A recent study by PYMNTS Intelligence found that one in three shoppers wants to buy "local" products. This trend is part of the larger consumer shift toward more conscientious shopping habits that prioritize community support and local economic growth.
Marketing your business as local isn't just a way to boost sales, although that is one important benefit. Businesses perceived as local often form emotional connections with their customers and communities that go well beyond the transaction and contribute to long-term growth. Here are a few advantages to establishing your company as a local business.
[Read more: 2025 State of American Business: All Business Is Local]
Build trust and credibility
When you focus on local marketing, you start to establish authority in your market and earn the trust of consumers. This credibility translates to key metrics like customer retention and lower customer acquisition costs.
"When you address local issues, showcase expertise, and actively engage with the community through your content, you're positioning yourself as a trusted authority, increasing the likelihood of customer loyalty and word-of-mouth referrals," wrote Salesforce.
Localized content is as unique as the community in which your company operates. Consider some of the challenges that your customers are having. How can you create helpful educational content that empowers customers? Think about creating videos, tutorials, or hosting events to show patrons how to use your product, find the right service for their need, or get answers to their most frequently asked questions.
Many customers, especially Gen Z and millennial consumers, are conscientious about where they spend their money. In fact, 85% of Gen Z say they shop locally at least a few times a month; more than 25% say they visit local businesses a few times a week.
Create a personal connection
Local marketing also fosters a personal connection to your business, one that benefits both your employees and your customers. Faire, a wholesale marketplace for retailers, found that more than 80% of surveyed retailers reported that customers come into their shops to socialize with their staff or ask for assistance in finding the right product. Moreover, consumers are willing to travel up to 30 minutes to visit local retailers in person.
Customers are willing to be inconvenienced to seek out the personalized attention that a local merchant can provide. Building these strong relationships fosters customer loyalty, but it can also boost the morale of your staff. When your team feels genuinely valued and has authentic relationships with those in their community, they're less likely to move on to other opportunities.
How do you start to build these connections? Great customer service is just one element.
"By intertwining storytelling, local keywords, and cultural references, businesses can elevate their content from mere marketing material to immersive experiences that resonate deeply with their local audience," wrote Salesforce.
Find a unique competitive advantage
Many customers, especially Gen Z and millennial consumers, are conscientious about where they spend their money. In fact, 85% of Gen Z say they shop locally at least a few times a month; more than 25% say they visit local businesses a few times a week.
[Read more: Ready. Set. Scale. 2025 Customer Trends Every Small Business Should Know]
Supporting the local economy is one goal that these generations satisfy by shopping nearby. Many millennial and Gen Z consumers are concerned about their environmental impact and carbon footprint; shopping locally cuts down on packaging material and shipping emissions. Customers may even prefer the convenience of shopping locally, rather than trying to navigate the endless aisles of a Walmart or Target.
Local businesses that focus on these insight-driven impacts can solidify a competitive advantage against big-box retailers. Start by understanding what your best customers value to make the most of your local messaging.
"Understanding your audience is fundamental, but going deeper into the demographics of each social media platform can provide valuable insights for your local marketing strategy," wrote Salesforce.
In any local marketing effort, make sure you're authentic and can deliver on your promises. Any business can be a local business with the right approach; it's following through on this strategy that can really help your business thrive.
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