As sales professionals seek to expand their business, it is important that they become educated on the economic prowess of the growing Hispanic/Latino market base. Not understanding the value of doing business with this emerging market may limit your growth.
According to the U.S Census Bureau, Hispanic/Latino business ownership is growing 3 times as fast as the national average. The Hispanic/Latino market buying muscle is getting stronger, and the rising rate of Hispanic/Latino business is booming.
In May 2006, Aflac and StrategyOne surveyed business owners across the country and found that Hispanic/Latinos are less likely than any other demographic group to have medical insurance–only 71% of Hispanic/Latinos compared to 88% of Caucasians. The disparity of health care in this minority community is astounding, partly due to the lack of insurance education.
For agents, this represents a multitude of opportunities to continue growing primary business while educating this budding market on the importance of adding insurance as an important financial planning tool to help protect families.
Here are a few tips to help you get started with effectively marketing to this community:
Building community relationships
A sound way to build relationships within the Hispanic/Latino market is to build the trust level from the ground up through community involvement. To do this, an agent should consider getting involved by sponsoring events such as a health fair, by partnering in an educational initiative or by building brand recognition through referrals in the business community.
Minority small business leaders can serve as major community influencers who can partner with agents to educate consumers on topics, such as the importance of owning voluntary insurance products, to guard against draining savings due to unexpected health care costs. Also, using community networking events to recruit a diverse sales team can provide added value to your operation. It’s not only the right thing to do; it also makes good business sense to sell products and services with a team that reflects the market you are trying to reach.
Understanding the needs, influences and concerns of the community is vital in reaching out to the Hispanic/Latino market. The U.S. Census Bureau says that Hispanic/Latinos accounted for 40% of the country’s population growth between 1990 and 2000. There are differences in this lucrative market segment that agents must become familiar with to expand their business.
According to the United States Hispanic Chamber of Commerce, the number of Hispanic/Latino-owned companies has grown 82% since 1997, making them among the fastest-growing business segments in the nation. Additionally, U.S. Hispanic/Latino purchasing power has surged to nearly $700 billion and is projected to reach $1 trillion by 2010, nearly 3 times the national rate of consumer purchasing power over the past decade.
Sales agents who are familiar with the Hispanic/Latino culture can aptly educate business owners on insurance products that best fit their employee profile and customers on necessary products that best fit their individual lifestyle.