In honor of National Hispanic Heritage Month, Edison Guzman highlights the growing buying power of the Hispanic market.
Did you know that the Hispanic population in the U.S. is comprised of almost 55 million Americans that spend over 1.5 trillion dollars per year?
According to the U.S. Census Bureau, the population is projected to grow to almost 60 million by 2020. Statista projects the buying power to increase to 1.7 trillion dollars by 2017.
The Hispanic market is growing and will continue to grow in the foreseeable future. More important is that Hispanics spend an average of $96 per day compared to $90 per day for all U.S. adults. In business, you always want to target a growing market that likes to contribute to the economy. That’s just good business sense.
According to the U.S. Department of Commerce, the largest segment of the Hispanic population’s origin was Mexican (63.9%). Puerto Rican origin was second (9.5%), followed by Salvadorian (3.8%) and Cuban (3.7%). Dominican origin (3.2%) was fifth, followed by Guatemalan (2.4%). All other Hispanic origins combined make up 13.5% of the U.S. Hispanic population.
If you’d like to target this population, you must first identify your perfect target market. Find out where they are located, what is their age group, what is the dominant gender, what are their interests, what is their relationship status, who are they connected to, where do they work, etc.
The more you know about your specific target market, the better your ROI when advertising. If you’re a small business owner, this will also help get your prospective customer to know, like and trust you (KLT).
Also, the better your message, and the better they identify with your product or service. When people know, like and trust you, they’ll buy more from you. When was the last time you bought something from someone you didn’t know, didn’t like and didn’t trust?
By the way, your online presence must instill a high KLT factor because odds are that your prospective customer may never meet you in person. You must speak to your target market with the words, images, colors and videos you use on your web site. When all content is appropriate to your specific prospective customer, it will make it easier for them to buy or simply contact you for more information.
The same goes for your traditional and digital advertising. Ensure that all content is appropriate to your target market. Use words they would use. Use the language (and dialect) they would use. Use the colors most appropriate with your industry.
The Hispanic market has many things in common with all other markets. We are all humans with similar psychological buying triggers.
One trigger can be fear of loss, such as fear of losing a great deal. You can use deadlines, expiration dates, limited quantities, etc.
Another psychological trigger is social proof. You accomplish this by using testimonials and endorsements. Some people love to do as others do, will purchase your product, or hire your services based on someone else’s recommendation. This is a big part of social media.
There are many other psychological triggers that will help you increase revenue, so do your homework and learn as much as possible about them. For instance, some people buy a product or service in order to make money, save money, save time, avoid effort, get more comfort, gain praise, be popular, gratify curiosity, be in style, etc.
The more you know about your target market, regardless of their ethnic background, the better you can help them decide to buy your product or service.
The Hispanic market is a rich culture waiting for you to help them thrive. Is your company up to the challenge?