Localization ROI

Introduction

Nobody buys a product or service just because it is available in their language. But if it isn’t, you risk missing valuable opportunities to grow and sell internationally.  Translation isn’t just about converting words from one language to another—it’s about making content culturally relevant and easy to understand. The CSA research report Can’t Read, Won’t Buy has consistently shown that 76% of potential customers will abandon a brand if information about it isn’t available in their language. The same study also found that customers are far more likely to purchase when product details are localized into their own language when shopping online (“Eternal Truths of the Global Customer Experience“).

At a time when artificial intelligence is entering every corner of our lives—and promising instant solutions at the touch of a button—many companies wonder whether it still makes sense to invest in human talent to communicate with their customers. The reality is that an effective multilingual communication strategy requires analysis, judgment, and professional expertise.

How to Define and Calculate ROI in Localization

Identifying and demonstrating the return on investment (ROI) in localization is essential. It quantifies the benefits of a given investment, helps assess profitability and make more informed budgeting decisions. In the language services industry, where pressure to cut costs coexists with the need to maintain quality, proving the tangible business value of translating and localizing content for new markets is more important than ever. This often means comparing approaches such as machine translation with post-editing versus full human translation—depending on business goals.

To measure ROI in translation, two factors must be demonstrated:

1. The set of languages you translate into generates significant income.
2. Translating marketing and support content is the most cost-effective way to achieve that revenue.

In addition, ROI in localization also includes qualitative benefits, such as building trust and fostering a deeper connection with users.

• The Basic Formula for ROI: ROI = (Value generated – Total Costs) ÷ Total Costs
• But this formula should be broadened to include tangible benefits (sales, traffic) and qualitative gains (trust, connection).

1. Market-specific revenue growth following a localization launch
2. Conversion rates on localized vs. non-localized pages
3. Average order value in local markets
4. Lead generation from localized content
5. Market penetration rates
6. Length of sales cycle in localized markets

Clear Objectives and KPIs (qualitative and quantitative)

Set clear objectives (market expansion, engagement, faster delivery) and then select the KPIs that will help you measure results. As noted above, ROI includes both quantitative and qualitative indicators:

1. Increased sales in localized markets
2. Organic traffic growth after localization
3. Conversion rate and page-level performance
4. Brand perception and customer satisfaction

Estimating Total Costs in Hybrid Workflows (AI + Human)

• Direct costs: translation (per word), post‑editing, project management
• Indirect costs: technology (TMS), QA, support, multimedia localization, DTP.

For example, HP saved 25% on projects using MTPE after implementing MTPE for software and firmware projects.

Concrete Results of Investing in Localization

The measurable results a B2B company can obtain by strategically investing in localization and translation (especially with a hybrid AI + human model) vary by industry. But in general, companies can expect the following benefits:

1. Increased revenues in international markets

• More sales in regions where content is linguistically and culturally adapted
• Higher conversion rates on localized pages

Business Money reported that advanced localization strategies allow companies to achieve conversion rates 2.5 times higher and enter new markets 30% faster.

For example, Creately, a visual diagramming platform, increased its traffic by 800,000 monthly visits after localizing its content. This growth reflects the significant impact of investing in localized content in attracting international audiences.

2. Reduced customer service and support costs

• Fewer tickets or errors caused by misunderstood instructions
• Customers resolve questions on their own thanks to localized self-service content (knowledge bases, FAQs, videos)

For example, the company DISH Digital Solutions implemented a centralized, multilingual knowledge base, resulting in:

• A 15% reduction in total support tickets in just 3 months
• More than 1,000 tickets diverted monthly to self-service solutions

3. Improved multilingual SEO

• Increased organic traffic from local search engines using adapted keywords
• Stronger domain authority and brand visibility

4. Faster time-to-market for global launches

• AI + human post-editing enables campaigns to reach each market sooner without compromising quality
• Competitive agility is gained

5. Increased engagement and retention

• Customers feel understood in their own language and culture, driving stronger loyalty
• Higher retention rates for products with dynamic content (apps, platforms, games, etc.)

6. Strategic and reputational value

• High-quality localization demonstrates professionalism, cultural respect, and commitment to the customer experience
• Improves brand awareness in key markets

7. Operational efficiency and error reduction

• Automated, human-controlled workflows reduce rework, inconsistencies, and turnaround times
• Linguistic assets are built that lower future costs

For example, Markforged optimized its global processes by updating and consolidating its translation memories and terminology glossaries with the help of LocalizationLab. This effort unified resources from different providers, ensured consistency in communication, and at the same time, reduced both costs and turnaround times through validated content.

Conclusion

In today’s highly competitive global environment, localization can no longer be viewed as an operational expense. It is a strategic investment with a direct impact on revenue, efficiency, and brand positioning. Translation alone is not enough. What matters is delivering relevant, consistent, and culturally adapted experiences that build trust and turn opportunities into sales.

Measuring the ROI of localization allows companies to make data-driven decisions, optimize resources, and justify budgets with clear evidence-based results. Whether through hybrid models that combine artificial intelligence and human review, or through high-quality specialized translations, the goal remains the same: to maximize the business value of every word and every customer interaction.

Companies that recognize this not only reduce costs and risks, but also achieve sustainable growth in new markets. Because in today’s global economy, the real differentiator is not simply speaking the customer’s language, but doing so with precision, context, and strategic business insight.

LocalizationLab Team

Image by Enamo Studios