Hispanics Spending More Money Online Than Non-Hispanics

Some misconceptions persist that Latinos don’t shop online, but new data from Terra and comScore suggests that Latinos are not only buying online, but they are also spending more per transaction than non-Hispanics. Data shows that Hispanics out-spent non-Hispanics $103.19 to $90.82, respectively.

 

But how to get Hispanics to shop with your brand?

According to ClickZ, Hispanic marketing expert and author Joe Kutchera says that language has everything to do with it. “When Spanish-language web content ends just before checkout and concludes in English, conversion rates fall off sharply (as much as 90 percent).”

One company that Gustavo Razzetti of Grupo Gallegos names as having a successful Hispanic site is Best Buy whose Spanish language customers spent twice as much time online and twice as much money in 2011.

Quoting Best Buy VP of Business Initiatives Christine Webster-Moore back in 2009 at the Hispanic Retail 360 conference, Kutchera said the company outlined the following goals to grow their sales among Hispanics and Latin Americans:

 

1) Be more fluid in how we invite Spanish-language users to our web site including US Hispanics, Mexicans and visitors in our border stores.

2) Provide more creative ways to have our customers buy. Experiment more with programs like Flexicompras, our store within a store that provides lease to own solutions for poor or no-credit consumers. In the markets where Best Buy offered this service, their market share increased by 3-5%.

3) Go deeper into mobile and social media.

Delivering on those goals, Best Buy won customer loyalty from their attention to detail, says Forbes’ David F. Carr. Details like translating virtually everything on their English-language website to Spanish and employing a translation service that uses human translators, not a computer. According to Ana Grace, global web team product manager for Best Buy, this is something the company began putting emphasis on way back in 2006. Proof that a little patience pays off when developing brand loyalty.

And what about social media strategies Webster-Moore mentioned? According to new data released by Facebook, Hispanics are more likely to engage in discussing a page than “liking” it. But, the pages that find the most success are aimed at a smaller audience. For example, according to ClickZ, “Facebook en Español has collected nearly 9,500,000 ‘likes’,” however, only 1.7 percent of the users who say they like it have engaged in discussion or link sharing. Conversely, Wendy’s Latino, a page with only around 3,700 ‘likes’ has had even more success getting people to ‘talk about’ its page – nearly 50 percent of users who like it contribute to the site in another way.”


The reason? “The content being shared must have an intrinsic value to the Latino audience. Posts that engage users by asking pressing or thought-provoking questions are more likely to see success, as do posts about Latino holidays, humor or celebrities.”

State Farm’s Aymee Zubizarreta agreed in an interview with Kutchera for Mediapost:

Just like in any relationship, State Farm understands that we need to earn the trust and respect of our customer before we can have a share of the wallet.

Therefore, State Farm Latino is more about building long-lasting relationships and having a meaningful exchange of ideas and conversations with our customers rather than pitching a new product or service and having a one-sided chat.

With a little respect for the consumer’s point of view, any brand can be poised to earn the loyalty of the Latino shopper online and in their wallet, where it counts.