Localization can be an essential tool for businesses looking to expand their reach by moving into new markets. Growing a global company is an ongoing process that requires careful consideration at every stage. Providing a localized experience for each market you run into can be the key to success.
From an operations standpoint, standardization can seem like the easiest method for expansion, using the same marketing and customer experience style and theme for all your products and services, regardless of the region in which you’re trying to sell them.
However, localization is often more effective, as it allows you to fit in with your new target market’s specific needs by making linguistic and physical adjustments to your existing products and services.
Done correctly, it should decrease barriers to entry, provide customized local customer experience, breed cultural respect and lead to better brand identification, and hasten local business development.
Where should you start when planning your localization strategy?
As with everything in life and business, the key to getting your localization strategy off the ground in the most efficient way possible is research, research, and more research.
Start with a deep dive into your analytics to gain a better understanding of your customers’ preferences and how they might vary from place to place.
Accurate localization means much more than just translating product descriptions into local languages, and there are many essential elements to consider before embarking on such a venture.
Your localization strategy is what will set you apart from companies that merely operate in multiple countries, establishing your business as one that has thriving and long-lasting growth in all your target markets.
Step One: Find out who your customers are.
If you’re looking at a map for directions, it’s essential to find yourself before looking for your final destination and start to plan how you’re going to reach it.
Use a combination of customer surveys and web analytics to find out who your existing customers are, what languages they speak, and other factors that might influence their buying choices, from culture to purchasing power and average income.
Begin by studying potential international customers and try to put yourself in their mindset. What do you have to offer that fits their specific needs, and what are the best ways to reach them? How will that differ from the way you serve your current customers?
Step Two: Decide which market(s) you want to target next.
Based on the information you’ve collated about your current and potential customers; you now have to decide which markets make the most sense for your business to expand into next.
You may want to carry out some trial runs in a few different markets to test the waters, move into one new market at a time, or go worldwide all at once. This medium will be very much dependent on your product, your ultimate goals, and your specific customer base.
Step Three: Research your new market(s).
Start by looking at how your new market differs from the one(s) you already serve. Look at market conditions, in-demand products, typical purchasing power and income, barriers to entry, and local laws and regulations.
Remember that while local markets may be saturated with competitors, that shouldn’t necessarily be a barrier to entry for your business. A large amount of competition can signal that a market is very healthy and ripe for new entrants.
Do some market research ahead of time to help identify culturally relevant features that your competitors might have that will resonate with your target market, set your product apart, and ensure that your future customers gravitate towards your business, not the competition.
Step Four: Define your project goals.
Now that you have a clearer picture of who your new customers might be, where you’re going to find them, and what the local market looks like, it’s time to figure out precisely what it is that you want to get out of this expansion.
What are your specific goals for this project? What are you hoping to achieve? It’s not just about determining how many new markets you want to enter and how many new customers you want to add through that expansion.
Consider the little things as well: how many languages do you want to work with? What marketing strategies do you want to use? How long should the whole process take? How many new employees or freelancers will you need? What is your total budget for the project?
Step Five: Sweat the details.
The main goal of localization is to adapt your business to a new market, so there are a ton of factors that you’ll need to take into consideration. Start with the culture and language of the customers you’re trying to reach.
Local expertise
Consider employing local experts. Who knows a culture better than the local people? Look into and talk to local staff, agencies, and even in-country partners in your target market(s). Don’t forget about the “local” in localized.
Make sure that you have a presence in your new market – in a sense; you want to become “part of the community.” Stay aware of local events and issues, and seek out moments of importance where you can connect with and give back to the local people.
Run market research studies and focus groups – and take the feedback that you receive very seriously. This process will ensure that you understand the dynamics of the local market, customers’ preferences, your competitors, and available marketing channels, before anything else.
Translation
While languages aren’t the be-all and end-all of the localization, being understood in your target market is essential to accessibility, conversion, and – ultimately –sales.
Reportedly, 42 percent of Europeans only shop online in their native language, and 72 percent of online shoppers who aren’t native English speakers would like product reviews to be available in their native language.
You’re going to want to translate your marketing materials and product descriptions into the local language(s), as well as making them culturally relevant. Advertisements that work well in London may not be so easily understood in Tokyo or Paris, even when translated into Japanese and French.
Again, you’re going to want to think about going to the locals for this one, since unintended nuance and cultural differences can lead to misunderstandings and confusion that you never even saw coming, but that a native speaker would spot from miles away.
Money issues
Find out what currency your new market trades in and which payment methods are most popular, and consider pricing strategies. What do similar products cost in your new market, and how much can your new customers afford to pay? How much are they willing to pay?
Learn about relevant local laws and tax regulations. One of the main steps in localization is making sure that you can make your product physically available in a new market. Are their inhibitive customs or tax laws in play, either on your end or theirs?
You might want to consider setting up in-country distribution centers or even employing local manufacturers so that you don’t have to ship anything in and out of the country. In some areas of the world, there may also be marketing restrictions that you’ll need to consider – for instance, Facebook marketing is useless in China.
Design
Choose culturally relevant images, and consider how customers in each market will experience your brand. Find out what customers in each market already think of when they see your company name or logo.
You may very well find that your brand is received differently in different markets and that you will have to work harder to create a new, memorable story for your business in some countries than others. Specific colors may be received differently, and even the name of your brand might have an unintended meaning in some languages.
Digital presence
Finally, think about website design, mobile optimization, and your social media presence. The way that a business presents itself online can be a crucial element in how it is perceived by customers today.
Creating localized content for apps can be of particular importance as it presents a unique opportunity for growth. Having individual apps for each location can vastly increase conversions in those markets.
Look into social networking trends in your target markets, as platforms such as Twitter and Instagram are accessible on a global scale, and are often the primary location in which you will directly interact with your customers.
Different regions and demographics will prioritize different platforms, and localized content in multiple languages is an essential part of any new marketing strategy.
Localization 101 – Do your research and plan ahead
If you’re thinking of taking your business global, localization is the key to a successful launch. And the key to efficient localization is to do your research and make sure that you have a plan.
Before you decide where you want to go, make sure that you know where you are already. Then, look into new customers and new markets through studies and intensive, focused research. Choose the most appropriate markets for your business to target and get planning.
Find out about local cultural norms and differences, and learn how your business might successfully assimilate. Define your goals for the expansion, focusing first on the big picture, and then on individual, measurable milestones that will get you where you want to go.
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