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E-Tech Newsletter for September 2009
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Some U.S. banks and insurance companies, unlike many media and grocery businesses have limited marketing their products and services specifically to Hispanic consumers. This may have made sense in the past, since the majority of the 45 million Hispanics who live in the United States typically spend less than the average U.S. consumer on financial services but more on groceries and Spanish-language media. Sidestepping the Hispanic market made sense to financial institutions, until now.

Financial institutions could be missing out on a huge opportunity. By 2010, spending by Hispanics living in the United States will probably have risen to more than $950 billion a year, from around $500 billion in 2006. Financial services are projected to account for a substantial part of that increase. Industries that currently cater to the Hispanic market benefit conspicuously from the growing population. Industries such as housing, health care, and financial services that target middle and upper-income consumers are likely to benefit significantly as Hispanic household incomes rise.

To succeed in this diverse market, banks and insurance companies will have to do more than translate their brochures into Spanish. Financial institutions benefit from the lessons learned by other consumer product marketers. In courting Hispanics, financial-services companies must not only attract a new customer segment but also change its buying behavior. Financial institutions will have to educate the Hispanic consumers about such products as mortgages and insurance. Once educated, the Hispanic consumer will seek these “aspirational” products and services. For Hispanics, these financial products become part of “Living in America”.

The incomes and assimilation levels of Hispanic consumers vary widely. Banks should offer a choice of products at every rung of the ladder: from inexpensive services like international wire transfers, pre-paid cards and check cashing targeted at recent immigrants, to mortgages and insurance products geared toward the emerging middle class, to the full portfolio of financial services for second- and third-generation Hispanic consumers.

Clustering all Hispanics in one large category is not the most profitable approach since many different groups compose that market. Nonetheless, there are trends that can be highlighted. For example, purchase decisions among many Hispanics are driven by familiarity or lack of familiarity with brands. The bulk of Hispanic consumers, particularly those who are Spanish dominant buy products and services that they recognize and know something about. They strive to be “more” American. Once sold on a “brand” they will share their experiences with others in their immediate circle.

Marketing to the Hispanic consumer has at its core the establishment of a relationship between the seller and the buyer. Hispanics are particularly sensitive to the establishment and maintenance of that relationship. The Hispanic consumer is generally more sensitive to offers that are acceptable to family and friends as a good decision. We see both individual and external attributes that drive the decisions differently within this segment. Product and offer attributes such as price and availability and perceptual attributes such as quality, benefits, and cultural sensitivity are obviously key drivers in the purchase decision. These distinctions are important. Businesses cannot reap the rewards from this segment unless they understand and target it.

Hispanic Demographic Information Snapshot:

At Ethnic Technologies we are here to help you understand and market to the Hispanic consumer with fresh , accurate and comprehensive data, modeling and analysis.

About Ethnic Technologies, LLC

Ethnic Technologies, LLC is the Global leader in Multicultural Marketing, Research, Data Enhancements and Analysis. The EthniCenter® from Ethnic Technologies is the result of over 30 years of continuous Multicultural, religious and language preference research. E-TECH’s Multicultural and Language Preference selects outperform the competition in accuracy and response rates time after time. Whether using the data for mailing, telemarketing, email campaigns or modeling the same excellent results have been achieved.

Ethnic Technologies backs up their claims with a CHALLENGE GUARANTEE. Ethnic Technologies continually welcomes any challenge for benchmark testing of their ethnic products and services against anyone claiming to provide similar offerings, services or products. Ethnic Technologies consistently achieves the greatest results and returns with an industry leading accuracy of up to 95%. For more information, visit

E-Tech and The EthniCenter are registered trademarks of Ethnic Technologies, LLC.

Ethnic Technologies, LLC will be exhibiting at the DMA National Show in San Diego, California on October 18th, 19th and 20th.. Please visit us at booth # 1621 to find out more about our great products and services.. Hope to see you there!!!

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