When you want to start a localization project for your business, you need
to get the approval of your stakeholders. Even if you present them with the
myriad of benefits that come with localization, it may not be enough to
convince them to approve your project. After all, when resources are at
stake, the stakeholders want to ensure that they get bang for the buck.
How do you make the stakeholders see the potential of localization? By
showing them Return On Investment (ROI), they will see the advantages
localization has to offer to your business. Here are some data points about
localization ROI that you can show your stakeholders to convince them to
give you the green light for your project.
Internet World Stats
According to a study done by Internet World Stats in 2017
There are almost four billion users who use the internet on a regular
basis. However, when you take a look at the number of users that speak
English as their primary language, it only represents 25.5% of the internet
population. Chinese users represent 19.9%, Spanish stands at 8.1%, followed
by Arabic, Portuguese, Indonesian, Japanese, Russian, French, and German.
When you combine all the top 10 languages other than English, it represents
51.4% of the internet population.
Common Sense Advisory
Common Sense Advisory did a few studies which shine new light on the impact
of localization. They conducted
a research surveying 3,002 consumers from 10 countries
To see if companies will observe an increase in sales if they localize
their websites and products. According to the survey, 75% of the
participants said that they prefer the products offered by brands when they
are in the native language.
The survey shows that 56% of the participants either boycott URLs with the
English language or spend additional time on native language websites. Out
of the 3,002 participants, 30% of them will never invest their resources in
sites that only use English. Also, 29% of them barely purchase products and
services from such sites. It goes on to show that 50% of them prefer some
content or the navigation elements in websites to be in the native
Common Sense Advisory conducted another survey which
found that Fortune 500 companies reported higher revenue when they
invested in translation
According to this survey, businesses who increase the budget of
translation have 1.5 times higher chances that they will witness an
increase in revenue, unlike the Fortune 500 ones.
Fortune 500 companies are more likely to witness improvement in profits by
2.04 times and generate earnings per share (EPS) by 1.27 times when they
chose translation to stay ahead or keep with other competing businesses.
The chances of increasing revenue increases by 2.67 times, when companies
translate information for retaining and communicating with their partners.
Also, the chances of profit generation go up by 2.6 times when they utilize
When businesses increase their volume of content, there are 2.5 times
higher chances that they will see an improvement in profit margins.
Similarly, there are 1.8 times greater chances that they will witness
growth in revenue.
According to a research done by Appia
86% localized mobile advertising campaigns fare better than their English
counterparts, in conversions and click-throughs. Also, the research study
shows that the average Click Through Rate (CTR) and conversion rate of
English mobile advertisements are 2.35% and 7.47% respectively. However,
when those campaigns were localized, the CTR and conversion rates saw a 42%
and 22% increase respectively, reaching 3.34% and 9.08%.
The ROI of localization is enormous, which shows that you can no longer
ignore the many advantages which come with it. Make sure to show your
stakeholders these data points so that you can get their approval to start
your localization project!