X

Press Releases

09Apr

Fortune 500 Companies that Invest in Translation Report Higher Revenue

| Return|

Common Sense Advisory’s survey finds customer service, branding, and market share to be the top drivers for translation among Fortune 500 companies

(BOSTON) – In spite of economic uncertainty, most Fortune 500 companies surveyed by research firm Common Sense Advisory increased their investment in translation in 2011. Did their investment pay off in terms of revenue growth? The answer is a resounding “yes,” according to its survey of Fortune 500 firms. Businesses that augmented their translation budget were 1.5 times more likely than their Fortune 500 peers to report an increase in total revenue.

Common Sense Advisory analyzed why Fortune 500 companies translate, their rate of market expansion, the number of languages they deliver, content volumes, and translation budget fluctuation. The results are compiled and analyzed in Common Sense Advisory’s new report “Translation at Fortune 500 Companies.” The study also reveals that increased revenue is not the top driver for translation. Instead, customer service, branding, and market share outrank revenue growth as the top three reasons for translation among the Fortune 500.

Comments Rebecca Ray, senior analyst at Common Sense Advisory: “Our previous research has confirmed that people won’t buy on the web if they can’t understand a company’s website. It has also demonstrated that the incremental investment in translation is minuscule when compared to the revenue that it generates.” She adds, “However, until now, there has been no hard data to demonstrate whether an increase in funding for language services can actually drive additional revenue. Our current findings show that companies that invest in translation do indeed report higher revenues.”

Key findings detailed in “Translation at Fortune 500 Companies” include:

  • Businesses that expanded their translation budgets were 1.5 times more likely than their Fortune 500 peers to report an increase in total revenue.
  • Roughly three-quarters of Fortune 500 firms added new markets - either international or domestic multicultural - over the past year.
  • The businesses registering an increase in content volume were 2.5 times more apt to experience a growth in profits from one year to the next. They were also 1.8 times more likely to report revenue growth.
  • The companies that translated information in order to communicate with and retain their partners were 2.67 times more likely to experience revenue increases. They were also 2.6 times more likely to generate improved profits.
  • Fortune 500 companies that translated to keep up with or to gain an edge over their competitors were 2.04 times more likely to have an increase in profits and 1.27 times more likely to generate augmented earnings per share (EPS). 

Translation at Fortune 500 Companies” explores and identifies the link between translation wealth and financial health. For more information, visit www.commonsenseadvisory.com.

About Common Sense Advisory

Common Sense Advisory is an independent market research company helping companies profitably grow their international businesses and gain access to new markets and new customers. Its focus is on assisting its clients to operationalize, benchmark, optimize, and innovate industry best practices in translation, localization, interpreting, globalization, and internationalization. For more information, visit: http://www.commonsenseadvisory.com or www.twitter.com/CSA_Research.

Media contact: Melissa C. Gillespie, Melissa@commonsenseadvisory.com, +1 760-522-4362

Other Press Releases

Urgency for Global Businesses to Respond to Disruptive Change Thrusts Localization Benchmarking into Prominent Role

Market Research Firm Common Sense Advisory’s new Localization Maturity Model 3.0 enables global fi...

Read More >

Market for Outsourced Translation and Interpreting Services and Technology to Surpass US$37 Billion in 2014

(BOSTON, MA) – The global market for outsourced language services and technology will surpass US$37...

Read More >

Translation Management Systems Take Hold as Critical IT Component for Enterprises Eyeing Global Growth

Independent research firm Common Sense Advisory releases MarketFlex™, a structured analysis for cor...

Read More >

Global Customer Experience Increasingly Comes Down to Content—But Not Just in English

(BOSTON) – May 28, 2015 -- How many languages do content marketers and global businesses need to re...

Read More >

Buying Translation is Easy; Getting High-Quality Multilingual Output Is Not

Everyone who buys translation and localization services wants the best quality, but the road to obta...

Read More >

Effective Market Segmentation Critical for Language Service Providers

Research findings by Common Sense Advisory conclude that segmentation is a must for translation, int...

Read More >