sales and marketing Overcoming Obstacles in the Hispanic Market

You can accelerate your success in this fast-growing market by paying careful attention to the critical areas highlighted in this article.

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By Consra Rosales-Pacheco

With a population of almost 60 million1 and growing, as well as a combined purchasing power of $1.5 trillion,2 there is no question that the Hispanic or Latino population represents an economic, social and political force that is shaping the nation and future generations of Americans.

For decades, corporate America has worked to understand and attract the Latino consumer, with varying degrees of success and consistency, making Latinos one of the key demographics for consumer goods, housing and automotive among other industries. However, in the insurance and financial services industry, the experience is more recent and has proven challenging for some companies yet rewarding for others.

When it comes to Latinos and financial services, there are some key areas that financial services companies, as well as individual financial professionals, should take into consideration as part of their desire to build a successful business in this community.

Understanding cultural values. One of the largest obstacles, yet at the same time one of the biggest opportunities in the Latino community, is understanding their cultural values and making these relevant to their financial lives. For example, Latinos may hesitate to discuss topics like sickness, death or even money. At the same time, family is very important to them, and they will often sacrifice much for their families.

Before discussing financial goals and strategies, an honest conversation that brings these values together can help Latinos confront the inevitability of things like death and old age and realize that there are ways in which they can align their love of family with financial tools and strategies.

Financial literacy. Whether Latinos are first-generation immigrants or second-generation Americans, in most cases, they do not come from a trajectory of family wealth and financial savvy. Most Latinos in the U.S. are selfmade, and in many cases, they are the first in their families to complete college. Consequently, Latinos tend to be less aware of the tools that mainstream Americans have to protect, build and transfer wealth. On the other hand, they tend to be conservative, avoid debt and save outside the financial system. When financial professionals focus on relationship building, education and non-transactional approaches, Latinos will quickly embrace financial guidance and will, in fact, become great advocates and referral sources.

Trust. Perhaps the most essential element for achieving success with Latino consumers is the trust factor. One commonality among most Latinos is that they can be hesitant when it comes to financial institutions due to the historically high economic volatility in their home countries. Also, many Latinos in the U.S. have been victims of predatory practices and scams, which are very common among immigrant populations.

Relationship building is key

As referenced above, relationship building is essential in order to gain the trust of Latino consumers. The old saying “no one cares how much you know, until they know how much you care” could not be truer for Latinos. Financial professionals need to develop a genuine interest and cultivate relationships with Latino clients before expecting to discuss financial matters. Small gestures like sharing meals, asking about their families and children and getting to know the extended family can go a long way in establishing that trust. This could feel counter intuitive of mainstream America, where it is often said that business is conducted first and then a relationship can develop.

When financial professionals focus on relationship building, education and non-transactional approaches, Latinos will quickly embrace financial guidance and will become great advocates and referral sources.

In summary, Latinos represent a significant opportunity for financial professionals to expand their business and develop relationships that can last for generations. Living in areas where there is a significant Latino population represents an opportunity, but it won’t grow your business in this community by itself. Expanding your business into this market should be intentional, and it should be a part of your marketing plan. For example, make it a goal to identify local Latino doctors, teachers, community leaders and business owners, and schedule a specific number of introductory appointments every month to start developing those relationships.

In addition to growing your business, working with Latino families will also add a new dimension to your business and help you develop lifetime friendships. Perhaps even café con leche will become part of your regular diet!

Consra Rosales-Pacheco is the Managing Partner of the Nashville General Office of New York Life Insurance Company, where she has been for almost seven years. She leads a team of more than 40 financial professionals, who proudly serve all markets.

References

1. “U.S. Hispanic population reached new high in 2018, but growth has slowed,” Pew Research Center, July 8, 2019.

2. “Minority Markets Have $3.9 Trillion Buying Power,” Selig Center for Economic Growth, March 21, 2019