Companies with a higher purpose, one that goes beyond sales to creating a positive impact in the world, see three-times faster growth, longer-term business sustainability, and higher market share gains, according to a 2019 study by Deloitte. Doing business with a higher purpose enables companies to achieve deeper customer loyalty, more meaningful connection, and greater relevance in the lives of consumers.
Mindsets have shifted and consumers want to purchase from companies that create positive social impact, protect the environment, prioritize diversity, equity, and inclusion, and support the causes they care about. Consumers seek to identify with and connect on a deeper level with brands who share their values, see who they are, and see who they aspire to be. And in a moment of a global pandemic and historic movement for social justice, connecting with consumers on a deeper level is more important than ever.
Hispanic consumers are no different and invest their dollars in brands that make an authentic effort to connect with their values, cultural heritage, and aspirations as a community. Values play an integral role in purchasing decisions among Hispanic shoppers. A sense of community, giving back and supporting social causes are central to the Hispanic community’s value-set. According to a 2018 report by Kantar Futures, 54 percent of Hispanics believe that being involved in their local community is important to their personal identity (versus 34% for non-Hispanics). Also, 71 percent of Hispanics say that volunteering time to charities is an important part of their life (versus 55% for non-Hispanics).
These community-oriented values carry over into their shopping and purchasing behaviors. Kantar Futures reports that 92% of Hispanics appreciate when companies make it clear what values they stand for, and 61% of Hispanics believe its important for companies to support their community. When it comes to important social issues, 86 percent of Hispanics believe companies should take a stand.
Yet, a majority of Hispanics don’t see brands making an effort in their community. According to the same report by Kantar Futures, 67% of Hispanics say very few brands and companies care about the state of Hispanic communities. This is a significant missed opportunity for brands and businesses, one that can be course-corrected through purpose-driven brand engagement strategies.
Harnessing the power of purpose enables brands to create deeper, more meaningful connection and relevance in the lives of Hispanic consumers. Brands that align their business values with those of Hispanic audiences, and make those values clear, will achieve higher success rates and return on their investments. According to a 2020 Collage Group racism and current events study, 55.7 percent of Hispanics say they are more likely to purchase products from brands and companies that supporting causes and organizations they care about (over-indexing the total population at 47 percent). And 61.5 of Hispanics say they are more likely to purchase products from brands and companies that donate to causes and organizations they care about (over-indexing the total population at 51 percent)
In short, leading with purpose is the most powerful way to create a connection with Hispanic consumers that leads to long-term loyalty, advocacy and love for a brand.
This article was written by Sarah Marske of the Saramar Group. Please visit www.saramargroup.com to learn more.