Localization and Its Huge Importance to Global Businesses 2024

What Is Localization? A Simple Guide for Global Businesses

Globalization makes it easier for us to access goods, services, and new technologies from around the world. But when we visit a website or use a product from another country, we can struggle with language barriers, confusing symbols, and unfamiliar currencies. This is where localization comes in.

Understanding Localization

Many people think localization is just about translation, but it is much more than changing words from one language to another. Localization means adapting a product, service, or content so it feels natural and easy to use for people in a specific area.

• It can include language translation, but it also covers things like local foods, product design, and cultural customs.
• For example, a fast-food chain like McDonald’s adjusts its menu for each country. In India, McDonald’s offers paneer and chicken burgers, not beef, to respect local beliefs.
• Major brands like Nike and Coca-Cola use localization to customize branding and marketing for different regions.

To truly localize, a business needs to adapt elements such as:

• Names (people, products, places)
• Date, time, and phone number formats
• Currency and pricing
• Measurement systems (imperial, metric, etc.)
• Text direction (left-to-right, right-to-left, vertical)
• Punctuation (quotation marks, symbols)
• Legal requirements
• Electrical standards (voltage, plugs)
• Pictograms and signs

Businesses often need to localize the following materials:

• Product manuals and warranty documents
• Marketing materials (flyers, ads, social media)
• Training and support guides
• User interfaces and websites
• Legal disclosures

Localization vs. Internationalization, Globalization, and Translation

These terms sound similar, but each has a clear meaning:

Globalization

Globalization refers to practices that connect and engage customers worldwide. It involves sharing products, technology, and information across borders (PIIE, 2021).

• Examples: Amazon, Netflix, Nike
• Global businesses use both internationalization and localization to reach different markets

Internationalization

Internationalization means preparing products or content so they can be easily adapted for many regions. It removes specific cultural references, making materials ready for future localization (Investopedia, 2023).

• E.g., using images instead of words in instruction manuals
• Internationalization happens before localization

Translation

Translation is the process of changing text from one language to another. Translation is just one step in localization, which includes many other adaptations.

Why Does Localization Matter for Global Businesses?

Smoother Market Entry

Entering a new market comes with legal, cultural, and communication challenges. Adapting your business to the local language and customs is critical to avoid misunderstandings and build trust.

• 72.4% of consumers are more likely to buy a product if the information is in their language (Harvard Business Review, 2012).
• 56.2% value information in their language over price.

Businesses that localize can:

• Communicate clearly with new customers, staff, and officials
• Adapt to local regulations and preferences
• Make their products and services more appealing

Gaining a Competitive Edge

Local competitors understand their markets well. Global brands can struggle if they don’t adapt. Localization helps you meet customer expectations and compete with established local businesses.

• Customize products to local tastes and traditions
• Show respect for local culture, earning trust
• Offer unique value while fitting into local norms

Improving Customer Satisfaction

Happy customers are loyal customers. A single bad customer experience can drive away half your customers, even if you’re a well-known brand (Zendesk, 2023).

• 50% of customers leave a brand after one bad experience
• 49% of happy customers share positive experiences on social media (Forbes, 2019)

Localization makes your customers feel at home with your brand. They notice when you speak their language, offer familiar payment options, and respect cultural norms.

Building Brand Loyalty

Customers are more likely to remain loyal when they feel understood and valued. Localization helps businesses show that they respect local customs and are committed to long-term relationships.

• Localized support and communication build trust
• Brand loyalty helps businesses weather local challenges and changes

Boosting Revenue

Investing in localization can have a big financial payoff. Every dollar spent on website localization can generate about $25 in return (Localization Industry Standards Association, 2007).

• Faster market entry reduces costs
• Satisfied, loyal customers spend more and help attract new buyers

How to Start Localizing Your Content

Good localization often involves:

• Professional transcription services to accurately capture spoken messages
• High-quality translation for documents and websites
• Closed captioning and subtitling services for videos
• Proofreading to check for cultural accuracy and clarity
• Access to automated transcription tools for faster results

It is also important to understand local culture, regulations, and customer preferences before launching in a new market.

Conclusion

Localization is more than just translation. It is about making your products, messages, and services fit perfectly into the lives and cultures of your target customers. By investing in localization, businesses can overcome entry barriers, boost brand reputation, increase customer satisfaction, and grow their revenue. Whether you are adapting a website, product manual, or marketing campaign, working with trusted language experts ensures your business succeeds on the global stage.

GoTranscript offers a full range of solutions to help your business with transcription, translation, captioning, subtitling, and more. If you are ready to expand globally, order transcription or order captions today.