The United States’ rapidly growing Hispanic population is increasing business competition for this desirable market segment. So, how can you increase sales with Hispanic consumers? We recommend starting with the basics—offering culturally appropriate, accurate language services. Spanish interpretation and translation services help you effectively communicate with limited-English proficient (LEP) members of your target audience, which can lead to a better bottom line.
In honor of Hispanic Heritage Month, we’d like to share interesting facts that may help you improve your organization’s communication with LEP Hispanic customers. Let’s dive in!
What you need to know about Hispanic consumers
First, you should know Hispanics and Latinos are not necessarily the same. Hispanics are descended from Spanish-speaking populations, while Latinos are of Latin American descent.
The United States’ Hispanic population reached 63.7 million in 2022, making up 19% of the overall population.
- The US population grew by 23.1 million from 2010 to 2021, and Hispanics accounted for 52% of this increase – a greater share than any other racial or ethnic group.
- The Hispanic American population is projected to increase to 111 million by 2060, increasing from 19% of the US population to 28%.
- 13 states are home to more than a million Hispanic residents: Arizona, California, Colorado, Florida, Georgia, Illinois, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, and Washington.
- In a 2016 survey, the US Bureau of Labor Statistics found that more than 3 out of 5 Hispanic participants identified as Mexican.
- 49% of Hispanic American households have children under the age of 18.
- Spanish is the fourth most popular language in the world, with more than 500 million native speakers.
- 2019 census data showed that 71% of Hispanics speak a language other than English at home, and 28.4% are not fluent in English.
Education & Income
- 39% of Hispanic Americans have a college degree or higher, compared to 33% of the US as a whole.
- The average Hispanic household income is $55,000.
- Over 71% of Hispanic Americans feel a strong connection to their country of origin, and cultural identity is central to how they make purchase decisions.
Opportunities for growth & improvement by industry
- Banking & Mortgage: Hispanic Americans account for $2.3 trillion in economic activity. However, studies showed their loan approval rates lag behind other demographics, and they often resorted to taking riskier loans.
- Data from the 2021 FDIC survey shows that 5.9 million households are unbanked, with more Black and Hispanic households without accounts.
- Hispanic households will account for 70% of homeownership growth over the next 20 years.
- Hispanics ages 18-24 are twice as likely to purchase a home compared to the general population.
- Insurance: Hispanic people have the highest uninsured rates of any racial or ethnic group within the US. In 2020, the Census Bureau reported that only 49.9% of Hispanics had private insurance coverage, as compared to 73.9% for non-Hispanic whites.
- Retail: Hispanic shoppers contributed over $1.9 trillion in 2020. Hispanic American consumers were also the largest minority market with buying power in 2020, with a growth of 87% over the past 10 years. It’s estimated that up to 73% of Spanish-speaking Facebook users are US Hispanic, and almost half of these people believe social media is the best place to share information about brands.
Why you need to provide language services to Hispanic consumers
- Interpretation services help you increase consumer satisfaction and improve customer experiences:
- 71.5% of customer service leaders claim that support in a native language increases satisfaction.
- The International Customer Management Institute (ICMI) studied the impact of businesses adding language services support to their customer service channels. A majority of contact center managers told ICMI that providing language services:
- Improved satisfaction with customer support
- Positively impacted customers that prefer a language other than English
- Increased customer loyalty
- LEP consumers are more likely to choose your product or services if you translate marketing and informative content:
- Given a choice between buying two similar products, 76% of customers will choose the one with information in their native language. In addition, 40% will never buy from websites in other languages. (CSA Research)
- 70% of end-users say they feel more loyal to companies that provide support in their native language (ICMI)
- 65% of surveyed customers prefer content in their language, even if it’s poor quality, and 73% want product reviews in their language, if nothing else. (CSA Research)
- Businesses that expand their translation budgets are 1.5 times more likely to report an overall increase in revenue. (CSA Research)
- How Your Business can Provide Great Customer Service to LEP Customers
- What’s the difference between interpretation and translation?
- Translating Banking Educational Materials for LEP Customers
Need help reaching Hispanic consumers?
Contact CyraCom for a complimentary language services consultation.