Here is an example. The company I work for provides soil testing services to clients in all 50 states. Depending upon your location, if you put in the words ( soil testing ) or (soil testing Omaha) you may/may not see the company, I work for. (Midwest Laboratories)
Google is really pushing mobile search marketing which looks at your GPS location and tries to find services and service companies that match your description. The more you can associate your company brand with a specific location, the more it will resonate with your clients and you will be found. It really is that simple.
As a result of this, I try to always bring attention to my name and the city on this blog and the company blog site. If you are still not convinced, check out your Google Analytics and look at the Acquisition Section / Queries / Organic and look at all the references to your company name and your city location. This stat really stood out for me. Location is critical if you want to stay in organic search.
The other part of this equation is to talk about your city more in your content and bring attention to it so it becomes more a part of your company brand discussion.
Also, consider putting your location in your title tag so people see it when they come across your company in a google search.
Just a small tip, but it can be a very powerful one.