Hispanic conversations are essential to brand preference.
Word of mouth marketing drives 13% of consumer sales and amplifies the effect of paid media by 15% according to the Word of Mouth Marketing Association (WOMMA). What is not a surprise is the fact that Hispanic consumers are leading in brand word of mouth (WOM) conversations. Hispanics are social by nature and by culture. For Hispanics, it’s about the “we” and not the “I”. Connecting with friends and family is a way to keep up with brands and current events, according to a recent study by Latina Media Ventures.
Hispanics place a really high value on the community. Connecting to stay in touch, to be in the know, and to share stories is an extension of that value. The conversation sometimes referred to as “el chisme” takes place over the phone, via text, online, or in-person among family, friends and the rest of the social network.
Why is this important?
Hispanics turn to family and friends for information and make decisions as a group. According to SMG Multicultural, 57% said family and friends are the primary sources of information, while 60% are influenced by their partners and 50% from their children when making decisions. This correlates with a WOMMA study of English- and Spanish-speaking Hispanics that found that Spanish-speaking Hispanics word of mouth is highly actionable. It is likely to contain a buy or try recommendation, be passed along, or lead to purchase.
Every day in the U.S. Hispanics generate 483 million brand impression via WOM and 241.5 million come are from Hispanic millennials ages 18 to 34 according to Keller Fay Group. Looking at in another way, 21% of the 2.3 billion WOM impression each day are from Hispanic conversations. According to WOMMA study, Hispanics engage in 110 brand conversations per week vs. 72 for the total public – 53% more word of mouth than the total public. In addition, Spanish-speaking Hispanic consumers amplify advertising more in brand conversations than the total public (40% vs 25%). That is a significant opportunity if you consider the following:
- Conversations increases marketing effectiveness up to 54%, and a 10% increase in conversations resulted in a sales lift of up to 1.5% according to marketing-analytics expert MarketShare.
- Hispanics will constitute 119 million people or 28.6% of the U.S. population by 2060 and will have $1.7 trillion buying power by 2017 according to Statista.
- Spanish-dominant are talking about 30-40 more brands per week than non-Hispanics
- Hispanic millennials are engaging in nearly 20% more WOM than their non-Hispanic millennial counterparts.
How do you ignite the conversation?
Give them something to talk about: Find your brand purpose and tell your story. Latinos support brands that support community causes, help them drive their aspirations, provide a great experience, and become part of their community. Marketers should ask:
- How does my product/brand fit into my audience’s life?
- How is it helping them accomplish their goals?
Think mobile: Hispanic consumers are not only the fastest-growing demographic in the U.S., but they’re also trendsetters in digital, leading the growth in device ownership and online usage. According to Nielsen, nearly three out of four Hispanics (72%) already owned smartphones, 95% of Hispanic smartphone owners used social sites and apps, and make up a growing share of mobile shoppers accounting for one in eight U.S. consumers who use their smartphones and tablets to shop.
Engage offline: Offline events give you a great opportunity to create an experience, get Latinos together, and ignite a conversation that can be amplified online. Think passion points – music, sports, food, movies, and community. According to WOMMA, the offline worth of mouth had a more significant impact on buying outcomes than social media.
Next time you are thinking about capture the hearts and minds of the Latino consumer, ask what would I like them to say about me.