Securing investment for global expansion requires a business case that frames localization not as a cost center, but as a strategic driver of revenue. A well-structured document is essential to articulate the return on investment (ROI) and align the initiative with core company objectives. It provides a comprehensive framework linking translation and cultural adaptation to tangible business outcomes, such as market share growth, increased customer engagement, and higher conversion rates. This template provides a clear, actionable framework for building a compelling localization business case and securing executive buy-in.
Building a compelling localization business case
A localization business case justifies the investment in adapting products and content for specific regional markets. Its purpose is to demonstrate value and secure funding by connecting localization activities to strategic business goals. It moves the conversation from “how much will it cost?” to “what revenue will it generate?”. A powerful business case is data-driven, aligns with executive priorities, and clearly outlines the opportunities, costs, benefits, and risks.
Market opportunity analysis
The first step is to quantify the demand. This section should provide a clear picture of the potential return from your target markets. A successful example of this is how Airbnb was able to reach over 30 new markets by implementing a smart localization strategy, as detailed in the Airbnb language expansion case study.
Target markets and languages
Identify and prioritize the specific countries or regions for localization. Use data to support your choices.
- Market Prioritization: Rank markets based on metrics like Total Addressable Market (TAM), competitive voids, and strategic importance.
- Language Tiers: Group target languages into tiers (e.g., Tier 1: Top priority, Tier 2: Phased rollout) based on the number of speakers, online purchasing power, and strategic value.
Market size and demographics
Provide data on the potential customer base and economic indicators for your prioritized markets leveraging the Translated’s T-index
- Online Population: Detail the number of internet users and their primary languages.
- Economic Indicators: Include GDP, consumer spending habits, and market growth projections.
Customer preference data
Emphasize that customers overwhelmingly prefer content in their native language.
- Purchase Intent: Cite statistics, such as “75% of consumers are more likely to buy a product from a website in their own language.” (CSA Research)
- Brand Trust: Explain how localized content builds trust and credibility, leading to higher engagement and loyalty.
Competitive landscape
Analyze your competitors’ localization efforts in the target markets.
- Competitor Presence: Identify which competitors are already localized in each market.
- Opportunity Gaps: Pinpoint markets where competitors have a weak presence or poor-quality localization, representing an opportunity for you to capture market share.
Cost-benefit analysis framework
This section presents the financial justification for the localization project. The goal is to demonstrate that the value generated will significantly exceed the costs.
Benefits (the value of localization)
Detail the expected advantages, categorizing them into quantifiable and qualitative benefits.
Quantifiable benefits
- Increased Sales Revenue: Project revenue growth from new markets based on market size and estimated conversion rates.
- Expanded Market Share: Estimate the percentage of market share you can capture in each target region.
- Improved Conversion Rates: Forecast higher conversion rates on localized websites, apps, and marketing campaigns.
- Reduced Customer Acquisition Cost (CAC): Show how localized marketing can lower the cost of acquiring new customers.
- Decreased Support Costs: Anticipate a reduction in support tickets due to clearer, localized product information and FAQs.
Qualitative benefits
- Enhanced Customer Experience: A fully localized journey fosters a deeper connection with users.
- Stronger Brand Image: Demonstrates a commitment to global customers, building trust and credibility.
- Competitive Advantage: Overtake competitors who have underinvested in localization.
- Compliance with Local Regulations: Ensure adherence to local laws and standards, avoiding potential fines.
Costs (the investment in localization)
Provide a transparent breakdown of all anticipated costs. Using a platform like TranslationOS can help manage and track these costs efficiently, while advanced AI translation models like Lara can significantly reduce the direct costs of translation over time.
Direct costs
- Translation and Editing: Per-word rates based on language pairs and content volume.
- Localization Engineering: Preparing content and code for translation (internationalization).
- Quality Assurance (QA): Linguistic and functional testing to ensure accuracy.
- Project Management: Internal or external resources to manage the workflow.
- Technology & Tools: Investment in a Translation Management System (TMS) or other platforms.
- Design and DTP: Adjusting layouts and graphics for different languages.
Indirect costs
- Internal Team Time: Time spent by product, marketing, and legal teams.
- Market Research: Initial analysis and ongoing monitoring.
- Local Customer Support: Staffing and training for new languages.
Risk assessment and mitigation
Identify potential risks and outline clear strategies to minimize their impact. This demonstrates foresight and builds confidence with stakeholders. Understanding the impact of generative AI on globalization and localization teams is also crucial for future-proofing your strategy.
| Risk | Mitigation Strategy |
|---|---|
| Poor Translation Quality | Implement a robust QA process with professional, in-country linguists. Use translation memories, glossaries, and style guides to ensure consistency. |
| Budget Overruns | Conduct detailed cost estimations upfront. Use a phased rollout approach to manage spending. Continuously monitor project costs. |
| Delayed Time-to-Market | Streamline workflows with a centralized AI-first localization platform like TranslationOS. Use a mix of human and AI translation to optimize for speed and quality. |
| Inconsistent Brand Voice | Develop comprehensive brand style guides for each target market. Use transcreation for high-impact marketing content to ensure cultural relevance. |
| Technical Integration Issues | Plan for internationalization (i18n) early in the development cycle. Allocate dedicated engineering resources for localization support. |
Implementation timeline and milestones
Provide a high-level project timeline with key phases and measurable milestones.
- Phase 1: Planning & Setup (Weeks 1-4)
- Milestones: Finalize market and language priorities, select translation vendor/partner, set up TMS and workflows, complete legal and compliance review.
- Phase 2: Content Preparation & Translation (Weeks 5-10)
- Milestones: Complete internationalization of code, extract all content for translation, complete translation and review for Tier 1 languages.
- Phase 3: Deployment & Launch (Weeks 11-12)
- Milestones: Complete linguistic and functional QA, deploy localized content to production, launch in Tier 1 markets.
- Phase 4: Post-Launch Monitoring & Optimization (Ongoing)
- Milestones: Begin tracking KPIs, gather customer feedback, plan for Tier 2 language rollout.
Success metrics and kpis
Define the specific, measurable KPIs you will use to track the success of the localization initiative.
Business and revenue kpis
- Sales Revenue: Revenue generated from localized markets.
- Conversion Rates: Percentage of users who complete a desired action (e.g., purchase, sign-up) on localized pages.
- Localization ROI: Calculated as [(Value – Cost) / Cost] * 100%.
Website and engagement kpis
- Organic Traffic: Increase in website traffic from target regions.
- Bounce Rate: A lower bounce rate on localized pages.
- Time on Page: Higher engagement with localized content.
Customer experience kpis
- Customer Satisfaction (CSAT): Survey scores from users in localized markets.
- Net Promoter Score (NPS): Market-specific NPS to measure customer loyalty.
- Customer Support Tickets: Reduction in support inquiries from localized markets.
Executive summary template
The executive summary should be a concise, powerful overview of the entire business case. Write it last, but place it first in your document.
Objective: To secure an investment of [$Amount] to fund the localization of [Product/Service Name] into [Number] priority languages, targeting [List of Target Markets].
Opportunity: These markets represent a combined Total Addressable Market (TAM) of [$TAM] with [Number] online consumers. Data shows that localizing our content will increase our conversion rate by an estimated [X]% and capture [Y]% of the available market share currently underserved by competitors.
Proposed Solution: We will execute a phased localization strategy, starting with [Tier 1 Languages]. The project will be managed through TranslationOS to ensure efficiency and will leverage a combination of AI-powered translation with Lara and expert human linguists to ensure quality and brand consistency.
Financial Summary:
- Total Estimated Cost: [$Cost]
- Expected Benefits (Year 1): [$Benefit]
- Projected ROI: [Z]%
- Break-Even Point: [Number] months
Recommendation: We recommend approving this localization initiative to unlock significant global revenue opportunities, strengthen our brand presence, and establish a competitive advantage in key international markets.