How to Market to the Fastest Growing Consumer Segment in the U.S
Consider this: the U.S. Census Bureau projected that minority groups will overcome the majority, rising from 37% to 57%, by the year 2060. The reason for this dramatic increase can be attributed to the massive growth in the Hispanic population, expected to double from 53.3 million in 2012 to 128.8 million in 2060, making up 53% of the minority demographic, and 31% of the entire U.S. in the year 2060.
Companies and brands have taken notice of this staggering statistic and realize it is absolutely vital to capture this market right now. We offer some tidbits in marketing this elusive minority market.
Appealing to the Hispanic culture
Invest the time and effort to learn about the culture of this demographic by recognizing their habits, attitudes, and values. One important characteristic of Hispanics is the value of family and community. In fact, 78% of Hispanic survey respondents said that traditional family is the main building block of a healthy community. More than half of the respondents identify themselves first as Hispanic before American, and 97% responded that they are proud of their Hispanic heritage. It is clear that understanding their deep cultural tenets will lead to more success in connecting the individual with the brand.
Additionally, brands need to recognize that there are different groups of Latinos from various countries including Mexico (the largest segment in the U.S.), Cuba, and Puerto Rico among others. Hispanics value family, faith, community, and intertwining these deep-rooted values and ideals using Spanish idioms with cultural relevancy will make the brand attractive to each respective segment.
Don’t Just “Sell”, Build Long-Term Relationships
Hispanics in America are growing tired of marketing campaigns by brands that are not appealing to their cultural roots. They are more likely to respond positively to companies and brands that take the time to understand who they are and build long-term relationships. Therefore, they cannot be thought of as a short-term investment like a fad or trend, they must be thought of as a strategic long-term investment.
The reason why this type of brand-relationship building is necessary can be traced to the differences in culture between their countries and the United States. While the Puritan values of America have prevented copious amounts of corruption, in Mexico and other Latin countries, briberies and corruption are rampant. Subsequently, Latinos value their relationships highly, more so than individuals born in the United States. This little nugget of information is valuable to brands who wish to serve this untapped market because it forces them to invest in them long term, rather than short term.
Appeal to Coupon-Savvy Latinos
While coupons may not have been an integral part of the culture in their home countries, during the recession, the usage of coupons amongst Hispanics grew 51%, according to a study by Synovate in the United States. Hispanics are smart shoppers, and thus delay purchases until products are on sale.
Social media and mobile usage has exploded among Latinos, accelerating the use of mobile coupon offers and promotions. Bottom line: they are more likely download coupons using the convenience of their mobile phones. Using marketing personalization techniques such as targeted promotions via e-mail, this segment may not be as hard to target as previously thought.
These are just among the few tips to market to this diverse and growing segment. Marketing personalization can help target these consumers by giving brands the tools they need to communicate in a respectable and relevant way. nectarOM’s products would be a great resource to start off with, using nectarEngage to send specific emails to specific Hispanic segments. All in all, brands may believe ignoring the market would be better off than investing the effort and time into understanding Latinos, but doing so would deprive them of returns in the long run.