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A recent report by RWS highlights the importance of localization, revealing that over four-fifths of consumers are less likely to purchase from brands that do not offer local language support.
Also, 93% of consumers believe companies must communicate in their preferred languages across all channels to effectively reach a global audience.
1. Identify bottlenecks
Before embarking on localization efforts, it's essential to map out the customer journey for your target market. This involves understanding the cultural nuances, needs, pain points and preferences and identifying specific requirements such as country-specific phone number formats, email address conventions and address specifications. By recognizing potential bottlenecks, you can tailor your localization strategy to address specific challenges and enhance the overall customer experience.
Despite entering the UK market without extensive research, Flowwow quickly encountered challenges regarding address selection. We discovered that UK consumers were accustomed to searching for addresses by postcode, a system incompatible with their existing platform. This oversight caused a negative user experience, resulting in a decline in completed purchases as customers needed help to navigate the website.
2. Prioritise accurate translations
While translation is a fundamental aspect of localization, it is essential to ensure that your content is culturally appropriate, resonates with the target audience and effectively conveys your brand's message. Partner with local translators who deeply understand the target market and consider having multiple translators review it.
Airbnb, a global leader in the hospitality industry, demonstrates the importance of effective translation. By offering its platform in 62 languages (with ~30 languages for the average global high-tech company), Airbnb has successfully reached an international audience.
They have leveraged machine translation for user-generated content, such as reviews, to provide relevant and localized content to users worldwide. While machine translation may not be perfect for all contexts, it can be a valuable tool for streamlining processes and reducing costs.
Related: How Small Businesses Are Teaming Up to Boost Local Economies
3. Adapt payment systems
Studies show that 21% of European consumers abandon purchases if the checkout takes longer than a minute. Additionally, 15% of European consumers leave their online shopping carts when their preferred payment method is unavailable. Businesses can significantly reduce cart abandonment rates and increase conversions by offering a range of payment options (Stripe, PayPal, to name just a few).
4. Develop a tailored pricing strategy
It's essential to understand your target market's purchasing power, competitive landscape, local preferences and economic conditions to set competitive prices and avoid overpricing or undercharging. Conduct thorough market research to gather data on consumer behavior, income levels and pricing trends.
Two common pricing strategies include:
- Dumping: Actively discounting products or services to gain market share and attract customers.
- Differentiation: Position your products or services as premium offerings with unique features or benefits, justifying a higher price point.
5. Rethink product categories
Adapt your product categories based on thorough market research and insights from local experts to ensure your products resonate with local consumers.
Domino's Pizza successfully localized its offerings to cater to the specific tastes of Indian and Malaysian consumers. They introduced pizza flavors in India, like chicken tikka masala, paneer tikka, Manchurian and paneer do pyaza. In Malaysia, they ensured their outlets avoided using pork, beef and non-halal meat to comply with local dietary restrictions.
In our case, we identified a significant demand for 'hamper boxes' in the Brazilian market, a popular gift category not previously offered on the platform. By introducing this new category, we saw a 40% increase in sales.
Related: Focus on One Thing, or Diversify?
6. Navigate through legal and regulatory hurdles
One of the most significant challenges businesses face when expanding internationally is navigating different regions' complex legal and regulatory landscape. Thorough research is essential to understanding the specific legal and regulatory requirements of each target market, including compliance with data privacy regulations, consumer protection laws and industry-specific regulations.
For example, marketplaces operating in the European Union must adhere to the GDPR, one of the most stringent data privacy laws globally. E-commerce businesses must also comply with local requirements for selling specific products, such as age restrictions for alcohol or regulations for online pharmacies.
Related: How Businesses Can Succeed in Overcoming the Language Barrier in Multilingual Markets
7. Keep localization going
Remember, localization is an ongoing process that requires continuous attention. Localized content must adapt to remain relevant and effective as products evolve and market conditions change.
To address this challenge, businesses should establish a regular localization review process to identify and address outdated or inaccurate content. Additionally, staying updated on cultural trends and language changes is essential for ensuring that localized content resonates with the target audience.
Localization is a complex and multifaceted process that requires careful planning, execution and ongoing maintenance. Before embarking on a localization journey, businesses must ensure that their product-market fit is strong to justify the significant investment in resources and time.
By investing in high-quality and consistent localization at all levels, businesses can effectively adapt their brands to new markets, build trust with local consumers and achieve sustainable growth.
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