You just started your business.
Exciting, isn’t it?
Frankly, when I started my business three years ago, I was more nervous than excited. Fresh out of college with no real-life experience, a simple business degree, I thought I had nothing to lose, so what could go wrong?
But, boy, was I wrong.
In the next six months, I did everything I read in my degree. Talked to the mentors, got personally involved in the product assembly and manufacturing, but what did it get?
A lot of disappointment. That is when I realized that my target audience was too narrow. While living within the USA, I was missing the biggest minority – the Hispanics.
Today, most businesses recognize this issue, which is the reason more companies are targeting Hispanic customers to stay profitable. So, why are they doing that?
Let’s explore this together.
Within this write-up, you will get to learn about some of the biggest reasons behind targeting the Hispanic audience for your business.
Top Reasons a Company Should Target Hispanic Consumers
Growing Numbers
We all know that Hispanics are the biggest minority group in the US, and they are growing in numbers. This simply means that when a business refuses to add Hispanics to its target audience, they are missing out.
While most people believe that only new brands, struggling to find their footing, should target the Latino community, studies show otherwise. To give you a perspective, Hispanics make up nearly 18.7% of the total U.S. population (Source: Pew Research Center). This number means that when you do not include Latinos in your target market, you are refusing to serve more than 62 million people.
This is the reason we are noticing more and more businesses trying to make a conscious effort to target the Hispanic audience. For instance, Cox Internet is a service provider serving within USA. The company has recognized the importance of the Hispanic audience, which is the reason they have included a Spanish channel lineup along with a 24/7 Cox servicio al cliente for guiding their Spanish-speaking clients.
Boost in Buying Power
Over the last few years, we have noticed a shift in the American economy.
What shift, one might ask.
Well, historically, immigrants are seen as people with limited buying capacity, so brands and the community alike marginalize them. However, in the last few years, there has been a surge in the buying power of these immigrants due to brain drain.
Now, most of the immigrants coming from other countries are college graduates with decent education and skill sets. They have much better buying power and have the capacity to maintain a decent lifestyle as well.
Apart from this, Hispanic immigrants living here for a few generations have much better financial health, which has improved their buying power as well. Overall, now it is more important than ever to include Hispanics in your target audience.
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More Tech Savvy
We all know Hispanics are tech-savvy. In fact, study shows that they use traditional banking services less and rely more on online payment methods. Similarly, they are chronically online, which means they have a much better understanding of online trends.
All these things mean, it is much easier to attract Latinos towards a new brand.
How?
Well, if you use the right social media and digital media platforms to reach them, there is a high chance that you will build a decent Hispanic audience. Apart from this, when a community is more tech savvy, they have a much better understanding of new issues, and they are more likely to switch when they see a good brand offering decent services.
Open To Innovation
The Hispanic audience is unique, as they are more likely to be attracted to innovation.
Why?
The answer is simple: marginalized minorities, especially immigrants, are attracted to innovation and technology more. As a result, we notice more immigrants becoming part of tech startup cultures.
So, when these immigrants step into the real world as customers, their first instinct is to move towards businesses that are suitable, eco-friendly, value diversity, and put innovation at the core of their businesses.
Apart from this, Latinos value money because most of them come from humble backgrounds. This means they will never look for legacy brands or expensive price tags while making a purchase.
Instead, they prefer companies that are innovation-driven and offer maximum value for the buck. In short, if your brand stands out, offers something different, and is affordable as well, you will be able to make an impact in the Hispanic market.
Simply put, as a growing population within the USA, there is no way you can neglect Hispanics and still expect to thrive within the market. If you need more convincing, the above-mentioned reasons will help you know why Hispanics are so important for your business.
