This article was originally published online by the Orlando Business Journal.
One of the most common questions I have been asked by executives is: “When will Hispanics buy my products?”
They think that since they have been in business for many years, everybody should know who they are, including the Hispanic markets.
One client shared that his firm has been in the market since 1955, so he thought everybody knew about his company. However, he was concerned about a recent drop in his membership program.
We suggested doing market research and a focus group as a starting point. He was surprised to learn that Hispanics were not aware of the services his company provides. And even more surprising, was how little his current clients knew about his services.
One of the most common mistakes executives make is that they use their personal opinion as a parameter of value. For example: “I don’t listen to Pandora radio so I don’t what to advertise in that media.”
However, according to a ComScore’s report, Pandora ranks No. 1 in music streaming property among Hispanics.
Your customers decide how and when to engage with your brands, not the other way around. To properly engage with your consumers, you have to speak to them about what they want, not necessarily what you want.
Many executives feel vulnerable when it comes to marketing to Hispanics, saying, for example: “I don’t understand their culture and I do not speak their language, so I don’t know what to do.”
According to Geoscape, Hispanics will account for more than half of U.S. population growth by 2020 and more than 85 percent by 2050.
So, instead of asking yourself: “How can I sell more products to Hispanics,” “How can I get Hispanics to convert” or “How can I drive more traffic to my website,” ask yourself: “How can I earn a relationship with them? How can I build the right brand experience? What is the right, culturally relevant approach to earn their trust? How can I influence them?”
Here are 3 helpful tips to earn business from Hispanics:
- Avoid the single-focused approach: Sometimes executives believe they already are reaching the U.S. Hispanic market with their general market effort. This is a misconception. Reaching and engaging are two separate things. Hispanics might see your campaign, but you are not convincing them to engage with your brand and buy your products. You must appeal to their cultural sensibilities and passion points even when using the English language.
- Know your audience: It is estimated that more than 42 percent of the U.S. Hispanic population are millennials. They are bilingual, bicultural and proud of their heritage. Unlike their parents, they like to stand out and be noticed. They are redefining American and Hispanic culture and creating a new identity: “El Nuevo Latino.” They share new values, passions and expressions.
- Expect ROI: Hispanics consumers historically have represented a long-term return on investment. If you take in consideration the longevity of the relationship, brand loyalty, referral and purchase frequency, Hispanics are a good ROI. But you have to earn their trust first — if there is no trust, there is no business.
It is estimated that Hispanics will represent more than 29 percent of U.S. population by 2060. The question is: Do you have a plan in place to target this new mainstream audience?