Frequently Asked Questions
Local Area Marketing—also referred to as neighborhood marketing—specifically targets the community around a physical store or territory. Promotional messages are directed to the local population, rather than the mass market.
In practice, Local Area Marketing can take several forms. Many local businesses directly contact consumers through mail, in-town events, local team sponsorships, or advertisements in the town paper. Hoping to not only attract new customers but to drive repeat business, a successful local marketing push allows a store to stake out a significant presence in local consumers’ mental maps of their communities.
Local Area Marketing is used primarily by small businesses within a single location or outlet. Owners of franchised businesses may also employ local marketing to promote their specific locations, supplementing the larger franchisor’s regional or national marketing campaigns (which promote the franchise’s name and services, but not specific locations).
Local Area Marketing allows a company to develop a repeat customer base in the immediate vicinity of the business’s location. The standard radius of influence is usually about 10-15 miles, but could be even less than that in more urban areas, where local traffic and neighborhood density is much higher.
Local Area Marketing is about knowing and interacting with neighbors. It is not just about investing money, but about investing time and developing relationships. It can’t be done purely from an office chair and computer—although that’s yet another tool to be utilized—but rather, requires getting out there and connecting with customers face to face.
The Power of Referral Marketing – 84% of B2B decision markets start the buying process off with a referral
“A direct referral lead is over 36x more valuable than a lead generated by a cold call. 10x more valuable than a trade show lead, and 4x more valuable than a web lead” – Ken Krogue, Co-founder and President, Insidesales.com
Referral programs are economical, powerful and most importantly proven when it comes to inspiring your referrers to refer high-quality leads. A good referral marketing program enables you to:
The responsibility for undertaking Local Area Marketing is usually left to the franchisee and many franchise agreements stipulate that a specified percentage of franchisee gross turnover must be spent on local area marketing.
Unfortunately many franchisors are unable to provide their franchisees with the tools they need to be effective local area marketers and this can lead to serious disputes or to potential franchisees overlooking their system in favor of other franchise systems that provide quality support in this area.
Referral Marketing “systems” are techniques and tools that you can easily integrate into your business (and/or website) that generate a steady flow of targeted prospects who are already “pre-sold” on purchasing your product or service.
If you wish to leverage your business into increased profits and sales, as well as reduce the amount of money and time wasted on not-so-profitable tasks such as cold calling and prospecting, then referral marketing is almost always the first place to start for any business or professional practice.
Referral-generated customers are the least expensive, most profitable, and loyal source of new business.
Referral-generated customers also tend to buy quicker, negotiate less, buy larger quantities, and refer more business to you.
Your referral systems leverage (increase) the results generated from all of your marketing tactics by getting others to spread the word about your company and your products.
You can easily set up referral systems in your business to increase your profits.