How Effectively Market to this Influential Demographic
If you are running a business in the US, you need to know that the Hispanic Market is by far, the fastest growing group of consumers. 56 million of Hispanics live in the US, that is 17.5% of the total population or 1 out of 5 US residents. But here is the real number that you need to know: recent statistics show that Hispanics account for at least half of the population growth with an estimated purchasing powers of $1.5 trillion in 2015. This market can no longer be ignored as potential consumer opportunity. Whit this happening many companies are eager to serve this segment, which is so important for growth. It is important for business to learn and understand how effectively and efficiently market to this booming market.
Many companies create Hispanic advertising campaigns, expecting to grow their business. And they find that those campaigns haven’t been successful. There are two big misunderstandings of why most of them fall short with their Hispanic marketing:
-They assume they are reaching this community with their general marketing efforts.
– They think that by simply having bilingual people on staff the demand is covered.
In most of my marketing boards, my clients share almost the same story: Their company has been very proactive in the community, but they haven’t seen a substantial ROI yet. I always ask them what “proactive involvement” means to them. They say that their company had bilingual employees on staff and they were sponsoring a couple of Hispanic events during the year. When I asked them what type of support their company was giving to their bilingual sales team, they said they had spent thousands of dollars in advertising every year. So, they thought that they were penetrating the Hispanic market through their general Anglo marketing efforts. This is a common misunderstanding.
The Hispanic market is the fastest growing group of consumers. You must have a multicultural marketing strategy in place to succeed. The biggest mistake that a company can make is to view the Hispanic market as homogeneous. One of the most common assumptions that I see when I talk with a CEOs or marketing directors is that some of them still think that the Hispanic Market is homogeneous, and it’s not! There are more than 20 different nationalities that speak Spanish, so depending on what country you are from, we have different language variations, in English it’s called slang. You cannot capitalize on this economic powerhouse by using the same old blanket campaign approach.
In order to assure success when reaching out to Hispanics, you need to have a clear understanding of the goals you are trying to reach. You need to create a strong 3 to 5 year Hispanic marketing plan and strategy. And you must allocate the right investment for this initiative.
Here are some helpful tips to improve your Hispanic marketing ROI:
A New Fresh story: Sometimes companies assume that because they have been in the market for a long time, everyone (including Hispanics) know who they are. This is another reason why companies fall short. It is easy to get tunnel vision after running your company the same way for so many years. But it is time to widen your view. Look beyond what you have been doing to see who else you could be reaching. There is greener grass, you just have to find the right bridge to reach it. That bridge is culturally relevant messaging. Tell your story the right way, with the right language, and it will resonate far more effectively with this audience.
The right help:. Having people on your team who speak Spanish does not necessarily mean that they know how to connect with this audience. I have seen the frustration of many CMOs that were using their own Hispanic employees to translate their marketing materials and it was not producing good results. Cutting corners will hurt your business and your end results. Having a strong consultant or Hispanic marketing firm that understands Hispanic culture is key to your success. They will bring smart, effective solutions to help you engage this market.
Have the right customer service: In almost every brand category, Hispanics are sophisticated consumers who are very loyal. If you reach out and show them the relevancy of your products and services, they will stick with your brand through thick and thin. I always tell my clients, people do not buy products. They buy brand experiences. Show respect and appreciation from the moment they walk inside your store. This is where you can create a strong impression that will turn their word of mouth into your most potent advertising tool.
Make a long-term commitment: Many companies try to test the waters first instead of embracing the effort and getting a real taste of what this audience can deliver to their bottom line. It is good to start slow but you need to be committed to an ongoing effort. Marketing campaign do not work without a full commitment and persistence. You must commit to a marketing program and stay with it, persist with it. You have to be consistent if you truly want to penetrate this market. Build and develop a strong foundation and you will have an ongoing revenue source. The success of your company in the Hispanic market will depend in how willing you are to adapt to and embrace this community. You don’t have to change the way you are doing business. You just need to cater more effectively and efficiently to this booming audience.
In 2016, it is estimated that Hispanic purchasing power will be in the $1.5 trillions. What portion of that cake will you claim for your company?