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How Local SEO Increases Profits

Local SEO increases profits by lowering your cost for customer acquisition.

If you’re trying to grow your business, local SEO can be one of the best things you did to increase your revenue and profits. Let’s break down exactly what local SEO is and how it can improve your business today.

What is Local SEO?

Local SEO is the optimization of your “local” online presence. This includes your business listings, social media, and website. The goal of local SEO is to increase your online presence to those nearest to your business. If you’re wondering what’s considered local, we have a general rule of thumb that we follow. If your business is within a large city, like Dallas, then the city you reside within is considered local. If you’re in a smaller town, such as Lewisville, we include the town you reside within plus one town adjacent (this might include multiple neighboring towns).

If you’ve done local SEO right, your local communities and neighbors should all be aware of your business. When they search for what your business offers within their city limit your business should pop up. If it doesn’t, you should consider investing in Local SEO.

How Local SEO Increases Revenue

When you take a step back, Local SEO’s relationship with profits is very simple.

If more people find your business, more people are likely to convert into customers. Thankfully, there are a few metrics that you can track to see how Local SEO impacts your business.

Online Impressions

Great Local SEO should lead to your business having more online impressions. This means more people see your business online. The more people who see your business online, the more chances you have to convert people into customers! You can check your online impressions using your Google Business Profile and Google Search Console.

Website Traffic

Increased online impressions (from local SEO) will lead to increased website traffic. It’s important to know exactly where your website traffic is coming from, so you know it was Local SEO that drove that traffic. The easiest way to tell where your traffic came from is to check your website analytics. If your website is built with WordPress, you might need to download a traffic analytics plug-in. Here are 13 great options for traffic analytics if you’re interested.

Phone Calls & Messages

Your Google Business Profile should receive more traction from an effective Local SEO campaign. This means you should receive more phone calls and messages to your business profile. Google does a great job at filtering out spam calls, sometimes they even tell you how many spam calls they blocked.

Conversions

Conversions are the holy grail in Local SEO, as it means someone most likely became a customer! A conversion occurs when a user clicks on something important online, such as adding something to their cart, or clicking “get directions” on your Google Business Profile. It’s important that you set up tracking for whatever conversion you want to measure.

Revenue

Conversions don’t always lead to sales, but most of the time they do! If you have the proper tracking tools in place, you’ll be able to know that someone found you from organic search and purchased something.

How Local SEO Increases Profits

Local SEO increases profits by lowering your cost for customer acquisition.

So we know that local SEO can drive more revenue. Traditionally, businesses have relied heavily on paid advertising to get their business in front of new customers. A study by Uberall found that 82% of shoppers used “near me” to search, and 60% of those shoppers clicked on the first search result that they saw (this doesn’t necessarily mean the #1 ranking result).

Interestingly, just over half of shoppers clicked on the top search results, and we also know that 95% of searches end on the first page of search results. With approximately 40% of shoppers that might click on any business located on the first page of the search results, any business that can get itself on the first page of Google Search has a fair chance of getting those customers.

If that’s not calling you to consider Local SEO, I don’t know what else will.

Local SEO vs. Paid Advertising

The top results in search often have paid advertisements mixed in, and they look very similar to organic search results. The research on how paid search placements perform compared to organic placements is mixed. In our experience, paid search ads only perform better than organic search rankings on mobile devices (compared to desktop).

That said, a paid search placement is still paid. You’ll have to keep paying if you want to keep those placements too. That’s how local SEO and paid advertising differ. Organic search rankings are earned and awarded by Google to those who provide the best, most accurate, and most complete search results for what their users are searching for. By earning your place in the search results, users will find your website (business) organically.

Meaning that you don’t have to pay to earn that traffic!

Unlike paid advertising, it takes time to earn organic search placements. So if you’re looking for an immediate boost that will move your bottom line, we recommend paid advertising. But this won’t increase your profits long-term.

Local SEO increases your profits by lowering the cost of attaining traffic.

Example: Local SEO vs. Paid Advertising

Lets say you’re spending $500 per month on Google Ads, and you’re driving 1,000 clicks each month with those ads. This makes your CPC (cost per click) $0.50.

If you were to spend $500 per month on Local SEO, after 6-12 months, let’s say you’re driving 1,500 clicks per month.

Local SEO is performing 50% better than the ads, thereby lowering your customer aquisition cost and increasing profits.

Conclusion: How Local SEO Increases Profits

Just because you are driving more clicks, it doesn’t mean you’re driving more customers. You need to take a hard look at the data to fully understand what’s actually driving your business. Local SEO increases profits by undercutting your other methods of generating traffic and potential customers to your website or business, and it provides one of the highest ROI’s compared to other marketing methods when done effectively.

If you’re looking to learn more about Local SEO, or considering hiring someone for Local SEO, check out our SEO page.

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