Even in the digital age, 85% of a business’s customers live or work within a five-mile radius of its storefront or office. But whether a company has only a brick-and-mortar shop or operates completely through an e-commerce platform, it seems that businesses may need to be more aggressive about marketing to Hispanic customers.
Currently, the Hispanic population represents nearly 20% of the entire U.S. population and is estimated to increase to 28% by the year 2060. This year alone, their buying power will equate to $1.7 trillion.
One corporate giant that recognizes the importance of reaching Hispanic customers? Amazon. The popular online retailer added Spanish to its site and launched Amazon Prime in Mexico back in March. According to a report published by Apparel, nearly 75% of Hispanic shoppers speak Spanish at home; even if they’re completely fluent in English, this decision can help build brand trust and create connections with customers.
Amazon debuted its Spanish-language U.S. site during the same week the retailer made Prime memberships available for Mexican users. Not only can these consumers access video-streaming, but they can often get free, one-day or same-day shipping on thousands of products for approximately $23 a month. They also support the preferred payments methods and local currencies used by these customers, which can go a long way in making them feel valued.
But not every business can operate solely online like Amazon does. For those companies that do rely on face-to-face interaction, a little creativity and willingness to embrace digital strategies may be required.
Social media can hold the key for brands that are looking to reach new audiences. Some automakers have even turned to Twitter to target Hispanic car-buyers, an important demographic that has been found to rely on mobile devices to find auto information and subsequently make quick purchasing decisions.
According to a survey conducted by Twitter and Ipsos Connect, 49% of all auto buyers have Twitter accounts. They’re also 1.25 times more likely to use a mobile device to conduct a car search and were found to be most likely to craft tweets relating to autos or post comments or send private messages to a brand asking for information.
DJ Capobianco, a research manager at Twitter, noted in an analysis published by MediaPost:
“One of the most interesting things we found is that Hispanic auto buyers are 39% more likely to use social media to help decide which car to buy, demonstrating the powerful value of social media in the decision-making process for this audience. We also found it incredibly compelling to learn that Hispanic auto buyers on Twitter are truly car enthusiasts. Nearly eight in 10 self-identify as a car enthusiast — that’s 80% more than Hispanic buyers who don’t use Twitter. This is powerful insight for automakers to leverage as they think about their media strategy and the value Twitter holds in reaching this affluent, tech-savvy group.”
According to the survey, 79% of Hispanic customers appreciate car ads when they reflect Latinx culture. Understandably, this creates a more personal connection and makes customers feel appreciated.
Toyota and Honda are both prime examples of car makers who are harnessing this knowledge correctly, says Capobianco. Toyota Latino utilized video ads that were shown during the Copa America Centenario games to increase brand awareness and a Hispanic association. And Honda partnered with Carlos Pena and the L.A. SPCA to highlight a cause and forge a real connection with customers.
But many American businesses are failing to target Hispanic consumers in their marketing campaigns. These customers tend to crave authenticity and want to spend their money with brands that take the time to understand the culture and their needs. While there are a few that are doing it effectively, there are countless others that are missing out. If businesses expect to survive both the digital age, experts agree that they need to start paying attention to the notable shifts in purchasing power these demographics hold.