Hispanics are Brand Loyal. Are they choosing your brand?

Thursday, August 13, 2009 by Lance King

If I haven't convinced you yet that you should spend some marketing time and money by focusing on the Hispanic population, let me try again.  Media Post has several great articles on the subject.  Here is another one by Diana A. Terry-Azíos called "Brand Loyal, Yet Unbranded".

As a general rule, Hispanics are more brand loyal than other groups.  They are less risky with their purchases and stick to brands that have provided good quality products.  However, when many of them move to the U.S., they are likely not going to find their familiar brands here.  So they have to start shopping and they have tons of choices to choose from in the U.S.

Another issue is that they are not as compelled to buy "Made in USA" as other U.S. citizens nor will they be compelled to buy products endorsed by people they don't know.  If Hispanics don't know who Michael Jordan is, then he isn't going to help Hanes sell more underwear to them.  And Brett Favre isn't going to help sell more Wrangler jeans to them.

Here are some key points to marketing to the U.S. Hispanic population.

- You have to prove that your product is of good (or the best) quality.  Hispanics will often spend a little more if they are getting the best quality.
- Start a marketing campaign that will speak directly to Hispanics, perhaps with Hispanic stars, but definitely with Spanish content (and not just English content translated directly to Spanish).  Your marketing campaign needs to address quality, convenience and emotion.  But also keep in mind that the growing young Hispanic consumer considers himself/herself as Latino AND American.
- Use multiple touch points to stay in contact with Hispanic consumers. For example, studies have shown that Hispanics are more likely to respond to text messages than other groups.

For more Key points, see the article I am referencing.

Oh, and by the way, here are some interesting facts about the growing Hispanic population.

45.5 million -- The estimated Hispanic population of the United States as of July 1, 2007, making people of Hispanic origin the nation’s largest ethnic or race minority. Hispanics constituted 15% of the nation’s total population. In addition, there are approximately 3.9 million residents of Puerto Rico.

About 1 of every two people added to the nation’s population between July 1, 2006, and July 1, 2007, was Hispanic. There were 1.4 million Hispanics added to the population during the period.

3.3% increase in the Hispanic population between July 1, 2006, and July 1, 2007, making Hispanics the fastest-growing minority group.


Want more?  Here are some interesting facts.

So what are you waiting for?  The growing Hispanic population is waiting for you to give them a good reason to buy your products and to tell their friends just how good you are.  As word spreads through their community, your profits should start growing at a faster and faster pace.

We can help you.  We are an Atlanta interactive advertising agency.
 
Definition 6 is an interactive media agency that creates marketing initiatives that engage people.  We capture and analyze relevant metrics from web analytics, email marketing, online media, and social media campaigns to continue to test and refine marketing plans.  We’d like to help you meet the challenge of addressing the new expectations of consumers.


E-Commerce for Hispanics: Right and Wrong

Wednesday, August 12, 2009 by Lance King
I read an article on MediaPost that showed how 2 major retailers, The Home Depot and Best Buy, targeted the U.S. Hispanic community.  One company failed while the other is gaining more sales.  What is interesting to me is that it appears that they both took the same approach, got back the same unexpected results, and then went in two different directions.

Both companies created a "U.S. Spanish" website.  Their target was U.S. Spanish speaking consumers.  What they discovered was that they were getting a lot of non-U.S. Spanish speaking visitors to their websites.  These visitors wanted to buy online just like U.S. consumers.  In many cases, the non-U.S. consumers were either visiting relatives or friends in the U.S. or were Mexicans crossing the border to shop.  The prices in the U.S. were cheaper than in their country and so they wanted to get their items in the U.S. and then bring them back home.  So what is the problem with that?

For Home Depot, the problem is that they did not take the foreign credit cards on the U.S. Spanish site.  Best Buy on the other hand embraced the additional and unexpected consumers and did allow the foreign credit cards.  Best Buy is finding that, even though they don't ship overseas, people will order online and ship to friends or family where they will pick up the items later.  They also have found that U.S. Hispanics are using the website to print out information before they go to the stores to purchase the items.  In many cases it is easier for them to understand the information in Spanish.

One of the more interesting sides to this story is that The Home Depot has stores in Mexico, they have a Mexican website (in Spanish, of course), they have an English Canadian website and they have a French Canadian website.  So they are marketing to everone across North America except the the growing number of Spanish speaking Hispanics in the U.S. and those Spanish speaking visitors who wish to purchase in the U.S.

Not knowing the full details of the costs involved, it would be interesting to see the cost for Home Depot to maintain the U.S. Spanish site and the revenue the site could bring in (if they allowed foreign credit cards) and the revenue brought in by those in the U.S. who used the site to gain more information about products they wanted.  It seems to me that 4 months of running the U.S. Spanish site is not enough time to determine its impact and that if Best Buy can make it work for them, The Home Depot should be able to make it work, too.  Besides, if a French Canadian site can work for Canada, why can't a Spanish U.S. site work here?  I wonder if Home Depot is looking for a way to recreate the U.S. Spanish site in a way that will embrace those consumers that liked having the site available.

Are you looking to build a website to market your products or services to the fast growing U.S. Hispanic community?  Definition 6 is an Atlanta interactive marketing agency that can help you.  Besides doing website development and web application development, we can manage your Search Engine Optimization, your Search Engine Marketing and your email marketing campaigns while providing web analytics that ties everything together.  As we gather more and more valuable information about your consumers, we can tweak all methods of marketing to maximize your dollars.  Contact us and let's get a plan in place for you.

Successes in Social Media (or Please start using Social Media now)

Tuesday, August 11, 2009 by Lance King
I've compiled a small list here of Social Media success stories.  One of the interesting things that I find about most people who have already started marketing and consumer communications using Social Media is that they often say "don't be afraid to try something new" and "don't be afraid of failure".  Some failures have lead to even better campaigns.  If these companies (and more) can try a few ideas, so can you.  Most people familiar with social media agree that if you really want to connect with your consumers and help establish or reinforce brand recognition, you need to get on Social Media outlets now.  For one thing, it is often very cheap to do this while being able to reach out to thousands or even millions of potential and long-standing customers.  So please review these stories to see how easy some of them got started and the great successes that they had.

1. Taco Mac on Twitter
Followers of Taco Mac can follow the individual Taco Mac location of their choice.  They get updates on Taco Mac's latest specials and reminders of special events.  Taco Mac gets a lot more people attending special events because many of them might have forgotten.  On Pint Night they are running out of free pint glasses in 1 hour instead of 3 hours like it was before Twitter.  What else could your company do if you were sending constant "reminders" to your customers?
(http://www.ajc.com/business/taco-mac-uses-twitter-102656.html)
(http://twitter.com/TMacLindbergh)


2. Masi Bicycles on Blogs, Twitter, Facebook, YouTube
New Masi Brand Manager, Tim Jackson, was given a very small budget and they were already spending much of that on some magazine ads.  So he had to come up with an inexpensive way to better market the Masi brand.  The easy (and cheap) way for him was to create a blog that he regularly posts to.  This actually helped him to establish good relationships with some of his vendors.  He is also actively using Twitter and Facebook and is moving toward podcasts and video.  With a new "cult" following, sales are really starting to grow.  What's really interesting is that Tim had never done any of this before.
(http://mediahunter.typepad.com/media_hunter/2008/07/social-media-su.html#more)
(http://twitter.com/MasiBicycles)


3. CNN with Facebook
CNN had a huge success when they teamed up with Facebook to present the Presidential Inaugaration and Michael Jackson's funeral.  21.3 million live video streams!  That's a lot of people.  Oh, and guess what?  CNN's first attempt failed (The Primary Debates).  But they figured it out before the inaugaration.  What can your company do that would attract watchers, even if you don't get 21.3 million?  Maybe a live fashion show for a new line of clothing?  Perhaps a live demonstration of how your product works or a new product offering? Or maybe a conversation with your CEO?
(http://vmarketingblog.com/2009/07/31/cnn-and-social-networking/)
(http://www.cnn.com/2009/TECH/01/21/inauguration.online.video/index.html)
(http://mashable.com/2009/01/20/cnn-facebook-inauguration-numbers/)
(http://newteevee.com/2009/01/20/facebook-cnn-is-future-of-tv/)


4. Zappos on Twitter, Blogs
Customer satisfaction and relationships.  That is what Zappos is all about.  QUALITY interactions.  Not only do the CEO and COO get online, but many of their other employees do too.  It is like they are your friends.  What would it be like for your company if people considered your brand as their friend?  Zappos has come to the realization that your brand isn't what you say it is, it is what the consumers say it is.  They proudly look for and respond to negative comments about them.  They are all about "making things right".  They want people to be comfortable not just with Zappos' products, but with Zappos' employees.  How would people respond to your employees if they were responding to and interacting with consumers online?  To quote from the article below "we may not always remember what someone tells us, but we generally remember how we felt when we were interacting with the person. And when people feel respected and engaged, whether it is in-person with a co-worker or online on a social network, they have a natural desire to tell other people about the experience."
(http://mashable.com/2009/04/26/zappos/)
(http://twitter.com/zappos)


5. Common Wealth Credit Union (CWCU) on YouTube
CWCU wanted to target a specific demographic.  People between the ages of 17 and 25.  They wanted a way to keep the buzz going while acquiring new customers for life.  They created a microsite for this campaign that is managed by someone who is 17 - 25 years old and use YouTube to upload videos that will appeal to people their age, usually videos of themselves.  People can interact with the website by answering poll questions, watching videos, sharing pictures, submitting job postings, adding information about free stuff in their communities, and of course, applying for a chequing account.  The site "spokester" also blogs about money with fun little YouTube videos.  They opened up 2400 new accounts in the first 8 months after the campaign started (Note, the article does not say how that compares to previous months, but it must be good because they are still going and have a new "spokester" with lots of new material).
(http://mediahunter.typepad.com/media_hunter/2008/08/social-media--1.html#more)
(http://www.youngfreealberta.com/)


So those are just a few examples of companies making the most with Social Media.  In many cases it involved very little cost.  In other cases there was quite a bit of time, effort and money put into it, but the results were out of this world.  Given that there are several very active social media sites, it would be a smart move to get your company out there and in touch with your current and potential customers.

If you are looking for great ideas, let Definition 6 help you.  We are an online interactive marketing agency with experience in Social Media efforts.  There are so many good online marketing techniques and we can help you find the one (or more) that are right for you.  If you go to www.definition6.com, you can check out our new game that interacts directly with Twitter called TwitterINGO.  Or you can check out how we integrated AutoExtra's campaign with MySpace.  We can also help you with mobile marketing strategies.

If any of the above stories don't convince you to get on the Social Media bandwagon, then check out Mashable.com's "10 of the Smartest Big Brands in Social Media".

Hispanic Acculturation? Try "Situational Latinidad"

Monday, August 10, 2009 by Lance King
Lauren Romero wrote an article titled "Beyond Acculturation" that describes why simple "acculturation" is not good enough when considering your marketing plan for the Hispanic community.  Just like you would create U.S. English websites based on your consumer behaviors, you can't simply create a website based on consumers being Hispanic.  Hispanics have different characteristics just like everyone else.  The acculturation technique may have been good for a while because the Hispanic community is complex and it was an easy way to start addressing their needs.  But now there is a lot of information that has been gathered that should be used to do better segmentation, based on behavior, not just demographics.  Lauren's article mentions a term that was created by Diano Rios and Federico Suberi called "Situational Latinidad".  Its basic idea is that "each Latino in the U.S. experiences the Latino identity in different ways, in different situations. Acculturation labels sum up general types and levels of such individual identification based on language use and media consumption, but they miss what matters to most marketers -- behavior related to their category."

As an interactive marketing agency, Definition 6 can help you gather information about your consumers to help you create websites, email campaigns, pay per click campaigns, etc. that reach out to the growing Hispanic population.

Dell generated $3M on Twitter, but more importantly, they are interacting with customers.

Thursday, June 25, 2009 by Lance King

I have seen several articles recently about how Dell made $3 million using Twitter (How Dell Generated $3 million in Sales Using Twitter, Social Media ROI: Dell's $3m on Twitter and Four Better Examples).  Interestingly enough, the articles stress that having the $3 million in sales is not the most important thing that Dell is doing, but rather a good result to a much bigger strategy.  The important thing Dell is doing is customer communications.  They are actually listening to their customers.  They listen for their complaints and listen for their ideas and then they interact with their customers by replying to them.  Customers love it when a company responds to them.  By building a constantly growing base of customers, Dell is earning more respect.  So it is no wonder that when they started posting promotions on Twitter they generated a lot of sales.

It is important to note that even though Dell was able measure a hard ROI of sales that came directly from Twitter, there is a more difficult measure called "soft" ROI that no doubt led to the hard ROI.  The soft ROI is measured in things like fewer support personel required to take phone calls, the value of an online community that openly discusses a company's products or services, and the value of forums where people can search for answers rather than waiting on hold for a customer rep on the phone.  I think if you can build the soft ROI's, then the hard ROI's will be easy to create.

Definition 6 is an interactive marketing agency that can help companies start with the basics to build up a strong and powerful customer base using social media and then help to start generating hard ROI's.  We can help you with your long term strategy rather than just focusing on getting a company Twitter account up and running.  Just having the account is not going to help you generate revenue or customer loyalty.  It is how you use that account that will accomplish those.

Keys to targeting the growing Hispanic community

Tuesday, May 19, 2009 by Lance King

In my continuing research into marketing to the Hispanic consumer, I'm finding great articles from MediaPost that provide good information on why and how to reach this particular audience.  So here is an article by Joseph Kutchera (Why Does Google Send U.S. Hispanics To Foreign Web Sites?) that talks about what Google is doing with search results for the Spanish speaking community and how you can apply similar ideas to your marketing campaigns.

The first thing he points out is that if you search in Google using Spanish words, 50% or more of your responses are going to be for sites outside of the U.S. borders.  So why does this happen and why do marketers miss this target audience?  Kutchera provides the answer.  "Google and other search engines index sites globally while we marketers, agencies and media sellers work within the economic and political borders of the U.S."  When people search using Spanish words and terms, Google is going to return sites that have Spanish content on them.  Does your website have Spanish content?  If you do, you may still be missing out on this audience for a few different reasons.  Kutchera points out the following.  1) Your Spanish site may not be optimized for Search Engine Optimization (SEO) like your English site.  2) Many Spanish speaking Hispanics like to go to sites of their country of origin. 3) Spanish language markets are more likely to spend time on their content, making it more relevant than someone from an English language market who is updating a Spanish language website. 4) U.S. advertisers have been slow to move budgets toward online marketing and therefore not providing the resources necessary to provide the content that is necessary.

So what can you do to reach the Hispanic population:

- Purchase non-U.S. targeted inventory on your search buys along with your U.S. targeted inventory.
- Reach out to Hispanic country-of-origin web sites through ad networks.
- Apply behavioral, contextual, and language targeting to further segment and understand your Hispanic audience.

As a Senior Consultant at Definition 6, an interactive marketing agency with expertise in Web Search Engine Optimization and Search Marketing Consulting, I'm seeing lots of evidence for companies to shift some marketing dollars to specifically target Hispanics in the U.S.  This growing population is getting online at a very fast pace.  There are millions and millions of them out there that could be buying your products or services if they could find you.  Are you willing to let them go to your competitors?  We can help you target them.  We can help you get ahead of the curve.
 


Why target Hispanics with mobile ads?

Tuesday, May 5, 2009 by Lance King
Here is an article I found about targeting Hispanics with mobile ads and apps.  Why you should target them specifically?  Well, it turns out that many younger generation Hispanics in the US will get their first internet experience on their cell phone, not on a computer.  And some recent surveys have shown that Hispanics are more likely to view mobile advertisements and respond to them than other groups.  One company mentioned in the article is targeting Hispanics by offering English training on their cell phones in exchange for them watching a short 2 - 3 second advertisement.  With the responses offered up by Hispanics, it can become quite easy to figure out what different demographics are doing and what they respond best to.  Given that Hispanics will be in a better spending position once the recession settles, it seems like a great opportunity now to start planning your mobile campaigns that are directed toward Hispanics.

Definition 6 is an Interactive Marketing company in Atlanta that can help you with your mobile marketing strategies and help you tie them in with application development consulting, web 2.0 applications, email marketing and search engine optimization.  Contact us and let us help you market to this growing community of consumers.

Hispanics beat out the deleveraged consumer

Friday, April 24, 2009 by Lance King

Lately I've been reading articles related to the Hispanic consumers.  I think most of us have read or heard about how the Hispanic population is growing so much in the U.S.  It seems to me companies that have products or services to sell should be paying more attention to this and shifting some (or a lot) of their marketing efforts toward the Hispanic consumer.

In an article on MediaPost by Jose Villa (http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=98883#comments), he talks about a very good reason to shift some focus to the Hispanic community.  Put plainly, they may be in better shape after the recession than any other ethnic sector.  In his article, he points out that unlike the previous recession, most consumers will not be able to go back to their old spending habits because they won't be able to get the same credit that they received before.  And we all know how our society loved to spend money on credit.  In the article, this is referred to as the "deleveraged consumer".  The Hispanic community, on the other hand, typically stayed away from spending on credit.  So when the economy recovers, they'll be more likely to continue their same spending habits they had before the recession while others will have to learn to cut back on their excessive spending.  Their lack of debt means that "the Hispanic market represents a beacon of opportunity as a truly deleveraged consumer" according to Jose.

I really like the idea of spending some marketing focus on the Hispanic community because I think there are a lot of potential buyers in that group that are untapped.  The three top ideas I can think of would be:

1. update your websites to offer a spanish version.  Although many of today's Hispanics that are online speak both English and Spanish, it is a welcoming gesture to let them choose their language of choice.  But don't forget to update imagery and styles of the Spanish website and not just the text (Jose has another article that addresses that: http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=103345)

2. allow your users to decide which language to receive their emails in.  You'll want to be sure you have proper tracking tools in place so that you can see how well your Spanish emails work and compare that to your English emails.

3. advertise in places where Hispanics spend more of their time.  In a previous blog post I discuss what some of those websites are.

Definition 6 is an interactive marketing agency that can help you analyze and plan a course of action to market to this untapped group.  As an application development company and online marketing company we can also implement your web applications and email marketing campaigns as well as provide analytics of both.  So take advantage now and don't leave out this important ethnic group.


Marketing to US Hispanics

Friday, March 20, 2009 by Lance King

I came across a Mediapost article that I found very interesting because as a technical project manager at an online agency, I work with several clients that do market to the Spanish speaking community. It shows that most US Hispanics who prefer to speak Spanish are using a lot of websites outside of the US.  In fact, 7 of the top 10 are websites in Spain, Mexico and Columbia.  So companies that need to reach out to Hispanics need to find ways to advertise on these non-US websites in order to bring those customers back to their US websites.

Here are a few key points I got from this article:

1.US Hispanics who prefer Spanish prefer to read Spanish sites and most of them go to websites outside of the US to get the content they want.

2.To reach US Hispanic consumers, companies need to run their media and advertising on non-US Spanish websites.

3. US Spanish speaking consumers use non-US sites more than the major Spanish portals in the US, such as Yahoo! En Espanol, Univision, Telemundo and AOL Latino.


In addition to builing multilingual websites, Definition 6 is an interactive ad agency who helps clients strategize on how to best market to different segments, which can include cultural, regional or age groups.