Today Latino or Hispanic community is the third largest ethnic segment in the United States and according to recent data; their number is growing at a rapid pace. In fact, they are the ethnic segment with the fastest growth rate both in terms of population and purchasing power. As a result they have become the new favorites of businesses who want to enter the Latino Marketplace.
So far, many businesses, e.g. the luxury brands never paid much attention to this ethnic group thinking that they will not be interested in high-end products. But as the Latino community became educated and upscale, they started showing promises that the Latino marketplace is a virtually untapped market for expensive products and services. And who can resist a virgin market with a 1 trillion purchasing power? Brands started pouring in.
DGWB, a research company that follows consumer health and lifestyle trends, agrees that U.S. Hispanics are an essential target audience, especially for the health and beauty market.
However, entering the Latino marketplace is not as easy as it seems. As this ethnic group speaks a different language and has a vivid cultural background. Therefore, In order to tap into this market, businesses need to opt for a marketing strategy especially designed to entice the Hispanic audience. That means they have to invest in making advertisements in Spanish and it must adhere to Latino cultural heritage.
But that is just one aspect of marketing. In order to fully tap the potential of this market, businesses have to pay attention to various other aspects as well. For example, businesses need to deliver customer service in Spanish so that Latino customers can communicate their problems in a better way.
Some experts are of the opinion that if a company addresses the Hispanic community in Spanish, they have a better chance of making it big in the Latino marketplace. When a company uses Spanish in their promotional and customer service activities, Latino people think of that as a respect to their language and culture and start favoring the brand.
Therefore, it will be safe to say that in order to tap into the Hispanic marketplace, business has to make some necessary changes in their promotions and business models. On the other hand it is often seen that the company that aligned their Hispanic campaign strategy to their existing business model have become the most successful in entering the Latino marketplace.
The reason behind this is a simple one. If a business has to completely overhaul its business model and marketing strategy and have to hire marketing and customer care executives to overcome the language barrier, it is bound to be a pricey affair for the company. On the other hand, if the company can make some slight changes in the business model and outsource their customer service to some Spanish call center in Latin America, they can save quite a hefty sum, which can then be used in other promotional matters.
For this simple reason, more and more companies today are outsourcing their Hispanic customer service to different customer service providers in a Latin American country, where agents speak accent-neutral Spanish and offer excellent customer service for a fraction of the price of running an in-house Spanish-speaking call center. Thus, outsourcing is helping them to cut down the cost and at the same time, provide excellent customer service to their Hispanic audience.
Therefore, it can be safe to assume that aligning a Hispanic campaign strategy with their existing business model and outsourcing their Spanish customer service are the two most popular trends for businesses that have successfully conquered the Hispanic marketplace in the United States. New businesses who want to enter this marketplace can also use these tactics to make it big in the Latino Marketplace. luxury marketplace