Multicultural Special Report: Shore Up Your Back-end

How to build lasting relationships with Hispanic consumers

May 2006 By Gustavo A. Gruber

multipage

Address Back-end Challenges
The single most important element responsible for the long-term success of companies in the Hispanic market is the commitment of the CEO and other high-level executives. This support is critical to the success of ongoing direct marketing programs because in addition to building relationships with customers, marketing personnel need to work with many different departments to properly upsell, cross-sell and renew Hispanic customers. Some of the processes and procedures that need to be worked out include:

• The training of data entry personnel and modifications to database fields. Many of the mistakes made addressing customers in follow-up communications begin in the data entry process. Hispanic names can be confusing, and data entry personnel must be able to clearly differentiate between first and last names. For example, María de Jesús is a first name, but it may be misconstrued as a first and last name. In addition, María de Jesús may have a last name formed by her father’s last name, Fernández, followed by her mother’s maiden name, García. So, her full name could be María de Jesús Fernández García. Although many Hispanics now use a single first and last name, not all do. Data entry personnel should clearly understand the differences.

Having the right structure of database fields also is important. Data entry personnel may understand how to properly break down a traditional Hispanic name, but the database structure must accommodate the correct number of fields. This particularly is important if you plan to develop personalized direct marketing efforts.

• Setting up bilingual, inbound telemarketing. If you ask Hispanic customers to call your organization, tell them what number to call for a specific language. It can be frustrating for customers who expect to talk to a service rep in Spanish to find only English, or be put on hold until a Spanish-speaking service rep is available. Also, plan for longer telemarketing service calls. You need 25 percent more words in Spanish to say the same thing in English. The relationship-building factor also is important to Hispanics. They need to feel comfortable and build trust with the person on the other end of the phone.

• Accommodating longer pay cycles. Many Hispanics have solid incomes and good credit history. However, some Hispanics originate from countries where credit is not available, or is tracked differently than in the States. Therefore, the importance of making payments on or before the due date may need to be addressed. In addition, Hispanics tend to pay with cash rather than credit cards, so they may need extra time to secure full cash payments or money orders.

• Designing Spanish or bilingual billings. Many Hispanic households are multigenerational. Therefore, the person ordering the product may prefer Spanish, but the one paying for it may be more fluent in English. A bilingual billing format solves this problem. A challenge with bilingual payment requests is limited space. Generally payment stubs are small, so use space wisely. The larger, dominant font should be used for the primary language and a smaller font for the secondary language.

• Adjusting metrics accordingly. If you compare the initial ROI numbers for acquiring and servicing Hispanic customers with their non-Hispanic counterparts, the results are not favorable. You have to spend more to implement the processes discussed to effectively market to the Hispanic market. However, once acquired, Hispanic customers often stay with you longer than their non-Hispanic brethren.

Be patient and persistent. Success in the Hispanic market does not happen overnight. Mistakes might be made, but if you’re tenacious and committed to developing winning Hispanic marketing programs, you will achieve success. ¡Buena suerte!

Gustavo A. Grüber is the business development manager for emerging markets at Banta Direct Marketing Group, a printing and supply-chain management provider based in Oak Brook, Ill. He can be reached via e-mail at ggruber@banta.com.

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