Local SEO is essential for businesses because it helps them connect with nearby customers actively searching for their products or services. With the majority of consumers using search engines to find local businesses, effective local SEO improves visibility in search results and Google Maps, driving foot traffic. It enhances online reputation through positive reviews and local citations, which build trust and credibility. Additionally, local SEO can lead to higher conversion rates, as users searching for local options are often ready to make a purchase. Overall, it provides a competitive edge in the local market.