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Hispanic Operational Readiness
The Key to Hispanic Marketing and Sales
Success
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 1 of 11
HISPANIC OPERATIONAL READINESS
THE KEY TO HISPANIC MARKETING AND SALES SUCCESS
You've read the statistics, you've seen the Census data - Latinos are the largest and fastestgrowing ethnic group in the U.S.
Whether you live in Los Angeles where the Latino
population is the largest in the country (42% of the total population) or you live in
Greensboro, NC (the fastest-growing Latino market, with a 674% increase in Latino
population since 1990), the Latino population cannot be ignored. It is large, getting larger,
and for marketers and businesses, it means a huge opportunity to gain incremental
business.
The Numbers are Huge
The latest Synovate data (Synovate 2008) reveals that there are 47 million Latinos residing
in the United States. Just how many is 47 million? Consider this: there are more Latinos
living in the United States than there are Canadians in Canada.
Another way to look at it: currently, almost one in seven U.S. residents is Latino. By 2020,
this ratio will increase to one in five. And this is having a profound effect on business and
marketing efforts. Most brands, companies and services are scrambling, trying to learn how
to effectively tap into this large, lucrative and rapidly-growing market. In these tough
economic times, companies are so eager to cultivate this new market, they often neglect a
critical component that is central to their sales and marketing success: Hispanic operational
readiness.
WHEN TARGETING HISPANICS, DON’T FORGET ABOUT OPERATIONS
We see it over and over again: a company begins a Spanish language media effort,
spends hundreds of thousands of dollars, but neglects to fully prepare for what will
happen when Spanish-dominant consumers try to do business with them.
.
When you target the Hispanic market, if you want to be successful, you have to think
larger than advertising and marketing. It is imperative to understand that airing a
Spanish spot on Spanish language TV is like an invitation to Spanish-speaking
consumers to come to your business. And just as you would prepare your home
before inviting guests over, so must you prepare your business to receive your
Spanish-speaking customers.
With that in mind, before implementing a Spanish language marketing effort,
examine your business to ensure that your operational infrastructure is as finely
tuned to Spanish-speaking customers as your messaging is.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 2 of 11
There are two key aspects of operational readiness: “Latino-readiness” and “Latinofriendliness”. They are equally important to maximize sales and customer
satisfaction.
“Latino-readiness”
Being Latino-ready means examining your business and making adjustments to serve
your Spanish-speaking customers from an operational and infrastructure standpoint.
Latino-readiness is a function of your business, not necessarily of your employees. In
other words, it is a commitment on the part of the company, not the individual.
Latino-readiness involves investments that are made in order to allow Latinos to
easily and comfortably do business with your company. The following section
highlights many of the touchpoints that businesses must consider to create a
comprehensive Latino-readiness strategy.
•
Staffing: This is the first and most
important step to serving Spanishspeaking customers. While it is
possible to grow your sales without
having Spanish-speaking staff
members, your sales will grow
much more rapidly if you have
associates who speak their
language. Your entire staff doesn’t
have to be bilingual, but you do
need a bilingual team and a system for your non-Spanish speaking staff to
handle Hispanic customers. Don’t put your non-Spanish-speaking staff in the
position of wondering how best to work with a Hispanic customer who speaks
little or no English. An example of a simple, but effective system is a program
McDonald Marketing developed for client Mattress Firm, the largest Mattress
retailer in the United States. For their Hispanic pilot program in Phoenix, a
system was needed for effectively handling Hispanic customers, because
Mattress Firm had fewer than a dozen bilingual salespeople out of 100
associates in the market. We developed a system which fully utilized these
bilingual salespeople by having them assist with sales for stores other than
the ones in which they were physically working. Because their associates work
on commission compensation plans had to be adjusted so that commissions
would be split among the sales team making the sale. This was not only fair,
but motivated both the Spanish-speaking and non-Spanish speaking
associates to work together to build sales and consequently, their incomes.
The result was that salespeople in different stores collaborated to make sure
a customer didn’t walk out the door due to a language barrier.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 3 of 11
•
Signage: It’s imperative to view
your business through the “lens” of
a Spanish-speaker. Examine your
business to determine places
where bilingual signage makes
sense.
Simple
things
like
“Bienvenidos” (“Welcome”) on your
front door signals consumers that
they are welcome there. It sends
an inviting, warm message that lets
the Hispanic consumer know that
their business is valued. It’s also important to have hours of operation, key
policies and customer service information in Spanish. Navigational signage,
which helps consumers navigate your store or business, is even more
important.
•
Bilingual materials: Do you have marketing materials that are readily available
to help you sell your product? (A brochure? A website?) Consider having them
in a bilingual or Spanish format (as a complement to your English-only
materials). We frequently see businesses that have an extensive Spanishlanguage advertising platform but it’s not supported at a consumer
information level, such as a website. This is particularly ironic when ads in
Spanish are tagged with a firm’s logo, address and website, thereby driving
the Hispanic consumer straight to an English-only website after seeing or
hearing an ad in Spanish
Additionally, you may need to augment your marketing materials with different
information created specifically for Spanish-speaking consumers.
For
example, in the financial services industry, it may not be effective to create
identical brochures in English and Spanish as the level of financial literacy
may vary from one target to another. For Spanish-speakers, it may be more
important to start with marketing materials that educate consumers about
basic services and gradually lead them into more complex services and
products as their familiarity and trust in the brand develops. An example of
this is client Woodmen of the World, a renowned life insurance company
based in Omaha, Nebraska. Woodmen of the World conducted research
among Hispanics and learned that while life insurance and the security it
provides are very important to Hispanic families, it was widely misunderstood
and there was tremendous confusion about the products and their benefits.
Woodmen realized they couldn’t just jump into the market with a Spanishlanguage advertising campaign to increase sales; they’d have to create an
entirely new set of marketing materials that were very basic and designed to
explain, step by simple step, exactly how life insurance works and why
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 4 of 11
Woodmen is the best choice for life insurance. They also created an
educational seminar in Spanish to be presented at no charge by their
Spanish-speaking agents. The purpose of this was to connect with the
Hispanic consumer in a low-key, no pressure way to educate and inform them
about the need for life insurance.
A Hispanic
customer
service call
can be
50%
longer,
depending
on the
industry.

Handling Calls in Spanish: In creating a more Latino-ready experience for your
Spanish-speaking customers, you must consider the importance of
communicating on the phone with them. Handling phone calls in Spanish is a
must for any company doing business with Latino customers. Whether it’s to
give directions, explain company policies, state hours of operation, order a
product or answer product questions, offering Latino callers access to your
business in Spanish is a huge step in building credibility as a Latino-ready
company.
In order to deliver high quality customer service, a company must understand
how to handle a Spanish call differently from an English call.
For instance, an English-speaking caller might want the call to be as short as
possible. A Spanish-speaking caller often expects the opposite. Hispanics are
more conversational in their communication style and value the time and
attention of a customer service rep rather than speed of service. Hispanics
also take more time on the phone since they often require more information
about a product or service than a non-Hispanic caller. In fact, a Spanishspeaking customer service call can be 50 percent longer, depending on the
industry.
Another difference with Hispanic consumers is that calling time volume tends
to be earlier, later, and more on the weekends compared to regular weekday
calling times (e.g. 9am-5pm). Call centers that want to deliver high quality
customer service must consider this and extend or alter hours in order to
accommodate Hispanics’ work schedules.
Understanding these customer behaviors and expectations pays off.
86% of customers say they are very likely to purchase a company’s products
again after a good call experience.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 5 of 11
•
Product: Clients may not always have the option of tailoring their product line
to the Hispanic consumer segment, but when they are able, it can pay off
handsomely. Several companies and brands have recognized this and have
carved a niche in this way. For example, Minute Maid, the most well-known
American juice brand, created Limonada (limeade) for their Hispanic
customers. Why? Because in the United States, we tend to drink lemonade.
But in Latin America, particularly Mexico, there is no lemonade – only limeade.
Mattel created Teresa, a Hispanic Barbie doll. Oreos, the best-selling cookie
in the world, created dulce de leche Oreos, the only ethnically-inspired flavor
of their 44 varieties. Even toothpaste manufacturers are getting into the
game: in the U.S., we associate a fresh, clean mouth with a minty feeling. In
Latin America, it’s cinnamon or citrus that creates that feeling. So
toothpastes are created with citrus and cinnamon flavor to cater to Hispanic
familiarity.
An even more pronounced example is a U.S. brand created entirely for the
Hispanic market: Pizza Patrón, based in Dallas, Texas. With offerings such as
La Patrona (“The Boss”) and La Mexicana (“The Mexican”) and ingredients
like jalapeños and chorizo, they are successfully reaching Hispanic consumers
and are rapidly expanding across the U.S.
Transcreation, Not Translation
If you can’t tailor your products, don’t despair. More often than not, it’s simply a
matter of correctly positioning your product. That’s why it’s so important to not just
translate your English materials, but to transcreate them.
Transcreation means to alter a message in English by creating a message in Spanish
that communicates the same thing, but in a culturally meaningful way to deliver a
similar message. It is almost never a “word for word” translation. An example of this
comes from a client in the banking industry: the assignment was to translate the
bank’s English brochures. The copy used to market their personal loans stated that
loans could be used to ”buy a boat or motorcycle”, but Hispanics as a group don’t
spend a lot of money on these types of things. We changed the copy to read ‘buy a
computer for their children’s education’ and ‘a family vacation’; Hispanics are very
family oriented, so this message was much more relevant.
Woodmen of the World found in their Hispanic consumer research that the most
important benefit for families of a deceased loved one was the ability to ship a body
back to Latin America for burial. They created marketing materials that specifically
mentioned this benefit, a great example of transcreating a message about why life
insurance is important to have.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 6 of 11
To that end, nothing beats consumer research to identify and learn what’s on your
target customers’ minds. Only by conducting Hispanic customer research did
Woodmen of the World learn about Hispanics’ desire to have bodies of the deceased
transported to Latin America. This was an important insight that could only be
uncovered by talking directly with consumers. Taking the time to learn as much as
you can about the nuances and differences with your Hispanic target will maximize
the return on your investment.
“Latino-friendliness”
Now that you understand the elements of Latino-readiness, let’s examine the basics
of Latino-friendliness. Think of it this way: Latino-readiness is Latino consumers’
ease of doing business; Latino-friendliness is their comfort in doing business.
Independent of one another, successful Latino-readiness doesn’t guarantee
successful Latino-friendliness, or vice versa. For example, you can invest in Spanish
signage, website additions, and staffing… all things that will make the shopping
experience easier for your Latino consumers. However, if your staff is rude to your
Latino customers, ignores them, or just isn’t helpful to them,… all things that will
make the shopping experience less comfortable for your Latino consumers… they
are not likely to return or recommend your business to others. Conversely, even if
you don’t have the budget or resources to make your business Latino-ready at every
consumer touchpoint, you can still create a company that is Latino-friendly.
Friendliness is universal, and friendliness costs you nothing.
Providing outstanding customer service is important with all customers, and the
Latino customer is no exception. Increasingly, companies in this country are choosing
to cater to the Latino market by providing exceptional service in Spanish and
focusing more on the customer’s preference of language when doing business.
Consequently, Latinos are being courted more and more, and they find themselves
able to choose to do business with those who understand and respond to their
needs.
Customer service is as important to your business health and future as product
development, marketing or sales. Yet so many businesses view customer service as
“expensive overhead”. It’s not. Consider these facts:
 Repeat customers spend 33% more than new customers
 It costs 6X more to sell something to a prospect than to sell that same thing to
an existing customer
 Referrals among repeat customers are 107% greater than non-customers
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 7 of 11
Customer service is a strategic competitive advantage. In fact, USA TODAY reported
that “CEOs say customer service drives growth” (August 20, 2007). With companies
increasingly selling similar products, CEOs said the quality of customer service was
often the only differentiator.
For the Latino customer, service is paramount. It trumps price, it trumps location
and it can even trump modest quality issues. So let’s explore the key elements of a
superior customer service experience for Spanish-speaking and Hispanic consumers.
The Importance of Customer Service to Latinos
Providing high quality
customer service in
Spanish will help build
brand loyalty.
Receiving high quality customer service in Spanish is of top importance
for the Latino consumer. According to a national study1 on customer
service and brand loyalty by Santiago Solutions Group and Hispanic
Teleservices Corporation, Latinos often value Spanish/fully bilingual
customer service more than retail location, Spanish advertising, and
recommendations from family and friends. For Latinos, relationships,
both personal and professional, are central in their life. This value of
human interaction naturally carries over when purchasing a product or
even requesting information. As a result, when a Latino consumer is
attended to with high quality customer service, they easily form a
relationship of trust and loyalty with that brand.
Imagine advertising to this consumer and not being able to respond
adequately to the demand you have created. Clearly, a company’s
Hispanic marketing efforts can immediately lose credibility with the
Latino consumer if the business is not equipped to provide high quality
customer service in Spanish. Without the ability to communicate with
a customer service rep in Spanish, many Latino consumers become
frustrated and often change brands/services. For instance, in the
“Customer Service Impact on Consumer Choice, Loyalty, Brand Reputation and Sustainable Growth” by Santiago
Solutions Group and Hispanic Teleservice Corporation
1
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 8 of 11
wireless category, one in three Hispanics who have had a bad
customer service experience have switched providers2.
6 out of 10
Hispanics told an
average of seven
family
members
and friends about
a
positive
customer service
experience.

Make Latinos Your Strongest Brand Advocate: A positive customer
experience will trigger positive “word-of-mouth” among Latino
consumers. Latinos value the opinions of their friends and relatives
when making purchase decisions and will frequently talk about their
experiences. In the Customer Service national study3, 6 out of 10
Hispanics told an average of seven family members and friends
about a positive customer service experience.
You can expect the “word-of-mouth” effect with negative customer
service as well. Half of Hispanics who have a negative customer
service experience tell an average of five friends and family
members about the incident. One negative experience can affect the
Latino consumer’s brand loyalty and the brand loyalty of their friends
and family.
“Loyal Hispanic Customers Rely on High Quality Customer Service in Spanish” PR Newswire
“Customer Service Impact on Consumer Choice, Loyalty, Brand Reputation and Sustainable Growth” by Santiago
Solutions Group and Hispanic Teleservice Corporation
2
3
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
Page 9 of 11
Hispanics prefer to
speak to a live
customer service rep
rather than an
automated system.
• Understand obstacles Latinos face: Since many Latinos are not as
familiar with automated systems and have questions on issues and
topics that are less common in the general market, most prefer to
speak with a live customer service agent. They will typically not leave
a voicemail; rather, they prefer to keep calling back until they get a
live person. It is a culture that values “high touch” over “high tech”.
Making your business Latino-ready and Latino-friendly is imperative for incremental
sales, now and in the future. The Hispanic population growth is not a fad. Be sure to
go beyond simply marketing to Latinos: take a 360° approach and nurture and
cultivate your Latino customers, and this strategic and competitive advantage will
pay dividends, today and mañana.
Spanish Is Important
The U.S. Hispanic population is divided roughly as follows: 56 percent prefer Spanish
as their primary language, and 26% percent are bilingual and 18% are English
dominant. This indicates that 82% of the U.S. Latino population speaks Spanish at
home. This statistic means that Spanish is the language of their heart, which
translates to the language of their wallet.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
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Speaking to Hispanics in their preferred language will help facilitate the growth of a
relationship. Once a Spanish-speaker knows that they can communicate in Spanish,
there is a sense of relief and an immediate connection is established. Trust is
established and there is comfort in speaking with no concern that communication will
be lost in the translation.
Hispanic consumers are much more loyal to companies/products/brands that
respect them and talk to them directly in their native language. It is important for
Hispanics to feel that they are being treated with respect and are offered the same
attention as other customers. It is frustrating for this consumer if there is no one
they can communicate with in their preferred language. Conducting business in
Spanish provides a sense of relief and makes the process more comfortable for the
Spanish-speaker.
About McDonald Marketing:
McDonald Marketing was formed in 2002 with a single focus:
to help clients and companies grow their business by
marketing effectively to Hispanic consumers.
With that sole vision, Kelly McDonald started her business as a
marketing consultant and speaker, emphasizing market
segmentation. Her approach to niche marketing challenges
grew the company from a one-woman enterprise to a fullservice agency in just over a year. Kelly is a popular speaker
on the topic of marketing to
Hispanics and marketing to
diverse target segments.
In 2007, McDonald Marketing
was named one of the “Top 50
Hispanic Ad Agencies in the U.S.” by Advertising Age.
2008
In 2008, Inc Magazine named McDonald Marketing one of
the fastest-growing privately
owned companies in the
country.
The company has also won 7 Telly awards – the television
industry’s award for creative excellence in television
advertising.
McDonald Marketing is a woman-owned business and is a
certified minority business.
McDonald Marketing White Paper Series
“Hispanic Operational Readiness: The Key To Hispanic
Marketing And Sales Success”
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