For companies with e-commerce channels, it’s important to create a personalized experience for your customers. It really is the next frontier of value creation in a hyper competitive market. However, research has shown that localization – the process of adapting a website or product to a specific country or region – can have a much greater impact on sales and customer satisfaction than personalization. In this post, we’ll explore why localization is more important than personalization in e-commerce, and how it can drive significant results for your business.

1. Localized payment methods drive higher conversion rates:  75% of customers acknowledge that the payment process is essential to the shopping experience. In fact, over 50% said they had not completed a purchase because there was not a specific local payment method. This is because customers are more likely to complete a purchase if they can use a payment method that they trust and are familiar with. You need to remove the essential barriers to transacting with your site before you begin to make significant investments in personalization.
2. Localized languages improve user experience: Another important aspect of localization is the ability to offer your website in the language of the country or region you are targeting. A recent survey found that over 75% of consumers prefer to shop on websites in their own language, and this can have a major impact on their overall user experience. By offering your website in the local language, you can make it easier for customers to understand your products and services, and increase their likelihood of making a purchase.
3. Localized top-level domains (TLDs) improve search engine optimization: In addition to improving the user experience, localization can also have a positive impact on your search engine optimization (SEO). When it comes to SEO, having a localized TLD (e.g. .fr for France, .de for Germany) can improve your ranking in local search results. This is because search engines like Google use the TLD as a signal of a website’s relevance to a specific country or region. By using a localized TLD, you can improve your visibility in local search results and attract more qualified traffic to your website.
4. Localization drives higher customer satisfaction and loyalty: Finally, localization can also lead to higher levels of customer satisfaction and loyalty. By offering a website that is tailored to the specific needs and preferences of a particular country or region, you can create a more personalized and enjoyable experience for your customers. This can lead to higher levels of customer satisfaction and loyalty, which can ultimately drive more sales and revenue for your business.

While we continue to emphasize personalization as a means to differentiate and drive growth, localization is an essential first step in e-commerce that can drive significant results for your business. By offering localized payment methods, languages, and TLDs, you can improve the user experience, enhance your SEO, and drive higher levels of customer satisfaction and loyalty. In contrast, personalization alone is not enough to achieve these results. By prioritizing localization, you can create a more effective and successful e-commerce website.