Our 2022 Retail Customer Brand Loyalty Study uncovered Hispanic market statistics that show factors critical to earning loyalty among this important consumer group.
Article Highlights
- Hispanic consumers are a loyal, diverse and growing customer group
- 63 million Hispanics represent $1.5 trillion in buying power1,2
- Hispanic consumers trend young, digitally oriented and social media savvy
- Top Hispanic brand loyalty drivers include good value, low price and quality products
- When marketing to Hispanic consumers, brand differentiators include trust, incentives and a caring staff
In 2022, Hispanic shopping habits paralleled that of other consumers. All were more likely to identify as “Loyalists” (I always like to find a good source for my purchases and then stick with it) rather than shopping around before making a purchase, according to customer.com’s groundbreaking Retail Customer Brand Loyalty Study. This is welcome news for retailers who saw consumer shopping styles impacted in 2021 due to the COVID-19 pandemic.
The 2022 study found that 43% of Hispanic consumers identified as Loyalists, and 34% identified as “Roamers” (I prefer to shop around before making a purchase). This is in stark contrast with the 2021 study, which found that 38% of Hispanic consumers identified as Roamers — way up from 15% in 2019. In fact, Hispanic consumers in 2019 were more likely to identify as Loyalists than any other ethnic group.
But when you think about how to market to Hispanic consumers, you want to know what factors influence their loyalty and which key demographic traits should influence your strategies. Read on for Hispanic market statistics and facts to address these points and more!
Hispanic Buying Habits and Demographics
The Hispanic market is the largest consumer market in the United States, representing an estimated $1.9 trillion in buying power in 2020.1 For perspective, that’s larger than the GDP of Italy, Spain or Australia.1
At a population approaching 63 million people, Hispanics make up 19% of the total U.S. population, and that’s expected to grow to 20% of the population by 2025.2 In fact, Claritas data says 62% of the overall U.S. projected population growth will derive from Hispanics.2 This underlines the importance for retailers to employ a multi-cultural and inclusive marketing strategy.
Many consumers from Hispanic communities were particularly hard-hit during the COVID-19 pandemic, and that did tend to impact Hispanic buying habits. Many worked in industries greatly impacted by COVID-19, such as restaurants, retail and in-home services, according to the Center for Economic and Policy Research.3 These and other factors likely impacted the way this ethnic group shops.
In fact, according to our study, 44% of this group reported their spending habits have changed drastically over the past 12 months. Still, that’s a significant improvement over the 52% who reported their habits had changed drastically in 2021. Hispanic consumers as a group were also more likely to state they buy whatever they want (versus essentials only) at 34% — versus the overall U.S. population at 26%.
Top Factors Driving Hispanic Brand Loyalty
Hispanic respondents to our study listed several factors that strongly influence their devotion to any specific retailer.
Not surprisingly, convenient shopping experience moved up from #4 in 2021 to #2 in 2022. This is reflective of the trend we have seen in the population as a whole. Also interesting, informative website made its debut on the Top Factors Behind Hispanic Shopper Loyalty list in 2022 at #3, although it did not even make the list for the overall population.
Compared to the general population, Hispanic consumers were four times more likely to rank VIP benefits as an important factor. In addition, Hispanic shoppers were much more likely than the general population to list status as a factor important to driving their loyalty.
When asked what would induce them to select one retailer over another when price, access and products are identical, Hispanic consumers listed many of the same factors as above, but also highly ranked incentives to shop with that retailer and customer service.
Compared to the general population, Hispanic shoppers were five times more likely to cite trust as a factor that would help decide their loyalty. And, interestingly, Hispanic consumers were more likely than the general population to cite feel the retailer is socially responsible as an important tie-breaker factor that would help them choose between two nearly identical retailers.
Where do Hispanic consumers shop?
To determine which retailers garner the most Hispanic shopper loyalty, study respondents were asked to list the stores they were most likely to exclusively shop for particular needs. See the chart below for a comparison of their selections versus the general U.S. population.
Marketing to Hispanic Consumers
When developing strategies for marketing to Hispanic consumers and building Hispanic brand loyalty, it will help to keep these general group traits in mind.
The Hispanic market is both growing and diverse.
The Census Bureau projects the Hispanic population will grow from 19% to 28% of the U.S. population by 2060.4 That said, it’s important to remember that the term Hispanic refers to individuals coming from a very broad range of Spanish-speaking countries, each with their own heritage and culture.
For instance, 87% of the U.S. Hispanic population comes from 10 origin groups: Mexicans, Puerto Ricans, Cubans, Guatemalans, Spaniards, Colombians, Hondurans, Ecuadorians, Peruvians and Venezuelans.5
National origins influence the idioms and phrases used by these consumers. So when considering how to target the Hispanic market, it’s important to be sensitive to cultural and language variations from group to group.
Hispanic consumers trend young.
The Census Bureau reports that Hispanic consumers represent the youngest of all U.S. ethnic groups, with a median age of 29.8 years.6 That’s compared to a median age of 40.8 years for non-Hispanics and a median age of 38.4 for the total U.S. population.6 Stated another way, 50% of all Hispanics are under 30 years old.
This has ramifications not only for your strategies for marketing to Hispanics, but also how long you can market to them. With one of the longer life expectancies of all ethnic groups, the median-aged Hispanic consumer represents more than 56 years of “effective buying power” — the longest of any ethnic group. By contrast, median-aged non-Hispanic whites represent 36.7 years of effective buying power when life expectancy is taken into consideration.
Hispanic consumers are digital.
It should be no surprise, given the youth of this ethnic group, that Hispanic consumer behavior has a digital orientation, leaning heavily toward the mobile channel. For instance, according to the Claritas Hispanic Market Report, these consumers are 34% more likely than average to view TV on their smartphone.2
Pew Research Mobile Fact Sheet shows that year over year, Hispanic consumers have been the most “smartphone dependent” group, meaning they tend to rely on smartphones for online access more than other groups.7
Hispanic consumers are social.
When marketing to Hispanic millennials, realize that nearly 50% of this audience say they’ve talked about a brand online with others or used a brand’s hashtag.8 That compares to only 17% of non-Hispanic millennials.
In fact, the Claritas Hispanic Market Report found that Hispanics are 41% more likely than other ethnic segments to connect with brands on social media.2 They’re 25% more likely to visit a social site to review products or services — 46% more likely if they’re a Hispanic Millennial.2
And, according to the recently published 2022 Hispanic Market Guide by the Hispanic Marketing Council, while Facebook remains number one among Hispanics, WhatsApp, Snapchat and TikTok over-index for Hispanics compared to the general population.5
Hispanic consumers want to see themselves in advertising and marketing.
According to the Hispanic Market Guide Report, almost 60% of Hispanics say they are more likely to watch content featuring their identity group. More than half say they are more likely to buy products from brands that advertise on content featuring someone from their identity group.7
The Hispanic Marketing Council advises that marketers select content and messaging that is both relatable and authentic for the Hispanic audience.
The Bottom Line on Marketing to Hispanic Consumers
With a large population wielding impressive (and growing) purchasing power, Hispanic consumers demand retailer attention. But to win over this group, your Hispanic marketing strategy will need to account for the group’s inherent diversity and youth, as well as the specific factors most influential in driving their loyalty. If you can put it all together, you stand to win big by developing deep, lasting relationships with these customers.
Free Download: Discover the three shopper personalities and their impact on customer loyalty in our Retail Customer Brand Loyalty white paper:
Whether you’re marketing to Hispanic consumers or other customer segments, our CRM agency can help. Our retail marketing consultants are adept at leveraging research and customer data to identify the tactics, messages and offers that change behavior and motivate loyalty. Schedule a free consultation or call 303.986.3000.
Sources
1 “Consumer Buying Power Is More Diverse Than Ever,” Selig Center, University of Georgia, posted Aug. 11, 2021, https://news.uga.edu/selig-multicultural-economy-report-2021/
2 “2020 Hispanic Market Report,” Claritas, https://www2.claritas.com/l/306121/2020-09-16/qj2bf
3 “Hispanic Workers in the United States,” Center for Economic and Policy Research, posted November 2016, https://cepr.net/images/stories/reports/hispanic-workers-2016-11.pdf
4 “Hispanic Population to Reach 111 Million by 2060,” U.S. Census Bureau, posted Oct. 9, 2018, https://www.census.gov/library/visualizations/2018/comm/hispanic-projected-pop.html
5 “2022 Hispanic Market Guide,” Hispanic Marketing Council, posted May 9, 2022, https://hispanicmarketingcouncil.org/hispanic-market-guide/
6 “Annual Estimate of the Resident Population by Sex, Age, Race, and Hispanic Origin for the United States: April 1, 2010 to July 1, 2019,” U.S. Census Bureau, released June 2020
7 “Mobile Fact Sheet,” Pew Research Center, posted June 12, 2019, https://www.pewinternet.org/fact-sheet/mobile/
8 “New Research Shows Hispanic Millennial Shoppers Are ‘a Driving Force’ of U.S. Economy,” Amy Gesenhues, Martech, posted Aug. 14, 2017, https://martech.org/new-research-shows-hispanic-millennial-shoppers-driving-force-us-economy/
