{"id":44016,"date":"2023-03-27T07:00:00","date_gmt":"2023-03-27T05:00:00","guid":{"rendered":"https:\/\/phrase.com\/?p=44016"},"modified":"2024-11-14T17:39:28","modified_gmt":"2024-11-14T16:39:28","slug":"localization-global-growth-driver","status":"publish","type":"post","link":"https:\/\/phrase.com\/blog\/posts\/localization-global-growth-driver\/","title":{"rendered":"The Power of Localization to Unlock Global Growth: A CEO&#8217;s Perspective"},"content":{"rendered":"\n<div id=\"acf\/text-block_4d4aa3969960bbaa359a4065f2eeeaa4\" class=\"pxblock pxblock--text spacing--default bg--white\">\n\n\t\n\t<div class=\"container\">\n\t\t<div class=\"wysiwyg animate-in\">\n\t\t\t<p><span style=\"font-weight: 400;\">Imagine losing a $125M investment because of a failure to convert measurements between systems. This is exactly what happened to NASA in 1999 when <\/span><a href=\"https:\/\/www.latimes.com\/archives\/la-xpm-1999-oct-01-mn-17288-story.html\"><span style=\"font-weight: 400;\">they lost the Mars Climate Orbiter<\/span><\/a><span style=\"font-weight: 400;\"> as a result of engineers not transferring vital data from imperial to metric measurements before launch.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I remember it like it was yesterday because it serves as a cautionary tale for the single most important component of <\/span><a href=\"https:\/\/phrase.com\/blog\/posts\/global-expansion\/\"><span style=\"font-weight: 400;\">global expansion endeavors<\/span><\/a><span style=\"font-weight: 400;\">: <\/span><b>recognizing the diversity of our world and adapting to it<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Throughout many years of experience working for multinational organizations, I\u2019ve come to realize the value of this adaptation\u2014the technical term for which is <\/span><a href=\"https:\/\/phrase.com\/blog\/posts\/how-important-is-localization-for-your-business\/\"><span style=\"font-weight: 400;\">localization<\/span><\/a><span style=\"font-weight: 400;\">\u2014to unlock global growth.<\/span><\/p>\n<p><b>Localization should be top-of-mind for any CEO pursuing international expansion<\/b><span style=\"font-weight: 400;\">\u2014so I\u2019d like to share with you some of what I\u2019ve learned.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What is localization?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019ve ever been to a foreign country, or even to a different region in your home country, you may have noticed that what works in one place may not work in another:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Londoners take the tube, not the metro; wear suit trousers, not pants; Americans wouldn\u2019t put their car luggage in the boot (trunk!).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">People in Japan<\/span><a href=\"https:\/\/www.cashmatters.org\/blog\/why-japan-prefers-cash\"> <span style=\"font-weight: 400;\">rely heavily on cash<\/span><\/a><span style=\"font-weight: 400;\"> payments, while folks in the US are more likely to swipe a card or use ApplePay.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can find<\/span><a href=\"https:\/\/www.tandfonline.com\/doi\/full\/10.1080\/01441647.2021.1915898#:~:text=Among%20the%20countries%2C%20the%20Netherlands,with%20about%201%25%20mode%20share.\"> <span style=\"font-weight: 400;\">cycling superhighways<\/span><\/a><span style=\"font-weight: 400;\"> in the Netherlands, but good luck finding one in Brazil.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The list goes on and on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These nuances\u2014from language and currency to food habits, cultural practices, regulations, laws, and more\u2014form the backbone of localization as a practice.<\/span><\/p>\n<p><b>Localization is a process that acknowledges and responds to these kinds of cultural or regional differences to create products, services, and experiences that match local preferences, customs, and expectations.<\/b><\/p>\n<figure id=\"attachment_44017\" aria-describedby=\"caption-attachment-44017\" style=\"width: 450px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-44017\" src=\"https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers.png\" alt=\"Globalization process layers | Phrase\" width=\"450\" height=\"450\" srcset=\"https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers.png 1081w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers-300x300.png 300w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers-1024x1024.png 1024w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers-150x150.png 150w, https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/globalization-process-layers-768x768.png 768w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><figcaption id=\"caption-attachment-44017\" class=\"wp-caption-text\">Localization is one of the key layers of business globalization<\/figcaption><\/figure>\n<h3><span style=\"font-weight: 400;\">Localization and translation aren\u2019t the same<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/phrase.com\/blog\/posts\/localization-isnt-just-about-translation\/\">Translation and localization<\/a> are often confused to be the same. While translation is important for breaking down the language barrier, the scope of localization goes far beyond language.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rather than just transforming words, localization is the whole package:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Changing product features to meet local needs<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creating content in the local language of customers across markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adopting appropriate visuals for each target market<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adapting pricing to consumer budgets in different markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Using marketing and customer service channels preferred by locals<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">And much more. Basically, <\/span><b>localization involves learning the nuances of a given market and responding to them appropriately<\/b><span style=\"font-weight: 400;\">. It\u2019s a form of personalization, specific to the geographical and cultural context of your audience.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why localization is important<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The main result of localization is an <\/span><b>improved customer experience<\/b><span style=\"font-weight: 400;\">: you make local target audiences feel comfortable, understood, and respected. You make them feel like your product, service or company is \u2018for\u2019 them. You work hard to engage and understand your customers in your initial target audience\u2014the same should be true as you expand your audience at home and abroad.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Short-term, this can make the difference between viral and linear (or zero) growth. Longer-term, <\/span><b>an engaged customer base is a loyal and referring customer base, creating long-term growth opportunities<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I\u2019m a firm believer that localization isn\u2019t just about breaking into new markets\u2014it\u2019s also about properly serving the customers you already have. Back when I was at Tesla, I remember fighting hard to convince Tesla US that we needed to incorporate iDeal as a payment solution in the Netherlands. With <\/span><a href=\"https:\/\/www.ideal.nl\/cms\/files\/Factsheet_iDEALpayments_UK.pdf\"><span style=\"font-weight: 400;\">60% of Dutch ecommerce transactions<\/span><\/a><span style=\"font-weight: 400;\"> happening through this particular payment gateway, it was a no-brainer. It took some convincing, but eventually, we were able to make it happen, and it made a huge difference in our local market share. Equally, our UK-written materials needed to say \u201ctyre\u201d (not \u201ctire\u201d), \u201cboot\u201d (not \u201ctrunk\u201d), and so on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, no conversation about the <a href=\"https:\/\/phrase.com\/blog\/posts\/why-localization-is-about-survival-in-the-global-marketplace\/\">importance of localization<\/a> can overlook the simple but undeniable fact that non-native English markets make up a large portion of the global marketplace. Ignoring their demands for local experiences, solutions, and content is equal to intentionally leaving money on the table.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Look at these mind-blowing stats:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Almost <\/span><a href=\"https:\/\/www.internetworldstats.com\/stats.htm\"><span style=\"font-weight: 400;\">5.5B people<\/span><\/a><span style=\"font-weight: 400;\"> in the world are now online, and more than half of them come from Asia.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2021, Japan was by far the leading market for <\/span><a href=\"https:\/\/www.statista.com\/statistics\/1275323\/top-countries-mobile-per-capita-spending-worldwide\/\"><span style=\"font-weight: 400;\">mobile apps and games spending<\/span><\/a><span style=\"font-weight: 400;\"> among the highest earning markets for mobile applications, followed by South Korea.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/moz.com\/ugc\/secrets-of-seo-success-in-other-languages-15072\"><span style=\"font-weight: 400;\">Over half of all Google queries<\/span><\/a><span style=\"font-weight: 400;\"> are performed in languages other than English.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">About <a style=\"font-family: Inter, system-ui, -apple-system, 'Segoe UI', Roboto, 'Helvetica Neue', 'Noto Sans', 'Liberation Sans', Arial, sans-serif; font-weight: 400; background-color: #ffffff;\" href=\"https:\/\/csa-research.com\/Blogs-Events\/CSA-in-the-Media\/Press-Releases\/Consumers-Prefer-their-Own-Language\"><span style=\"font-weight: 400;\">40% of internet users<\/span><\/a><span style=\"font-weight: 400;\"> won\u2019t ever buy from websites that aren\u2019t in their native language.<\/span><\/li>\n<\/ul>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/blog-cta-block_35e875feb4d18c0300e9fd9ffe1a642f\" class=\"pxblock pxblock--blog-cta bg--grey image--orientation-square\">\n\t<div class=\"block-container\">\n\t\t\t\t<div class=\"content\">\n\t\t\t<p class=\"small\" style=\"text-align: left;\">This thoughtful <a href=\"https:\/\/phrase.com\/resources\/total-economic-impact\/\">Forrester Consulting study<\/a> highlights more data to support the business case for localization.<\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/text-block_df63ebf902d51518d24bb2400535b3a8\" class=\"pxblock pxblock--text spacing--default bg--white\">\n\n\t\n\t<div class=\"container\">\n\t\t<div class=\"wysiwyg animate-in\">\n\t\t\t<h3><span style=\"font-weight: 400;\">The benefits of localization<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">My experience in various roles at global brands has shown me that companies that invest in localization can expect to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enter new markets faster and easier, with less risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase sales and customer loyalty in new markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Grow their competitive advantage over rivals who neglect localization<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase customer satisfaction across locales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experience longer customer lifetime value (CLV) in each market<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce costs associated with customer support, training, and onboarding<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, no amount of localization will be successful without a clear localization strategy. Let me explain why.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why localization should be strategic<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s not enough to simply launch your product or service, and hope for the best. Localization should be a key piece of your international expansion plan, from the beginning, and it\u2019s crucial to approach it with a firm understanding of exactly what you\u2019re trying to achieve.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s risky to assume you can plan or do everything in your primary language and then tack-on localization at the end of the project. Your website, app, marketplace, materials, customer experience, checkout experience, hiring plans, ICPs, marketing messages, etc., all need to be localized.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The mistake people make is to assume this is all \u201cjust translation\u201d and easy to do at the end of a launch plan\u2014it isn\u2019t, and if you get this right, you can get ahead of your competition and ensure your own success.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are your business goals for this new market?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is your product a good fit?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do you have the necessary resources in place to support this expansion?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who is your target audience?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What\u2019s the competitive landscape like?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What messaging will culturally resonate with your target audience?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Should you adapt your pricing to the local market?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What workflow will you follow? How will it integrate with other workflows, like content creation, product development, design, and marketing?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How will you track progress and measure success?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What team within your organization will be responsible for owning and driving the localization strategy forward?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What technology will you rely on?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Answering these questions is essential to avoid an afterthought approach to localization.<\/span><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/blog-cta-block_aa84af2bacad7253513dc2fd257aa08f\" class=\"pxblock pxblock--blog-cta bg--outline image--orientation-landscape\">\n\t<div class=\"block-container\">\n\t\t\t\t\t<div class=\"image image--align-middle\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"365\" height=\"277\" src=\"https:\/\/phrase.com\/wp-content\/uploads\/2023\/03\/localization-strategy.svg\" class=\"attachment-original size-original\" alt=\"Localization strategy key visual | Phrase\" \/>\t\t\t<\/div>\n\t\t\t\t<div class=\"content\">\n\t\t\t<p class=\"subhead\">Dive deeper<\/p>\n<p class=\"h6\">Build the right localization strategy for your business<\/p>\n<p class=\"small\"><span style=\"font-weight: 400;\">Learn how to devise a localization strategy for your business with the right goals, metrics, and workflows to drive global growth effectively.<\/span><\/p>\n<p><a class=\"text-link\" href=\"https:\/\/phrase.com\/blog\/posts\/how-important-is-localization-for-your-business\/\">Explore steps<\/a><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/text-block_a1891859a295b4a1b6a722780107f3fb\" class=\"pxblock pxblock--text spacing--default bg--white\">\n\n\t\n\t<div class=\"container\">\n\t\t<div class=\"wysiwyg animate-in\">\n\t\t\t<h2><span style=\"font-weight: 400;\">Let localization be your satnav<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Making the decision to expand to a new audience, market or region is an extremely exciting prospect. I like to think of it as a grand adventure, but like any good adventure, you need a map\u2014otherwise, you\u2019ll just be aimlessly wandering around in circles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Localization is that map\u2014and just like you set your satnav before setting off, you need to make sure that your localization strategy is in place before you embark on this global journey. This will help you make sure that you\u2019re investing in the right things and not just throwing money at a problem.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">No matter how big or small your business is, with a well-planned localization strategy in place, you can confidently take the wheel on your global expansion journey and get ready for growth.<\/span><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<div id=\"acf\/blog-cta-block_848abf08fdba3cb3b46e458082bb8234\" class=\"pxblock pxblock--blog-cta alignfull bg--green image--orientation-square\">\n\t<div class=\"block-container\">\n\t\t\t\t<div class=\"content\">\n\t\t\t<p class=\"h4\" style=\"text-align: center;\">Speak with an expert<\/p>\n<p class=\"small\" style=\"text-align: center;\">Want to learn how our solutions can help you unlock global opportunity? We\u2019d be happy to show you around the Phrase Localization Platform and answer any questions you may have.<\/p>\n<p style=\"text-align: center;\"><a class=\"btn btn--outline\" href=\"https:\/\/phrase.com\/demo\/\">Book a call<\/a><\/p>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Georg Ell, CEO of Phrase, on why localization is key for global business and how it can help brands expand their reach across markets.<\/p>\n","protected":false},"author":46,"featured_media":30045,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_searchwp_excluded":"","footnotes":""},"categories":[37],"class_list":["post-44016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/44016"}],"collection":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/comments?post=44016"}],"version-history":[{"count":40,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/44016\/revisions"}],"predecessor-version":[{"id":67871,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/posts\/44016\/revisions\/67871"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media\/30045"}],"wp:attachment":[{"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/media?parent=44016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phrase.com\/wp-json\/wp\/v2\/categories?post=44016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}