For local businesses, being visible where your customers are searching is no longer optional — it’s essential. Whether you run a bakery, law office, or HVAC service, most of your customers are turning to Google and other search engines to find nearby solutions. And in a world where competition is just a click away, simply having a website isn’t enough.

That’s where keyword research and competitor analysis come in. These two strategies form the foundation of a strong local SEO plan: knowing what your potential customers are searching for, and understanding how your competitors are already meeting (or failing to meet) that demand.

This guide will walk you through the process of uncovering the best keywords for your local business and analyzing your competition to identify opportunities you can capitalize on. Whether you’re just starting out or looking to refine your existing strategy, you’ll learn actionable steps to improve your search visibility and attract more customers in your area.

Let’s dive in!

1. The Role of Keywords in Local SEO

When it comes to local SEO, keywords aren’t just words — they’re the bridge between what people are searching for and the solution your business provides. Choosing the right keywords is how you tell Google (and your potential customers) what you offer and where you offer it.

1.1. What Are Local Keywords?

Local keywords are search terms that include a location or imply a local intent. They often pair a product or service with a city, neighborhood, or phrase like near me.

Examples:

• plumber in Chicago
• best Italian restaurant downtown
• gym near me
• emergency dentist [ZIP code]

These kinds of searches are highly valuable because they signal strong intent — the person searching is actively looking for what you offer, nearby, and often ready to buy or book.

1.2. Why Local Intent Matters

Local intent refers to a searcher’s goal to find something within a specific geographic area. When someone searches coffee shop near me, Google understands that they’re not interested in a coffee shop 300 miles away — they want one within walking or driving distance.

By targeting keywords with local intent, you’re aligning your business with customers at the exact moment they’re ready to take action.

1.3. How Keywords Drive Visibility in Local Search

Google uses the keywords in your website, Google Business Profile, and citations to determine:

• What your business does.
• Which locations you serve.
• When to show your listing in the “local pack” (the map and top three results).

If your content doesn’t include the words and phrases your customers are searching for, Google may not even consider your business relevant — no matter how great your service is.

Quick Recap

• Local keywords connect you to nearby customers.
• Searches with local intent have high conversion potential.
• Using the right keywords helps Google understand and rank your business in local search results.

2. How to Do Keyword Research for Local Businesses

Now that you understand why keywords matter, the next step is figuring out which ones to target. Good keyword research isn’t just about finding popular words — it’s about uncovering the specific phrases your customers use when they’re ready to find and hire someone like you.

This section breaks it down into clear steps.

2.1 Understand Your Audience & Services

Before you even touch a keyword tool, take a moment to list:

• The products or services you offer.
• The areas or neighborhoods you serve.
• The problems you solve for your customers.

Try to step into your customers’ shoes. What would they actually type into Google if they needed your help? Someone looking for a plumber probably isn’t searching for plumbing solutions provider — they’re typing emergency plumber near me or leaky faucet repair [city].

2.2 Find Local Keyword Ideas

Once you know what you offer and to whom, it’s time to generate a list of possible keywords. Here are a few ways to find ideas:

• Use tools like Ahrefs, or SEMrush.
• Check Google Autocomplete: start typing a phrase and see what suggestions pop up.
• Look at the “People Also Ask” box and “Related Searches” at the bottom of Google results pages.
• Explore Google Maps categories used by competitors and see how they describe their businesses.

These techniques will help you discover both obvious and less obvious search terms customers are using.

2.3 Evaluate Keyword Metrics

Not all keywords are worth targeting. Here’s what to consider when narrowing your list:

• Search volume: How many people search for this term each month? (Local keywords tend to have lower volume — and that’s okay.)
• Competition level: How hard will it be to rank for this keyword? Many tools provide a “keyword difficulty” score.
• Relevance & intent: Is this keyword closely aligned with what you actually offer? Does it indicate someone is ready to buy?

You’ll want to start with the lowest difficulty keywords that have a moderate search volume (moderate varies depending on the population of the area you serve). But relevance and intent is king. Think of relevance and intent as what you’re after, and search volume being a multiplier; as long as it isn’t zero, you’ll have a win, no matter how small (that’s not to say you should target keywords with a minuscule search volume; just to illustrate the disproportionate importance of these metrics).

2.4 Look Beyond the Obvious Keywords

Many businesses stop at the most obvious keywords — and miss out on valuable traffic. Don’t overlook:

• Long-tail keywords: Specific phrases like affordable wedding photographer in [city] may have lower search volume but much higher intent.
• Branded searches: People searching for your business name or similar brands.
• Questions and conversational queries: Like how much does it cost to fix a garage door in [city]?

These kinds of terms often face less competition and can attract more qualified customers. This is where going an inch deep and a mile wide can be an effective strategy if it’s too difficult to outrank your competition for the higher search volume keywords. It also signals to those searching these more specific phrases that you offer exactly what they’re looking for, unlike the more-generic-by-comparison offering of your competitors.

Quick Recap

• Clearly define your services, service areas, and your customers’ problems.
• Use keyword tools, Google suggestions, and competitor research to find ideas.
• Check each keyword’s volume, competition, and intent.
• Don’t ignore long-tail, branded, or question-based keywords — they can be highly valuable.

3. Competitor Analysis for Local SEO

Keyword research is only half the equation. The next step is to analyze your competitors — the businesses already ranking where you want to be. Competitor analysis helps you understand what’s working in your market, spot gaps in their strategies, and uncover opportunities to stand out.

3.1 Why Competitor Research Matters

Your competitors have already done some of the hard work — whether they know it or not. By studying them, you can:

• See which keywords and strategies are actually driving results.
• Find weaknesses in their approach that you can exploit.
• Avoid wasting time on tactics that don’t work in your area.

Instead of guessing, you learn from real-world examples right in your local market.

3.2 Identify Your Top Competitors

Start by figuring out who you’re really competing with in search. These might not always be your direct business rivals — sometimes they’re directories, franchises, or related services.

Here’s how to identify them:

• Search your target keywords in Google and note the businesses appearing in the local pack (map) and the organic results.
• Pay attention to those consistently ranking in the top 3–5 spots.
• Include both direct competitors (same service) and indirect ones (overlapping audience; you may even be able to get backlinks from these ones).

3.3 Audit Competitor Keywords

Once you know who your competitors are, dig into the keywords they’re targeting:

• Use tools like Ahrefs or SEMrush to analyze their websites.
• Look at their meta titles, headings, and on-page content for keyword clues.
• Check their Google Business Profile categories, descriptions, and posts for local keyword usage.
• See which keywords they rank for that you might have missed.

3.4 Evaluate Competitor Backlinks & Citations

Links from other websites (backlinks) and consistent business listings (citations) help build authority and trust.

To analyze:

• Use backlink analysis tools to see where your competitors are getting links — local blogs, newspapers, directories, partnerships.
• Look at their citations: are they listed on Yelp, Yellow Pages, industry-specific directories, or local chambers of commerce?
• Compare your own citations to theirs and fill in any gaps.

3.5 Assess Content & On-Page SEO

Competitor websites often reveal what kind of content Google favors for your market. Examine:

• Do they have dedicated pages for each service and location?
• How do they structure their titles, meta descriptions, and headings?
• Do they publish blog posts or FAQs addressing customer questions?
• Are they using photos, reviews, and posts effectively on their Google Business Profiles?

This helps you spot opportunities to create better, more comprehensive content. And if your competitors aren’t doing any of these things, that gives you an easy advantage, because they should be, and so should you — except you know it.

Quick Recap

• Competitor research shows what’s already working in your area.
• Identify both direct and indirect competitors ranking for your keywords.
• Analyze their keywords, backlinks, citations, and on-page content.
• Use their strengths and weaknesses to refine your own strategy.

4. Putting It All Together

You’ve researched your audience, built a list of relevant keywords, and analyzed your competitors. Now it’s time to take all of that insight and turn it into a focused plan to improve your local SEO.

Here’s how to organize and implement what you’ve learned:

4.1 Prioritize Your Keyword List

Not every keyword deserves equal attention. Review your list and rank keywords based on:

• Relevance: Does it directly reflect your services and locations?
• Intent: Does it signal that someone is ready to take action?
• Competition: Are there low-competition opportunities you can capitalize on?
• Search volume: Higher is good, but don’t ignore lower-volume, high-intent terms.

Focus first on the keywords that are most relevant and likely to convert.

4.2 Map Keywords to Pages

Each page on your website should target a specific keyword or cluster of related keywords. For example:

• Your homepage might target your main service + city.
• Each service page could target one specific service + location.
• Blog posts or FAQs can target long-tail questions and topics.

Avoid stuffing too many keywords onto one page — it’s better to create clear, focused pages.

4.3 Identify Gaps & Opportunities

Look back at your competitor research:

• Are there keywords they rank for that you don’t?
• Are there services or locations they haven’t covered in depth?
• Do they lack content answering common customer questions?

These gaps are opportunities for you to stand out.

4.4 Set Realistic Goals

Local SEO is competitive, and it takes time to see results.

• Start by aiming to improve your rankings in the local pack (Google Maps) for your most important keywords. This is mostly Google Business Profile optimization, and is a little easier.
• Track progress using tools like Google Search Console, Google Business Profile Insights, and rank trackers.
• Be patient but consistent — regular updates and improvements pay off over time.

Quick Recap:

• Rank your keywords by relevance, intent, competition, and volume.
• Assign keywords to specific pages or create new ones as needed.
• Look for gaps in your competitors’ strategies and fill them.
• Set achievable goals and track your progress over time.

5. Tips & Best Practices

As you put your keyword research and competitor analysis into action, there are some proven practices that can help you get better results — and avoid wasted effort. Below are some key tips to keep in mind:

5.1 Focus on High-Intent Keywords

Don’t get distracted by keywords just because they have high search volume. Often, lower-volume keywords with clear intent — like emergency plumber in [city] — lead to more calls and sales than broad, general terms.

5.2 Optimize for Mobile Users

Most local searches happen on mobile devices. Make sure your website:

• Loads quickly.
• Is easy to navigate on a small screen.
• Has click-to-call buttons and clear contact information.

5.3 Use Keywords Naturally

It’s important to include your keywords in titles, headings, meta descriptions, and throughout your content — but don’t overdo it. Write for humans first and search engines second.

5.4 Keep Your Google Business Profile Updated

Your Google Business Profile is a powerful local SEO tool.

• Make sure your name, address, and phone number (NAP) are consistent.
• Add photos, respond to reviews, and post updates regularly.
• Use relevant keywords in your description and posts.

5.5 Monitor & Adjust Regularly

Local SEO isn’t a one-time task. Monitor your rankings and traffic, and adjust your strategy based on what’s working — and what’s not.

Quick Recap

• Target high-intent, relevant keywords over high-volume but vague ones.
• Make your site mobile-friendly and fast.
• Use keywords naturally — don’t stuff them.
• Maintain and optimize your Google Business Profile.
• Review and refine your strategy over time.

6. Common Mistakes to Avoid

Even with the best intentions, many businesses trip over the same mistakes when it comes to keyword research and competitor analysis. Avoiding these pitfalls will save you time, money, and frustration — and help you get better results faster. Many of these are the same tips as above, but from the reverse angle to double-down on them.

6.1 Targeting Only High-Volume Keywords

It’s tempting to chase keywords with thousands of searches per month. But in local SEO, these broad terms often have:

• Tough competition.
• Lower intent.
• Little relevance to your specific location.

Instead, focus on more specific, high-intent, and hyper-local keywords — even if they have lower search volume. Just make sure they do have search volume.

6.2 Ignoring Competitor Insights

Some businesses assume they can succeed without paying attention to what their competitors are doing. And while technically true, that’s a mistake. You’ll waste a lot of time and effort just to learn by experience what you could have learned by observation. Your competitors provide valuable clues about which keywords and tactics are and aren’t working in your market. Don’t overlook their strategies — learn from them.

6.3 Overlooking Long-Tail and Hyper-Local Opportunities

Many businesses stop at generic terms like lawyer [city] and miss out on specific, actionable queries like:

• affordable family lawyer downtown [city]
• free consultation personal injury lawyer [neighborhood]

These long-tail and hyper-local phrases often convert better and face less competition.

6.4 Not Aligning Keywords With Content

Stuffing keywords into random pages won’t help you rank. Each keyword or group of keywords needs a relevant, dedicated page — whether that’s your homepage, a service page, or a blog post.

6.5 Treating SEO as “Set and Forget”

Local SEO is not a one-time task. Search trends change, competitors improve, and Google updates its algorithm. Neglecting to update your strategy can cost you valuable visibility.

Quick Recap

• Don’t focus only on high-volume, low-intent keywords.
• Pay attention to your competitors’ strategies and performance.
• Include long-tail and hyper-local keywords in your plan.
• Make sure every keyword has a relevant page on your site.
• Keep your SEO strategy current — don’t let it stagnate.

Common Questions

Q1: How often should I update my keyword research?

At least once or twice a year, or whenever you add new services, expand into new areas, or notice a drop in rankings. Search trends and competition can change quickly, so periodic updates help you stay ahead.

Q2: What’s the difference between local SEO and general SEO?

General SEO focuses on improving a site’s visibility for broad, often national or global search terms.
Local SEO, by contrast, optimizes your site and profiles to appear in searches performed by customers in your specific geographic area — including Google Maps and local packs.

Q3: Can I really outrank big national brands in my area?

Yes — if you target hyper-local, high-intent keywords and optimize your Google Business Profile and website properly. National brands often overlook smaller markets or fail to tailor their strategy to individual cities and neighborhoods.

Q4: Do I need paid tools to do keyword and competitor research?

If you’re serious about it, then yes. Trying to avoid them results in frustration from getting nowhere; especially when using the measly 3 free keyword searches per day that some services offer. You can’t do proper research on 3 per day, let alone analyze your competitors. I recommend Ahrefs or SEMrush.

Q5: How do I know if my keyword and SEO efforts are working?

Track your rankings, website traffic, and conversions over time. Tools like Google Search Console, Google Analytics, and rank trackers can show progress. A steady increase in calls, form submissions, and foot traffic from search is another good sign.

Final Thoughts

For local businesses, showing up in the right place at the right time — when customers are actively searching — is critical. Keyword research and competitor analysis are the foundation of that visibility online.

By understanding what your customers are searching for, identifying which keywords matter most, and learning from the businesses already ranking in your market, you can craft a smarter, more effective local SEO strategy.

Remember: you don’t need to outrank everyone for every keyword. Focus on high-intent, relevant phrases, create content that serves your audience, and look for gaps your competitors have overlooked. Local SEO is a long game, but with consistent effort and informed decisions, you can steadily climb the rankings and attract more of the customers you want.

Start today by applying the steps in this guide — your future customers are already searching for you.

Too Much Headache, Not Enough Time? Allow Me.

My name is Andrew Neal, and this is only part of the local business solution that I offer.
Here’s what I do:

• Build your website
• Manage it
• Manage online review collections
• Curate them for display on the site
• Perform SEO to maximize your site’s potential to rank