How important is it in the United States the Hispanic community purchasing power? Does it cause a relevant impact on businesses? With the growing purchasing power of the Hispanic population, these questions are serious. So, take a look at the influence of this market. Also, take note of what you do to reach these potential customers.
Hispanics purchase power is growing even more
It’s not a secret: Hispanic marketing strategies have to change. The Latino market reaches spending power closer to $1.5 billion. In other words, about 20% of the population’s buying power. That is a 212% jump from 2000. Thus, advertisers cannot ignore these numbers. This means the growth in Hispanics’ purchase power doubles the rest of the population. That is what consulting firm Nielsen says. So, this implies they call on brands to build relationships with this community. But not only as consumers.
In addition, the study: “Latinx Opportunity: Power on the Road to Purchase”, details more statistics. They say that by 2023 the purchasing power of Latinos will reach 1.9 billion dollars. Also, Hispanics spend their money on brands aligned with their values. And understand their trajectory too.
On the other hand, Hispanics’ purchase power has grown in the digital age. This is for an average age of 28, compared to 38 for the general population. That is to say, approaching its peak income years. In another vein, despite their fast-growing spending power, financial inclusion is generally an issue for Hispanics. For instance, approximately half are in underbanked conditions compared to one-third of white Americans. In the next point, we will talk about the challenges and opportunities of this population.
Hispanics purchase power challenges and opportunities
Do not beat around the bushes: “Told that knowing the truth about this minority becomes more important.” Stacie Armas, Nielsen Vice President of Strategic Initiatives and Customer Engagement, said. She added that what brands can do is understand not only our history as consumers but our history as Americans. In that sense, Armas also called on brands and advertisers “to stop going sideways.” Plus, she invited them to seize the opportunity to build a relationship with Latinos.
Another aspect to emphasize is the Hispanic’s purchase power opportunity combines physical and digital shopping experience. But in digital, the experience is more noticeable. with mobile phones. Latin consumers shop on their smartphones almost twice as those who shop on a computer or tablet. Even, they use social networks not only to organize our community. They also interact with brands and entertainment. Moreover, they are ready to engage with relationships, dialogue, and conversation using social media.
Yet, the USA Hispanic market remains challenging for marketers. The main reason is because of its linguistic and cultural complexity. It includes immigrants from Mexico, Cuba, Puerto Rico, and other Spanish-speaking countries. According to Claritas, a data-driven company, companies must be aware of these differences. It includes dialects, cultural behaviors, interests, and values. That is to say, to create targeted marketing campaigns. Again: not all the Hispanic and Latino customers are the same. Take the time to find out about the habits of your most frequent Latino customers.
Did you know that thirty-three percent of Hispanic consumers prefer to buy things that their friends recommend? That is 20 percent more than the general population. And 79 percent buys food with family members involved in decision making. It is here that brands must take into account this characteristic of Hispanics’ purchase power. In other words, is the possibility for companies to build relationships with Latino consumers. It also means to achieve growth and develop loyalty and authenticity with them.
Another aspect to bear in mind is marketers need to be aware that Latino consumers differ from the U.S. population. As a result, brands have to take advantage of the social nature of the Hispanics. For instance, to know their love technology. It is worth mentioning that fifty-seven percent of Hispanics enjoy wandering around stores looking for new products. Even 48 percent consider shopping to be a great way to relax. That is 10 percent and 15 percent higher than the general population. So, think about your marketing strategy in order to these statistics.
A question of credit union membership
Hispanics’ purchase power also represents an opportunity to grow credit union membership. Besides, offer them a financial partner with their best interests at heart. To reach and serve Hispanics, credit unions need to begin by understanding them. It includes:
- Their financial profile
- Financial needs
- Barriers to financial service
- And then develop responsive products and services.
This is the case with Coopera’s Hispanic Outreach Program. And, also, Inclusiv’s Juntos Avanzamos. These programs identify best practices on how credit unions can serve this population. Besides, they show how an approach to diversify membership. It means a win-win-win for credit unions, members, and communities. If this is the case for your venture, take advantage of this, and create a strong base of customers.
On the other hand, Hispanic’s purchase power leads marketers to target a specific segment. For example, range from direct mail and email marketing to digital campaigns.
As a matter of conclusion, a strategy that leads to Hispanics buying power requires:
- More knowledge of Hispanic/Latino roots and traditions
- Encourage engagement on Social Media
- To understand the differences between immigrants and the Hispanic USA population
- To take care of their language, dialects, and ways of communication
- Keep in mind that they are moving out of urban centers
- Latino citizens grow up getting exposed to the various American brands and lifestyle
- That many companies could generate handsome returns by targeting their brand for Latino customers.
Any suggestions about the Hispanics’ purchase power? Do you apply any of these strategies in your business? Let us know in the comment section below. To read this same article in Spanish, please click here.
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