, for example. From the outside, they may look like just another coffee shop. But their marketing is full of rich stories about the origin of their coffee beans, their commitment to sustainability, and the history of the family. This kind of storytelling sets them apart from the thousands of other coffee shops in Los Angeles.
Developing a strong brand identity that resonates with your target audience will help you stand out in a competitive local market..
2. Generating leads on a limited marketing budget
Small businesses often face the challenge of generating leads with a limited marketing budget. To maximize your resources, focus on cost-effective strategies such as:
- Content marketing - Publish blog posts, do podcasts, get featured in local publications.
- Social media marketing - Engage with your followers, team up with local influencers, give sneak peaks
- Email marketing - Start a newsletter, send promotions, acknowledge holidays and birthdays
- User-generated content - Encourage happy customers to leave positive reviews, tag you in social media posts, and upload photos to your Google Business Profile and Yelp pages.
You don’t need a huge budget to start your marketing engine. Engaging in these tactics will help you build a reputation and generate leads for local businesses without burning through all your cash.
3. Overcoming lack of brand awareness in a new market
When expanding into a new local market, building brand awareness is essential for generating leads. Engage with the local community by participating in events, sponsoring local organizations, and collaborating with other businesses. Utilize targeted advertising on platforms to reach your ideal customers and increase visibility.
A new fitness studio in town could offer free classes or partner with local health food stores to introduce their brand to the community and generate interest among potential clients.
4. Handling negative reviews and reputation management issues
Negative reviews and reputation management issues can significantly impact local lead gen efforts.
Proactively monitor online reviews and address any concerns promptly and professionally. Encourage satisfied customers to leave positive reviews to counterbalance any negative feedback. Develop a crisis communication plan to handle potential reputation management issues effectively.
For example, a local restaurant that receives a negative review about slow service could respond by apologizing, explaining the steps they're taking to improve, and offering the customer a complimentary meal to make amends and demonstrate their commitment to customer satisfaction.
By tackling these common challenges with targeted strategies and a proactive approach, you can effectively generate leads for local business and thrive in your community.
Remember, consistency and persistence are key to overcoming obstacles and achieving long-term success in local business lead generation.
Common mistakes to avoid in local lead generation
I’ve covered what TO do, so now I’ll cover what NOT to do. Here are some common mistakes businesses make with local lead generation:
- Targeting a broad audience - This is a sure way to waste money. Make sure you only target audiences in your local area.
- Buying leads - Purchased leads are much harder to work and often don’t ever convert. Try growing your lead list organically before resorting to this.
- Not optimizing your website for local search - Make sure you are showing up on Google Search, Google Maps, and Google Business Profile.
- Using generic messaging - Add local flavor to your messaging. Instead of saying “We have the best coffee,” you could say “We have the best espresso blend in North Beach.”
- Not engaging with social media followers - Social media is a two-way conversation, so you need to respond back. Besides, 71% of users expect a response within 1 hour.
- Not engaging with the local community - You are competing with other businesses in the same community. Get out there and start kissing some babies!
Local lead generation is about being as specific as possible. You can’t just run generic ads to a local audience and expect results. When you tailor your audience, website, and marketing campaigns to specific audiences, that’s when the magic happens.
Unlock the power of local lead generation
Understanding local lead generation is crucial for small businesses looking to attract and convert customers in their specific geographic area.
In this comprehensive guide, you discovered:
- The basics of local lead generation and its benefits for small businesses
- Effective strategies to generate leads for local business through SEO, social media, community involvement, and targeted advertising
- Key metrics to track, goal setting, A/B testing, and data-driven optimization for local lead gen efforts
- Overcoming challenges such as competition, limited budgets, lack of brand awareness, and reputation management
By mastering local lead generation, you'll be well-equipped to grow your business and connect with your ideal customers. Don't miss out on the opportunity to become a local lead gen expert—your competitors certainly won't!
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