Local businesses realize their customers are going online in greater numbers to search for local products and services. However, there is considerable confusion and frustration on the part of local businesses on how to reach customers on the Net. They don’t know where to start, or whom to turn to. They often end up working with an incompetent Web designer — who knows little to nothing about marketing or the business itself – who builds an ineffectual Web presence, and/or they pay for online marketing services that deliver poor results. This can be attributed to the fact that most local businesses do not have even the most basic understanding of Internet marketing and how it can be applied to their business.

Overcoming the Fear and Loathing

In talking with local businesses, I’ve become aware how little they know about the business side of the Internet. For example, few realize that sponsored links on the search results are interactive advertisements. They have no idea how organic search pages are determined. Most importantly, they do not know how to build a customer conversion Web site. This dearth of knowledge is what’s holding back the “Next Wave” of Internet marketing.

However … these businesses are eager to learn, they just need a little help. Whenever I meet with individual business owners to discuss how the Internet can benefit their business they’re thrilled. When you explain how the technology can generate new customers in a cost-effective manner and also maximize the lifetime value of existing customers, trust me — you get their attention. In most cases, before you begin your spiel, they already know that their ROI on offline advertising — like the Yellow Pages — is not all that impressive.

Even a Caveman Can Do It!

The fact is, local Internet marketing is not rocket science. At the local level, it really is not that difficult and the cost can be relatively inexpensive. Small local firms can get started on the Net with a minimal investment.

Here are some examples:

• Local businesses can create their own Web presence with a site builder. These do-it-yourself site builders have come a long way in recent years. Their features and functionality rival the capabilities of small web design firms, and they cost as little as $15 per month.
• A local business can start getting traffic to their site within an hour through pay-per-click marketing services like AdWords. Creating an AdWords account is not that complicated, especially if you use the Starter Edition.
• E-mail marketing, at even the most basic level, can impact a local business. By starting a dialogue with potential prospects, they can increase their conversion rate. By keeping existing local customers informed, they can increase their lifetime value.
• Of course, a no-brainer is getting a free listing on the local versions of major search engines. When I explain to local business owners that they can have a business listing on Google, Yahoo and MSN, even if they do not have a Web site, they’re often surprised. When I go on to say that they can add photos, a business description, hours of operation, payment options, directions, a map locator and a promotional coupon all for free – they’re flabbergasted.

Now it may sound like I’m suggesting that there is no need for Internet professionals at the local level. That is hardly the case. Once local firms come to realize the impact of the Internet on their business, they will begin to invest more online. They will require professional services to manage their growing Web presence, Internet advertising, SEO and e-mail marketing.

But until they comprehend how the Internet can positively impact their business, they will remain on the sidelines.