Alconost Blog

How to Measure the Success of Your Localization Efforts: 4 KPI Groups to Track

Written by Alconost | 11/12/24 3:52 PM

Our blog is for executive teams, marketing, product, localization, and localization teams that actively support international business expansion. We share knowledge gained about localization, globalization, and culturalization to assist you in creating informed global growth strategies. Likewise, we do this by drawing on our two decades of experience running a worldwide localization company. 🌎

Localization does not produce income independently; it facilitates the sale of goods and services. This can make the expense hard to justify, and it might also be challenging to determine whether your investment has succeeded. To make matters worse, it is difficult to separate localization costs from the rest of the market growth expenses since they encompass more than just translation effort; they often include project management, IT development, sales and marketing, and product development. However, localization and sales growth in new markets are directly correlated, and localization departments must prove that to CEOs and corporate board directors. 

3 Big Examples of Localization Success

The following three localization success stories are among the largest and most noteworthy and have had a significant influence on their respective industries:

Netflix: Thanks to its localization initiatives, the streaming service has grown from mainly focusing on the US to becoming a significant force in the entertainment world. Netflix has achieved worldwide success with foreign-language series, including Money Heist, Squid Game, and Dark, through significant dubbing, subtitling, and culturally sensitive adaptations. Through producing original content in several languages and providing smooth language support throughout its platform, Netflix has effectively penetrated local markets and expanded its global subscriber base.

McDonald's: McDonald's is an excellent illustration of accommodating regional preferences and traditions while preserving a powerful worldwide brand. The fast-food chain has tailored its menu selections in several countries to suit local dietary requirements and customs. For example, it offers vegetarian McAloo Tikki burgers in India, teriyaki burgers in Japan, and poutine in Canada. To connect with local cultures, McDonald's has also customized its restaurant designs and marketing tactics, which has helped the company establish a significant presence in various markets.

Apple: Apple's prominence in international markets, particularly in Asia, can be attributed to its localization approach. The company customizes iPhone features, including region-specific payment options, distinctive regional advertising, and the ability to use two SIM cards, which is popular in nations like China. Additionally, Apple adapts its marketing to local values and aesthetics and offers its goods and services in several languages. This extensive localization and a high-end, culturally sensitive brand image have strengthened Apple's position in international markets.

These examples show how properly localizing goods, services, and marketing strategies can help businesses greatly increase their worldwide reach and client loyalty. In addition to satisfying consumer demands, localization increases their relevance and attractiveness in various marketplaces.

5 Localization KPIs to track

While there is no one-size-fits-all approach, businesses monitor these KPIs most often when expanding internationally. Use your current data as a starting point and track improvements in the categories listed below.

1. Website Traffic

The following are important measures to gauge the effectiveness of your localized websites:

  • Traffic to websites (by language and country), including unique page views
  • The percentage of visitors from the target locale who access content in the local language and the average amount of time they spend on the site
  • Percentage of new versus recurring visitors for each target location
  • Percentage of localized versus non-localized pages that bounce
  • Percentage of visitors that convert to localized pages
  • Average visitor sales in the target location relative to other linguistic regions

Tip: It can be challenging to localize websites because you have to set up your site to support multiple languages, and there are sometimes many pages to modify. Some start by translating the most important pages, like the contact, about, and home pages.

2. Growth 

For overall business growth, it's helpful to track the following metrics:

  • Number of new customers in target locale
  • Amount of net revenue for localized pages
  • Average sales per customer in target locale
  • Active monthly customers in the target locale
  • Customer retention rate in target locale (month-over-month and year-over-year)
  • Market share of target locale

3. Digital Marketing 

In the modern market, how successful is your internet presence? Calculate these metrics to determine:

  • Open rates or click-through rates for email campaigns 
  • Ranking of SEO keywords with local search engines in target locations
  • Participation on social media in the target location
  • Sentiment analysis online 

4. Customer Experience 

Lastly, improving the customer experience is intrinsically linked to localization. According to a wealth of research, customers prefer to interact with and buy from businesses that speak to them in their local tongue. A Common Sense Advisory poll found that 75% of consumers are more inclined to purchase goods with information in their native tongue, and 60% of consumers who do not speak English as their first language rarely or never buy from websites that exclusively offer English. This illustrates how language localization may play a critical role in influencing consumer trust, engagement, and purchase decisions, particularly in international marketplaces. 

You can find out if your multilingual clients are becoming more happy with your localized brand by doing the following:

  • Better feedback from customers
  • Lower support calls; less requirement for customer support; decreased customer support tickets by language
  • Improved Net Promoter Score (NPS), etc.

5. ROI

Businesses can monitor revenue growth in local markets and conversion rates for language-specific content to determine whether localized adaptations increase sales. This allows them to calculate localization's return on investment (ROI). While the cost per new customer acquisition indicates whether localization lowers client growth costs, customer satisfaction, and retention rates demonstrate how well it fosters loyalty. Click-through rates and session duration are engagement measures that show whether local content is effective. Lastly, the market-specific Net Promoter Score (NPS) offers information on customer advocacy and satisfaction in certain areas.

This should help your localization program become more scalable and quantifiable!

Measuring your KPIs is essential for your company's long-term, broad expansion. By establishing quantifiable, realistic KPIs and monitoring them closely, you may find opportunities for development and guarantee alignment with your goals.

Through tech-enabled localization solutions, from technical setup to creative translation into more than 100 languages, Alconost aims to assist businesses in increasing their revenue in international markets.

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