Engaging Hispanics Online<br />Jose Villa<br />President, Sensis<br />www.sensisagency.com<br />
Presentation Overview<br />An Overview of the U.S. Hispanic Market<br />The Hispanic Digital Market Opportunity<br />Under...
The U.S. Hispanic Market: An Overview<br />Engaging Hispanics Online<br />
Current U.S. Hispanic population trends<br />44.3 million Hispanics, 14.8% of total U.S. population of 299 million<br />Be...
Hispanic growth rate (24.3%) was more than three times the growth rate of the total population (6.1%)</li></ul>25% of the ...
Total U.S. Hispanics at a glance<br />88% of Hispanics Speak Spanish at Home(1)<br />MARKET SIZE (1)<br />INCOME & CONSUME...
POPULATION GROWTH (3)<br />POPULATION DEMOGRAPHICS (1)<br />Hispanic<br />Population<br />% Hispanic <br />of Total<br />H...
Hispanics are Young<br />More than 1/3 of all U.S. Hispanics are 18 or younger (half are under 26)<br />Hispanic youth rep...
One in Four People will be Hispanic by 2050<br />% Hispanic of the total population in the U. S.<br />1980<br />2000<br />...
Percent Change in Population by Region: 2000-06<br />9<br />6<br />
Spreading to other States<br />Many immigrants are bypassing traditional gateway states in the Southwest, while many U.S.-...
Hispanic Origin by Type<br />11<br />Source: U.S. Census Bureau, 2006  American Community Survey<br />
The Hispanic Digital Market Opportunity<br />Engaging Hispanics Online<br />
The Opportunity<br />The U.S. Hispanic online market:<br />24.6 million consumers <br />Total purchasing power of $900 bil...
Critical Mass<br />More than half (54%) of U.S. Hispanics use the Internet<br />Source: Scarborough, The Power of the Hisp...
Rapid online growth<br />Internet access among Hispanics has been increasing at a faster rate (13% since 2004) than it has...
Looking Ahead: Continued Online Growth<br />2010<br />2011<br />2009<br />2012<br />Engaging Hispanics Online: A Preview<b...
Young Hispanic Internet Usage<br />60% of 18-34 year old Hispanics are online<br />Source: Scarborough, The Power of the H...
Broadband is the norm in the Hispanic market<br />68% of Hispanic Internet Users have a broadband connection in their hous...
The Acculturation Factor<br />Engaging Hispanics Online: A Preview<br />19<br />1/27/2010<br />Source: AOL Hispanic CyberS...
Acculturation and Web Activity<br />The “acculturated” segments<br />Mostly Acculturated Hispanics<br />Most active on the...
Demographics<br />Hispanic Internet Users present a highly desirable but often elusive demographic profile<br />they are y...
E-Commerce<br />U.S. Hispanics are early technology adopters and heavy users of consumer electronics<br />11% of all e-sho...
Obstacles to E-commerce<br />Hispanics tend to prefer different payment methods other than using a credit or a debit card<...
Internet Usage Influences Purchasing Decisions<br />Hispanics who use the internet are increasingly relying on it to make ...
Hispanics and Mobile<br />The mobile device is an important point of Internet entry for Hispanics<br />Hispanics are avid ...
Hispanics and Social Media<br />Hispanics spend more time on social media sites than their general market counterparts<br ...
Why are Hispanics more Active on Social Media<br />It isn’t only because they’re younger<br />Main drivers:<br />Collectiv...
Opportunities<br />Hispanics rely heavily on word-of-mouth for recommendations<br />Hispanics feel more comfortable with o...
The Engagement Model<br />Engaging Hispanics Online<br />
A new marketing metric?<br />	Traditional marketing funnel is becoming irrelevant because marketers no longer dictate the ...
The defunct funnel<br />The traditional purchase funnel is becoming defunct<br />The impact of traditional brand communica...
Introducing the… fish<br />The funnel is becoming a fish<br />Prevalence and impact of consumer-driven activities, especia...
Why a new metric?<br />Complexity in the middle of the funnel<br />Rapid rise in word of mouth<br />Linear funnel is irrel...
Engagement<br />Engagement =<br />the level of involvement, interaction, intimacy, and influence a customer has for or wit...
Elements of Engagement<br />Engagement goes beyond reach and frequency to measure people’s real feelings about brands. <br...
Four-Step Engagement Model<br />36<br />1/27/2010<br />Source: Forrester Research, 2007<br />
4 “I’s”<br />Involvement - tracks site visitors, time spent, page views etc<br />Interaction  - measures the contributions...
Involvement<br />Reflects measurable aspects of an individual’s relationship with a company or brand.<br />Includes action...
Interaction<br />Interaction measures actions, activations, or events in which consumers:<br />request additional informat...
Intimacy<br />Intimacy measures the affection or sentiment an individual holds for a brand<br /> Intimacy includes consume...
Influence<br />Influence measures an individual’s likelihood to encourage a fellow customer to consider or buy a brand, pr...
Engagement means marketers must…<br />	develop content that is immersive, participatory, and relevant in order to earn a p...
Engaging Experience Attributes<br />Participation<br />Belonging<br />Immersion<br />Entertainment<br />Inspiration<br />E...
How to achieve engagement<br />Interactivity is key to deepening consumers’ emotion connection with a brand<br />Open bran...
Why Engagement Makes Sense for Hispanics<br />Engaging Hispanics Online<br />
Hispanics have Larger Social Networks<br />The average Hispanic household has 3.1 people while the average non- Hispanic h...
Hispanics have Organic Social Networks<br />Latinos were social and talked to each other when “tweeting” was something onl...
Hispanics over-index on social media usage<br />They spend more time on social networks than all other groups<br />Source:...
The Network Effect and Social Media<br />Social networking sites are prime examples of the network effect <br />the more p...
Powerful Hispanic “network” effect<br />Larger “organic” or offline Hispanic social networks results in a larger Hispanic ...
Hispanic “Influentials”<br />There exists within the Hispanic community a group of people who<br />Are promoters of brands...
Hispanic e-fluentials<br />Influential Hispanic online consumers (”e-fluentials”) use the Internet to not only connect wit...
Hispanic e-fluentials Behavior<br />How they are more influential online:<br />Some 66% of Hispanic-fluentials forward pro...
How to Engage Hispanics<br />Engaging Hispanics Online<br />
A Typical Problem for Hispanic Marketers<br />A company, with an established presence in the U.S., has decided that they w...
The Bigger Problem<br />After doing some research to understand everything about the Hispanic market vis-à-vis this compan...
The Hispanic “Vicious Cycle”<br />The brand/product/service is in the conundrum of the “Hispanic vicious cycle.”<br />Hisp...
Reversing vicious cycle into fortuitous cycle<br />Breaking this vicious cycle can be difficult, but the results can turn ...
Turning the Tide<br />So how does a marketer help their clients break the “Hispanic vicious cycle” and convert it into a p...
Two-Part Approach: Trial + WOM<br />Use the engagement model, applied as a two-part marketing and communications strategy ...
Driving Trial Activity<br />Numerous potential tactics:<br />online coupons<br />street-level hand-outs<br />direct mail <...
Trial: Context is Key<br />The context of the trial activation will have to be adjusted to cultural tendencies of the Hisp...
Building a Word of Mouth (WOM) Campaign<br />Simultaneously, to flip the Hispanic vicious cycle into a fortuitous cycle, a...
WOM: Start with Insights<br />Identify the key insights that will get Hispanics to talk about the product<br />uncover str...
WOM: Start with Insights<br />Identify the key insights that will get Hispanics to talk about the product<br />uncover str...
WOM: Finding Influencers<br />The “who” that is critical to igniting conversations are Hispanic Influencers<br />People wh...
WOM: Generating the Spark<br />The best ways to spark conversations is with digital media, social media and experiential p...
WOM: Generating the Spark with Digital Media<br />With Digital media we can target consumers with the type of precision th...
WOM: Generating the Spark with Social Media<br />	Social media tactics and programs allow Influencers, and then other cons...
WOM: Generating the Spark with Experiential Marketing<br />	Experiential marketing provides the opportunity for one-to-one...
What the Fortuitous Cycle Looks Like<br />
Using Engagement Model to Measure Success<br />	Measure everything against 4 I’s<br />
In Summary<br />Engaging Hispanics Online<br />
Why is Engagement Relevant to Direct Sellers?<br />You live and die off of the “network effect”<br />Your business is uniq...
Summary <br />The Engagement represents a fundamentally different approach in marketing that places equal (and sometimes m...
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Engaging Hispanics

  1. 1. Engaging Hispanics Online<br />Jose Villa<br />President, Sensis<br />www.sensisagency.com<br />
  2. 2. Presentation Overview<br />An Overview of the U.S. Hispanic Market<br />The Hispanic Digital Market Opportunity<br />Understanding the Engagement Model<br />Why Engagement Makes Sense for Hispanics<br />Engaging Hispanics – An Tactical Overview<br />Engaging Hispanics Online: A Preview<br />2<br />1/27/2010<br />
  3. 3. The U.S. Hispanic Market: An Overview<br />Engaging Hispanics Online<br />
  4. 4. Current U.S. Hispanic population trends<br />44.3 million Hispanics, 14.8% of total U.S. population of 299 million<br />Between 2000 and 2006:<br /><ul><li>Hispanics accounted for one-half of the nation’s growth
  5. 5. Hispanic growth rate (24.3%) was more than three times the growth rate of the total population (6.1%)</li></ul>25% of the country’s children under age 5 are Hispanic<br />4<br />Source: U.S. Census Bureau, Population Estimates July 1, 2000 to July 1, 2006<br />
  6. 6. Total U.S. Hispanics at a glance<br />88% of Hispanics Speak Spanish at Home(1)<br />MARKET SIZE (1)<br />INCOME & CONSUMER SPENDING (2)<br />Hispanic<br />Disposable <br />HH Income <br />Hispanic<br />Consumer<br />Spending<br />Hispanic<br />Disposable <br />Income<br />12.7 Million Hispanics Households <br />11%of the Total U.S.<br />$68,219<br />$845 Bil.<br />$890 Bil.<br />5<br />Source: (1) 2009 Nielsen Universe Estimates; Hispanic TV Households by Language Strata, includes Speaks Only Spanish, Mostly Spanish, Spanish and English Equally, and Mostly English (based on Persons 2+); <br />(2) Global Insight - 2007 Hispanic Market Monitor (income reflects average); (3) Geoscape AMD 2009 Series, Census 2000, 2009 Estimates, 2014 Projections <br />
  7. 7. POPULATION GROWTH (3)<br />POPULATION DEMOGRAPHICS (1)<br />Hispanic<br />Population<br />% Hispanic <br />of Total<br />Hispanic<br />Population<br />% Hispanic<br />of Total<br />13%<br />16%<br />17%<br />2000<br />2009<br />2014<br />35,238,500<br />48,628,400<br />54,780,900<br />43,303,000<br />8,537,000<br />4,551,000<br />13,928,000<br />22,678,000<br />18,670,000<br />15%<br />21%<br />18%<br />20%<br />17%<br />15%<br />Persons 2+<br />Children 2-11<br />Teens 12-17<br />Adults 18-34<br />Adults 18-49<br />Adults 25-54<br />The Hispanic Population Is Expected <br />to Grow 55% from 2000 – 2014, Accounting for 48% of the Total Population Growth!<br />Total U.S. Hispanics at a Glance<br />Source: (1) 2009 Nielsen Universe Estimates; Hispanic TV Households by Language Strata, includes Speaks Only Spanish, Mostly Spanish, Spanish and English Equally, and Mostly English (based on Persons 2+); <br />(2) Global Insight - 2007 Hispanic Market Monitor (income reflects average); (3) Geoscape AMD 2009 Series, Census 2000, 2009 Estimates, 2014 Projections <br />6<br />
  8. 8. Hispanics are Young<br />More than 1/3 of all U.S. Hispanics are 18 or younger (half are under 26)<br />Hispanic youth represent 20% of the total U.S. teen population<br />In 10 years, 62% of all teens will be Hispanic<br />
  9. 9. One in Four People will be Hispanic by 2050<br />% Hispanic of the total population in the U. S.<br />1980<br />2000<br />2020*<br />2040*<br />Projections<br />Census <br />*Projected Population as of July 1<br />Source: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050<br />8<br />
  10. 10. Percent Change in Population by Region: 2000-06<br />9<br />6<br />
  11. 11. Spreading to other States<br />Many immigrants are bypassing traditional gateway states in the Southwest, while many U.S.-born Hispanics have left states like California.<br />Children of Latin American immigrants are helping offset a decline or slower growth in the school-age population in states such as Georgia and Iowa.<br />10<br />
  12. 12. Hispanic Origin by Type<br />11<br />Source: U.S. Census Bureau, 2006 American Community Survey<br />
  13. 13. The Hispanic Digital Market Opportunity<br />Engaging Hispanics Online<br />
  14. 14. The Opportunity<br />The U.S. Hispanic online market:<br />24.6 million consumers <br />Total purchasing power of $900 billion<br />Engaging Hispanics Online: A Preview<br />13<br />1/27/2010<br />
  15. 15. Critical Mass<br />More than half (54%) of U.S. Hispanics use the Internet<br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  16. 16. Rapid online growth<br />Internet access among Hispanics has been increasing at a faster rate (13% since 2004) than it has among total adults in the U.S. <br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  17. 17. Looking Ahead: Continued Online Growth<br />2010<br />2011<br />2009<br />2012<br />Engaging Hispanics Online: A Preview<br />16<br />1/27/2010<br />Source: eMarketer, 2008<br />
  18. 18. Young Hispanic Internet Usage<br />60% of 18-34 year old Hispanics are online<br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  19. 19. Broadband is the norm in the Hispanic market<br />68% of Hispanic Internet Users have a broadband connection in their household.<br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  20. 20. The Acculturation Factor<br />Engaging Hispanics Online: A Preview<br />19<br />1/27/2010<br />Source: AOL Hispanic CyberStudy, 2006<br />
  21. 21. Acculturation and Web Activity<br />The “acculturated” segments<br />Mostly Acculturated Hispanics<br />Most active on the Web<br />Longest online history on average<br />Prefer English online experience but will look at Hispanic content as well<br />And appreciates brands that make the effort to reach out to him in Spanish<br />Skew male with higher incomes and education<br />Partially Acculturated Hispanics<br />The largest segment<br />Half are Spanish-dominant<br />One third bilingual<br />Big social media users<br />Engaging Hispanics Online: A Preview<br />20<br />1/27/2010<br />Source: AOL Hispanic CyberStudy, 2006<br />
  22. 22. Demographics<br />Hispanic Internet Users present a highly desirable but often elusive demographic profile<br />they are younger and have higher household incomes and education levels than the average Hispanic.<br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  23. 23. E-Commerce<br />U.S. Hispanics are early technology adopters and heavy users of consumer electronics<br />11% of all e-shopping is done by Hispanics<br />Hispanic shoppers will spend $12.8 billion on e-commerce this year<br />63% of online Hispanics purchase via the Internet, and spend an average of $100/month online<br />U.S. Hispanics are as likely as their general market counterparts to purchase products over the Internet<br />62% of Hispanics with Internet access research electronics online prior to purchase (vs. 59% of general market)<br />Engaging Hispanics Online: A Preview<br />22<br />1/27/2010<br />Sources: Marketing Vox, 2008; ElectronicRetailMag.com, 2008<br />
  24. 24. Obstacles to E-commerce<br />Hispanics tend to prefer different payment methods other than using a credit or a debit card<br />Demand for a cash-based payment option<br />Engaging Hispanics Online: A Preview<br />23<br />1/27/2010<br />
  25. 25. Internet Usage Influences Purchasing Decisions<br />Hispanics who use the internet are increasingly relying on it to make purchasing decisions<br /> Source: 2006 AOL Hispanic CyberStudy<br />
  26. 26. Hispanics and Mobile<br />The mobile device is an important point of Internet entry for Hispanics<br />Hispanics are avid cellular phone users. <br />They are more likely than the typical adult to have a cell phone<br />they are in the top spending brackets for cellular usage.<br />They are also more likely to use cell phones for email or utilizing other Internet features.<br />Source: Scarborough, The Power of the Hispanic Consumer Online 2009<br />
  27. 27. Hispanics and Social Media<br />Hispanics spend more time on social media sites than their general market counterparts<br />Source: Felipe Korzenny, FSU, 2009<br />
  28. 28. Why are Hispanics more Active on Social Media<br />It isn’t only because they’re younger<br />Main drivers:<br />Collectivistic value<br />Communication<br />Lack of relevant online content<br />Source: Felipe Korzenny, FSU, 2009<br />
  29. 29. Opportunities<br />Hispanics rely heavily on word-of-mouth for recommendations<br />Hispanics feel more comfortable with one-on-one sales/customer service interactions<br />Engaging Hispanics Online: A Preview<br />28<br />1/27/2010<br />
  30. 30. The Engagement Model<br />Engaging Hispanics Online<br />
  31. 31. A new marketing metric?<br /> Traditional marketing funnel is becoming irrelevant because marketers no longer dictate the path people take, nor do they lead the dialogue<br />
  32. 32. The defunct funnel<br />The traditional purchase funnel is becoming defunct<br />The impact of traditional brand communications at the outset of the consumer purchase journey is decreasing<br /> Source: OPEN Brand, 2007<br />
  33. 33. Introducing the… fish<br />The funnel is becoming a fish<br />Prevalence and impact of consumer-driven activities, especially online, are changing the shape of the consumer journey<br />Source: OPEN Brand, 2007<br />
  34. 34. Why a new metric?<br />Complexity in the middle of the funnel<br />Rapid rise in word of mouth<br />Linear funnel is irrelevant<br />The most valuable customer isn’t always the one that buys a lot<br />Traditional media is weakening<br />Diminished trust in traditional media<br />Fragmentation of media (channels & consumption)<br />Consumers force brand transparency<br />Social media proliferation<br />UGC<br />Networked customer<br />Marketing complexity means that traditional metrics fail to capture the whole story<br />
  35. 35. Engagement<br />Engagement =<br />the level of involvement, interaction, intimacy, and influence a customer has for or with a brand over time<br />1/27/2010<br />Source: Forrester Research, 2007<br />
  36. 36. Elements of Engagement<br />Engagement goes beyond reach and frequency to measure people’s real feelings about brands. <br />It starts with their own brand relationship, and continues as they extend that relationship to other customers.<br />
  37. 37. Four-Step Engagement Model<br />36<br />1/27/2010<br />Source: Forrester Research, 2007<br />
  38. 38. 4 “I’s”<br />Involvement - tracks site visitors, time spent, page views etc<br />Interaction  - measures the contributions to blogs, photo and video creation and uploads, transactions or other activations, etc<br />Intimacy - tries to understand consumer attitudes, perception, and feelings about a brand through surveys or monitoring technology<br />Influence - measures the likelihood that consumers will recommend or advocate products or brands<br />37<br />1/27/2010<br />Source: Forrester Research, 2007<br />
  39. 39. Involvement<br />Reflects measurable aspects of an individual’s relationship with a company or brand.<br />Includes actions like:<br />Clicks on an ad or calls to 1-800 #<br />like visits to a site or a physical store<br />time spent per page<br />pages viewed<br /> Represents the first point of interaction an individual has with a brand and is the foundation for making the connections to other metrics <br />
  40. 40. Interaction<br />Interaction measures actions, activations, or events in which consumers:<br />request additional information<br />contribute content about a brand<br />provide contact information<br />purchase a product or service (often as a trial)<br />These include<br />completed transactions<br />blog comments<br />social network connections<br />uploaded photos and videos<br />Social media contributions increasingly play a role in calculating the value of a customer and are vital to tracking emerging behaviors. <br />
  41. 41. Intimacy<br />Intimacy measures the affection or sentiment an individual holds for a brand<br /> Intimacy includes consumers:<br />Opinion<br />Perspective <br />Passion <br />Qualitative measure represented by the words consumers uses and the content they create<br />Intimacy is the critical new component that sheds light on customer’s feelings about your brand (positive or negative<br />Can be tracked in real time, providing ample opportunity to correct<br />
  42. 42. Influence<br />Influence measures an individual’s likelihood to encourage a fellow customer to consider or buy a brand, product, or service. <br />Understanding Influence is critical to building a forward-looking profile of customers<br />Qualitative measure that includes:<br />brand awareness<br />Loyalty<br />possibility of purchasing again<br />Net Promoter (NP) score<br />You can measure influence through<br />opt-in surveys<br />Mailed questionnaires<br />customer service calls <br />phone surveys<br />
  43. 43. Engagement means marketers must…<br /> develop content that is immersive, participatory, and relevant in order to earn a place in the social web and consumer conversations<br />
  44. 44. Engaging Experience Attributes<br />Participation<br />Belonging<br />Immersion<br />Entertainment<br />Inspiration<br />Emotionally involving content and interactivity<br />Content is timely, topical and available<br />Brand message and media are worthy of sharing or passing along<br />
  45. 45. How to achieve engagement<br />Interactivity is key to deepening consumers’ emotion connection with a brand<br />Open brands must provide meaningful and engrossing experiences that foster consumer relationship online – and off<br />
  46. 46. Why Engagement Makes Sense for Hispanics<br />Engaging Hispanics Online<br />
  47. 47. Hispanics have Larger Social Networks<br />The average Hispanic household has 3.1 people while the average non- Hispanic household has 2.3 people.<br />Hispanics HH have 35% more people than non-Hispanic HH<br />Hispanics have larger extended families / broader definition of kin<br />Concept of “family” extends beyond nuclear family to aunts, uncles, cousins<br />Neighbors, second-cousins, God parents, “comadres”/”compadres” are part of Hispanic extended families<br />Mexican Americans tend to be very familistic in attitudes and behaviors, using kin for social and emotional support (Mindel, 1980)<br />Once in the U.S., most Hispanic immigrants live in densely Latino communities.<br />Source: Center for Reproductive Health Research and Policy, Department of<br />Obstetrics, Gynecology and Reproductive Sciences / The Institute for Health Policy Studies, UCSF<br />Source: 2007/2008 Nielsen and Simmons Market Research Bureau <br />
  48. 48. Hispanics have Organic Social Networks<br />Latinos were social and talked to each other when “tweeting” was something only birds did<br /> what else do you call vecinos, hermanos and parientes? <br />social media is second nature to Hispanics<br />
  49. 49. Hispanics over-index on social media usage<br />They spend more time on social networks than all other groups<br />Source: Felipe Korzenny, FSU, 2009<br />
  50. 50. The Network Effect and Social Media<br />Social networking sites are prime examples of the network effect <br />the more people register onto a social networking Web site, the more useful the web site is to its registrants<br />Since social media functions well as a low-cost communications tool, it has enjoyed a direct network effect with Hispanics<br />e.g. When an initial group of Hispanic begin using Facebook, the fact that they have larger “offline” social networks drives exponential growth along these pre-existing networks.<br />
  51. 51. Powerful Hispanic “network” effect<br />Larger “organic” or offline Hispanic social networks results in a larger Hispanic network effect on social media platforms<br />When a Hispanic mom comments on a new product on Facebook, it will be read by a larger group or network of familia, amigas, and comadres<br />
  52. 52. Hispanic “Influentials”<br />There exists within the Hispanic community a group of people who<br />Are promoters of brands<br />Possess an unusually high knowledge of certain product / service categories<br />Have high social influence <br />Are effective communicators:<br />Enjoy new things and have a propensity to trial new products & services<br />Have social networks 3-6 times larger than the general Hispanic population<br />Source: Cayenne Global, 2009<br />
  53. 53. Hispanic e-fluentials<br />Influential Hispanic online consumers (”e-fluentials”) use the Internet to not only connect with friends and family but also share views about products and brands - in higher proportions than other e-fluentials<br />spend more time interacting with others online (30 hrs/week) compared with general-market e-fluentials (25 hr/week)<br />Have more offline interaction in face-to-face conversations - 30 hours vs. 21 hours.<br />Communicate in person, on the phone, or online with more family members, friends and coworkers each day - 58 people vs. 45. <br />Among female Hispanic-fluentials, the number jumps to 68.<br />Source: Burson-Marstellar, E-fluentials Study, April 2008 <br />
  54. 54. Hispanic e-fluentials Behavior<br />How they are more influential online:<br />Some 66% of Hispanic-fluentials forward product recommendations by email, compared with just 28 percent of general-market e-fluentials<br />About half (49 percent) of Hispanic-fluentials use blogs to tell others about product experiences; 39 percent of general e-fluentials do so.<br />84 percent are eager to warn others about problems with products and services (72 percent of general-market e-fluentials do so)<br />Source: Burson-Marstellar, E-fluentials Study, April 2008 <br />
  55. 55. How to Engage Hispanics<br />Engaging Hispanics Online<br />
  56. 56. A Typical Problem for Hispanic Marketers<br />A company, with an established presence in the U.S., has decided that they want to pursue the Hispanic market <br />a consumer market they had previously ignored<br />U.S. Hispanics are generally unfamiliar with their brand and/or products and services but open to using them.<br />They now need a Hispanic marketing consultant or agency to help them enter the Hispanic market.<br />
  57. 57. The Bigger Problem<br />After doing some research to understand everything about the Hispanic market vis-à-vis this company’s products or services, They arrive back at where they started:<br />Hispanics are generally unfamiliar with the products or services because they did not use them in their home country <br />No member of their large social network (family, friends) has recommended the product<br />
  58. 58. The Hispanic “Vicious Cycle”<br />The brand/product/service is in the conundrum of the “Hispanic vicious cycle.”<br />Hispanics would be willing to try the product if recommended or used by a family member or friend,<br />The fact that their family and friends are also unfamiliar with the product means that they will just continue to never purchase it.<br />
  59. 59. Reversing vicious cycle into fortuitous cycle<br />Breaking this vicious cycle can be difficult, but the results can turn the tide and result in a fortuitous cycle<br />The Hispanic “Fortuitous” cycle<br />product usage by a small group of Hispanics is amplified by word of mouth recommendations and advice<br />results in a multiplier effect and potentially rapid growth in the market.<br />
  60. 60. Turning the Tide<br />So how does a marketer help their clients break the “Hispanic vicious cycle” and convert it into a positive fortuitous cycle? <br />
  61. 61. Two-Part Approach: Trial + WOM<br />Use the engagement model, applied as a two-part marketing and communications strategy that simultaneously emphasizes trial with word of mouth (“WOM”) activity.<br />there are some general guidelines that can be used as an effective framework. <br />
  62. 62. Driving Trial Activity<br />Numerous potential tactics:<br />online coupons<br />street-level hand-outs<br />direct mail <br />in-store trials<br />The goal is to generate involvement that leads to Interaction<br />More important than the vehicle for delivering the trial is providing a culturally relevant context in which to try to the product.<br />
  63. 63. Trial: Context is Key<br />The context of the trial activation will have to be adjusted to cultural tendencies of the Hispanic market. <br />This context will involve everything from the messaging on the trial materials, to whom, and when and where the trial is offered.<br />
  64. 64. Building a Word of Mouth (WOM) Campaign<br />Simultaneously, to flip the Hispanic vicious cycle into a fortuitous cycle, an effective word of mouth strategy needs to be developed and executed.<br />Effective WOM marketing starts with sparking conversations (or “Intimacy” and “Influence”)<br />Not simply driving awareness or even trial<br />Getting people to talk about a brand, product or service.<br />
  65. 65. WOM: Start with Insights<br />Identify the key insights that will get Hispanics to talk about the product<br />uncover strategic insights that contribute to the idea – the sound, motivating, and relevant thought to be communicated<br />
  66. 66. WOM: Start with Insights<br />Identify the key insights that will get Hispanics to talk about the product<br />uncover strategic insights that contribute to the idea – the sound, motivating, and relevant thought to be communicated<br />Insights will drive the messaging, but what and who will generate that spark – <br />The spark starts the real, invaluable conversation and fortuitous cycle of Hispanic WOM activity<br />
  67. 67. WOM: Finding Influencers<br />The “who” that is critical to igniting conversations are Hispanic Influencers<br />People who:<br />have high social influence and are effective communicators<br />enjoy new things and have a propensity to trial new products<br />have social networks 3-6 times larger than the overall Hispanic population<br />Hispanic e-fluentials<br />Use research to create demographic profiles of them<br />Focus on “seeding” conversations with them<br />But how do we reach them?<br />
  68. 68. WOM: Generating the Spark<br />The best ways to spark conversations is with digital media, social media and experiential programs<br />Traditional, broad reach media should support (when possible) in an “air cover” role<br />
  69. 69. WOM: Generating the Spark with Digital Media<br />With Digital media we can target consumers with the type of precision that is necessary to pinpoint and reach Hispanic Influencers.<br />Think Hispanic e-fluentials<br />
  70. 70. WOM: Generating the Spark with Social Media<br /> Social media tactics and programs allow Influencers, and then other consumers, to virally spread information at the click of a “POST.”<br />
  71. 71. WOM: Generating the Spark with Experiential Marketing<br /> Experiential marketing provides the opportunity for one-to-one interaction with Influencers and closes the gap on technology usage.<br />
  72. 72. What the Fortuitous Cycle Looks Like<br />
  73. 73. Using Engagement Model to Measure Success<br /> Measure everything against 4 I’s<br />
  74. 74. In Summary<br />Engaging Hispanics Online<br />
  75. 75. Why is Engagement Relevant to Direct Sellers?<br />You live and die off of the “network effect”<br />Your business is unique in that your communications need to simultaneously recruit, build brand, and drive sales<br />Engagement model works well for<br />For those of you without well known brands in Latin America, the approach I’ve outlined will undoubtedly generate the most “bang for the buck” and address major trust and familiarity obstacles<br />The U.S. Hispanic market is an ideal market for engagement model, and you have a huge opportunity to take advantage<br />Most big U.S. brands are just coming around to this approach, so you can compete and win now!<br />
  76. 76. Summary <br />The Engagement represents a fundamentally different approach in marketing that places equal (and sometimes more) emphasis on dialogue and advocacy and transactions/activations<br />Measuring engagement is a new and evolving science<br />Combines established / commonly tracked metrics with new ones<br />
  77. 77. Q&A<br />
  78. 78. Thank You<br /> Jose Villa<br /> Email: jrvilla@sensisagency.com<br /> Twitter: @jrvilla<br /> Blog: www.ThinkMulticultural.com<br /> LinkedIn: www.linkedin.com/in/josevilla<br />
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