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As our digital worlds have expanded, it has become increasingly popular for small businesses with an ecommerce store or online services to market themselves nationally.
The problem is that many of these businesses are giving up their local marketing efforts in favor of a national approach, believing it to be a superior option. They’ve been led to believe that focusing locally limits their potential base while national marketing opens the door to a large number of possible consumers. While this is technically correct, the logic ignores the level of scale required to convert customers nationally and the conversion benefits of local marketing.
Local marketing is less expensive than national campaigns
It’s a commonly known fact that it takes many touches for an individual to become a customer. We need to reach one potential buyer at least half a dozen times to get them to convert (or become a paying customer). This requires both financial resources and time investment.
To do this using digital methods generally means using several mediums to attract and educate those potential customers to choose you. Common strategies incorporate social media, digital ads, SEO, PR and email marketing to name a few. Stretching these marketing methods nationally is a major undertaking that often doesn’t yield the results business owners expect.
Converting digital traffic works differently
A business owner with a storefront in a major city recently described her decision to build out an ecommerce platform on Shopify and begin promoting nationally. She spent about ten months using this method on a $3,000 monthly budget and found her sales did not increase. Her storefront revenue was between $32,000-$43,000 per month while her online shop made only $3,000-$7,000 on average.
With $30,000 spent and hundreds of team hours dedicated to building and managing the online store, she felt defeated. She wondered why she wasn’t converting customers and was making significantly less than her local storefront revenue when traffic to her store was much lower than that on the site.
An audit of her site revealed a number of issues including poor photographi