Online Retailers Must Prioritize Localization to Win Global Customers

Analysts share new figures every day that illustrate how consumers continue to order more and more products and services from the comfort of our own homes, making the most of online shopping days like Black Friday (UK), Cyber Monday (USA) and Singles Day (China).

One of the big challenges for online retailers today is trying to get a bigger slice of the pie in a competitive market. Many online retailers are missing out on attracting more customers due to lack of localization on their website and digital marketing campaigns. Data from CSA Research shows that consumers will resist buying in a language they can’t read or understand.

Three quarters of consumers prefer shopping in their mother tongue, and 80% of non-English speakers will only make a purchase in their own language when in a typical consumer environment. Global customers are being put off by being greeted with a foreign language when they land on a website’s homepage or encounter an unfamiliar payment system.

Developing local online retail experiences is one way to gain competitive advantage in a crowded market. Don’t alienate consumers with content that is not presented in their native language, make each brand interaction personal and in line with the language and cultural preferences of each local consumer.

A recent study by Ingenico epayments in conjunction with InternetRetailing, which surveyed European online retailers, indicated a lack of local consideration from many retailers when going international. The study found that “over two-thirds (69%) of respondents believe localization is very important or vital to success.” If a third of online retailers do not classify localization as important, this is a very big opportunity for those who do.

Prioritizing localization can give online retailers competitive advantage and create online consumer experiences that are “sticky” and increase overall engagement. The study also found that “67% of retailers tailor their payment options to each territory to some degree” and one in ten retailers are totally dissatisfied with their international payments. To reach global markets, the whole online retail experience has to be local and natural, including the payment system. If local consumers are not familiar or comfortable with an online payment system, they won’t click buy.

Online retailers have to address the complexities and risks involved in adding new countries to their global reach. Localization must not be an after-thought. It has to be part of an overall strategic discussion when discussing global growth.

As the trend for more advanced digitalized shopping and commerce experiences continues, emerging retail techniques drive retailers to stay competitive. Innovations like the Internet of Things (IoT) will spark a new age of digital shopping, as “digital” shopping becomes “automated” shopping.

Research by digital agency Salmon, suggests the 13% of UK shoppers are now ready for “smart shopping” and over half of UK consumers say they’ll be ready within the next two years. Your fridge runs out of milk and connected devices automatically reorder more milk — very smart shopping. E-commerce giants like Amazon are aligning activities for smart shopping with the development of the related Amazon Dash replenishment service.

The number of connected devices are growing and this is opening up possibilities for more e-commerce activities and opportunities for retailing. Online retailers have to drive a global strategy and prioritize international activities, at each layer of the process. To stay ahead of the competition in the future, they have to be in a position to embrace and integrate new technologies, such as IoT, and localization plays an important role throughout.

The “act global, think local” saying has never been truer in terms of online retailing. Brands have to be aware of the major benefits that localization can bring. Not in terms of just increasing profits alone, it is also in terms of building a strong loyal customer base that would not have been accessible 20 years ago.