En Espanol: How to Use Hispanic Direct Response to Achieve a Lift in Retail1 Dec, 2011 By: Alex Agurcia Response
Marketers are facing increasing pressure to see positive results and calculated ROIs for every dollar spent on branding and advertising. When a product is on the shelves and selling only marginally well, what can be done? Consider a U.S. Hispanic direct response (DR) campaign.
As U.S. Hispanic households have grown, so has their spending. According to a 2009 Simmons National Hispanic Consumer Study, 1.6 million Hispanics made DR purchases as a result of television advertising and, while non-Hispanic DR shopping has decreased in recent years, Hispanic DR spending is up by more than 10 percent.
Hispanics have more children per household and spend more on food and entertaining at home, making them a coveted market for retailers. Most big-box discount stores are increasingly allocating a larger portion of their marketing dollars to this segment. In fact, Hispanics shop significantly more often at discount stores than non-Hispanics.
A recent study conducted by Omni Direct found that English-language sales increased up to 25 percent when running a Spanish-language campaign simultaneously — due mostly to the fact that an increasing number of U.S. Hispanics consume media in both Spanish and English, and use the Internet in both languages. Another industry study demonstrated that a company’s overall ROI is significantly improved — in some cases by as much as 40 percent — when a Spanish-language campaign is running simultaneously with a general market campaign.
Creating a successful U.S. Hispanic campaign is not necessarily a one-size-fits-all equation, though. Consider these key tips:
- Stay consistent and complementary in your messaging. In order to properly lift retail sales, your English- and Spanish-language campaigns should complement each other. Marketers often mistakenly assume that a U.S. Hispanic business model needs to be treated differently than its U.S. counterpart, but in most cases launching a U.S. Hispanic campaign does not require separate multi-channel creative, websites, offer development, fulfillment, distribution or packaging.
- Remember the necessity of a well-tailored creative script. One thing that does need to be treated differently is your U.S. Hispanic script. Products achieve subpar sales as a result of poorly tailored and poorly adapted scripts that do not properly resonate with the target audience. The partners and vendors you choose need to speak the language, understand the culture intimately and have first-hand experience with Hispanic DR techniques.
- Holistic campaign management is always critical to success. Despite producing successful U.S. campaigns, many DR marketers complain they are not able to make their Hispanic campaigns work. There are many possible explanations for this, but one of the biggest lies in the lack of proper campaign oversight. A focus on the DR value chain is typically lost when launching a U.S. Hispanic campaign. Language and cultural competencies do not generally exist in-house for most DR marketers, thus all the components are farmed to outside vendors, meaning your campaign lacks an experienced partner who takes client-side responsibility for oversight and performance.
This can make a major difference to campaign performance when marketers or vendors lack the skill sets necessary to make timely changes to inbound scripts as well as offers, creative and website changes. Incomplete ROI analysis or a lack of timely analysis can lead marketers to the wrong conclusions — or to end a campaign unnecessarily early — often leaving a significant sales opportunity on the table.
Keep in mind as you begin to explore opportunities in the U.S. Hispanic market that the long-term value of the Hispanic consumer, with regard to its growth rate and spending potential, can actually be greater than that of the Anglo consumer. Their online and retail buying behavior is such that your overall sales will increase significantly with a Hispanic DR model.