We all know how much brands sway the purchasing power millennials wield as the largest generation in the US. But what about this generation in the context of another segment with increasing buying power—Hispanics? The segment contributing the most to US population growth at 50.5 million-strong, Hispanics control $1.3 trillion in spending power. Looking deeper into the Hispanic segment, you’ll see some interesting characteristics. For instance, seventy percent of the current US Hispanic population is under the age of 40. The recently minted “Upscale Hispanics” class, those with an annual household income between $50,000 and $99,000, holds 40 percent of the Hispanic spending power.
The current dominant Hispanic demographic is younger, more acculturated and bilingual than previous generations. In a survey conducted by Adroit Digital on Hispanic online shopping habits and views on digital advertising in December, a few millennial-specific highlights emerged:
- They are more likely to respond to ads in English: Ninety-two percent of all respondents in the 18-to-34 age group said they are more likely to respond to marketing displayed in English. This is compared to 81 percent for those ages 45 and over. As these younger Hispanics are more acculturated than their older relatives, the tendency to both speak more English and respond more to ads in English makes sense.
- They are prime for cart abandonment targeting: Fifty-six percent of 25-to-34-year-olds said they are likely to return to a retail site and complete a purchase they hadn’t completed if they receive an online ad, email, text message or mobile push notification compared to 49 percent of those 45 and over.
- They are more influenced by mobile: Hispanic millennials are more likely to be influenced by ads delivered through mobile than their parents. Forty percent of those 18-34 answered that the advertising medium that most influences a purchase decision is mobile, compared with just 21 percent of respondents age 45 and over. Couple this with the fact that 50 percent of millennials use their smartphones as they shop to research products or services according to Barkley, and brands should carefully consider their mobile strategy for Hispanic millennials.
- They care more about product selection: When asked what online retailers can do to make them more likely to complete purchases, 50 percent of those 18-34 chose “increase product selection” compared with 42 percent of respondents 45 and older. This supports the hypothesis that millennials look for value beyond the lowest price.
- They care less about free shipping and more about a personalized message: Of all the incentives a retailer can offer, Hispanic millennials are less likely to care about free shipping than their parents. Just 73 percent of those 18-34 chose this as the incentive that would make them purchase from one retailer over another, compared with 85 percent of those 45 and older. The one incentive millennials covet more than any other age group is a personalized message, chosen by 17 percent of those 18 to 34 who answered the survey compared to 13 percent of those 45 and older.
Marketing to Hispanic shoppers ages 18 to 34 certainly shares similarities with strategies for the wider millennial population. Hispanic millennials will be a segment for brands to attract as their earning potential and, subsequently, their buying power, increases. Brands should plot a strategic, cross-channel course to truly reach and retain Hispanic millennial shoppers long-term.