Using CRM to target Hispanics

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One Size Does Not Fit All: Understanding the Nuances, Distinctions, and Opportunities in Marketing to Hispanics and Latin Americans

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Using CRM to target Hispanics

  1. 1. One Size Does Not Fit All: Understanding the Nuances, Distinctions, and Opportunities in Marketing to Hispanics Jesus Hoyos Managing Partner Solvis Consulting, LLC www.solvisconsulting.com
  2. 2. Agenda <ul><li>Targeting Hispanics </li></ul><ul><li>In the News </li></ul><ul><li>The Challenge </li></ul><ul><li>What does not work…. </li></ul><ul><li>Good Marketing Execution… </li></ul><ul><li>Getting to know your Hispanic customers </li></ul>
  3. 3. Targeting Hispanics <ul><li>Targeting Hispanics is not only messaging and branding, but also targeting, execution and campaign follow-up and/or fulfillment should be appropriately versioned to different Hispanic segments. </li></ul><ul><li>Hispanics audiences are not identical, and geographic differences play a large role among others, such as cultural traditions and country-of-origin. </li></ul>
  4. 4. In the News
  5. 5. The Challenge <ul><li>Hispanic and Latino diversity can make it difficult to achieve your marketing goals, if you do not understand divisions and nuances. </li></ul><ul><ul><li>Same language but different cultures </li></ul></ul><ul><ul><li>How about the 2 nd and 3 rd generations of Hispanics? </li></ul></ul><ul><ul><li>How about Latino visitors working with Business Visas? </li></ul></ul><ul><ul><li>Each Latin America country has its own identity and with their own nuances </li></ul></ul>
  6. 6. What does not work….
  7. 7. Se Habla Español <ul><li>Really! </li></ul><ul><ul><li>Who are we really targeting via direct mail campaigns and mass marketing when we have “Se Habla Español” in the direct mail piece or email: </li></ul></ul><ul><ul><ul><li>2 nd generation Hispanics </li></ul></ul></ul><ul><ul><ul><li>Latinos traveling to the States </li></ul></ul></ul><ul><ul><ul><li>Mexican or Colombians living in their respective countries </li></ul></ul></ul><ul><ul><ul><li>My Mother – English or Spanish? </li></ul></ul></ul><ul><ul><ul><li>Puerto Ricans - in the states, from the island </li></ul></ul></ul><ul><ul><ul><li>Spanglish! </li></ul></ul></ul><ul><ul><ul><li>Cynthia Zayas Hoyos - second name or middle name? </li></ul></ul></ul><ul><ul><ul><li>James O’connell or Susan Nobles (yes, they are Hispanics!) </li></ul></ul></ul><ul><ul><ul><li>Or Maria Fernandez from Laredo, Texas </li></ul></ul></ul><ul><ul><ul><li>Which Spanish Accent! </li></ul></ul></ul>
  8. 8. International Hotel Chain My last name, Hoyos, is also a German last name. Hotel chain emails me in both Spanish and German
  9. 9. International Bank ETL SAS SAS Cognos Direct Mail House and Fulfillment DW 2 Call Centers Outsourced – Retention Campaigns Internal –Up-Selling Lists Data Cubes Campaign Management Siebel Marketing Siebel Sales Siebel Service
  10. 10. Good data mining to target specific segments within the Hispanic market but … <ul><li>Credit Risk Modeling </li></ul><ul><li>RFM </li></ul><ul><li>Credit Scoring </li></ul><ul><li>FICO </li></ul><ul><li>Customer Constrains </li></ul><ul><li>Customer Behavior </li></ul><ul><li>Optimization Model: </li></ul><ul><ul><li>maximize the overall value of the marketing campaign without violating any of the customer specified constraints. </li></ul></ul>Customer gets targeted direct mail piece – via credit card statements or specific direct mail campaign (plus telemarketing) Customer is retained or upgraded to a better credit card But … could you transfer me to customer service ? Call gets transfer to a call center in Mexico … - Spanish accent issues - call transfer issues - lack of customer information Complete dissatisfaction … International Bank - continuation
  11. 11. Good Marketing Execution…
  12. 12. Marketing/Campaign Execution 1 2 6 3 5 4 Result : Increase sales by 5% via targeted marketing campaigns . 1 2 3 4 5 6 Determine required campaign Target high value customer segment Update contact center and IVR scripts Include preferred customer channels Train contact center Execute campaign M A R K E T I N G C A M P A I G N <ul><li>KPI (results) </li></ul><ul><li>Revenue increase of +5% </li></ul><ul><li>Process metrics </li></ul><ul><li>Increase customer response rate by 10% from high value segments </li></ul><ul><li>Increase sales conversion ratio to 10% of leads </li></ul><ul><li>Assumptions/CSFs </li></ul><ul><li>Call center personnel capable of CxO level interactions. </li></ul><ul><li>Marketing message resonating with target Hispanic segment. </li></ul>
  13. 16. Retail Store <ul><li>Target 2 different countries based on “emotions” and specific customer profiles </li></ul>SPA Services Birthdays Mother’s Day Women’s Day Average Increase in Sales: 17%
  14. 17. Supermarket Get to know your customer based on personal relationships and customer data Targeted Direct Mail: “Cheviche” Week “ Parrilladas” with General Manager at your own house Private Whisky & Wine Tasting Demographic Analysis Average Increase in Sales: 25 %
  15. 18. Bank <ul><li>Provide Small Loans at ATM locations </li></ul><ul><li>Follow up with targeted direct mail and personal financial advice </li></ul>
  16. 19. Other Good Examples <ul><li>Telco in Ecuador – segments included Guayaquil and Quito nuances and distinctions </li></ul><ul><li>Call Centers in Colombia – “Neutral Spanish Accent” and some call centers agents are trained for specific Latin American countries </li></ul><ul><li>Hotel in Cabo San Lucas – customer-focused culture combined with direct mail campaigns </li></ul><ul><li>Telco in Dominican Republic – created a customer satisfaction VP to work close with the marketing VP </li></ul><ul><li>Insurance Company: defined customer segments and execution strategy for each segment </li></ul>
  17. 20. Getting to know your Hispanic customers
  18. 21. Your Hispanic Customers <ul><li>Focus on distinctions between cultures </li></ul><ul><li>Get to know them … personal relationships are very important </li></ul><ul><li>Create specific profiles to know them based on their behavior but don’t forget about the personal relationships </li></ul><ul><li>Ask them! English or Spanish! – Remember content could be in any language as far as you focus on their culture and emotions </li></ul><ul><li>Make sure that you have an execution plan for each segment – one size does not fit all </li></ul><ul><li>Map customer profile with data about nuances and distinctions based on each segment </li></ul>
  19. 22. Marketing/Campaign Execution 1 2 6 3 5 4 Result : Increase sales by 5% via targeted marketing campaigns . 1 2 3 4 5 6 Determine required campaign Target high value customer segment Update contact center and IVR scripts Include preferred customer channels Train contact center Execute campaign M A R K E T I N G C A M P A I G N <ul><li>KPI (results) </li></ul><ul><li>Revenue increase of +5% </li></ul><ul><li>Process metrics </li></ul><ul><li>Increase customer response rate by 10% from high value segments </li></ul><ul><li>Increase sales conversion ratio to 10% of leads </li></ul><ul><li>Assumptions/CSFs </li></ul><ul><li>Call center personnel capable of CxO level interactions. </li></ul><ul><li>Marketing message resonating with target Hispanic segment. </li></ul>
  20. 23. Getting to know your segment Marketing and CRM Strategy for your Hispanic Segment Customer Knowledge Operational Information Client Lifecycle + Needs Products, Services & Channels Processes Organization Structure Alignment KPIs + Operating Metrics Data Technology 1 2 4 5 6 3 7 8
  21. 24. Execution of Marketing Campaigns Operational Analytical Interactive Telephone IVR CTI WEB E-Mail Fax Mail FAQs Bills Others Offices PDA KPIs Others Data Marts Data Warehouse Balance Score Cards Sales Marketing Call Center ERP Support eBusiness
  22. 26. Questions! Jesus Hoyos Managing Partner Solvis Consulting, LLC www.solvisconsulting.com [email_address]

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