Localization of software products and services takes a holistic approach to deliver information to recipients in various locations around the world, and doesn’t just translate text to different languages.

This concept of software localization can be understood by exploring a similar concept: the localization of news.

Big news stories are reported on all major networks. The main points of the stories recapped by these networks are the same, but the underlying facts and opinions are specific to residents of certain locations. For example, news of the COVID-19 pandemic was delivered all over the country, but it was localized to various regions in different ways. In areas with higher infection rates, the news was delivered with a sense of urgency—more information on hospitalization and CDC guidelines were shared. On the other hand, in areas where people were less concerned, the news was delivered lightly, with a lesser sense of urgency. 

While the news was delivered to everyone, it was localized to take into account how it would best be received by different locations.

Localization in the world of tech

In a technological context, localization can be viewed similarly. Localization means adopting products and services to a target market's cultural and linguistic specifics. It includes adapting the user interface, payment options, images, formatting, wording, and more to accommodate local preferences and conventions. To make it easier for businesses to localize their products and services, they can utilize localization software.

G2 data from the past three years shows a significant increase in the number of unique page views for numerous sub-categories in G2’s Localization category, especially from mid-2020 to mid-2021. The Software Localization Tools category more than quadrupled its traffic to become G2’s most popular Localization category, while both the Computer-Assisted Translation (CAT) category and the Machine Translation category almost doubled their traffic in that time frame. 

CAT software translates one language to another using translation memory—which stores previously translated texts—or crowd assistance to provide translations that are consistent with previously used language to ensure proper spelling, grammar, and phrasing, while machine translation software automates the process of translating text from one language to another with the most basic software relying strictly on word-for-word substitution.

I’d like to stop attributing all drastic traffic trends to the pandemic, but this trend is no different. While there are, of course, multiple factors at play—globalization and digitalization, to name a couple—these factors have been reinforced and accelerated by the pandemic. More businesses are moving online, which makes it easier for them to shift into foreign markets, thus the need for more localization software, which explains the increased traffic to these categories.

While opening up new markets means more revenue streams, there are several obstacles businesses face before becoming an established player in a foreign market.

Localization for global businesses: things to keep in mind

Choosing the right market

Before starting to do business in another market, businesses need to decide whether it’s the right market for their product. This starts with taking a look at the consumers in that market to make sure they will want to and be able to purchase the product. There needs to be a substantial enough demand for the product, and consumers in the market need to have the purchasing power to match their demand. 

Physical attainability

What are the means to get the products to these local markets? Are there import or export requirements or customs laws to deal with? Which sales channels to use to reach the consumer? What payment methods do consumers in that market have access to? Each market has different sales and marketing norms, so businesses must do due diligence to find out how they can most effectively reach their customers; and how customers can most easily access their products.

Linguistic accessibility

This might be an obvious one, but it’s important to state! While English is the most widely spoken language, it still only accounts for around 20% of the world’s population. Many of those who speak English as a second language may prefer to read product information and reviews in their native language. Localization software can help translate text to local languages in a way that accounts for local speaking conventions.

Cultural accommodation

This is probably the hardest to nail. In a foreign market, there is competition with foreign and domestic competitors. Local players will naturally understand and connect with their customers better than foreign businesses will. Therefore, it’s important to take the time to understand cultural norms. Certain symbols and colors can be perceived in negative ways, so it is important to avoid those in the logo, packaging, website, etc. Some cultures can be skeptical of foreign products, so businesses need to alter their content to address each of these concerns. Localization software can help to select culturally appropriate fonts, colors, and images as well.

Meet consumers where they are

Businesses need to stop making assumptions about the expectations of customers in foreign markets. There are more than enough products in the world, and customers have higher standards than ever. Businesses need to give people a reason to buy and show them that they have taken the time to understand their needs, their culture, and their way of life. A great way to start doing this is to explore G2’s localization categories and learn how software can automate important parts of the localization process.