Ethnic Marketing Successfully Building a Hispanic Client Base
by Yaneth Amaya and Marcela Cortez
One of every seven people in the United States is of Hispanic origin and this segment of our population may continue to increase dramatically. The most recent Census data shows that, since 2000, this segment has accounted for nearly one-half of population growth in the U.S. In that year, 64% of middle-class Hispanic households owned their own home or were purchasing one.
As these statistics suggest that the Hispanic demographic represents a significant opportunity for individual agents. A growing number of agents who attempt to sell to the Latino market are non-Hispanic. More than a few have discovered that it is simply not enough to use the same approach that works well outside the Latino community.
Unfortunately, a number of misconceptions about Hispanic culture permeate mainstream North American society. It's critical to understand the intricacies of this segment of the population and their cultural characteristics if you want to secure them as long-term clients.
It is also essential to understand Hispanic cultural norms, which can play a central role in business relationships. We have found that Hispanics are open to doing business with non-Hispanics who make a genuine effort to know and address their financial needs.
For starters, U.S. Hispanic culture is not homogeneous. Hispanics hail from a wide range of countries (at least 20, according to the U.S. Census Bureau) and have been in the U.S. for varying amounts of time. Some U.S. Hispanics come from extreme affluence, others from poverty, and everything in between. Some Latinos may speak very basic English, while many others have grown up speaking English and Spanish and may be extremely conversant in both.
Hispanics represent a variety of religious backgrounds. In addition to Catholics, there are many Protestants, including those from evangelical denominations, as well as Jews, Muslims, and a smattering of atheists.
Hispanics are not synonymous with illegal aliens. Many Hispanics are entirely legal, including some who are dual citizens. Others are early on in the application process, while still others may have encountered difficulty in applying for legal status. The most important point is not to make uninformed assumptions.
A Hispanic accent does not indicate that the person does not understand English.
Some people retain an accent all their lives, no matter how many years they spend in a country.
Cultural Norms
As with multiple ethnicities and customs, there are a number of ways in which Hispanic culture can differ from mainstream U.S. culture. These differences can occur in subtle ways. However, contrasting Hispanic and mainstream U.S. cultural norms can be a counter-productive exercise, since it is easy to slip into broad stereotypes. With that very important caveat, the following are a number of culture factors that may provide you with a better understanding of the Hispanic cultural fabric:
¥ Mainstream American culture often values individual achievement, while Hispanics think of achievement in terms of the entire family.
¥ Mainstream American culture often considers a family unit to be made up of parents and children, while Hispanic culture extends the definition to include other relatives.
¥ Mainstream American business meetings focus on conducting tasks and achieving goals as quickly as possible, while business meetings in Hispanic communities often place a greater value on developing and enriching personal relationships.
¥ Mainstream Americans trust most institutions, while many Hispanics tend to distance themselves from institutions or regard them with caution.
¥ Mainstream Americans expect punctuality when conducting business, while Hispanics (and many other cultures worldwide) may be more relaxed and flexible about time and punctuality.
¥ You may find that many Hispanics focus more on the present, while Mainstream Americans are more prone to consider future priorities. A prudent approach is to talk about the importance of doing something and the immediate effect of that action.
When you build relationships with Hispanic clients, you may find yourself in a number of situations that are perfectly normal from the clientÕs perspective, but may seem novel to you.
Family and Friends
A sales call may involve not only the client, but also other adults, including family members and friends. It is not unusual for children to be present at the meeting.
Your Family
You may be asked about your family. How you describe them and your relationship with them may be a gauge for the client as to your integrity and trustworthiness.
Physical Contact
When you greet a client, you may get a hug or a light kiss on the cheek. This common greeting may indicate that the client views you favorably.
Pace of Conducting Business
The pace of doing business may be slower. ItÕs quite possible that you may be asked to enjoy a drink or meal before the business discussion commences or, less pleasantly, you may be stood up or be asked to come again. In mainstream America, that would be a clear snub. In Hispanic culture, it may be a test of your interest in entering a business relationship with the client.
Emotional Considerations
Avoid putting too much emphasis on the logistical aspects of insurance, since the Hispanic consumer may relate more to emotional aspects, like the need to take care of their children and keep the family together. Highlighting real life stories with a positive message can be effective.
Addressing Death
Avoid discussing death directly. It's often better to use language such as "If the unexpected should happen" or "If you were not around."
Titles of Respect
It is a good idea to use titles of respect, such as Mr., Mrs., or Miss. It's also important to start conversations with topics other than business. Inquire about a customer's family or country or discuss sports or some other non-business matter.
Follow-up
Especially with Hispanic clients, it is crucial to for your customer to know that you are available and that you may be contacted if there is a concern, question, or change of plans. As with mainstream U.S. clients, it is important to return calls promptly and provide a client with opportunities to ask questions. Also, you will fare far better if the client can communicate with you or your organization in either Spanish or English.
An Enormous Market Opportunity Awaits
There is a slight educational curve on the part of non-Hispanic agents to better understand and better serve the Hispanic customer base, but the effort will result in an enormous market opportunity. There is a great need and demand for insurance products among Latino families. This is a largely untapped demographic for insurance agents. By understanding and being sensitive to Hispanic culture, you can sufficiently serve this very important, growing segment of our population for many years to come.
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Yaneth Amaya is the bilingual training coordinator supporting Old Mutual Financial Network's (OMFN) En Espa–ol Initiative. Yaneth is in charge of developing and providing training, tools and sales collateral to equip and support bilingual and non-Spanish speaking agents across the U.S. who want to expand their business by targeting the Hispanic Market. A native of Colombia, South America, Yaneth has been in the U.S. for 26 years and holds a bachelor's degree in Chemical Engineering from the Georgia Institute of Technology and an MBA with a major in Finance from Georgia State University. Prior to joining OMFN, Yaneth worked for ING, where she conducted domestic and international audits concerning Latin American operations.
Marcela Cortez is the bilingual marketing coordinator for the OMFN En Espa–ol Program. Marcela's responsibilities include developing marketing and educational pieces to assist the sales force in their efforts to better serve the Hispanic Market, as well as conducting market research. Before joining OMFN she worked as a Loan Officer for Bank of America. Prior to moving to the U.S. in 2001 from her native country, Perś, Marcela was a Director of New Products Development for Belcorp Corporation. With a solid background in sales and marketing, Marcela played a key role in new products launches across 7 countries in Latin America. Marcela earned her bachelor's degree in Business Administration from the University of Lima, Perś and an MBA degree from Mercer University in Atlanta, Georgia. She is fluent in English and Spanish.
