We all have to be accountable for budgets and spending within our businesses. Where is the money going? Why is it going there? And, crucially, what return on that money will the business see? What’s the upside for the company?

In certain business areas it’s an easy equation. You purchase this piece of equipment or software, and you can increase productivity or reduce manpower by x% which adds to the company’s bottom line by y%.

But in other areas, it’s not so easy to see direct Return On Investment (ROI). Language Services tends to fall into this category. However, as a Language Services Provider (LSP), we know our clients need to see positive balance sheet value for our services.

Here are the main areas our clients see that we’re making a difference to not only their global brand reputation, but directly to their profitability and therefore the lives of their shareholders and employees. We’ll also list a few specific actions you can take to track the results over time.

Market Expansion and Revenue Growth

A LSP enables businesses to reach new markets. A good localization strategy and roll-out increases brand awareness, brings on new customers, and boosts conversion rates.

Companies that expand to non-English-speaking regions are more likely to experience revenue growth because they’re engaging with a broader audience base.

Actions:

• Compare sales performance before and after implementing localization.
• Track growth in international markets.
• Analyze conversion rates for localized content.

Brand Reputation and Customer Trust

Poor translations don’t just fail to deliver your message, they can damage your company's reputation and lead to customer distrust. This lack of trust can spread like a disease through word of mouth in local communities and, over time, beyond.

Partnering with an LSP ensures cultural and linguistic accuracy, this protects and enhances your brand image.

A well-localized website, product documentation, and customer support gives your clients confidence, leading to repeat business and a long-term bond with your audience saving you money by retaining customers, rather than having to constantly on-board new ones.

Actions:

• Track website traffic, engagement, and conversion rates across different language versions.
• Use social media sentiment analysis to gauge brand perception in various regions.

Cost Efficiency and Productivity Gains

Working with a LSP reduces inefficiencies in internal operations. Instead of giving translation tasks to untrained employees, outsourcing to professionals streamlines workflows and gives you better results.

Many LSPs use Artificial Intelligence (AI)-driven tools and Translation Memory (TM) software to improve efficiency, reducing translation costs over time while maintaining consistency in messaging.

Actions:

• Assess the reduction in translation and localization costs over time due to TM and AI assistance.
• Evaluate productivity gains from outsourcing instead of using internal staff for translations.

Regulatory Compliance and Risk Reduction

Businesses operating in regulated industries, such as healthcare, finance, and legal sectors, must comply with stringent language requirements. A good LSP will be up to date with requirements and know how to guide you through local and international rules.

Accurate translations steer you away from costly legal penalties and make sure you’re always compliant with international laws. In these fields a big part of your LSP’s remit will be to help mitigate risks associated with miscommunication and non-compliance.

Actions:

• Monitor compliance-related expenses and any fines avoided through accurate translations.
• Evaluate how well-localized documents adhere to international regulations.

Enhanced Employee Productivity and Focus

Multinational companies rely on multilingual communication for employee training, HR policies, and internal documentation.

An LSP ensures seamless communication across different regions, allowing employees to focus on what they do best rather than struggling with language barriers.

Happy employees tend to stick around, and employee retention can have a big impact on profitability. They energy and resources needed to recruit new team members is reduced by speaking to employees in their own language, even when you aren’t required to do it, so they know they are valued and cared for.

Actions:

• Go directly to employees with surveys and anonymous feedback routes to get an unbiased picture of employee satisfaction.
• Monitor staff churn and the reasons for it, taking into account what levels are because of language difficulties.

Maximizing ROI with the Right LSP

Ultimately the best way to maximize your ROI is to partner with the right LSP. This is one that has a team of linguists with experience in your industry and understands your target audience, and business objectives.

If you’re currently in the market for an LSP, here’s a quick four-point checklist:

• Industry Expertise – Do they understand the industry-specific terminology and compliance requirements?
• Technology Integration – Are they using AI, automation, and translation memory to improve cost-effectiveness and consistency?
• Scalability – Can they adapt to the growth of your business and handle increasing translation demands efficiently?
• Cultural Sensitivity – Do they really understand localization and consider cultural nuances, making sure content is tailored to your specific target audience?

We’re transparent about what we can bring to the table and the results. So, if this article resonates with you and you’re looking for the support of a LSP, then we’d love to talk.

Consultations are free and there’s no obligation. You’re in safe hands with us as we’re ISO 17100 and ISO 9001 compliant, have over twenty years of professional translation experience, and have earned the trust of organizations around the world.