A recent report from RWS the main points the importance of localization, revealing that over four-fifths of consumers are less likely to buy from brands that do not offer local language support.

Also, 93% of consumers believe that companies should communicate in their preferred languages ​​across all channels to effectively reach a global audience.

1. Identify the obstacles

Before starting localization efforts, it is essential to define the customer journey for your target market. This includes understanding 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 barriers, you can tailor your localization strategy to address specific challenges and improve the overall customer experience.

Despite entering the UK market without extensive research, Flowwow soon ran into challenges with address selection. We found that UK consumers were used to searching for addresses by postcode, a system incompatible with their existing platform. This oversight caused a negative user experience, resulting in a drop in completed purchases as customers needed help navigating the website.

2. Prioritize accurate translations

While translation is a fundamental aspect of localization, it's crucial to ensure that your content is culturally appropriate, resonates with your target audience, and effectively conveys your brand message. Partner with local translators who deeply understand the target market and consider having some translators review it.

Airbnb, a global leader in the hospitality industry, demonstrates SIGNIFICANCE 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 deliver relevant and localized content to users around the world. 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 coming together to grow local economies

3. Customize payment systems

Studies show that 21% of European consumers abandon purchases if checkout lasts more than a minute. Furthermore, 15% of European consumers leave their shopping carts online when they prefer payment method is unavailable. Businesses can significantly reduce cart abandonment rates and increase conversions by offering a variety of payment options (Stripe, PayPal, to name a few).

4. Develop a tailored pricing strategy

It is essential to understand yours target market purchasing power, competitive landscape, local preferences and economic conditions to set competitive prices and avoid overcharging or undercharging. Conduct thorough market research to gather data on consumer behavior, income levels, and price trends.

Two common pricing strategies include:

• Dumping: Active discounting of 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.

5. Rethink product categories

Customize your product categories based on complete 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 specific taste of Indian and Malaysian consumers. They introduced pizza flavors to India such as 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 'hinder 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 legal and regulatory hurdles

One of the most important challenges businesses face when expanding internationally is navigating the complex legal and regulatory landscape of different regions. Thorough research is essential to understand 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 GDPR, one of the strictest 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. Continue localization

Remember, localization is an ongoing process that requires constant 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 up-to-date on cultural trends and language changes is essential to ensure 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 enough to justify the significant investment in resources and time.

By investing in high-quality, consistent localization at all levels, businesses can effectively adapt their brands to new markets, build trust with local consumers, and achieve sustainable growth.