Axios recently reported that U.S.-based Hispanics are feeling significant pressure from inflation, which is impacting their purchasing power in tangible ways.
Considering the fact that this particular community has been an opportunity segment for brands over the last several years, how should marketers respond? What do they need to take into consideration in order to stay relevant?
Despite having been disproportionately affected by the pandemic and resulting job loss, now coupled with rising inflation and growing economic inequality, Hispanics still voice faith in the future—even if they feel less optimistic about the economy.
Why is that? While most Americans would see little cause for optimism in situations like these, Hispanics, as a whole, are more inclined to pursue the American dream and work to improve their living standards. They have a resilient mindset and firmly hold the belief that the younger generations will outpace and do better in life than the previous generations. That alone propels them forward.
Additionally, during challenging times, Hispanics resort to their community network. They are likely to have strong social ties and people to turn to for help.
That said, there are different things marketers should consider doing to keep pace with Hispanic consumers during this high inflation period.
Consumer research. Now, more than ever, it's important that advertisers understand their target audience and not go by existing consumer segmentation models. What may have worked in the past may not be the case any longer.
Conducting consumer research at a time like this will help marketers understand their audiences' pain points and how they are changing their behaviors and attitudes in response to price inflation and economic hardships.
The results will help marketers develop effective marketing plans that can lead to improved product/pricing strategies, promotional offers, rewards and loyalty programs.
Content marketing When inflation rises, consumers shift their focus to content that provides them with important information as it relates to their finances, getting their families ahead, tips and advice for managing their money, and overall well-being. This is a good way to strengthen relationships with customers and build brand loyalty.
Extend generosity. If your brand is in a position to extend special deeds like offers, discounts or contributions, those actions contribute enormously in ensuring consumers will remember your brand for being there and doing good. A great example of this is PepsiCo's Juntos Crecemos Program, which set out to distribute $10,000 grants to minority-owned businesses who have been negatively impacted by the pandemic.
As a Hispanic myself, I am hopeful that we will head into better times soon. In the meantime, as marketers, we must continue to be vigilant, listen to the voice of our audience and offer them positive contributions to help them thrive.