Juan Tornoe

"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem

A very cool Economy Lesson from EconStories

Filling Shopping Carts, and a Community Need

“Markets like Mi Pueblo started by catering to an exclusive population,” said Juan Tornoe, of Hispanic Trending, a market research company based in Austin, Tex. “But now they have grown enough to compete with the big boys.” 

Via The New York Times

It's an honor to have the opportunity to contribute with the New York Times again. Thanks a million to Sheila Himmel for reaching out!

Read the complete article here.

Home Depot’s Spanish Outreach: in Their Own Words

By Juan Tornoe

Curiosity did not kill this gato (although it almost drove him crazy!). I’m alive and kicking, thank you very much (and borderline sane). Honestly, I was going berserk because I did not have access to the whole scoop regarding the sudden closure of Home Depot’s Spanish website. Yes, I did read what was said in the news; cathartically posted my own POV on the subject, and interviewed another big box retailer who’s maintained a Spanish online presence for quite some time… Through it all I did gather some insights, but there is nothing like hearing the story first hand from those directly involved in making these complex decisions.

So I reached out to Home Depot’s Corporate Communications, who promptly replied and in no time set up an appointment with Leonard Wortzel, their Multicultural Manager, who stepped into this role just 7 weeks ago. Leonard has been with The Home Depot for 4 ½ years, working in various advertising and marketing roles. Prior to that, he spent several years working mostly creative side advertising, with a small agency in Dallas, as well as with the BBDO and Grey affiliates in Costa Rica.

Following, please find the interview/conversation I had with Mr. Wortzel…

Juan Tornoe: What was your U.S. Spanish online presence prior to the launch of the now closed site?

Leonard Wortzel: We had some minimal how-to content on a secondary website.

JT: Why the closure of your Spanish Site only 4 months after turning it on?

LW: When we launched the site, our research told us that this was the right thing to do. The reality was, it wasn’t; not in this current environment. It just simply did not perform the way we thought it would. Because of the very robust solution that we adopted, maintaining the site would require a good amount of manpower behind it. It would have not been simple to just maintain a piece or portion of it, technically it just didn’t work that way.

JT: Why not leave up general company info, store locator info, How-To guides, etc… and lead people into buying in English OR visiting their nearest location for some “Skin time” with a bilingual associate?

LW: The landing page that is there takes you to the store, takes you to our online site, or it takes you to apply for a job. There are a couple of resources that we still have out there: You can shop our online circulars in Spanish and a bilingual employment site. What we’ve heard and learned from our customers is that we need to engage them in the stores, person to person. So right now that is where every ounce of every type of effort is being placed; serving this customer where they told us they want to be served the best, right there in our isles. 

JT: It was cited on the Wall Street Journal that one of the reasons the site was closed was that half the visitors came from other countries… Only 33% of Univision.com’s traffic comes from the U.S. Although we’re talking about completely different business models don’t you believe there could’ve been a way to keep at least a part of the site up and running – referring specifically to the How-To guides?

LW: Again, it wasn’t a simple transfer of data. The amount of resources and effort that would have been required at this particular point in time to keep that part of the site live led us to making a decision on where do we want to put our efforts right now; is it going to be in the digital space or are we best served serving our customer in the place they want and need our help the most, which is in the isles every day?

JT: Was a good chunk of the international traffic coming from México?

LW: Without getting into specific numbers that is pretty safe to say.

JT: Couldn’t you have redirected that traffic to your Mexican website and/or stores?

LW: Although Mexico has a pretty robust site, it isn’t an ecommerce site.

JT: Could you comment on your Spanish site’s conversion rates and customer satisfaction?

LW: Again, without getting into any specifics, we made the decision to shut it down because it wasn’t performing anywhere near where it needed to be.

JT: Is there a future for Home Depot en Español online? If so, what is it?

LW: Without talking about specific plans, we are always looking for the best way to serve our customers and we are always researching and developing new ways to fulfill our Hispanic customers’ needs. To say that Home Depot is done with the digital space for the Hispanic customer, or that we dipped our toe in the water and said, “No, we are done with this”, is absolutely untrue.

JT: Excellent! That is really comforting to learn. One final question… By the way that your current Spanish landing page addresses the Latino community, it seems that The Home Depot is assuming that all Hispanic clients are Spanish-speaking clients. What about Bilingual and English-dominant Latinos? Don’t you believe that specifically addressing Spanish-dominant Hispanics on that one landing page would be more appropriate?

LW: I think that is a valid point; I am going to get back with Vidal [The Home Depot’s Hispanic Agency of Record] and have them take a fresh look at that.  One last thing, I enjoyed discovering your blog, I think you’ve got a lot of good content on it.

So, there you have it. Don’t know about y’all but I am quite satisfied with Home Depot’s answers. They do clarify many of the questions I had written on my initial post on the subject. Hey, I even got a chance to do a bit of free consulting for Vidal… You are very welcome guys! I’ll make sure to add it to my CV. :-)

Christine Webster Moore on BestBuy.com en Español

May 7, 2009
By Juan Tornoe

Two days ago I had the opportunity to have an interesting conversation with Christine Webster Moore, VP of Business Initiatives at Best Buy. Christine is part of BestBuy.com and works with the Latino initiatives team, helping support their Latino customers across all their channels: Online, in their stores, in their call centers, as well as being responsible for BestBuy.com en Español. I believe that given the recent shutdown of another major U.S. Retailer’s Spanish language website, it is important for you to get inside the head of one of the decision-makers at Best Buy, a big box retailer which actually is putting all its chips on the growing Hispanic market.

Juan Tornoe: When and why did Best Buy launched their Spanish Website?
Christine Webster Moore: We soft-launched in September of 2007 and the intent was and is part of a holistic strategy to better serve our Latino customers, and especially those Latino customers who were interested in engaging with us in Spanish. We felt that it was important to be able to have an in-language experience for these customers whether they were walking in our stores, whether they were going online, or whether they were calling our call center. We believe that an in-language approach is of particular importance when people are dealing with products and services that are more complicated; they need to be able to understand what they are, how they work, and if they meet their needs.

JT: What has been your experience with the Spanish site?
CWM: We have learned a lot! We measure the success of the Spanish site in three ways. One, it is important that the kind of relationship we have with our customers, from an overall standpoint, is one in which we are able to say that we reach out to them in-language across our channels; this is something we believe our customers recognize positively. The second way are the transactions done on the site; we are continuing to see progress in this particular area and will continue to improve our efforts in growing the business specifically for the channel. The third area is what we see in terms of the online space and specifically the Spanish site as an initial step to going in the store. We know that our Spanish speaking customers are going online, and doing research, looking at products, looking at our store locator, comparing different products, and then going into the store to actually make a purchase or to have more a conversation with one of our sales associates in the store. We feel that all three of those together are huge benefits to the dotcom business and to the whole company.

It is hard to track exactly what percentage of business online drives into the store. Still, we hear employees telling us more and more that people are coming in with printouts from the Spanish web page and/or employees are using the kiosk inside the store as a way to access the Spanish site and get more information or deepen the conversation with a customer.

JT: What feedback have you received from visitors to the Spanish Site?
CWM: On a monthly basis we track customer satisfaction and we find that the feedback continues to be overwhelmingly positive and is higher actually than what we see on our English site. We think we are getting a little lift because there are not many retailers out there with a fully translated site. We hear that customers like the translation; they are able to find what they are looking for, and that they have a really positive experience on the Spanish site.

JT: Conversion...That's the name of the game. How do the Spanish and English site's conversion rates compare?
CWM: The Spanish site has lower conversions and some of that is due to the fact that a good chunk of our traffic is from outside of the U.S. and we are currently not able to fulfill outside of the U.S. So, obviously the conversion will be lower. But what we are doing, even though we cannot ship outside the U.S. we are trying some different things that would allow customers who are shopping from outside of the U.S. to make easy payments using international credit cards and/or shop from outside the U.S. and then pick up in the U.S. if they are planning a trip; which would be essentially in-store pickup that originated internationally.

JT: Do you have information on what percentage of the visitors to your Spanish site come from outside the US?
CWM: Without sharing any specifics, we can say that a good chunk comes internationally. We are seeing a lot of traffic coming from Mexico, Venezuela, Spain and Brazil; these would be the principal sources of traffic outside the U.S.

JT: So, what's the future of Best Buy.com en Español?
CWM: We will continue with our commitment to the Spanish site as part of our holistic strategy to better serve this customer. We will continue to build awareness around the site and the capability that it offers customers. I think that’s the focus right now. We think we have a great capability that when customers find it, are really happy with it. So we are staying the course!

Well folks, don’t know about you, but I am a happy camper after learning Best Buy’s commitment to serving Spanish dominant Latinos.

Online Latinos say Adiós to Home Depot

By Juan Tornoe

A good friend sent me a quite disturbing message late last week: “Home Depot is shutting down their Spanish language website”.

I was quite perplexed given that just a couple months ago Home Depot was announcing with much fanfare the site’s launch, “a replicate of the English language e-commerce site, with 40,000 products available to online shoppers”.

I agree that maintaining 40K plus pages up to date can be a Goliath-sized feat, especially in the midst of this economic crisis, but completely eliminating all Spanish language online presence is quite a radical shift. Wasn’t there a middle of the road compromise? At the very least they could have kept (as they had before) a basic Spanish language online presence, sharing, in their own words, “know-how information for home improvement projects”. From there they could have clearly redirected people to buying online IN ENGLISH or to visit any of their convenient locations where bilingual personnel would be willing and ready to serve them in their own language (ad jargon intended).

It has been reported that the main reason of shutting the site down was “that half of the visitors to the site were from other countries”, which is not the same information that Spanish speaking do-it-yourselfers now encounter when visiting espanol.homedepot.com: “Hemos escuchado a nuestros clientes hispanos y lo han dicho claramente: el lugar más importante para centrar nuestros esfuerzos son nuestras tiendas”. Paraphrasing in English: We have listened to our Hispanic clients’ voices loud and clear: Our stores are the most important place where we should center all our efforts. Hmm. Can someone please tell me how these two statements relate? It is a well known fact that many U.S. Spanish language sites get a fair amount of traffic – to say the least – from Latin America. Given the lack of quality information currently available from South of the Border websites, Latin American web surfers are attracted, like flies to honey, to U.S. based sites, especially if they are in Spanish. Just check Univision.com in Alexa and you’ll see that only 33.1% of their traffic comes from the United States… Wow! They are even in a worst position than what Home Depot en Español claimed!

To say the least it is quite disappointing to see one of the largest retail companies in the U.S. take a step back on this arena. I've always said that giving Latinos access to INFORMATION in their language of choice is of primordial importance to any company in America. Also I have said that companies should not expect to get the same results they are getting from their English site on its Spanish counterpart. Traffic will most likely be lower; visitors will be mostly looking for information, rather than to buy online, but those who do end up buying will be delighted (if the experience is a good one) to be able to purchase right there and then in their own language, from a brand they’ve come to know and trust. Thankfully, there are other major retailers, like Best Buy, who are still committed to maintaining a Spanish online presence.

Having a Spanish language section of their website is now part, from where I stand from, of a company’s  cost of doing business. If the largest minority in the States were from Denmark, I’d say they’d have to also have their sites in Danish! Bottom line, it is all about dollars and cents. If early on you manage to turn some of those visitors into paying customers that would be some very sweet icing on the cake. At this point in time you are mostly establishing a relationship with, and gaining the trust and goodwill of, the small but growing number of online Spanish dominant Latinos, knowing that they will become more sophisticated online consumers as time passes and they will have your company’s name right there at “Número Uno” when they are ready to purchase online whatever product or service you are offering.

Then there’s the emotional aspects involved with establishing deeper, more emotional and profitable relationships with English-dominant Latinos who will see your company as one they want to do more business with, given that it openly recognizes, through – among other things – the investment in the Spanish language site, that the entire Latino market is important to you. 

As far as getting traffic from outside the U.S., it is actually an opportunity. Through geo-targeting you could sell advertising on your information pages while at the same time develop partnerships with similar companies in Latin America, with whom you could service clients in the region. Doesn’t Home Depot own stores in Mexico? They do! And even have a website for it: http://homedepot.com.mx BTW, it is (drum roll please) En Español!

Giving credit to part of Home Depot’s strategy, indeed it is important to cater face to face to Spanish dominant Latinos at your place for business, and it is good business practice doing it through the use of signage and the hiring of bilingual staff. That said, not all Latinos are Spanish dominant and you must never mistake Spanish outreach with Hispanic outreach. The Latino community is way too diverse to try simplifying it that way.

I truly hope that Home Depot reconsiders its decision.

“If I were an aging white person”

Note from Juan: Usually I am not this insistent, but today I am compelled to urge you to read my friend Dave's article. It is a must read for anyone living in the United States today, especially for those with "issues" regarding the nation's increasing diversity.

March 3, 2009
By Dave Schechter
CNN Senior National Editor

“If I were an aging white person,” Ron Crouch begins provocatively, “I’d want to find some young black and Hispanic families and ask them how they’re doing because those young Hispanics and blacks will be taking my butt down the road” as they become the taxpayers and leaders of an increasingly multi-cultural America.

Continue reading Dave's post on CNN's AC360 Blog.

Juan's Again on CNN: Latino Immigrants and the Current Economic Crisis

I'm very happy to share with you my most recent post on CNN's Anderson Cooper 360 Blog: http://ac360.blogs.cnn.com/2008/12/02/latino-immigrants-and-the-current-economic-crisis/

Please visit the site, read the post, comment, and if it made you think, I'd greatly appreciate if you could share it with your friends and coworkers.

Un abrazo,

Juan

“¡Me Da Rabia!” Why your Latino Customers are getting ticked off at you

By Juan Tornoe

A while back I got a hold of the executive summary of the first annual Hispanic Rage Study. Even though it was only the tip of the iceberg as far as the info the full report must have, it showed certain flaws companies commit as well as some insight into the socio-cultural reality of Hispanic Consumers. Even though this study was centered on Spanish Speakers, I maintain that is more than language, it is culture that you need to be aware of when dealing with today’s Latino community.

First, independently of the market you serve, you have to be good at what you do. Even then, you won’t be able to fully satisfy everyone, and will face the (hopefully) eventual enraged customer. You need, organization-wise, to be good at handling these situations, even more so when facing a culturally-diverse customer base.

It is most certainly true, speaking from personal experience that immigrants feel uncomfortable by not being able to complain in our mother tongue. I always mention in my seminars that a way to tell someone’s primary language is by knowing in which language they count, pray, think, and dream. Recently a fellow Hispanic marketer added another one that made perfect sense to me: in which language do they argue.

There is nothing like being fully comfortable with your handling of a given language that you don’t have to think of the correct terms to use while arguing… You are so at ease that you can even easily get in trouble (you can ask my wife about the innumerable times I’ve messed up, while arguing, because I was not thinking about what I was saying!) In English, I need to think and then translate that thought in order to coherently express my thoughts and feelings… It definitely gets in the way of my complaining “flow”.

If you present me with the option of dealing with a customer service representative that is able to not only talk to me in Spanish but culturally understand where I am coming from, you would immediately lower my defenses big time and get the opportunity of turning me into a satisfied customer.

As I’ve mention in the past, you need to understand the culture first. You need to have personnel in the front lines that are able to service people “in culture” AND in their language of choice.

The rage study focuses on Spanish speakers… You could take the Andrew Dice Clay approach of, "If you can't speak the language, get the #%$& out of the country". Or you could begin taking the corrective steps to be able turn Spanish speaking Latinos into customers for life. The latter just makes sense, any way you look at it.

I have seen customer “analysis” prepared by companies that proudly show how their Hispanic clientele are basically “Oreos”; Brown on the outside, white on the inside! I say… Duh!!!! You are “rubbing” on everyone’s face the fact that you are able to attract the most acculturated/assimilated Latino individuals through your Latino marketing efforts. Baloney! This only shows that whatever you are doing for the general market is working for those with Hispanic descent that are far, and I mean far, away from their Latino Roots. They are as Latino as C. Thomas Howell was African-American in Soul Man! Remember?

You must realize that the Latino community is much more diverse than that and that the fact that your company isn’t attracting other subgroups of it is both a present weakness as well as future growth opportunity. Rather than conclude that your product or service is more for “English-dominant, more acculturated Hispanics”, you should be raising the question, “Are we doing what it takes to reach out/attract and more importantly retain a larger segment of society as customers?” Sometimes the answer will be that you are consciously reaching out to those you want or can efficiently reach. I want to believe that most of the time the answer would be… “No, there is still much to be done in my company to get things right.”

A diverse workforce at every level of the company is a great start. Having a sense of true caring for the customers permeate throughout your organization is a must.

Hispanics, in general, take longer to complain. I believe that is it part of our culture. This by no means signifies that we are satisfied with the product or service we are getting. There is a tipping point that makes us go ballistic, if you will, and take radical actions…

Let me share with you a recent example of what I mean: I have had Brand “X” computers for a while, almost five years (which in computer years, as you know, is an eternity). I’ve given a good chunk of my money to these guys…. I kind of drank the Brand “X” Kool-Aid back then, and had put up with it, in spite of the horrendous customer service (sometimes it has even been comical trying to communicate with their representatives, me with a Spanish accent, the voice at the other end of the phone line with an Indian accent) and their not so reliable machines. For my last couple of technical assistance calls, it seemed that the magical answer to ANY problem my machine had was to make a backup of all my files and restore the machine back to factory settings. As if I had nothing better to do…

I was calmly putting up with it until they pushed their luck too far.  The last straw came when I noticed a SMALL difference in my monthly bill… They were charging me interests even though one of the main reasons I had decided to by another notebook from them was the BIG BOLD LETTERS on top of the immediate credit approval I received from them highlighting a 12-month interest-free offer. Yes, I have to admit, I did not read the fine, fine print.

Well, I get on the phone to discuss this situation, having to repeat it three times (plus another one via email) to different customer service reps, just a tad less lifeless than the computer I was complaining about. After sharing with them the series of events that had led to my call, and calmly, yet firmly, asking for a solution for the financing situation, I unequivocally got the same scripted response that ended with a negative answer to my request and a sarcastically (at least to me), “We appreciate your business and hope that you will consider Brand “X” for your future purchases.”

Are they kidding! As uncomfortable as it was, I proceeded with the preparation of the “machine from hell”, to be returned to its manufacturer.

I have to give credit to the last customer service representative I spoke to, when calling to schedule the return. It was the only person who sincerely apologized about the whole situation and without hesitation offered a viable financial solution to the entire situation. It just was too little too late. I had already made up my mind. If this would have been the reaction of the FIRST rep I talked to, it is very likely I wouldn’t be writing this from my very cool HP Pavilion.

Am I ever buying again from Brand “X” again? Certainly not! As necessary as computers are to my everyday life, I would prefer not having access to one than to ever have to deal with Brand “X” again. On top of this, I have personally shared my experience (disclosing the actual brand name) with anyone who has been willing to listen.

I am just an individual customer… A Hispanic customer… a dissatisfied customer… an opportunity Brand “X” did not cease. Notice I wasn’t asking for a non-crashing computer, nor for consistently spectacular technical support. I was asking for them to reconsider their policy on financing charges. As it turned out, they did have the authority to make this decision, unfortunately they took action a little too late.

Hiring Hispanic “Switch Hitters” is Key to Business Growth in the Hispanic Market

By Juan Tornoe

Why should your company be concerned with the Hispanic market? The short answer: because 15% of the total U.S. population is currently of Hispanic descent. By the year 2050, one in four people living in the United States will be a Latino.

Other ethnic/racial groups are also rapidly expanding. All in all, the intertwinement of these growing minority groups with the traditionally defined mainstream, is defining a new “general market” that is quite different from the one your parents (or even you, depending on your generation) experienced not so long ago.

Your business has to be in tune with this new reality in order to survive and thrive in the future. The Hispanic market is a vital part of that future because it is the largest and fastest growing minority in America. Period.

These days there’s a lot of talk about marketing to Latinos, and everyone seems to be jumping on the bandwagon, or is at least curious about doing so. A word of advice: any money put into Hispanic advertising and marketing without being fully prepared to serve these consumers will most certainly be a waste.

Let me share with you one recent anecdote that illustrates my point.

I was visiting a potential retail client with several locations in two key Latino markets in the Midwest. They had been following the highly publicized demographic changes in their neck of the woods, but the tipping point for them was the news that an underperforming radio station had changed to a Spanish-language format and doubled its ratings in the blink of an eye. This prompted them to explore marketing to the growing Hispanic community.

When I entered their first store I was sure that all the staff members had to be related. Everyone, and I mean everyone, was tall, blonde, light skinned and blue-eyed. Let’s ignore the fact that there were no bilingual sales materials whatsoever and the only Spanish phrase one single employee could fluently pronounce was, “Dos cervezas por favor” — the only hint of multiculturalism in the entire place was an image of a smiling Asian couple adorning one of the walls. When I inquired about it, they said it was a stock image they had bought a while back. It was a similar story at the other company locations.

After a long conversation with the company’s CEO, I recommended that prior to making any effort to advertise to the Hispanic community, the first step he should take was to diversify his staff. By incorporating different racial/ethnic/cultural backgrounds, his company would better reflect the consumers they were trying to attract.

You see, the employee-customer relationship is crucial. It largely determines the customer’s level of satisfaction, whether they make a purchase or not, and if they will return and/or recommend your company to others. This is especially true of Hispanic consumers, who are highly relationship-oriented and loyal to companies that understand their needs. Latino consumers are also more likely to be influenced by the opinions of friends and family when it comes to purchasing decisions.

The best way to attract and retain Hispanic consumers is by recruiting workers who not only have the aptitude for a given position, but can also relate to Latino customers through a common cultural background and/or language.

You should be looking for employees who understand the Hispanic frame of mind, belief system, idiosyncrasies, prejudices, etiquette and culture. What you need are “cultural switch hitters” -- people who can go back and forth in the blink of an eye from being very Hispanic to being very “Anglo” in their interaction with your company’s clients.

Remember, 15% of the entire population in the U.S. today is made up of Hispanics. This is a significant market segment. Ask yourself: Do you have employees in your ranks who can connect with Hispanics? Do you have someone at the management level who is at ease with your Latino front line employees?

Your business must adapt to the changes that have, are, and will be taking place in the United States. By embracing this new market reality you will guarantee your company’s continual growth. Your clients will appreciate it and your bottom line will most certainly benefit.

Note: Originally published on LatPro's Ask the Expert

Segmentation of the Hispanic Market

By Juan Tornoe

All Latinos are not the same.

It is true that we all carry Latin American and/or Spanish heritage in our blood, but that is the only variable that won't vary (some may say this is cutting us short, but let's use this definition for the purposes of this discussion). As I've discussed in previous articles, there are certain cultural characteristics that you need to be aware of in order to better understand the Latino frame of mind:

    * Degree of intimacy
    * Level of interaction
    * Social harmony
    * Personal contact
    * Respect for authority

These are extremely important and a great starting point for truly connecting with Hispanics. Then again, the Latino community is so diverse, that if you limit yourself to only these general characteristics, it will still be quite challenging to effectively and efficiently reach out to the market you specifically are trying to attract.

You also need to be aware of additional variables that influence Latinos, both as distinct groups and as individuals. Here, in no particular order, are some of the traits to consider when identifying the group (or groups) of Latinos on whom you will focus your marketing efforts in order to tailor a message that resonates with them:

1. Country of Origin / Heritage: There are many differences between Hispanics, depending upon the person's country of origin or heritage: Food and music preferences, as well as the Holidays they celebrate are some of the most obvious. The actual words they use to describe persons, places, actions and things can vary immensely as well.

2. Language Preference: What is the actual language that your target group prefers? Do they usually speak and read in English or Spanish? Are they fully bilingual or closer to either end of the English-Spanish language spectrum? This is of utmost importance when developing your message. Will you talk to them exclusively in English or Spanish? Will you talk to them in both languages? Will you utilize Spanglish (code-switching)?

3. Generation: It is a completely different worldview depending how far away, generationally, Hispanics are from their country of origin/heritage. First generation (foreign-born) Latinos have experienced life outside the U.S., have gone through the immigration experience, and to different degrees, have embraced or become acquainted with living in America. Second generation Latinos encounter a mixed experience, being born and growing up in the United States, but brought up by immigrants and thus heavily exposed and influenced by their parents' culture. Finally, Latinos who are third generation and beyond are the sons and daughters of U.S.-born parents. They are very much influenced by the general market, but still connect to their roots through the values, traditions, and culture passed on by their parents and grandparents.

4. Place of Residence: Latinos living in different parts of the country have completely different life experiences. It depends on the size of their city or town, its demographic composition, and how much or little interaction they have with fellow Latinos. Hispanics living in Los Angeles, Houston, Miami or New York have a vastly different experience and easier access to all things Hispanic than if they reside in Boise or Billings.

5. Socio-Cultural Level: In most cases, foreign-born Latinos obtain a higher income level and greater buying power than they experienced in their home countries. Still, even while their wallets or bank accounts tell one story, their buying habits and overall lifestyles could tell a different story. Their mind-set may cause them to retain financial habits learned in the past, meaning they may be spending less than their buying power would indicate. In other cases, immigrants may arrive in the U.S. with a high socio-cultural and economic level and broader world-view, which creates a completely different set of needs.

6. Acculturation: How much have Hispanics modified or adapted their attitudes and behaviors as a result of contact with mainstream America? What new systems of thought, beliefs, emotions and communication systems have they embraced in order to exist in a new cultural environment without abandoning their heritage?

7. Assimilation: While often used interchangeably with acculturation, this is actually the process of giving up a cultural heritage and becoming absorbed into the mainstream culture. How much has a Latino "forgotten" about their heritage in order to see him/herself as part of a larger national family?

8. Income Level: In general terms, the higher a person's income level (this applies to all people, not only Latinos) the likelier they will have their basic needs fulfilled. The wants and/or needs addressed in your targeted marketing message will need to take this into consideration.

As you can see, it is a combination of all these distinct variables that defines the Hispanic group (or groups) that you will focus on. A good way to understand the interaction between these variables is considering each as an element of a matrix, and the point of intersection of all these variables defines the part of the market you are trying to reach.

As mentioned before, this analysis could be executed down to an individual level, but for marketing purposes it is completely cost prohibitive and would deliver a dreadful ROI. The idea behind this explanation is that you need to perform your due diligence and understand where the majority of the people you are trying to reach land on this matrix, modifying your message according to this insight.

Originally Published on LatPro.com on January, 2008