The enterprise guide to localization strategy: from planning to profit

A localization strategy is a structured plan for adapting products and messaging to different international markets. It aims to deliver consistent experiences for all customers, regardless of their language or culture.

A SaaS brand’s localization strategy, for example, would involve translating marketing content, product user interfaces, legal documents, and support content for all its target markets.

Read on to learn more and pick up some valuable localization tips.

Every successful localization strategy rests on the same five interconnected pillars. 

Nail these and you’ll have a system that supports and grows alongside your international expansion, maintaining quality and efficiency at every stage.

Balance is essential. So, how do you start homing in on the right mix of difficulty and opportunity? 

Prioritize effectively by scoring each potential market on three key factors:

• Opportunity size (market demand, revenue potential, user base)
• Localization complexity (languages, cultural nuance, regulatory barriers)
• Strategic alignment (fit with your product, existing presence, long-term goals)

Use a traffic-light system to help build your shortlist: green for high-potential/low-effort, yellow for moderate, red for high effort or low return. Assign each market a score for the three categories and combine them to find your top candidates.

For example, here’s how Germany could score for you:

Mostly green is promising. This market has great localization potential, so go forth with confidence.

Without clear governance, teams create source materials that are nearly impossible to localize. 

Picture this: marketing writes region-specific web copy. Product teams design UIs that can’t handle longer languages. Legal creates compliance documents packed with local references.

The result? Inconsistent content and launch delays as teams rush to rewrite assets on the fly.

Smart content governance centers on three core areas that stop these costly obstacles in their tracks.

Create original materials that are clear and concise as well as culturally neutral to ease localization later. 

Strong editorial processes ensure content is ready for translation without extensive rework. 

Brand guidelines keep tone of voice and visual elements consistent across markets. Content localization should reflect your brand, not dilute it.

Establish clear review and approval processes that specify who signs off on what, when, and how. You’ll need these at both the original creation and later translation stages. 

In XTM Cloud, configurable workflows can automate these approval chains, reducing drag while maintaining accountability.

Pair this automation with shared glossaries and AI translation memories to effortlessly keep key phrases consistent.

Focus on high-impact assets first: homepages, key product pages, conversion-critical web forms, and customer support content directly affecting user experience.

Then, consider international search engine optimization (SEO). Learn what different markets search for so you can prioritize the most relevant content and grow visibility. Enlist marketing to help.

Ultimately, the more structure you build into content creation and asset management, the more efficient localization becomes.

The right software choices will turn localization chaos into a smooth, scalable operation.

You want systems that support how you work. Good tech solves localization problems; it doesn’t create new ones. And if new software makes an existing job easier, your team’s more likely to adopt it. Everyone wins.

Start by tracking how content moves through your organization. Who creates it? Who signs off? When does translation take place? Where do delays stress everyone out?

Chances are that translation speed isn’t your biggest time-waster. Handoffs between systems or manual file management are more likely to slow things down, so focus on localization tools that fix those problems.

For example, XTM Cloud eliminates those friction points by centralizing localization processes.

Vendors submit projects directly (via XTRF), reviewers see translations in context (using Rigi), and approved assets flow back to your favorite content management system (CMS) thanks to XTM Connect (more on this below). Everything moves like clockwork.

Here’s what Andreas Ljungström, Senior Manager Solutions Engineering at XTM, says about the benefits of centralization:

Your translation management system (TMS) should connect seamlessly with your existing content ecosystem through ready-made integrations or robust APIs.

Only you’ll know which tools matter most to your business, but these are solid starting points:

• Your CMS, so you can sync content updates automatically
• Project management tools to track deadlines and align teams
• Specialized industry software, like dev tools or social media apps, to extract content from source locations with ease

The less your team has to copy or chase files across tools, the faster and more accurately content moves through the pipeline. It helps localization keep pace with the rest of the business.

Gartner reports that almost half of digital workers have a hard time locating the information they need to do their jobs well. Simplifying the flow of data through integrated applications solves that issue.

Your goal when building a tech stack isn’t replacing human translators. It’s freeing them from repetitive admin so they can use their time effectively. Make their lives easier, and they’ll achieve more for the business. Simple.

The best translation automation tools handle jobs like file prep, translation memory matching, quality checks, and project updates, allowing translators to focus on ensuring that their messaging connects with local audiences.

Take XTM Cloud, for instance. Its AI SmartContext feature uses large language models (LLMs) and translation memory to deliver high-quality, context-aware translations.

The TMS automatically assigns work to the right linguists. It also applies your brand glossaries and flags possible issues before human reviewers see them. They work faster, projects run more smoothly, everyone’s happier.

Agentic AI xaia takes automation even further, acting as a co-pilot across your localization workflow. Real-time quality estimation, AI-driven task routing, intelligent issue resolution – it all helps teams move faster without compromising accuracy.

Setting up an effective localization team means creating roles that boost your strengths and capacity while maintaining quality control and flexibility.

At this stage, most global brands face the same fundamental dilemma: build internal expertise or get external vendors on board?

The right choice comes down less to budget and more to how localization fits your broader business and marketing strategies. However, a mix of high-quality internal and external talent typically works best.

Why? Because:

• Your internal team (project managers, quality assurance, etc.) understands your brand, product, and priorities like no one else
• External translators bring cultural knowledge and linguistic skills that are tough to maintain in-house

In this setup, the internal localization manager becomes a strategic coordinator, ensuring brand consistency and managing vendor relationships. They don’t need to speak 12 languages, but rather understand your content and target demographic.

External LSPs handle the heavy lifting of translation and transcreation. They have local market knowledge and niche subject matter expertise on tap, helping you build trust in foreign markets. 

Outside partners also bring scalability. As your localization needs grow, you can ramp up output without stretching your internal team too thin or committing to new hires.

Managing a hybrid setup like this demands a solid tech foundation. 

A cloud-based TMS like XTM simplifies vendor collaboration and gives your internal experts complete control over quality standards and project timelines. 

XTRF, meanwhile, supports vendor management. It lets you track performance, rates, availability, and payments from a single interface, like this:

Your strategy is in motion. Now, make sure it works.

That means defining clear key performance indicators (KPIs) and tracking activity across every stage of the localization process to measure localization ROI.

Start with the basics. Ask yourself these questions:

• Are we meeting project timelines? 
• Are localization costs in line with our budget?
• Are our stakeholders happy?

Then look at how localized content performs in the wild. Check that translated marketing campaigns convert. Make sure localized web pages hold visitor attention. Local customers should consistently engage with your content, not bounce away.

Tracking performance across all your target markets helps you spot what’s working and where to improve. 

More specifically, focus on these metrics:

• Engagement with localized marketing materials (e.g., shares and sign-ups)
• Bounce and conversion rates on regional landing pages
• Support ticket deflection in local language self-service portals
• Market share growth in newly localized regions
• Feedback from the local customer base

Use the data you collect to keep tweaking your strategy. A/B test messaging. Adjust pricing if needed. Revisit your market research. The finest detail can make a world of difference when targeting a new audience.