Article originally published on Orlando Business Journal
The Hispanic market is growing so fast in America that it is altering the economy and changing the way we do business. But there’s another group that can make or break your business: Hispanic millennials.
Millennials are the key money-makers for most U.S. businesses. In fact, millennials are shaping the new America and forcing corporate leaders to re-evaluate their marketing strategies. They are expected to spend more than $200 billion annually by 2017 and $10 trillion in their lifetime, according to Erin Mulligan Nelson, CMO of SunPower Corp. Hispanics are the fastest-growing category within the millennial market. So if you want to capture this audience, you have to learn all you can about them.
Based on a Nielsen report, Hispanic millennials represent more than 21 percent of U.S. millennials, and that figure escalates every year. Today, 62 percent of them are U.S. born. They are bilingual, bicultural and proud of their heritage. They respect traditional Hispanic culture, yet also question it to adapt to their own realities.
In addition, U.S. millennials are less likely to live independent of their families and establish their own household today than they were in the depths of the Great Recession, according to a new analysis from the Pew Research Center. This has always been a traditional cultural practice with Hispanics — you don’t leave your parents until you get married.
So, how can you effectively engage with Hispanic millennials? The key is to have a deep understanding of their culture and consumption behaviors if you want to earn their trust and capture a very loyal and rapidly growing consumer group.
Here are four important characteristics to keep in mind about Hispanic millennials:
- Love for technology: They are 2.5 times more likely to be an early adopter of technology compared to older generations. When it comes to the Internet, they are always online. Their access to multiple Web-enabled devices makes them a powerful user of the Internet, according to research from Barkley.
- Social media addicts: Millennials feel that social media enriches their lives daily. They expect to engage with brands through social media. So to reach them in a more compelling and engaging way, you need to provide culturally relevant content (in English and Spanish) on the Web. Then sustain a strong push through social media to drive more traffic to your site.
- Big influencers: They are strongly influenced by their peers. They like to stand out and be noticed. So asking a friend or family for advice is key when it’s time to make a purchase. On a business standpoint, having a strong online reputation is vital to influence and affirm a purchase decision. It is important for them to know what people think about your brand. This is an area where you should pay close attention as they rely on the input from different social circles to make their final decision.
- Big supporters of a great cause: They are more involved in charitable causes. They like to volunteer in leadership positions and sometimes pay a premium to support a charity (for example, if a portion of the purchase goes to a good cause). This could be a good marketing tool to assure brand engagement and keep your company top of mind.
Your growth and success will depend on how fast your company embraces millennials and minorities. There is a growing demand for corporate executives to be more culturally competent. Hispanics will represent 40 percent of employment growth by 2020 in the U.S. They will be a big portion of your consumers and your workforce. The question is: are you ready for this demand?