6 Benefits of localization for unlocking global success

Localization turns your content from a foreign language into a conversation. By tailoring your message to local audiences, you spark a dialogue that resonates with their needs, interests, and cultural context. Your business will have plenty to gain too. Check out the main benefits of localization, so that you can learn more about its transformative power.

Ensures cultural relevance

Localization involves not only translating language but also adapting the tone, style, and context of content to align with the cultural norms and preferences of the target audience. This ensures that the message is not only understood but also resonates emotionally.

Why is understanding the culture of a nation so important? In this paper in the Journal of Retailing, researchers from the University of Illinois explain how “The way consumers see their world — the motivations that drive them and the thinking styles that affect their judgments and decisions — is influenced by culture in fundamental ways.”

Cultural symbols, images, and icons may carry different meanings in various regions. Localization involves choosing visuals that are culturally appropriate, avoiding any potential misunderstandings or misinterpretations.

And if you want to go all the way with your localization, recognizing and incorporating local holidays, events, and traditions into marketing campaigns or product releases can add a personalized touch, fostering a deeper connection with the audience.

Increases market reach and sales

Localization breaks down language barriers and enables businesses to connect with potential customers in new markets. By offering localized products and services, you can eliminate the confusion and frustration that can arise when products or services are not adapted to local needs and expectations. Localization simplifies the adoption process and increases the likelihood of success in new markets.

The findings from the “Can’t Read, Won’t Buy – B2C” report, which surveyed more than 8,000 consumers in 29 countries, revealed that 65% of participants favor content in their native language. Furthermore, 40% indicated they would not purchase a product or service if it is not available in their preferred language.

Through localization, company can also enhance its brand image by demonstrating its commitment to global expansion and cultural sensitivity. It shows that the company values its customers worldwide and is willing to invest in understanding and addressing their needs. This positive perception can attract new customers and strengthen brand loyalty.

“It is not unusual for localization to improve sales by 40% to 50% while simultaneously reducing store inventories and markdowns,” says Boyd Rogers, VF Corporation’s former president for supply chain, according to this article from Harvard Business Review.

Builds a positive brand image and trust

Acknowledging and celebrating cultural diversity through localized content, imagery, and campaigns demonstrates inclusivity and a commitment to embracing the uniqueness of each market. Adapting content to avoid cultural missteps or offensive language ensures that the brand communicates with authenticity and doesn’t inadvertently alienate or offend local audiences.

Speaking the language of the local audience, both figuratively and literally, can foster a sense of connection. This includes adapting language, tone, and communication styles to match the preferences of the target demographic. This personalization enhances the relevance of the brand.

Brand trust can be gained through localized customer support, for example. A CSA Research report found that 75% of the respondents are more likely to make a purchase if customer care is provided in their language.

Enhances competitive advantage

When a company successfully adapts its products, services, and messaging to specific local markets, it creates a unique value proposition that differentiates it from competitors. By tailoring products and services to local cultural nuances, you can build trust and rapport with local customers, fostering a sense of connection and familiarity.

Localization enables you to adapt your products or services to meet the specific needs and expectations of local customers. This proactive approach can address potential pain points and enhance the overall user experience, making it more likely that customers will adopt and recommend your company’s offerings.

True story: In 2006, eBay China was overtaken by a then small company called Taobao. eBay’s initial failure in China can be linked to a lack of understanding of the local market dynamics. Taobao demonstrated a greater level of flexibility and adaptability by incorporating features that were specifically tailored to the Chinese market. This contrasted with eBay’s approach of applying a successful Western model without sufficient adaptation, reflecting a lack of agility in responding to local dynamics.

Increases efficiency and cost-effectiveness

What’s great about localization is that it can eliminate the need for costly re-development or modification of products or services for different markets. By tailoring existing content and features to local requirements, you can save on development and maintenance expenses, making your products more scalable and cost-efficient.

Localization that is well-planned, executed, and managed can significantly improve the return on investment (ROI) for businesses. By expanding your market reach, increasing customer engagement, and building brand loyalty, you can recoup your localization investments and generate substantial revenue growth.

“If the companies who want to hire me see localization as a cost versus an investment, I don’t work with them. When done right, the ROI of localization investment can easily be x 100,” says a Bay Area expert, according to entrepreneur Tim Renders.

Improves SEO

Localized content plays a crucial role in enhancing Search Engine Optimization (SEO) through a number of things. First off, integrating region-specific keywords and phrases into website content, meta tags, headers, and other on-page elements allows search engines to associate the content with local search queries.

Dedicated landing pages for different regions or localities ensure you provide content that is relevant to users in those areas. This enhances the overall user experience and signals relevance to search engines. Crafting content that addresses local news, events, trends, and issues also establishes the website as a valuable resource for users in a specific region, attracting organic traffic.

As indicated by Statista, over 41% of websites utilize languages other than English. Enhancing SEO involves the imperative process of localizing content. This goes to show that the significance of cultural relevance cannot be overstated, as it not only helps prevent misunderstandings but also ensures that your content resonates effectively with users.

Localize with POEditor

Now that you gave an idea of the benefits of localization, it’s time to get things started. By embracing localization, you can transcend the limitations of translation and elevate your business’ presence in the global marketplace.

POEditor can simplify the process of localizing your content for global audiences. It provides a centralized workspace for managing translation projects, collaborating with translators, and ensuring consistent quality across different languages.

The platform supports various file formats such as PO, XML, XLIFF. You can translate your files by choosing from our multiple translation options, and enjoy features such as Translation Memory, History module, automated QA checks, glossaries, and more.