arketing localization is here, and myriad factors are driving the shift. A new study released by the CMO Council reviewed the trends in marketing localization as measured by CMO’s.
CMO Council study highlights
- 86% percent of marketers intend to look for better ways to better modify, adapt, and localize their marketing content, messaging, and prospect engagement practices
- 49% of respondents said localized marketing is essential to growth and profitability
- Nearly 50% of respondents said that they are underperforming or need new strategic thinking in the area of localized marketing
CMS Wire reports two chief factors driving adoption of marketing localization strategies:
1. The growing amount of information available online is leading more consumers to choose how, when, and from whom they will obtain information during pre-purchase
2. Buyers are becoming less receptive to generic advertising messages due to increasing advertising clutter
The above factors offer important insights into our response. For example, marketing strategies such as retargeting, while effective, may no longer be sufficient because customers are less receptive to generic messages, which is why localization – the process of using available segment data and factors such as demographics, shopper-graphics, psychographics and ethnic composition (to name just a few) in delivering highly relevant and customized marketing messages – has become so important.
According to the CMO Council study, the most preferred channels cited among companies currently using marketing localization strategies are:
|Experiential and relationship-building events||57%|
|Public relations/CSR projects||45%|
|Mobile & electronic messaging||44%|
What’s compelling about these channels is that relationship-building events and activities lead all other marketing channels in marketing localization, which suggests person-to-person interaction as an effective strategy towards understanding local markets and buyers. Additionally, all of the most preferred channels above nurture ongoing relationships with customers and prospects. Segment-level data and insights can be gleaned from prospect relationships as they are nurtured over time, ultimately making marketing messages increasingly more relevant over time.
Localization requires cultivating a deep knowledge of local markets and local buyers, and globalization increases the complexity of localization, as the need to adapt messages to local markets and buyers is critical to demonstrate cultural sensitivity. In addition to understanding cultural nuances, it’s also important to make sure your products and services are first tailored to the market before localizing and adapting your messages. Our next blog, Why Localization Matters – Part 2, will discuss strategies for understanding local markets and buyers and technologies that enable marketing localization.
According to the CMO Council study, marketing localization is on the agenda of 50% or more CMO’s who said that they are underperforming or need new strategic thinking in the area of localized marketing. With consumers increasingly conducting pre-purchase research online, and given the barrage of advertising clutter targeted at consumers on a daily basis, delivering relevant and customized marketing messages with a localized approach has never been more important. The benefits of localization as revealed in the study are significant:
- Greater customization, relevance, response and return
- Better customer conversions and connectivity
- Improved loyalty and advocacy
- Brand differentiation, distinction and preference
How important is marketing localization to your business in the age of globalization? Even if you’re not a global company, how could you apply localization in your target markets using geographic and psychographic data?