Growing population numbers all over the world and the increasing efficiency of technology have made globalization for companies more appealing than ever. The potential expansion of revenue streams is possibly the main reason why a company decides to take its brand global.
However, globalization has also brought upon challenges for brands as well. Globalization has made it almost impossible for companies to provide five-star customer service in all parts of the world. Global marketing campaigns have multiple areas of challenges that must be planned for much in advance.
Here are the four main challenges that marketers face when considering global customers:
Challenge 1: Breaking Down Cultural Barriers
It is no secret that brands must always consider all of their markets before moving forward with any new products, services, or campaigns but it is more than that. A global brand must fully understand all of its local markets as much as possible. For example, they must be aware of social norms or even religious holidays that would prevent the purchase of a particular product. One offer that the company issues can be insulting to some or exciting for others. For reasons like this, brands need reliable teams who only focus on understanding their markets before moving forward with any new idea. This also means more than looking at data, there should be actual observations of the local society and its norms.
Challenge 2: Technology
All countries are currently in different locations on the technology adaptation spectrum. Being aware of this is important when considering a campaign that may have a digital component that goes along with it. Customers in countries like the US might prefer an exclusive mobile app notification while customers in countries like the UK would prefer an email. Investing in personalization technology could help brands focus their attention on the right channels and make good offers based on an individual's preferences and location.
Challenge 3: Diversified Teams
A disconnected team can make a new product launch or a company-wide campaign either a success or a complete failure. Coordinating across several regions requires careful planning and constant communication across all departments within a company. Instituting a new change across all regions at the same time reinforces a brand's image. Also, managing these globally dispersed teams requires great internal communication and most importantly; the buy-in from each team member.
Challenge 4: Legal Barriers
It goes without saying that all brands should also take into account legal implications with everything that they decide to do within any region. Laws in certain regions can harm a company's entry into a new market or delay a launch that holds significant costs. Understanding markets requires intensive knowledge of the political and legal landscape. This specific area should never be taken lightly for any brand for the fear of hurting the brand's image.
Overlooking any of these challenges can certainly harm any brand. Developing solutions and tools to better handle or combat these challenges is key to improving a brand's global reach.