Local SEO is important because consumers have the ability to search for products or services they are in need of from anywhere.
For example, a consumer out shopping may be interested in taking a break and having a coffee. All they have to do is take out there phone and do a search for coffee shops nearby and Google will provide them with a list of the closest coffee shops in their database.
Or maybe, a water pipe burst and it needs to be repaired immediately. The consumer will likely head to their tablet or computer and look for emergency plumbers available 24/7. Google will provide the consumer with a list of plumbers that are currently open.
You never know when a consumer will be need of your product or service. But when they are, having a strong presence in local searches will help you win more business.