5 Benefits of Localization when Venturing into Foreign Markets

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What are the benefits of localization? A study has shown that 56% of users believe that having access to product information in their preferred language is more important than the price of that product. Therefore, without localization, your product may miss the opportunity to reach 56% of your prospective customers. This article will provide you with more details about the benefits of localization for your product and how to leverage those advantages.

Global Demand for Localization

What is Localization?

Localization refers to the process of adapting a product, such as software, website, game, or content, to fit a specific market or target audience in a particular locality.

This process involves more than just translating text from one language to another, it is also about considering cultural, linguistic, and regional differences to ensure accurate and culturally appropriate localization for the target audience.

Some adjustments during localization may include language tones, date and time formats, currency units, measurement units, and even visual elements such as colors and images.

Global Localization Trends

Nowadays, localization is an essential global trend. Because about 60% of the languages used online is English, while English-speaking users account for only 25.3%.

Therefore, the need for localization to effectively engage non-English-speaking users becomes more crucial. It is best for businesses and organizations to adapt their products, websites, and content to cater to the language and cultural preferences of these users.

When users find content in their preferred language, it creates a sense of familiarity and comfort. These users can easily interact with websites, products, and native language-supporting services, leading to increased customer satisfaction and loyalty.

From a business perspective, localization has become a strategic necessity. Localization campaigns can unlock potential markets and new revenue streams by allowing businesses to reach customers facing language barriers. By adapting to local preferences and cultures, companies can adjust their marketing strategies and products to cater to the unique needs of different regions.

Benefits of Localization for Businesses

A localization strategy brings numerous direct and long-term benefits to businesses. Among the most prominent are the following 5 best benefits of localization:

What are benefits of localization - Thao & Co.

Enhanced User Experience

When businesses localize their products, websites, and content, it creates a more user-friendly and personalized experience for their target audience. Here are some reasons why localization can enhance user experience:

  1. 1. By providing localized content, businesses can eliminate language barriers and help users interact more effectively with their products or services.
  2. 2. Localization is adjusted to resonate with the cultural essence of the target audience, including idiomatic expressions, symbols, and images that resonate with local audiences.
  3. 3. Localization also involves adjusting layouts, graphics, colors, and navigation systems to meet the visual expectations and preferences of the target customers. By offering an appealing and user-friendly interface, businesses can improve user experience as well as increase conversion rates and customer retention.

SEO Optimization

SEO optimization is another considerable benefit of localization. When content is localized, businesses can improve their rankings on search engines and increase visibility in the local market.

Localizing a piece of content or a website means that it is best for the company to research keywords that are frequently searched in each specific market to optimize content containing those keywords.

In many cases, meta tags, titles, and descriptions can also be adjusted to fit the target market. This can improve the chances of ranking higher in search engine results when users search for related products or services.

However, simultaneously implementing both SEO and content localization can pose challenges for businesses. Sometimes, content that is SEO-friendly might become rigid and unnatural, resulting in an unfriendly user experience. Some translation agencies, including Thao & Co., offer SEO-friendly translation services, which is an excellent solution for combining content localization and SEO optimization.

Safeguarded Consistency

Localization allows businesses to maintain a consistent brand identity across different markets while adapting to the local market’s preferences. A localized brand identity is more easily accepted and contributes to positive customer sentiment.

However, it is important for businesses to master localization principles and be flexible in adjustments to avoid risks posed by linguistic and cultural differences. For instance, Electrolux – a Swedish home appliance brand – faced significant issues due to a misguided localization attempt in the US market in the 1960s.

Their slogan “Inget suger som Electrolux” was translated into “Nothing sucks like Electrolux” in English, unintentionally conveying a negative meaning due to the slang meaning of “suck” in English. The word “suck” denotes the meaning “draw something in.” However, in English slang, it is commonly understood as “bad.” As a result, the brand slogan accidentally came off as “Nothing is as bad as Electrolux.”

Electrolux Localization Example - Thao & Co.
Electrolux used to face significant issues due to misguided localization

A professional translation agency can help businesses avoid such pitfalls while maintaining brand consistency through services like Consumer Language ResearchⒸ and Translation Guidelines.

Increased Loyalty Index

The increased loyalty of customers towards the brand is another significant benefit of localization. By adapting content to the local language and tailoring it to the local preferences, customer satisfaction may rise, leading to higher repurchase rates and building a positive brand perception.

This also fosters an emotional connection between the brand and the local audience. By combining language and cultural nuances in well-localized content, businesses can create a strong sense of familiarity among customers. This factor also contributes to customer retention.

Higher Competitive Advantage

Localization provides businesses with a competitive edge by helping them access new markets, attract customers more effectively, make a difference for their brand, and establish trust. When businesses understand the benefits of localization, they can position themselves in the customer’s mind to succeed in a market and pave the way for a globalization strategy.

How to make full use of Localization Benefits?

What is Localization? Your complete guide - Thao & Co.

To maximize the benefits of localization, it is best for businesses to collaborate with professional translation agencies.

Collaborating with a reputable translation agency can help you establish a professional localization process and ensure high-quality translation. These agencies usually have a team of skilled linguists, localization experts, and project managers who can consult and support businesses throughout the localization process.

As a professional translation agency, Thao & Co. offers a wide range of localization solutions for local and international businesses. Our team of native linguists is committed to providing you with accurate and culturally consistent localized translations that resonate with your target customers. Our App + Software + Website + Game Localization services, along with various other content translation solutions can help you effectively communicate with the global audience, enhance user experience, and gain a competitive advantage in the market.

For more details about our services, you can visit Thaonco.com or visit our Get a Quote page for prompt consultation!

Source: Thao & Company
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