How many dollars can I earn for each dollar spent?

As a business owner, I am approached by sales people all the time. Holding the purse string of a small budget and having been brought up to be frugal myself, I know I am a tough cookie to sell to. Those who win over my business will often have one thing in common: they are able to show me the proof of a solid return on my investment for buying their product and service (i.e. spending 1 dollar and making 5).

While marketing our web site translation service, I find myself pondering how I can show my clients the return on their investment for translating their web sites. Many companies choose to translate their web sites because they realize the demand for what they sell. But is there a way to calculate return on investment to some degree of accuracy before you part ways with your money?

The good news is: yes, there is a way. The bad news is, there is a cost to doing this homework.

Usability testing can do the job.

A European usability company was hired to explore the return on investment, as well as the customer loyalty benefits, of translating a client site into French and German. This client sells computer equipment and peripherals.

Representative participants were recruited in Paris and Hamburg, and usability labs were set up in both cities, to facilitate realistic customer experience scenarios.

The participants were equally divided into two groups. They had roughly the same language competency and web experience. Half of the participants carried out tasks on the translated site, while the other half carried out tasks on the English site.

Even though the usability testing clearly showed favourable results toward the group using the translated site (in terms of customer effectiveness, efficiency and satisfaction), the client still needed to know how the translation would affect their bottom line. How would their revenue be affected? How many, or less units, would they sell as a result of this?

How does it affect the bottom line?

The data from this testing had the answer that the client was looking for.

The client’s marketing department estimated that 1000 German customers visit their web site every week to buy a printer valued at $200. The usability testing showed that, with the translated web site, 89% of customer transactions would be successful. If there wasn’t a German language site available, and customers had to use the English site, only 64% would be successful. The difference of 25% meant approximately 250 people out of 1000 test participants.

Assume that these 250 customers then choose to go to a local electronics store to buy their printer. It is likely that not all of these customers will still choose the same brand. The store may have a promotion for a competitor's product, or the customer may be disappointed with his online experience, and decide to give another brand a try.

If the client loses 10% of sales as a result of this, which is a conservative estimate, that would translate into a loss of 25 customers per week. The loss of revenue in the printer example would mean 25 x $200 = $5,000 per week. That adds up to $260,000 per year. By applying the same calculation methods for the range of the client’s products, the total value of lost revenue will be magnified significantly.

There are many factors involved in completing a successful online sale to international customers. Having an efficient order fulfillment facility, and great customer service, are just a few examples of factors at play. The success of your global sales is determined by how well the elements work together. Selling in your client’s language can have a real impact, and this example illustrates what you can do to measure that impact. Don’t make your decision to translate your web sites based on gut instincts. Let the facts speak for themselves.