Why doesn't LinkedIn work to reach local businesses?

The Problem

You want to sell to local business owners, so you post your product (whether that's financial services, insurance, or a real estate opportunity) on LinkedIn. Or maybe you sign up and pay for LinkedIn Sales Navigator so you can connect and reach out directly to local business owners. But there's a problem.

Local businesses aren't on LinkedIn.

 

In this example, we searched for florists in Indianapolis, out of the 18 results only 8 had any employees. In our research, we found that Indianapolis actually has over 100 florists. 

 

Although it varies by business category, we consistently find that fewer than 10% of local, consumer-facing businesses (like retailers, restaurants, medical offices, etc.) have an active LinkedIn presence. 

 

Why?

You go where your customers are. There is a high chance if you're active on LinkedIn, that it's because it is where your customers spend time. That's why the Resquared team is active on LinkedIn.

If you own a local business that serves consumers, you have to go to where your customers are. Social media sites like Facebook and Instagram. That is why we find nearly 80% of local businesses have an active, managed Facebook page and over 30% have an Instagram page. Nearly every business category is active on Facebook, even financial and medical offices. Instagram is skewed towards restaurants or beauty-related businesses. 

This is why Facebook is the Holy Grail of reaching local businesses. 

 

Additional Implications

Many companies that provide data and tools to help with lead generation base their entire dataset and technology off of LinkedIn. Here are some examples:

Lead data aggregators like ZoomInfo typically base their datasets heavily on LinkedIn data.

CRM Systems like Hubspot and Salesforce offer deep integrations with LinkedIn, but nothing optimized for reaching local businesses.

 

To summarize, when you have a job to do (selling to local businesses), make sure you select the right tool for the job and are aware of the strengths and weaknesses of platforms like LinkedIn. If you'd like personalized advice on this topic, feel free to schedule a meeting with one of our local business marketing experts.

 

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