Expanding Internationally? Language Proficiency Should Be a Brand Priority

Globalization has brought businesses closer than ever. As technology has made it easy for people to connect across continents, international expansion sounds like a dream come true for a brand to increase market share and explore other revenue sources. However, it doesn’t have to be enough to get abroad with a good product or service. Fine-tuning by language and cultural nuances leads to brand customer interaction becoming highly success-driven. Therefore, any brand that wishes to make a global mark must first focus on language proficiency and the culture.

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The Importance of the Human Touch in Brand-Customer Interactions

Today, brand-customer interaction is increasingly enabled with technology, and that makes our digital age. There is no shortage of automated channels for businesses to reach and engage customers: chatbots, messaging apps, and social media. But the human touch is still important when going into new linguistic and cultural contexts.

Brands that provide a touchpoint of the human touch, in terms of themselves chatting directly to customers who are talking to them in their own languages and cultures, build trust, loyalty, and revenue growth. However, the lack of linguo-cultural knowledge, such as understanding the nuances of a C2 English level, can lead to disengaging the customers and diluting brand equity in the foreign markets.

63% of consumers say they would ditch a brand if they did not feel connected enough on a personal level. The connection, however, has to do with language proficiency and cultural awareness in human interactions.

Language Barriers Lead to Lost Revenue

When expanding internationally, language and cultural barriers can significantly impact revenue if brands are unable to forge meaningful connections with foreign customers.

A European Commission study found that nearly 18% of multinational companies suffered lost revenue due to language and cultural gaps. In Europe alone, 11.5 million customers do not buy products and services in English.

Likewise, a study by the American Council on the Teaching of Foreign Languages (ACTFL) revealed that one in four U.S. employers (25%) reported losing business opportunities because of insufficient foreign language skills among employees.

With linguo-cultural gaps causing brands to leave money on the table, language proficiency and cultural awareness should be strategic imperatives for expanding internationally.

Language Proficiency Enables Brand-Customer Intimacy

Language is more than just words. It carries the culture, emotions, and values of the people who speak it. Being able to connect with foreign customers in their native language allows brands to forge intimate, culturally relevant relationships that drive engagement and sales abroad.

According to a CSA report, customers are 75% more likely to buy from brands that interact with them in their native language. Why such a strong preference? Language proficiency demonstrates a brand’s commitment to understanding customers at a deeper, more intimate level.

Likewise, 68% of customers feel more loyal towards brands that respect their linguistic preferences. And another study found the ability to speak the local language boosts brand trust by 70% overseas.

Evidently, mastering the native tongue helps brands move beyond superficial transactions to build affinity and lifetime customer relationships internationally. 

Cultural Sensitivity Matters

Language proficiency alone is not enough. Brand messaging and customer interactions also need cultural attunement, i.e, adapting communications for each unique linguo-cultural context.

Seemingly innocuous content can spark backlash abroad if deemed inappropriate per local cultural norms. For instance, imagery of feet may be offensive in some Middle Eastern countries. Or celebrity endorsements may flop due to differing perceptions of attractiveness worldwide.

Likewise, the cultural values attached to certain languages also impact marketing success. An assertive, high-power-distance approach may work for English campaigns but could disengage audiences in Japan and Korea, which prefer subtle, indirect communications.

Essentially, global brands need linguistic skills coupled with market-specific cultural knowledge to craft relevant messaging that resonates across geographies. Those that fail to do so risk a public relations nightmare, which negatively impacts market share and bottom lines.

Cultivating a Multilingual, Multi-Cultural Talent Pool

Given the business imperatives, how can brands expand their linguistic and cultural capabilities? The answer lies in building a diverse, global talent pool.

To engage diverse markets effectively, it’s important to hire multilingual workers who have international experience with cultural training. Linguistic skills combined with regional milestones enable brands to form easy-to-understand and relevant relationships with all customers around the globe.

Likewise, having international employees across functions also helps in making business operations smooth globally. UX support for multilingual tech teams can be provided worldwide, while foreign sales reps can easily communicate with partners abroad to expand distribution channels.

In essence, a globally diverse workforce not only enables impactful brand-customer interactions but also streamlines internal business functions across geographies. 

Leverage Technology, But Don’t Lose the Human Touch

While technology has opened new digital channels for global outreach, nothing replaces the human touch shaped by language and culture. In fact, most consumers still prefer human interactions for complex queries and relationship building.

So while chatbots and messaging apps have their place driving simple transactions, complex engagement and lifetime relationships still require linguistically and culturally adept human interactions. Global brands should enable customers worldwide to connect with representatives fluent in their language when needed.

Choose Partners With Linguistic and Cultural Mastery

Very few brands can realistically build in-house language expertise across every market they expand into. A pragmatic approach is partnering with specialist language service providers (LSPs).

LSPs enable brands to plug capability gaps quickly so they can engage global audiences without delays. With a network of in-country, native-speaking linguists, LSPs provide end-to-end language support across functions:

• Marketing. Multilingual content creation, transcreation, SEO, and social media management
• Customer Support. In-language customer care via call centers and messaging apps
• E-commerce. Product catalogs, listings, UI/UX localization across platforms
• Analytics. Multilingual social listening, online reputation management, and more

Additionally, seasoned LSPs also offer in-depth cultural consulting to help brands adapt branding, offerings, and engagement to resonate locally. Such end-to-end language and market support allows brands to scale faster globally through an outsourced specialized partner.

Invest Early for International Expansion Preparedness

Expanding overseas can be alluring but requires strategic investment in core language and cultural capabilities early on. The initial funding may pinch budgets, but it pays off exponentially in the long run.

According to Common Sense Advisory, companies that prepare for multilingual demands see 1.5 times faster revenue growth overseas than those that don’t. The data makes a strong case for allocating budget towards language resources before eyeing global frontiers.

Likewise, McKinsey advocates having key international hires in place at least 1-2 years before expanding abroad. This allows sufficient time for global team members to build market and cultural expertise needed to drive offshore success.

While the exact investment sweet spot differs by company size and target markets, the ROI from early capability building is universally compelling. For most, though, partnering with LSPs while nurturing an internal global talent pool works well for market entry agility and sustained international growth.

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The Competitive Advantage of Linguo-Cultural Mastery

In our digitally transformed world, mastering language and culture is no longer optional – it is an indispensable capability brands need to drive meaningful human connections with customers worldwide.

Without investing in multilingual, culturally attuned talent and partnerships early on, brands risk lackluster offshore growth or complete overseas failures. However, those who respect linguistic preferences and cultural nuances across markets reap lucrative rewards.

Multilingual digital experiences are said to yield up to a 40 percent increase in conversion rates overseas, according to Common Sense Advisory. That’s why linguo-culturally advanced brands reap, on average, 20–35 percent more revenue internationally than their monolingual peers.

In today’s global connectivity, customers expect every brand to speak the right language and understand a global customer’s culture. As other brands fall behind, the brands that keep investing in this competitive capability will gain market share.

As a result, small businesses embarking on their first overseas step or Fortune 500s trying to dominate on a global scale should make language proficiency and cultural mastery a strategic imperative from day one. This futureproofs your brand for exponential global expansion for decades to come.