Localization has become a key strategic activity for companies looking to expand their global presence and maximize sales. To evaluate the effectiveness of localization, companies rely on key performance indicators (KPIs) that provide valuable insights into business results. In this article, we discuss the importance of KPIs in localization from a business perspective while putting the focus on cost savings, which is an important aspect of greater profitability. By examining a range of KPIs that can be employed by departments responsible for technical documentation and marketing, we demonstrate how companies can measure and optimize their localization strategies in order to be successful in international markets. There are a wide variety of localization KPIs, which may differ depending on what is important to you. To provide you with an overview, we compiled the ten most important KPIs that can be relevant in the area of localization: The most important and easiest to quantify KPI is the cost savings you as an enterprise can achieve in your localization process. You can use a variety of strategies and practices to save costs during localization. First, you can increase productivity and reduce the manual effort required by optimizing workflows, using translation management systems, and implementing automation tools. Cost efficiency can also be enhanced through effective vendor management, such as by selecting reliable translation service providers, negotiating favorable pricing terms, and building long-term partnerships. Another opportunity to save costs is through the reuse of content. Translation memories and terminology databases allow you to reuse previously translated content for similar projects, eliminating the need for complete retranslation and reducing localization costs. When you invest in robust quality control and error prevention, you ensure that translations are of high quality from the start, minimizing the need for costly proofreading. You can accelerate the translation process, reduce the manual effort required, and improve productivity by using technologies and automation tools such as machine translation (in combination with post-editing), natural language processing, and automatic quality checks. Centralizing translation management and implementing standardized processes across the organization optimizes resources, reduces duplication, and enables better coordination, resource sharing, and knowledge transfer. By reducing the time it takes to bring products and services to new markets, you can also contribute to cost savings by gaining a competitive advantage, generating revenue sooner, and minimizing your potential loss of sales. By implementing these strategies and practices, your enterprise can streamline localization processes, improve cost efficiencies, and bring about significant savings while successfully expanding its global reach. In most companies, translations are mainly taking place in the departments responsible for technical documentation and marketing. While the overall goal of cost savings remains the same, the specific implementation and focus may vary depending on the nature of the department’s activities and requirements. In the following, we explain the differences in the application of cost savings in these two areas: Departments responsible for technical documentation primarily focus on the creation of user manuals, product manuals, technical specifications, and other documents that make it possible to use and understand products and services. Within this framework, you can apply the following cost-saving strategies: Marketing departments are responsible for matters including the advertisement of products and services in the target markets. This includes the creation of marketing documents, campaigns, websites, and other resources. Here are some specific ways that your marketing department can save on localization: Localization plays a crucial role in your business success and your expansion into global markets. Companies can effectively measure and evaluate the impact of their localization activities by implementing key performance indicators (KPIs) tailored to the specific needs of their departments. Sales growth in target markets serves as the primary KPI indicating the effectiveness of product and service localization in generating business opportunities. However, the preeminent and fundamental KPI is cost savings, which involves the employment of strategies such as increasing translation efficiency, appropriate vendor management, reusing content, streamlining processes, performing quality assurance, making good use of technology, centralizing translation management, accelerating time-to-market, and more. By leveraging these KPIs and continuously improving their localization processes, companies can achieve sustainable growth, increase profitability, and stay one step ahead of the global competition.