What you will do if you need buy something locally or need any service quickly and locally? Or need to see a doctor quickly within nearby areas? If you know the exact place very well, you can go there. But if you do not know exactly, what you will do? Definitely you will search google or try some other search.
Now, suppose you sell some products or provide some service and you can have local customers. In this case you must appear in the local search results. Otherwise you will fall back from your competitors. 
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