Knowing What Affluent Hispanic Clients Value

The Hispanic market is also more responsive than the general market, he says, explaining that if they buy one product from an advisor, theyre more likely than clients in the general population to buy more, so the cost of acquisition is much lower.

Barrionuevo says that to build credibility in the Colombian and Venezuelan markets, a planner should familiarize himself with “the customs from their cultures.”

One strategy is teaming up with someone from the community. One can look for such possible partners at soccer associations, business groups and sporting events, he says.

“Hispanic communities are starting to host tennis tournaments and polo events; they have local Chambers of Commerce and Cuban-American groups,” Barrionuevo says.

Juan Job, corporate vice president, New York Life, New York, says part of understanding the affluent Hispanic client is knowing that they value family.

Many of their financial priorities are driven by, “protecting the family, making sure they have a secure retirement, helping their elders,” Job says.

“Many are business owners, so they also deal with succession planning and a variety of issues that come from having money, not necessarily from being Hispanic.”

Orci feels that although the affluent Hispanic client has needs independent of ethnicity, there are basic shared beliefs that a company should be familiar with in order to be effective with this segment. Hes used his knowledge of common values in advertising financial products to this community.

“If its a savings product, we tie it to the familys well-being, their home, their childrens education,” he says. “Prior to seeing the advertisements, those products probably werent on the radar screen, but the fact that they dont own the products is more of an opportunity than a deterrent.”

Although the affluent Hispanic client is interested in the same products as the general population, “one of the things thats key is realizing were a community that deals with relationships first and foremost,” Job says.

“An agent should grow relationships with individuals,” he says. “We dont market to a community as a whole, we market to individuals. We work with them, assess their goals, objectives, dreams, aspirations and work to solve those needs.”

Morales says recent research by LIMRA International, Windsor, Conn., backs up this perception.

“The affluent or more acculturated Latinos in the U.S. prefer a consultative relationship with a well-trusted person who has a variety of products available to them,” he says.

Barrionuevo agrees that penetration into the market will only occur once relationships have been established.

“You have to be very up-front, very honest, your knowledge has to be up to par,” he says. “You cant smoke screen your way through this.

“The whole face-to-face concept is very important in these markets, at meetings and events, the conversation should be not only about business, but also getting to know each other, personally,” Barrionuevo adds.

Morales says face-to-face meetings are key to both acculturated and newly arrived Hispanics. Also key to both is that the planner display a sense of the Hispanic heritage and tradition.

The affluent Hispanic client is “looking for a financial planner to be very sensitive to the needs of the entire family as opposed to the individual,” he says. This nuance has “got to be internalized.”

Reproduced from National Underwriter Edition, June 9, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.