Social Networking Sites is Where the Action is for Hispanics and Emerging Minorities

The new town center and “plaza” is online and it is very relevant to today’s marketers in the new global village. In March 2011 we asked consumers to “please tell us how important to you the following reasons are for using social networking sites like Facebook or Twitter?” Respondents answered on a 5 point scale from “not at all important” to “extremely important.”

The two reasons for using social networking sites that stood up most significantly were: “Keeping up with new trends,” and “asking friends and relatives about their opinions on products to buy.” The graphs below summarize the aggregated percentages for the top two points of the 5 point scale.

Keeping up with New Trends

NHW stands for non-Hispanic White, AA for African American, A for Asian, HE for Hispanics who responded in English, and HS for Hispanics who responded in Spanish to the survey.

Asking Friends and Relatives about Their Opinions on Products to Buy

NHW stands for non-Hispanic White, AA for African American, A for Asian, HE for Hispanics who responded in English, and HS for Hispanics who responded in Spanish to the survey.

Minorities in general are more likely than non-Hispanic Whites to say they use social networking sites for keeping up with new trends and for interacting with friends and relatives about their opinions on products to buy. Latinos who answered in Spanish to the survey are more likely than anyone else to endorse these reasons.

There are several important implications of these findings. First, as we have seen in other results from similar surveys, emerging minorities are more engaged with the new media and are likely to use it as a source of information for their lifestyle and consumer behavior. This speaks strongly to the importance that marketers need to place in being where these consumers are, i.e., social media. Brands that facilitate interaction seem likely to have an advantage as that plays directly to what is important to these consumers.

Further, Latinos who prefer Spanish are even more engaged with social networking sites for obtaining guidance and knowing about things like fashion. While Spanish dominant Hispanics have lagged in the adoption of online technologies, they are now fast adopting them and once they adopt these technologies they seem to strongly depend on them. The synergies of social media and traditional electronic and print media are likely to be important and should be capitalized upon to create conversations and discussions. The virtual social world is opening enormous possibilities to people, and it is creating a new system of influence. Growing minorities appear to be eager to break traditional barriers.

Opinion leaders among these emergent minority groups are very likely to have an impact on their followers who share their background, but also on others who frequent social media sites. Thus, these minorities are not only finding a town center or “plaza” online but are likely to also be affecting a larger social milieu because of the very public nature of social media.
Figuring out the role of social media is still an ongoing challenge for marketers. They should start paying close attention to what is happening in the virtual marketplace. Understanding flows of influence in online networks can be crucial for the marketing of the future.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

Latinos Are Digital Innovators

We just finished collecting data for our multicultural marketing study (Florida State University's Center for Hispanic Marketing Communication with the collaboration of DMS Insights). The suprise, again this year, 2011, is that once Latinos are online they are more likely than other cultural groups to innovate in the digital space.

In this new study we found that Hispanics in general and Asians are more likely to have a blog than anyone else. Perhaps even more surprising is that Latinos who prefer to answer in Spanish are more likely than anyone else to have a website of their own.

We have found this tendency over the past 5 years, and it continues. It would have been expected that over time, members of other cultural groups would catch up and even out the field. That has not been the case. What that tells us is that Latinos are truly engaged with online technology.

The reasons for these trends are most likely related to the collectivism of these consumers. They want to share their experience with others who are important to them. These findings have strong implications for marketers. If Hispanics are online leaders, who do you approach to disseminate the news about your products? Latinos are the arrowheads into a new era of virtual experience. Their behavior is particularly interesting because traditional marketing stereotypes have usually placed Hispanics as laggards in the digital space. They are not. They are innovators who strongly engage with new media because allows them to have a voice and a forum for their points of views, images, and ideas. Blogs and personal websites constitute a newly discovered freedom of expression and sharing. Latinos are at the vanguard of taking advantage of this freedom. Marketers should take note of this important trend when planning how to get their products and services in the new and changed multicultural environment.

Have a Blog

Have a Website

The data for this study was collected during March 2011. The online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU this Spring.

Microsites

It's not secret ... if you want to reach the "Google Generation" you'd better be a few steps ahead on technology. Text alerts and mobile banking are as expected as ATMs and online banking.

You'd also better spend more time analyzing and improving your website than you do writing newspaper ads!

Lately, we've had a lot of clients interested in microsites. And they can be VERY useful in the right situations.

What is a microsite? (or minisite, or weblet)

It's a page or cluster of pages that supplement your main website. They are usually used to highlight a particular product or aspect of your organization.

Let me give you 2 examples.

We are in the process of completing a Mortgage-specific microsite for a client. While in this supplemental portion of their website, a user can find only information important to someone who's interested in buying or refinancing a home.

We also completed a microsite for another institution who wanted to focus on their new lifestage-based sales process. Here the user is drawn into information important to their specific lifestage. They then have the option of clicking on relevant financial products that will take them back to the bank's main site.

In short, it's a way to get a reader interested and to draw them to you. A microsite can differentiate in a very targeted way and generate qualified leads. It's also a much better marketing message:

"Come to our site with information important to you."

vs

"Come to our site all about our products."

What Makes a Microsite Successful?

Content.

The number one objective of your site should be to add value - not, necessarily to sell your products.

Where your main website is traditionally an electronic brochure of your "stuff," a microsite is successful because it draws a user to it for value - entertainment, knowledge, etc.

Many retail microsites use games to bring people in. We prefer to position or clients as experts and use value-added content.

Our mortgage site includes more than a dozen articles that are important to first time home buyers, experienced home buyers, folks wanting to refinance and moving and packing information. It also includes dozens of helpful links to anyone moving or remodeling. The entire site is designed to be a one-stop resource for everything important to you before and after you complete a mortgage app.

Our Lifestage site provides links and information for anyone experiencing specific life events, like childbirth, retirement, etc.

Of course, there are countless ways to link from the informative microsite to the "salsey" main site.

In short, a microsite should be a resource that a customer or prospect will want to bookmark and come back to over and over again.

Merry Christmas,

Eric

Whack-A-Fee

OK Financial Marketers, this one's fun, creative AND on message.

Whack-A-Fee

The gauntlet has been thrown.

New Online Competition

If your institution provides small business loans, have you heard of Kiva yet?  If not, it's worth a look at kiva.org.  

This non-profit organization, founded in 2005 to help entrepreneurs over seas, launched today to help lend money to needy US small businesses.  To date, Kiva has half a million lenders from more than 185 countries who have lent more than $75 billion with a 98.35% rate of repayment - according to the company.

Any average Joe can lend the small business of their choosing as little as $25.

It's truly "people helping people" - sound familiar credit unions?

Sure, these are loans that the Wachovias, Wells Fargos and Bank of Americas won't touch.  But to community banks and credit unions who rely on local mom-and-pops, we should keep an eye on this.

Take care,

Eric

Online Account Opening

Thanks Al Gore ... this internet thing might just work out after all.

BAI Bank Strategies estimates that by 2015, 50% of new accounts will be opened online -- is your institution ready?

Consumers are getting more and more comfortable picking and clicking:

• Gen Y is the most likely demographic to look to online resources
• More than 60% of online shoppers are women
• People with children are more likely to conduct business online than those without
• People conducting online transactions are looking for immediate results

In short, they are your key target and they are motivated!

Reevaluate your website - With this target, your reputation and your website may have a greater impact than your physical branches or staff. Create a web advisory council or hire a third party to evaluate your site's look and flow.

Make it easy to open the account(s) - This takes teamwork from compliance, IT and marketing. The more a consumer can complete online (without having to print and mail applications) the more likely they are to complete the process. With government regs in mind, make every effort to allow customers who want to open an account online to actually open the account ONLINE.

Make it secure - It goes without saying...

Add value - These consumers are typically online savvy, however, a little extra education can't hurt. As they are trusting you with their money, help these customers protect it with regular tips on how to keep their online identity secure.

On-Board - Opening an account online is a convenience ... not an excuse to never have direct human contact with your staff. It may be more important than usual to implement a formal on-boarding process with online account openers. Assign a Services Representative to:

• Write a hand written thank you note the day the account is opened. This can follow an email notification that should be automatically, electronically delivered to the customer immediately after the account is opened.
• Place a follow-up phone call a week or two after account opening to assure the delivery of their debit card, checks, or any other relevant materials. Also inquire about the satisfaction of the account opening process.
• Place another personal phone call after the customer's first statement delivers to assure satisfaction. Invite the customer into the branch or schedule a call to discuss further financial needs.

This will be a vital target for us as our industry and consumer needs evolve. Those institutions who are early adopters will have a leg up.

If you're having success in this area today, or if you have questions for those who are, please post a comment in this blog.

Take care,

Eric