Wednesday, April 18, 2012 | Edited by Daniel Moores
Young, Mobile and Growing: The State of U.S. Hispanic Consumers

More than 52 million strong and representing the majority of population growth over the next five years, Latinos have become prominent in all aspects of American life.

A growing, evolving population, Latinos are a fundamental component to future business success, with a buying power of $1 trillion in 2010 that is projected to grow 50 percent to $1.5 trillion in 2015.

In State of the Hispanic Consumer: The Hispanic Market Imperative report, Nielsen has identified several unique circumstances that combine to make Hispanics the largest population group to exhibit culture sustainability -- ever. Borderless social networking, unprecedented exchange of goods, technology as a facilitator for cultural exchange, retro acculturation, and new culture generation combine to enable Hispanic culture in the U.S. to be sustainable. In other words, Hispanic culture may evolve but will not go away.

For businesses, this makes understanding Hispanic consumers essential. Key findings of The Hispanic Market Imperative include:
  • The overall U.S. population is graying, but the Latino population remains young and the primary feeder of workforce growth and new consumption. The median age of the Latino population is 28 years old, nearly ten years younger than the total market median age of 37 years. Given that the age for a new home buyer is between 26 and 46 years old, Latinos will become a force in residential purchasing over the next ten years.
  • Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics. For example, Hispanics spend 68 percent more time watching video on the Internet and 20 percent more time watching video on their mobile phones than non-Hispanic whites.
  • Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market. Hispanics make fewer shopping trips per household than non-Hispanics, for instance, and spend more per trip.
  • Rapid Latino population growth will persist. Between 2000 and 2011, Hispanics accounted for more than half of the U.S. population increase; in other words, their 10-year increase was slightly greater than that of all other non-Hispanics combined. Hispanics will contribute an even greater share (60 percent or higher) of all population growth over the next five years.
  • Hispanic culture is sustainable. A 2011 national survey of Hispanic adults found that nine out of ten Hispanic parents and parents-to-be want their children to be able to speak Spanish, even though they also want them to become fluent in English.
(Source: Nielsen Wire, 04/17/12)

To access the Nielsen report, follow this link.
African-Americans: Web-, Smartphone-Centric

African-Americans rely heavily on online sources for brand information, and 95% of the demographic does online research at least some of the time before making a purchase.

Also, smartphones are becoming an integral part of the purchase process for African-Americans, who are using the devices to do things like in-store price checking, and redeeming e-coupons and online offers directly from their phones.

These are some of the results of a first-ever study of African-Americans' brand habits. The study, by UniWorld Group, Inc. (UWG), also involves One Solution, the integrated corporate marketing arm of TV One, Radio One and Interactive One.

The study also shows that African-American men 18-34 years of age are most likely to engage in posting and acting on recommendations on social media sites. African-American women are more likely to engage with a brand by "liking" it on Facebook, because of special offers, discounts and coupons.

The study's directors said the objectives were to understand where and how African-Americans get information about brands; how African-Americans who use digital and mobile technology to engage in online conversations about brands differ from the general African-American population; and to explore African-Americans' usage of digital media.

The companies said they garnered data from Radio One's "One Community" panel, which purports to being the largest representative online panel of African Americans with over 10,000 members, and from Vision Critical's Springboard America panel through email invitations. The final sample was weighted to reflect the age and gender distribution of African-Americans 18-64, based on U.S. Census data. Data was collected from November 10 to 30, 2011, with a total sample size of 2,032, per a joint release.

"We developed One Community to help create and disseminate timely, quality research on the African-American population. Compared to other ethnic groups, this audience segment does not have the same volume of consumer research. We're hoping to change that," said Latha Sarathy, VP Insights & Analytics at Interactive One, in the release.

(Source: Marketing Daily, 03/22/12)
Quick-Service Restaurants Are Hot with Hispanic Consumers

Quick-service restaurants have an opportunity to capitalize on Hispanic customers who tend to visit brands in the segment more often and spend more per transaction when compared with other demographic groups, according to a new study from Univision Communications Inc.

The Hispanic-focused media company partnered with research firm Burke Inc. to conduct a poll of 1,250 Hispanics and an equal number of non-Hispanic consumers about their habits and attitudes toward quick-service restaurants.

Among the study's key findings is the fact that the 50 million Latinos living in the United States have the collective purchasing power of $1 trillion and spend much of that disposable income with quick-service restaurant brands. The demographic group's 8.2 billion visits to quick-service restaurants represent 17 percent of the segment's traffic, and the group's $43 billion in annual quick-service restaurant purchases accounts for 18 percent of all dollars spent in the segment.

Univision also found that Hispanic consumers tend to:

Represent quick service's most frequent guests. On average, Hispanic consumers visit quick-service restaurants 10 times in a 30-day period, the study found. Younger Latinos in the Millennial age group visit even more frequently, at 12 times per a 30-day period. All other demographic groups averaged seven visits to quick-service restaurants per 30 days, and non-Hispanic Millennials average eight visits per month.

Dine in groups. The demographic group is likely to have 2.9 people in the party during a typical quick-service restaurant visit across all dayparts, compared with 2.1 people per party in the general population, the study found. Thirty-four percent of Hispanic customers are likely to bring children to the restaurants, compared with 25 percent of non-Hispanics. Also, 28 percent of Hispanics are likely to bring other family members, compared with 20 percent of non-Hispanics, and 25 percent of Hispanics are likely to bring friends with them, compared with 18 percent of non-Hispanics.

Yield more profit per transaction. Across all dayparts except dinner, Hispanics have higher average visitation numbers than other demographic groups. According to the study, 47 percent of Latino customers recently visited a quick-service restaurant for breakfast, compared with 30 percent of all other demographic groups, and 34 percent visited for a late-afternoon snack, compared with 17 percent of non-Hispanic customers.

Latinos also exhibit other purchasing behaviors like buying beverages and ordering in person that result in more profit for quick-service restaurants. For instance, 93 percent of customers in that demographic group order food and a beverage when visiting a quick-service location, compared with 78 percent of non-Hispanics, who forgo a beverage purchase and deny the restaurant a chance to benefit from drinks' high profit margins. Non-Hispanics are more likely to use coupons than Hispanics, as 30 percent of the former reported using a coupon recently to only 25 percent of the latter.

When ordering, Hispanics get an average of 2.9 menu items and have an average check of $8.90, compared with 2.4 items on average and a check average of $7.95 for non-Hispanics.

Value community over convenience. Other demographic groups collectively are most likely to say they return to quick-service restaurants for a quick meal, at 79 percent, but Latino customers identify other reasons why they are drawn to such locations. Their most popular reasons include spending time with family, 44 percent; treating their children, 30 percent; and spending time with friends, 21 percent.

Univision noted in its report that Hispanics said they were more likely to try new restaurants if those locations provided a community atmosphere, fresh foods, healthful menu items and Hispanic ingredients.

Explore varying menu items and foods. As with the general population, the burger segment of quick-service dominates awareness among Hispanic consumers, Univision's report found, with 96 percent of Latino survey respondents saying they were likely to eat at a burger restaurant. However, 72 percent of that group's respondents also said they likely would eat at a sandwich concept and 66 percent said they likely would patronize a pizza brand.

"In other words," Univision wrote in a statement about the report's findings, "([Hispanic customers) are open to building a relationship with any type of food establishment that fulfills their unique needs and appetites. Once a brand establishes a relationship with Hispanic consumers, they become even more loyal customers than non-Hispanics."

New York-based Univision reaches 97 percent of Hispanic households in the United States and is one of the five largest broadcasters in the country.

(Source: Nation's Restaurant News, 04/03/12)

Daily Sales Tip: Effective Communication

Think of being in an area where you have a weak signal for your mobile phone. When passing through a poor reception area, receiving is difficult, often your call is dropped -- the interference hinders your ability to communicate effectively. Apply this analogy to personal communication. Whether it is an interview, sales presentation, family discussion or manager-to-employee feedback session; effective communication requires openness and trust.

If you are the sender, here are several tips to increase your effectiveness. PREP: Plan, Rehearse, Edit and Psych. Preparation is key -- plan what you want to communicate. Who, what, where, when, how and why are all elements of the plan. Plan to make your message audience focused by finding out what is important to the receiver of your message, how can you best reach them and why is your communication important to THEM.

During your "PREP," find out as much about your audience as possible, this will help you forge a stronger connection with them. Use the Internet to gather your intelligence. Google them, check them out on LinkedIn, Facebook and company websites. With this information you will be able to relate on a more personal and specific level. Take time to put your audience at ease with you, and the direction you are going, before you attempt to communicate your message. Remember, it is all about them -- not you!

The two-way process requires that you are an effective listener. In order to build trust you need to demonstrate mutual respect, by listening to what your audience is saying. Understand and verify, by repeating back key points and summarizing what you believe the other person has told you. Be helpful and patient in communicating any information that your audience may have difficulty understanding. Ask to be certain there is clarity and understanding for both of you. Remember, we all process information differently.

Several barriers that limit communication:

* We assume that sending messages equals sharing meaning. Think of how we are suffering from information overload, emails, social websites, phone calls, mobile devices and the tyranny of the urgent. How effective is your message in this environment?

* We forget that meanings are held in people, not in words. In our rush to do all that we "must" do we fail to connect and make time for EFFECTIVE COMMUNICATION.

* Effective communication is not about the speaker's intended message...it is about what the listener perceives. Listen for understanding; build trust with mutual respect and think of the value of each individual.

Source: Sales coach Paul Anovick

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