By IQnewswire 
CMOs are seeing localization as a growth strategy rather than an expense. Recent data reveals the relationship between localization and growth.
Companies that utilize localization experienced 1.5 times higher revenue growth compared to those that did not. 84% of marketers linked their revenue growth to localized content. These are just a few of the reasons why wise CMOs invest in localization services.
Consumers’ behavior presents a stronger case. 76% of online shoppers look for product information in their language. More striking, 40% of shoppers won’t buy products in another language even if they’re fluent. Finally, 65% of English as a second language speakers still prefer content in their native language.
The Growth Multiplier Effect
If you’re focused on growth, these numbers are hard to ignore:
- Localized marketing campaigns can deliver up to 400% higher returns than non-localized ones.
- Social media content with local nuances improves organic results by 2500%.
- 75% of companies entered new markets with their localization efforts.
Did you know that while the benefits are clear, only 18% of companies have developed a localization strategy? This presents an opportunity for smart CMOs to leapfrog their competition.
Good localization services don’t just translate. They localize products, services, and marketing materials to meet the region’s cultural, language, and legal requirements. This is especially important, as emerging markets are projected to generate 65% of global economic growth by 2025.
Working with a good localization agency is no longer optional — it’s necessary for growth. The best localization strategies do more than translate words. They connect with local culture and build stronger connections with audiences.
Smart CMOs are no longer thinking of localization as an afterthought. They’re seeing it as the key to growth. Today’s market requires more than avoiding cultural mistakes — companies need localization to increase revenue, expand into new markets, and form stronger connections with consumers worldwide.
Revenue, Reach, Retention: The Metrics That Matter
Businesses that rely on evidence-based decisions understand that sound localization is a worthwhile investment. When creating a business case for localization services, you can validate your decision by examining the three key business areas that localization supports.
You can justify the investment in localization services by examining how localization helps you in three ways. Product managers can also adjust their strategy by measuring how localization supports each of these key business areas.
When measuring revenue, it’s clear how localization directly impacts your bottom line. Metrics indicate that localized markets yield substantial benefits. Locally targeted sales have an average conversion rate 13% higher than those of others. They also report higher average order values. The results are compelling – Facebook ads with localized copy perform 22% better for women and 87% better for men. These metrics demonstrate the effectiveness of culturally customized copy.
Localized professional services also deliver impressive returns. HubSpot’s marketing platform demonstrated this by reporting ROI from 140% to 3000%. They invested $150,000 in localizing one content form. They earned $144,000 in recurring annual revenue.
Reach measures how much you expand your market. Successful localization teams measure:
- Better SEO keyword rankings in target markets.
- More page views after localizing content.
- Growing market share by localizing content.
- Higher social media engagement and brand mentions.
These are significant numbers because 72.4% of customers are more likely to buy products if they can read about them in their native language. 82% will not buy if they cannot read about it in their native language.
Retention measures provide the most long-term value. Selling to existing customers works 60-70% of the time. Selling to new customers works 5-20% of the time. You can’t ignore this relationship to profits because it’s direct. Customer loyalty increases a lot when you localize. Localized knowledge bases report fewer support tickets. Localized support has higher satisfaction scores.
Research indicates that customers who read localized content tend to make more purchases. They are repeat customers and brand advocates. Customers feel loyal because you take the time to communicate with them in their language and culture.
Small to medium-sized companies need a localization partner with experience. The best companies measure all three areas – revenue, reach, and retention. They gain a comprehensive understanding of how localization benefits their business.
These metrics demonstrate that localization isn’t a cost – it’s a growth driver with returns.
How Localization Reduced Churn and Increased Conversions
Localization affects customer retention and conversion rates. Product managers have numerous reasons to expand globally, with a compelling argument for utilizing localization services.
Customer retention is 5 times less expensive than acquiring new customers. A 5% increase in customer retention yields a 25% increase in profit. Existing customers spend 67% more than new ones. Existing customers have a 60-70% conversion rate, whereas new prospects typically convert at a rate of 5-20%.
Customers want a native language, which creates a bond. Seventy-five percent of consumers return to companies that speak their language. The numbers show a preference in sales:
- 76% of online shoppers choose products with information in their language.
- 40% of customers will not buy from websites that are not in their language.
- 72.4% of global consumers shop online in their native language.
Ground reality shows localization’s effectiveness. McDonald’s experienced flat sales in France until they began serving wine and beer with meals, in line with French culture. Their sales skyrocketed after the change. On the other hand, Kraft learned the hard way in Russia. They did not check their brand name, “Mondelez,” which sounds like Russian slang.
Product managers reap numerous benefits from localization services. Apps experience a 200% increase in downloads, an 80% increase in conversion rates, and a 25% increase in revenue with complete localization. A gaming app for education saw a 70% revenue increase with basic localization.
Localization isn’t just about translation. Cultural adaptation, UX/UI changes, technical updates, and local support are all required. Brands that connect with customers through localization build strong relationships. These customers stick around when minor issues arise.
Good localization services turn one-time buyers into loyal customers. They do this because people emotionally connect with brands that speak their language.
From Regional Launches to Global Wins: Real Brand Success Stories
One of the biggest secrets that the world’s most valuable brands know is that local success is the first step toward global success. They translated regional wins into global wins by making smart changes for local markets.
Take Starbucks, for example. They first opened in Tokyo in 1996. Now, they have more than 32,000 stores in over 80 countries. They combine their global brand with local culture. They’ve redesigned their stores with wooden designs and tatami sitting areas, and they serve matcha teas, which are a traditional tea ceremony in Japan. They’ve gotten it right while staying premium.
McDonald‘s had a hard time when it entered India in 1996. Serving beef conflicts with Hindu beliefs, and pork products are not appropriate for Muslim customers. They didn’t just change their menu – they rebuilt it from scratch. They created a separate vegetarian menu, and they invented the McAloo Tikki, a spicy potato burger. They made the right choice. Half of their Indian menu is now vegetarian.
As for Netflix, localization drives growth globally. They did more than just translate the platform; they also optimized it for better performance. They spent money to create local shows that fans love. The shows Money Heist in Spain and Squid Game in South Korea initially became local hits and then gained global recognition. They spend over $1 billion each year on content outside the United States. Their Indian revenue jumped 49% year-over-year.
As for IKEA, they did not change their game for different markets. Japanese customers sought smaller lines of furniture that fit into smaller apartments and showrooms that resembled traditional Japanese homes. Chinese customers did not want to assemble furniture themselves, so they expanded their delivery and assembly options to meet this demand. Those changes helped IKEA Japan sell 40% more year-over-year.
True, most global launches happen in stages rather than all at once. “Planning should be done locally and incorporated into a detailed plan… If you plan a launch in North America and expect just to duplicate it in another region, you won’t be successful.”
Product managers should partner with trusted localization partners to make the necessary changes.
Conclusion: Localization Isn’t a Cost—It’s a Growth Multiplier
There’s never been a better business case for localization. Every year, data proves that a well-orchestrated localization strategy drives more revenue, widens market access, and keeps customers coming back. The more product managers view localization as a growth driver rather than a silo function, the better. Companies with the right localization partner in their corner have a clear advantage. They see conversion rates increase by an average of 13% and realize an ROI of anywhere from 140% to 3,000%.
The benefits go well beyond immediate revenue. Brands that prioritize localization forge a stronger emotional connection with their global audiences, converting passive customers into brand advocates. That’s why 75% of customers want to buy from a company again that offers support in their native language.
Starbucks, McDonald’s, Netflix, and IKEA are just a few of the many brands that have taken the world by storm. They’ve proven that going global requires more than just a translator. These brands did it by effectively adapting to new cultures and paying attention to the nuances of language. Their story should serve as a reminder that to localize effectively, you need more than just language services.
However, only 18% of companies have a formal localization strategy in place. It’s a window of opportunity for ambitious product managers. If you act fast and team up with a localization agency that knows what you need, you can take a more prominent position in the market before your competitors even notice.
In an ever-changing global economy, emerging markets are contributing a growing share of the world’s growth. Product managers who wait too long to enlist a specialized localization service risk missing out on key expansion opportunities while competitors gain an advantage.
Product managers should view localization as a vital growth partner rather than a secondary vendor. The right localization company can offer both linguistic expertise and cultural insights that can help you avoid costly mistakes and create authentic brands in new markets.
The days of asking if localization will deliver a return on investment are long gone. There’s proof that it does. The real question for product managers is, which localization agency will enable your product to achieve its full global potential?