Discover how localization boosts revenue, site traffic, and reduces costs. Learn from top companies’ ROI metrics and see why global expansion is key to growth. Find out the benefits of using TMS tools for faster, cost-effective international project launches.
Localization adapts your product, website, or app for foreign audiences—and unlocks global growth. English alone doesn’t cut it anymore.
But before you get approval for a big translation project, there’s always that question: “What’s the ROI?”
It’s tricky, but not impossible, to answer. Start by defining your business goals—like boosting app sales or improving SEO. Then, gather baseline data to show how adding a new language will pay off.
In this guide, we’ll break down how to calculate localization ROI, so you can make a clear, compelling case for fueling global growth.
Did you know that 75% of potential customers will move on if they can’t find information in their preferred language on your site? A multilingual website alone won’t sell your product or service, but you risk missing opportunities without it.
It’s a revenue enabler.
The challenge? Proving that localization is a more effective path to revenue than doubling down on English-only content. Localization ROI (return on investment) is a helpful metric for measuring the financial benefits of localizing your product, website, or app.
Fortunately, it’s incredibly rare for the ROI of localization to be negative. Once companies start translating, they almost always continue—because it works.
B2B leaders in a DeepL survey reported that localized content consistently improved their ROI:
"96% of respondents reported a positive ROI from localization efforts, and notably, 65% reported an ROI of 3x or greater.
-DeepL, Navigating the challenges of localization
According to Forrester Research, organizations that invest in localization report enormous ROI: increased capacity and speed, simpler workflows, and higher customer engagement and market penetration.
Although it’s important, localization ROI isn’t the only answer—it’s simply a tool to guide you toward the answer.
Apple CEO Tim Cook famously emphasized this during an investor meeting: “When we work on making our devices accessible by the blind, I don’t consider the bloody ROI.”
Similarly, making your product or website more accessible to people worldwide holds inherent value. But at most workplaces, you’ll still need to demonstrate why localization is an investment.
Data is key to creating meaningful metrics and proving ROI. Qualtrics, an experience management company, recently implemented a 'no-KPI-no-service' policy for new localization projects.
In an interview with Slator, Giulia Tarditi, Manager of Global Experience at Qualtrics, explained: “Our internal teams approach us for help with localization, but we won’t proceed until we’ve identified a way to measure the success of that initiative.”
For example, the success of a localized support page might be measured by tracking reductions in related support tickets. For an event landing page, the key metric could be paid user registrations, segmented by number and geographic distribution.
However, convincing internal teams to establish metrics isn’t always easy. “It’s a hard sell,” Tarditi admitted, “because you have to tell your stakeholders to test the heck out of this thing before localizing at scale.”
Tarditi emphasized the importance of metrics for the entire industry: “The more we discuss metrics as professionals, the better we’ll identify and measure what truly matters.” She concluded, “There’s no point in localizing into 25 languages if you haven’t proven that localization moves the needle for that specific content or initiative.”
Before launching a localization project, begin with good research and a solid content strategy.
Analyze site traffic using Google Analytics, market research, and tools like CSA Research's Global Revenue Forecaster to pinpoint demand and understand competitors' target markets. Prioritize regions where your solutions and services are most likely to succeed, especially outside English-speaking countries.
Data is your foundation. If visitors who speak Spanish frequently leave your site or abandon carts, it’s a clear signal to consider adding a new language.
The trends in countries with high English proficiency might also surprise you. Take Germany and Sweden, for example. Even where English is widely understood, consumers often prefer websites in their native language, especially if competitors are already offering translations.
After you define your strategy, start small with a pilot project. Localize one language, monitor key metrics, and refine your approach to steadily boost results.
For instance, The Standard Hotel used Localize to translate its site after expanding into Thailand, Spain, and The Maldives. After achieving a 23% increase in search discoverability, they expanded to even more languages.
Measuring ROI can take many forms, but the key is aligning with your leadership and what drives your business’s bottom line. This could mean tracking growth, market share, monthly revenue, app downloads, or customer sentiment.
For instance, if stakeholders prioritize mobile apps this year, focus on metrics like app store downloads and in-app purchases to gauge localization ROI.
Not sure where to begin? These metrics will guide you in measuring localization ROI effectively.
75% of online consumers prefer purchasing in their language, and localizing can significantly boost sales. Nimdzi Insights revealed that companies that invest in localization have 20-30% revenue growth.
Translating FAQs and help pages reduces expensive customer service calls and deflects support tickets. A study from DeepL showed automated translation tools led to 345% ROI, workflow cost savings of €227,430, and efficiency savings of €2.7m over three years at enterprise companies.
Slator reported that 96% of companies that use automated translation technology reported a positive ROI for localization projects, making it a key revenue driver for marketing departments. Machine translation can further add to efficient processes and cost savings.
Localization is a surefire way to increase brand visibility. This includes brand mentions, search visibility, and brand mentions in new countries.
A localized website boosts customer engagement by offering product information, reviews, and support in local languages. After translating its website with Localize, TICA grew international users by 100% and saw a 30% growth in global business.
Once you’ve chosen the metric to track, follow these steps to calculate localization ROI:
Use reports from Google Analytics, attribution modeling, or your translation management system (TMS) to set a baseline.
Include all project costs, such as translation, marketing, and associated expenses.
Measure the revenue or other benefits generated by the localized product.
For an ROI percentage, divide the added value by your localization costs, and multiply by 100.
Add new translated content and languages as needed, and experiment with A/B testing to fine-tune your new localized product.
There’s no one-size-fits-all formula for calculating localization ROI. However, it’s easy to identify the metrics stakeholders care about.
From there, you can build a solid business case for localization. Key metrics will vary by company and product, but remember: localization isn’t a sunk cost.
Tracking growth, conversions, and revenue can help your team understand the importance of multilingual websites, apps, and products. As long as you focus on your customers and meet their needs with a data-driven approach, that’s where the true impact happens.
Organizations that embrace localization technology—integrating people, processes, and workflows—often see remarkable ROI. Faster project delivery, streamlined workflows, and better customer engagement and market reach.
Trusted by global brands like Microsoft and Cisco, Localize offers a top-tier solution to simplify and streamline workflows. Whether it's for websites, software, mobile apps, or emails, we make translations fast, easy, and affordable.
Ready to elevate your localization strategy? Contact us to see how Localize can help your business grow globally.
Brandon Paton, CEO and founder of Localize, is dedicated to helping businesses extend their global reach through impactful localization strategies. His leadership drives Localize's mission to empower companies in managing multilingual content, enhancing their international presence and customer engagement.
Transform your event management journey from concept to analysis with Releventful. Elevate each step with our comprehensive tools designed for unforgettable event experiences.
Explore our features now!
.png)
