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The U.S. Hispanic Market
Part 1: The Cornerstone of Future Growth

by Tom Milligan, CEO, Marque Dos - September 4, 2012

The U.S. Hispanic Market

Part 1: The Cornerstone of Future Growth

By Tom Milligan

CEO, Marque Dos


In March of 1987, I left my somewhat sheltered life in Salt Lake City, Utah to spend several years serving the U.S. Hispanic people of Southern California. In addition to learning a second language, those years provided me with an insight into the U.S. Hispanic culture that most people will never have.

Since then, the U.S. Hispanic population has more than doubled from 22 million in 1990, to over 50 million in 2010; a number that is expected to double again to over 100 million in the coming decades – accounting for more than 50% of the recent and expected growth in the U.S. population.

Today, roughly 1 of every 6 Americans is Hispanic. By 2020 that ratio will increase to 1 of every 5; and by 2050, 1 of every 3 Americans will be Hispanic.




In addition to growing 400% faster than all other demographic groups, the spending power of the U.S. Hispanic segment is expected to grow from an impressive $1.3 trillion today, to over $2 trillion by 2020.

This explosive growth in the Hispanic population has propelled Univision, a Spanish language television network, to become the fifth largest television network in the U.S.

So what does this all mean? The Nielsen Company, in their 2012 State of the Hispanic Consumer report, sums it up this way:

Over 52 million strong, Latinos are impacting every aspect of the national landscape including popular culture, the workforce, consumerism, politics and American national identity. The Hispanic market’s size, growing clout, and buying power of $1 trillion in 2010 and $1.5 trillion by 2015 require thoughtful understanding about what the market represents to a company’s bottom line. Latinos are no longer just a sub-segment of the economy, but a prominent player in all aspects of American life.[1]

Consider this, if the U.S. Hispanic population were a standalone country, it would be the 25th largest country by population, well ahead of South Korea, Spain, Canada, Saudi Arabia and many others. Its economy would be even more impressive at number 15[2], with a per capita income higher than Brazil, Russia, India or China[3].

In short, Hispanics are big business.

With over 50 million consumers up for grabs, U.S. companies can ill afford to ignore the size or buying power of the Hispanic market and must shed any previously held prejudices or misconceptions about this important group of consumers. In order to win and retain Hispanic customers, companies have to provide a different type of service than they do with their non-Hispanic consumers.

Every year, while marketers spend billions to attract the Hispanic consumer, surprisingly few have even investigated—let alone implemented—what it will take to retain their Hispanic customers.

Representing more than half of the growth in the U.S. population, the U.S. Hispanic market is the fastest growing ethnic group in the United States.


In upcoming issues, we’ll explore the value of a great customer experience for the Hispanic consumer, what defines a great customer experience, and the keys to successful Hispanic customer service
.

About Marque Dos

Headquartered in Salt Lake City, UT USA, with operations in Spanish-speaking homes across the United States, Marque Dos is the only dedicated Spanish language teleservices provider on U.S. soil and the exclusive provider of C.A.R.E.™ (Culture & Accent Routing Engine), which matches callers and agents based on mutual culture and accent—critical factors in customer satisfaction and sales conversion.

Marque Dos offers a full range of Spanish-language call center solutions for corporate, non-profit, and direct response clientele. The company helps organizations of all sizes succeed in the U.S. Hispanic market.

Tom Milligan, CEO of Marque Dos, has spent 23 years in the call center industry as a Manager, Owner, Sales Executive, and Consultant, providing him in-depth access to call centers in every industry and on several continents.

Milligan is a pioneer in the at-home call center model, opening his first at-home call center in 1999—years ahead of the industry—which was chosen as the inbound call center for the Salt Lake 2002 Winter Games.

His fluency in the Spanish language is a result of many years of dedicated service within the U.S. Hispanic community. Tom’s extensive background provides clients a voice of experience when evaluating their service delivery options.

For more information about Spanish language call center services from Marque Dos, please contact Tom Milligan at 801.913.2420 or via email at tom.milligan@marquedos.com.



[1] The Nielsen Company, State of the Hispanic Consumer, 2012

[2] CIA World Fact Book, Estimates Online, 2011. U.S. Hispanic buying power was $1.1 billion in 2011, and would be 14th on the list of G20 countries, ahead of Turkey, Australia, Argentina, Saudi Arabia, and South Africa.

[3] Goldman Sachs Global Economics, Commodities & Strategy Research: BRICS Monthly Issue 11/06, June 24, 2011. Hispanic per capita income is from Census in 2009 constant dollars. Hispanic per capita income is second to Russia, but above Brazil, China and India.

 
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