NETELLER Merchant Newsletter, October 2006

Local is the new global

We’ve all been thinking about it, talking about it, and there’s no doubt that we all have to do it: going global. Now more than ever, the internationalisation of gaming platforms is a must for anyone who wishes to survive in this space.

In today’s online economy, the emerging trend is to think global and act local. From a technical standpoint, localisation refers to the translation and adaptation of products and services for other countries and cultures. What it really amounts to is re-orienting your business to interact with each unique geographical audience in their preferred manner.

In the footsteps of the giants

Global giants like IBM, Ikea, Volvo and Dell have always localised their brand and product to target new geographical markets. It just makes good business sense.

As more and more people are gaining access to the internet, there is an increasing need to address the virtual mosaic of languages from users around the globe. Industry experts estimate more than 70% of internet users speak a language other than English (IDC) and that customers are four times more likely to buy if sold to in their native language. Recent surveys conducted by Illuminas in Europe also show a definite need for localisation, as user responses indicate up to 36% of gaming consumers prefer to transact in their native language.

Clarity and culture

Simply translating website content is no longer sufficient. Word-for-word conversions fail to capture the cultural subtleties inherent in language, not to mention differences in values, attitudes and buying behaviours. The best case: you end up with a confusing or humorous message. The worst case is an unintended message that is offensive to your target audience.

True life examples abound of companies that failed to localise a product name before blindly launching in a new market only to learn that the translated version is a vulgar or embarrassing slang in the local language. “Oops” doesn’t suffice given the negative impact on corporate image and market share. Nike’s swoosh bore a striking resemblance to the Arabic script for Allah and Chevy’s Nova translated to “no go” in Spanish-speaking countries. Nike was forced to pull their logo while Chevy suffered a blow to their bottom line and their image.

Delivering clear and culturally appropriate content requires detailed analysis and design. One method of achieving this goal is conducting user acceptance testing by local language speakers for all elements of the user interaction. Everything from the website interface to technical support and CRM communications must be localised for a seamless customer experience.

Currencies and banking

In recent European research, up to 25% of players indicated that they prefer to transact in their local currency. Localising currency requires the establishment of payment processing mechanisms and complex banking networks.

Today, online consumers demand the convenience of transacting in their local currency with local financial institutions. This means you have to give your customers unique payment options for their country, like the ability to use their local bank’s debit card on your site. And if you want to top your competitors, give them the ability to transact in their preferred payment options. For example, French and Turkish gaming consumers prefer to pay via credit card, whereas German and Polish users prefer bank transfers. At a minimum, include an integrated foreign exchange service to facilitate global transactions where local currency support is not yet available.

Local banking offers members a convenient, trusted payment option. Customers benefit from faster processing times, one-stop convenience and cost savings as there’s no need to pay international bank transfer fees.

Security and identity verification

A final, and equally important, consideration when localising your website is security and identity verification. Besides adhering to regional requirements for privacy and security you need to know who you are doing business with.

Crossing international borders and legislative jurisdictions complicates matters. Identity verification systems rely on accessing in-country, third-party databases to confirm the accuracy of disclosed information so establishing partnerships with identity brokers is critical. Forging relationships with local agencies will reduce your risk and exposure to fraud.

While localisation isn’t a simple or straightforward process, it’s also never been more critical to business. Those who can go global will reap the benefits of new geographic markets.

As your global business partner, NETELLER is pleased to announce the launch of five new localisations by the end of this month. With the introduction of Sweden, Denmark, Poland, Turkey and Brazil, we now offer localised services for more countries than ever before.