The digital and physical shopping worlds are two pieces of the same puzzle. It’s easy to think of them clashing and colliding, with each looking to steal a piece of the pie from one another; but in reality, most customer buying journeys are likely to crisscross between the digital and physical worlds.
Consumer buying journeys may be initiated with a national touchpoint such as the website, TV advertising or customer service, but many still end up on the hyperlocal environment in physical stores. Thirty-eight percent of consumers research online before purchasing offline (ROPO), and research by eBay and Deloitte found that nearly 40 percent of consumers make purchases inside a physical store at least once a week, compared to just 27 percent who do the same online, according to PwC’s annual consumer survey. This means that brands still have to win “the last physical mile” with customers, and increasingly brands have to win it digitally. At the most basic level, Google reports that the “get directions” button is the single most used feature on a smartphone. Seriously, take a moment and consider how many millions of customer journeys that now include that simple but fundamental step! The digital hyperlocal space is an open goal for brands that take the opportunity to put themselves in the right place at the right time, and create real value for the consumer. After all, why spend time and money building a national brand, to not capitalize on that investment all the way through to the local brick-and-mortar store? So what do marketers need to know about the hyperlocal opportunity? Here are five hyperlocal marketing trends businesses can’t ignore.
1. Consumers Expect & Demand That Brands Deliver Digital Hyperlocal Experiences
When was the last time you searched online for a preferred brand or generic service locally and found fantastically optimized and relevant local results? I suspect, rarely! Which is a crying shame given that locality and mobility go hand in hand. Furthermore, in the ‘push’ era our phone OS and navigation apps are telling us what they think we need, when, and who can supply it. According to recent research by Ipsos Mori, 52 percent of customers look specifically for local business hours on search engines. Consider that against data from the InfoGroup, where 44 percent of people report having an outing “ruined” by incorrect information relating to trading hours. This is not trivial stuff, and just one example of the incomplete hyperlocal experience most businesses are delivering. In his Think With Google article, Matt Lawson, the company’s director of search ads marketing, wrote:
“We want things right, and we want things right away. As a result, the consumer journey looks markedly different than it did just five years ago. Instead of a few moments of truth, it’s a series of ‘micro-moments’ when we turn to mobile to act on a need.”
We’ve grown to expect our smartphones to serve relevant, local results. ‘Near me’, ‘closest’, and ‘nearby’. All phrases that would have meant little just a decade ago are beginning to dominate the billions of queries every month. In fact, ‘near me’ searches have nearly doubled in the last year. Whole Foods, one of the largest U.S. public food and drug retailers, attributes much of its business success to hyperlocal marketing. The grocer recognized that its customers’ needs are different and vary from region to region, resulting in region-specific social accounts and content marketing strategies. It builds tremendous brand loyalty and trust by integrating its stores into the various communities it serves. People are increasingly making critical purchase funnel decisions on the move and the amount of revenue a business without a local presence is leaving on the table remains an unknown quantity.
2. The Technology Giants Are Delivering Against This Expectation, Ahead Of Everyone Else
Over the past few months we’ve seen many of the tech giants of this world, namely Google, Facebook, Apple, Pinterest and Amazon make local a major focus. When these guys bet big, they are usually right. Perhaps the most interesting development from the giants is Facebook’s M, its new virtual assistant. A combination of AI and human intervention, M seems to be a large scale personal assistant available serendipitously via Facebook messenger and driven by a huge local database of reviews, citations and NAP information. How powerful is that? And how significant for brands who rely on local presence for the final yards of the consumer journey? Facebook’s goal, it says, is to make Messenger the first stop for mobile discovery, for anyone looking to do or buy anything. It’s something local businesses can’t ignore. Additionally, Pinterest recently announced that users will be able to make phone calls and get directions to bricks-and-mortar locations from within their iOS app (with web and Android coming soon). They will also be able to see store opening hours and read tips and reviews left by customers. Pinterest is automatically pulling in the location data via the public Foursquare API, for its nearly seven billion Place Pins. And don’t forget Amazon, which has just partnered with Yelp to give Alexa, its voice assistant, some street smarts. Alexa, who lives inside Amazon’s Echo Bluetooth speaker, now plugs into Yelp to pull out local search results. These developments show how keen the big tech companies are to deliver an amazing local experience for their users. For consumers, finding a product or service in their local area used to require a clunky combination of the Yellow Pages, a map, and a telephone. Look how far we’ve come.
3. Reputation Management Is Going Hyperlocal
There is much research to show that the number of consumers reading online reviews to determine the quality of a local business is higher than ever. The volume of reviews customers are reading is also on the increase, with many reviewing a minimum of five before they put their trust in a local business. The amount of faith a customer has in online reviews is now almost equal to a recommendation from a trusted friend. This means that negative local reviews can damage a brand perception at a national level, if they are not addressed properly. However, a recent poll by AYTM Market Research found that few consumers actually post local business reviews. Nearly three-quarters of US internet users said they had never posted a review of a business on Yelp or a similar site, while 16 percent had only done so once or twice, and just 10.5 percent many times. This represents a missed opportunity, particularly as the review rating is one of many ranking factors Google uses within its algorithm. The better the rating the more chance of ranking higher in the web search or map results. In coming months, we are likely to see local businesses doing more to encourage customers to write and publish reviews, and particularly when they’ve received a positive experience. Without reviews, you are at risk of having no reputation signals, or worse, that you have one single, scathing review, visible in your local search listing. In the near future, managing your local reputation and being aware of the hyperlocal consumer journey won’t simply be the responsibility of your local area managers or acquisitions team, it will be core to your DNA and bottom line.
4. The Local Search Ecosystem Is Gaining In Prominence
Google now lists local search results above organic results, which is an enormous transformation for businesses. It’s a game changer, particularly for the mobile consumer who rarely scrolls below the fold. Google has also made its local results feature a three-pack of businesses instead of seven, which creates a pretty tough environment in which to cut through. This is in addition to it rolling out an updated, cleaner look for its Google Maps search results, incorporating a new listings card for local businesses. Consequently it is more important than ever for businesses to optimize their local landing pages with information that is relevant to the location, so that they can be found on their own as well as through the main brand site. Uniquely local landing pages should be developed for individual locations, and be SEO optimized to take into account shopping behavior for a specific store, or store-specific offers or discounts maybe.
5. Media Spend Is Going Hyperlocal
Local advertising spend is predicted to reach $157.7 billion by 2019, a 14 percent cumulative increase of $139.4 billion in 2015, according to BIA/Kelsey’s U.S. Local Media Forecast 2015. Business marketers are increasingly realizing that their local stores or dealerships now own the brand relationship with the customer, and this is what needs to be nurtured within their media spend. Additionally, social media platforms are offering an increasing array of location-specific marketing opportunities for businesses. This is indication that they too believe hyperlocal is an area ripe for monetization. Consumers are naturally more open to dealing with organizations that present them with information in a way that works for them personally, and particularly at a local level. Surely there has never been a stronger case for businesses to truly consider their hyperlocal strategy, and keep abreast of this rapidly developing market.