How localization drives business growth

In today’s globalized world, businesses are competing on a global level. With the rise of the internet and e-commerce, companies can reach customers from all corners of the world. However, to truly succeed in a global market, businesses need to be able to communicate with their customers in their native language.

The Importance of Localization

Localization is the process of adapting a product or service to meet the language, culture, and other specific requirements of a particular country or region. It involves more than just mere translation; it requires a deep understanding of the local culture and customs to ensure that the message is conveyed effectively.

Companies invest around 4% of their marketing budget in localization to succeed in a global market. This investment involves marketing, native language, and cultural references from the target region.

The Benefits of Localization

According to a report by Unbabel’s 2023 Global Trends in Marketing Localization Report, marketers are directing their localization efforts to the top of the funnel (ToFu), brand awareness content. This includes paid ads, emails, white papers, and blogs, among others.

However, the benefits of localization go beyond brand awareness. Surveys have shown that consumers are more likely to switch to a brand that offers support in their native language. In fact, 68% of consumers would do so.

Moreover, companies that invest in localization have reported increased revenue and profits. According to surveys, companies that increased their translation budgets were 1.5 times more likely to report increased total revenue than their Fortune 500 peers. Companies that translated content to communicate with and retain customers were 2.67 times more likely to experience increased revenue. Further, they were 2.6 times more likely to improve profits.

In addition to these benefits, companies that translated to gain an edge or maintain pace with their peers were 2.04 times more likely to increase profits and 1.27 times more likely to generate augmented earnings per share (EPS).

The Risks of Poor Localization

Market expansion to a worldwide level faces legal issues with severe business impact due to wrong content adaptations. Poor localization can lead to legal issues, damage to a brand’s reputation, and lost revenue. Surveys have shown that 64% of surveyed US consumers said they’d pay a higher price for a product or service if a brand offers a customer experience in their native language.


Localization is a vital component of any global business strategy. Investing in it can lead to increased revenue, profits, and customer loyalty. Companies that ignore it risk missing out on the benefits of a global market and damaging their reputation.

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