Cashing in on Diversity
Selling more goods and services and increasing profitability are often the driving factors behind marketing plans. But if cash is king, why aren’t more companies leading with multicultural strategies? What are considered best practices? I asked myself those questions while listening to an episode of the podcast The Why Behind the Buy. In it, host Monique Martin and Geoscape CEO Cesar Melgoza discussed how the United States is becoming an increasingly majority minority nation. The a population growth is primarily fueled by Latinos, whose lifetime household spending is $400,000 more, on average, than Anglo households. Leaving spending habits and a $1.5 trillion Latino annual buying power aside, Martin and Melgoza’s conversation leads to the conclusion that a younger population will spend more on goods and services over a lifetime.
Although an increasing number of companies are carving out budgets to target Latinos, those are still not reflective of the potential gains that come from earning their loyalty. The Latino household of multiple generations living under one roof, eating mouthwatering foods, and listening to contagious beats is more than a cultural proof point to grant authenticity. The concept of family is why Latinos are powerful brand ambassadors. With a 92 percent of Latino households accessing the internet, and having an ever-growing social media presence, Latinos are more likely to share their experiences with their family and friends. Similarly, they are also more likely to engage with brands after learning about the positive experience of a family member.
For years, companies like P&G, McDonalds, Target, and Toyota have excelled at targeting Latino households. And Latinos have been loyal customers in return. If going beyond Spanish-language content to connect to the cultural identity of the Latino consumers yields clear results, why aren’t more companies engaging with Latino in the face of changing demographics? It’s only going to get harder to cash in on diversity.