Article originally published on LinkedIn
America is changing and multicultural consumers are driving the growth of this great nation. According to a Claritas report, there are over 131 million multicultural Americans making up 37.5% of the U.S. population. Also, there are over 64 million Hispanics living in the United States today, they are the largest multicultural segment at 19.5%. Hispanics have been the second fastest growing market since 2000, with 83% growth.
While you let those statistics sink in, my question to you is: What is your strategy to cater to this growing consumer market so you can assure sustainable growth for your business now and in the future?
Let me guess, you probably do not have a plan or you might be thinking that since the Hispanic growth is domestic and they are bilingual, that there is no need to make adjustments to the same strategy you have been relying on all these years. This is exactly what your competitors are hoping you will think. If so, they will gain a big head start towards capturing the multicultural consumer segment in your industry and make it even harder for you to compete moving forward. Believe me, I have these conversations with executive leaders on a daily basis.
Hispanics are now driving the growth across all industries. A great example is the educational sector. Since mainstream is becoming multicultural, the enrollment population will follow accordingly. Based on a Nielsen report, Hispanic achievements in education and income levels are increasing as younger Hispanics age into college years and into jobs in the workplace. Currently, 32% of Hispanics are under the age of 18 and approaching college enrollment years.
The enrollment of Hispanic students in degree-granting institutions is expected to increase 26% between 2015 and 2026, compared with 1% for non-Hispanic Whites, 20% for non-Hispanic Blacks, and 12% for non-Hispanic Asians. As the U.S. Hispanic community matures and becomes part of the mainstream, their household incomes increase and so does their economic class. The projected growth of Hispanic household incomes of $100k+ between 2017–2022 will be +23 vs. +12 percent for non-Hispanics, based on a Geoscape report.
Let’s get those numbers on your side! Here are 3 helpful tips to boost your enrollment and strategic thinking:
1) Set yourself up for success with your changing community: You have to get ahead of the curve with this rapidly-growing, highly-influential audience. With many colleges and universities, the Hispanic market has been an afterthought and not part of their priority list. This is surprising since, in many cases, they have campuses in highly populated Hispanic DMAs yet they do not cater to or target the community they serve. However, if they will get to know this audience and their cultural differences, they will realize they just found a solution to significantly increase enrollment and market share.
2) Understand your audience: By 2024, Hispanics will represent more than 21% of the U.S. population and over 49% of U.S. Millennials will be multicultural. Hispanics currently represent over 25% of U.S. Millennials. Also, more than 40% of Hispanic Americans are Millennials and 37% is foreign born. Brands looking to reach younger consumer groups, specifically those who are Hispanic, must take a multifaceted approach when reaching this diverse audience and taping into their bicultural identity. Like many others, Hispanics like to see themselves reflected in the things they care about or the products they purchase. Remember, it goes beyond imagery and language. It is about finding a common dominator across all nationalities that you can utilize to represent your brand and generate a memorable experience. You must understand who your main target audience is and who the influencer is during the purchase decision. Media platforms and language usage must be adjusted and executed accordingly based on acculturation levels.
3) Hire real experts: One of the common mistakes I have seen is that companies have a tendency to hire the Hispanic media to be in charge of their Hispanic initiative and to become their in-house translation company. The media company is there to sell media. They are not expert marketers who know how to craft the strategy you need to engage with this audience and assure measurable ROI. Running ads with a major Hispanic station or network is the right thing to do, but it doesn’t mean that you will engage effectively with your audience simply because you are translating your general market strategy into Spanish. That approach lacks all cultural relevancy, which is key to engaging with this audience. Remember, you might think you are saving money by not paying for strategy and creative, but you will be paying more in the long run when your CEO asks for ROI and you can’t track it or show it.
As I mentioned before, the United States is going through a period of population shifts, fragmentation, and intense competition. This is not the same market it was 10 years ago and it won’t be the same 5 to 10 years from now. As youthful diversity becomes the counterweight of white aging consumers, they are turning into the biggest influencer and growth factor within the mainstream market. If you want to successfully engage with this new America, you must realize that it is going to take genuine cultural connectivity and nuanced content to get their attention and win their loyalty. You must embrace the significant potential sitting right in front of you and get ahead of this new multicultural evolution.