The decision to allocate time, money and resources to target Hispanics always seems to come down to its rank on the priority list. What do I mean by this?
When I speak at conferences or when meeting with new clients or prospective clients, the subject of time, money and resources always comes up as a concern. Most can’t seem to get past the additional resources targeting Hispanics will require. Most see investing in the Hispanic market as a step that will place pressure on already tight deadlines, tight budgets, and bandwidth.
I ask them to take a few steps back and recognize that when their company’s leadership lays out the direction for the company, the goals for the new calendar or fiscal year and the strategies for meeting set objectives, time, money and resources are going to be allocated accordingly because it’s the priority. After all we’re talking about how our company will grow. We find the time, we find the money or reallocate it, we dedicate the people, we reorganize as necessary, and we adapt infrastructure to align with the company’s direction. No questions asked, right?
Well, I would tell you that targeting Hispanics is part and parcel of heeding leadership’s priorities for growth. This is because in most respects, targeting Hispanics is no different than targeting consumers by gender, age, culture, generation, socio economics, life stage, lifestyle and usage behavior. There are Hispanics in every one of these segments. You just need to do the work to find them, understand them and include them as part of your target market just as you do for the consumer you target now.
Do you see how this suddenly becomes a less time, money and resource intensive proposition and becomes a growth expansion priority? It’s important to leave behind old models that position Hispanic marketing as an end in and of itself and as separate initiatives with Hispanics at the core as drivers. Thinking this way is unproductive and ineffective. It’s important to recognize that targeting Hispanics must work in tandem with addressing the company’s priorities and it doesn’t always require more time, money and resources to be effective.
It often strikes me that some of us are stuck with a vision of the Hispanic market of yesteryear. The truth is the U.S. Hispanic market is a much different market than most people know and as a community, they have evolved considerably since they started to migrate to the U.S. in 1965. They are not all recent immigrants, illegal, low income and Spanish dependent. Consider the following insights and think seriously about whether it is in your company’s best interest to research, plan, and strategize to address the company’s priorities without taking Hispanics into account.
- Almost half of U.S. Hispanics are U.S. Citizens
- Over one fourth of U.S. Hispanics migrated when they were small children
- Just over one third of Hispanics prefer to speak Spanish and only one fifth depend on Spanish to communicate
- Two thirds of Hispanic HHs earn $35K or more, half of Hispanic HHs earn $50K or more and the fastest growing Hispanic HH Income segment is $75-$99K
- Hispanics have a buying power of $1.3 Trillion Hispanics and if they were a country they’d be the 12th largest economy in the world – projected to become the 9th largest by 2015.
- Eighty percent of Hispanics speak at least some English
- Two thirds of Hispanics are under 35 years of age and three quarters are under 45 years of age
- Hispanics will live 16 years longer than non-Hispanics and consequently are much more valuable as consumer over their lifetime.
So if allocation of time, money and resources is a matter of priority for companies looking for growth, I think it’s difficult to refute the value of integrating Hispanics into your company’s growth plans.