Marketing to Hispanics: Is Your Industry Missing Out?

It’s no secret that the Hispanic population continues to grow along with its collective wallet. While there are many reports that discuss this spending power and the overall influence of the demographic, many companies are still failing to market to U.S. Hispanics. As a result, they’re potentially losing out on quite a bit of revenue. 

According to Latin Post, “Electronics, pharmaceuticals, financial services industries and health insurance marketers are still lagging when it comes to putting funds toward Hispanic marketing”.

We decided to do some additional digging of our own to learn more and found some interesting information on a few industries. Here are the details.

E-Commerce
Hispanics tend to do online shopping more frequently and online seasonal shopping earlier than other demographics. Additionally, incentives such as discounts, free shipping, loyalty points, and freebies have been reported to bring in high purchasing numbers with this demographic. Below are a few key points from a recent study regarding Hispanic online buying habits: 

• Most Hispanics will pay no more than $6 for shipping per purchase
• Fashion or beauty sites that utilize online ads have a 49% chance of getting a click toward a purchase from Hispanics
• TV, online display ads, and social media are top influencers for Hispanic purchases

The Hispanic population is the ideal audience for e-commerce as they are early adopters of digital media and leading influencers with the largest capital spend online. It’s easy to see why many online retailers need to be budgeting for this market segment while also keeping in mind that mobile comes first if they want a successful campaign.

Financial
The financial industry – credit unions specifically – could benefit greatly from reaching out to the Hispanic population more aggressively to make their mark. Why? There are many Latino-owned businesses seeking services but having a difficult time resolving their needs.

One survey by the Stanford Latino Entrepreneurship Initiative asked more than 2,000 Hispanic business owners about their business needs. It found that this group is more likely to choose and seek out more conventional sources such as banks and credit cards for capital. According to the survey, this typically occurs because of the entrepreneurs’ limited understanding of their financial options.

The report author says that “27% of survey respondents have never heard of the SBA, 71% have never heard of the SBIC, and 79% have never heard of SBIR ”. These numbers only strengthen the case for credit unions to start looking at Hispanics as a part of their marketing strategy.   

Insurance
The acculturation of those who identify as Hispanic has evolved and with it, a greater purchasing power. As stated in The Synovate U.S. Hispanic Market Report, “Hispanics are becoming progressively wealthier and car manufacturers and real estate companies are taking note”. Although these industries have started to pay attention, the insurance industry has yet to react.

Here are some quick facts regarding Hispanics and insurance: 

• Auto Insurance - As of 1997, 55% of Hispanics had auto insurance, compared to 80% of the general population.
• Homeowners Insurance - 33% of Hispanics have homeowners insurance compared to 63% of non-Hispanic whites, 50% of Asian-Americans, and 44% of African-Americans.
• Health Insurance - Approximately 67% of Hispanics have health insurance, compared to 81% of African-Americans and 89% of non-Hispanic whites.
• Life Insurance - 34% of Hispanics have life insurance compared to 62% of the general population.

These studies help to reinforce much of what’s already known... but what comes next?

For starters, marketing strategies need to incorporate cultural nuances that have genuine connections with key audiences. “Hispanics are greatly influenced by strong and distinct cultural values that guide their thoughts, actions and, ultimately, motivates them to buy”.  

While a total market approach may work for a segment of this audience, it’s not guaranteed to cover the needs of the entire Hispanic demographic. This is where transcreation comes into play. Attempting to reach this audience without the addition of a properly-transcreated message or relevant content can keep brands from engaging with their intended audience and result in a waste of ad dollars.

Marketing to Hispanics can seem like a daunting task, but recognizing the need for it is a first step in the right direction. CultureSpan Marketing has 36 years of experience connecting to Hispanic as well as Spanish-speaking audiences. May we show you how we can apply this experience to help with your business needs?

Give Gabe Acuña a call at 915.581.7900 or shoot him an email today at gabe.acuna@culturespanmarketing.com so we can start a conversation to help you get started with this approach.