In my role I am often asked, “How do you effectively market to Hispanics?” It’s an important question and one that many businesses understand can bring a significant return on investment. Many businesses throughout the country are doing their best to ride the ever–growing wave of the Hispanic market. Some recognize the effort and long–term commitment it takes to do so. Others try, but don’t know where or how to start. And still others pay lip service to it and believe they are contributing, but actually hurt their companies or worse, sabotage their opportunity with insignificant or ineffective efforts.
Many people I have spoken with claim to have the answer. The most common “answers” are contracting witha Latino advertising firm, simply translating company materials to Spanish, purchasing advertisements in Spanish media and hiring a temporary Hispanic consultant. These activities could be considered tactics as part of an overall strategy, which may or may not lead to results. But the answer to me is something much simpler.
Before we get to the answer, it is important to provide some context as it relates to the demographics and growth surrounding the Hispanic market to justify a company’s investment in this segment.
In defining the Hispanic market, research shows it is growing in size and economic strength. The demographics definitely prove there is much to be gained by investing in the Hispanic market. According to Steve Murdoch, Texas state demographerand director of the U.S. Census Bureau, minorities are now the majority in Texas, and the Hispanic population is increasing by 9 percent per year (from 2002 – present). In comparison, African–Americans are increasing at 4 percent, and Non–Hispanic whites are increasing at 2 percent. More significantly, according to USA Today, the Hispanic community is now the largest minority in the country.
David Kostin (Goldman–Sachs & Co.) states in “Hispanization of the US: The Growing Influence of the Hispanic and Latino Communities in the United States Economy,” the majority of Hispanics and Latinos live in California, New York, Florida and Texas. These states account for approximately 66 percent of the total U.S. Hispanic population, and Texas is second to Californiain Hispanic population.
Kostin also states the Hispanic/Latino population in the U.S. will dramatically increase its economic significance due to 1)population growth, 2) growth in Hispanic income and 3) newspending patterns. We also have a younger demographic community, and research indicates that Hispanic spending patterns will change as income rises. Currently, we spend 93 percent of our discretionary income versus the U.S. average of 82 percent, and most of it is spent on food, rent and transportation. As Hispanic income rises, we will spend more on health care and homeownership, as well as on savings.
Now that we have identified why it’s a market segment worthy of investment, what is the correct answer to effectively market to Hispanics? Two words – CON CORAZON, which literally translates to “with your heart.” It was not by coincidence that the Hispanic Chamber’s largest event of the year, our Annual Installation Banquet, was themed “Champions of Business: Con Corazon.”
The Hispanic community does business based on relationships, and culturally, we are comfortable in doing business with people we know on a personal basis. Again, we do business with heart. We do business with people, not with institutions. We buy something for its quality, not because we saw an ad for it in Spanish. We value the opinions and referrals of our friends and relatives over Ricardo Montalban doing a cameo to promote acompany’s product.
The development of this trust, Con Corazon, means that when we greet, agree to a negotiation or sign a contract, we do it with un abrazo, not with a handshake. During my career, I have often heard people tell me and others, “Hey, it’s not personal. It’s just business.” That’s WRONG! To Hispanics, there is nothing more personal than business. Making business personal has its high notes and low notes. However, in the long–term, people you know and with whom you have fostered a professional rapport will remember your successes. They are also more forgiving and more willing to overlook potential, minor shortcomings or missteps if and when they occur.
One of the first things I did in my current role at the Hispanic Chamber was get rid of the automated answering service, which is one of the most impersonal items ever invented. I also decided to lose the electronic signature and instead, I personally sign every letter of correspondence to and from our more than 1,000 members. I also feel it is important to correspond with individuals after meeting with them by sending them a sincere, handwritten note thanking them for their time. These are a few small, but meaningful examples of adding that personal touch, which resonates with our members, the Hispanic market and those interested in the Hispanic market in San Antonio.
Marketing to Hispanics should be personal and does not always follow conventional marketing strategies. It is not as much about the four Ps of marketing (product, price, place and promotion) as much as it is about familiarity, friendship, trust and devotion. If your company focuses on developing a strategy based on these ideals, I believe you will have discovered the answer to effective marketing con corazon.
