What is your credit union’s strategy for continued growth? Has your credit union looked at providing greater engagement with the Hispanic members within the community? Now is a great time to review ways to embrace new members. Why not position your credit union to increase service to this vastly under-served membership? Reviewing the buying power and growth potential of this segment, may just be the call-to-action your credit union needs to take that next step.
The Hispanic buying power in the United States in 2016, was larger than the gross domestic product of Mexico, according to a report from the University of Georgia’s Terry College of Business. The report estimates the total buying power reached $13.9 trillion in 2016 and is estimated to reach $16.6 trillion by 2021. Credit unions can begin identifying with this consumer group to develop loyal member relationships. Authentic communication could pave inroads for serving this population for life.
This group enjoys their vehicles as much as any other cohort and are willing to spend. Research has found these buyers are about 30% more likely to purchase their first vehicle, and when they do they prefer new to pre-owned. Over 50% are more likely to purchase from the luxury category. Auto purchases by Hispanic buyers, according to Dealer Marketing magazine, “are on track to double from 2010 to 2020, growing at a pace of 116%.” The Hispanic community were reported to purchase nearly 2 million new vehicles in 2017. In the first two quarters of 2016, new vehicle sales to this demographic grew six times more than the general markets.
These numbers speak volumes. Capturing Hispanic member interest will take some homework, but the rewards can be great if done correctly. Here are some general steps to take that will position your credit union for increased engagement:
- Marketing to the Hispanic community doesn’t mean automatic translation of your existing English messaging into Spanish. Many of your members are bilingual, and too much can be lost in translation. Focus on crafting simpler messaging that can be understood by all, or creating original Spanish-language marketing material.
- While bilingual fluency continues to increase, these consumers enjoy speaking their language. Nearly 4 in 10 prefer to read online content in Spanish.
- Understand the difference between Hispanic and Latino. Hispanic is language and Latino is location. These terms are often used interchangeably but they don’t mean the same thing.
- Learn about the social media patterns of Spanish-speaking members. CNN found that Hispanic was most often used on social media, and the term Latino was used more often on Twitter.
- Marketing to millennials or older immigrants. Each generation has a different focus and interests. Nearly six-in-ten Hispanics are millennials or younger.
- Some companies are successfully using a blend of both Spanish and English into marketing campaigns. By using English along with Spanish phrases, quote and other vernacular, is helping to create a connection.
- Tap into their culture to discover their values, and what fuels their decision making.
Get to know this audience and make the connections necessary to help your credit union become more relatable to their needs. The Hispanic community is very connected to their culture, yet most Hispanic millennials report they feel they are living between various cultures. Directing the message at their heritage will help to bring about more engagement and focus when it comes to doing business with this diverse population. Find the common denominators between these cultures, and focus on what unites all of your members.