Digital transformation is the new buzz phrase across many industries, including financial services. And while optimizing consumers’ experience should be the focus of digital transformation, a successful strategy isn’t one-size-fits-all. It’s important for credit union leaders to recognize that different consumer segments have different needs and wants when it comes to their use of digital tools.
A new eMarketer study, U.S. Hispanics and Digital, reveals some of the unique digital characteristics of the Hispanic consumer segment. According to the study, the Hispanic “digital divide” has mostly closed, with about eight in 10 Hispanics now using the Internet.
However, fewer than half of Hispanics have home broadband and nearly a quarter of Hispanic Internet users don’t own a computer. Meanwhile, nearly seven in 10 Hispanics have a smartphone, and their daily time spent using mobile (3 hours) is more than an hour higher than non-Hispanics.
Digital video is popular among Hispanics, with 47 percent (vs. 32 percent of total respondents) saying they use streaming services such as Netflix more than they watch traditional TV. Additionally, Pew Research Center’s January polling identified 78 percent of Hispanic adults as YouTube viewers, compared to 73 percent of total adults.
Hispanics also tend to be active on social media. Nearly two-thirds use social media, and about half are on Facebook. Data also suggests Hispanics are less likely than others to have a negative view of digital advertising.
With these findings in mind, below are some best practices for credit union leaders to consider for enhancing the Hispanic digital experience.
Optimize for mobile. Make sure your website and digital banking tools are mobile-friendly to accommodate Hispanics’ smartphone-centric behaviors. If your credit union doesn’t have a mobile app, consider implementing one.
Opt for speed over complexity. Because many Hispanics don’t have home broadband and likely rely on their smartphone carrier data to access the Internet, make sure your website and digital banking tools aren’t overly complex. Large photos and fancy animations are fun but can be difficult to load on a phone that’s not connected to WiFi.
Prioritize video. Video’s ability to grab consumers’ attention, create immersive experiences and spark engagement makes it a powerful means of communication, especially with Hispanics who over-index on digital video usage. Consider making video a key focus of your Hispanic marketing efforts.
Adjust advertising budgets. Because Hispanics tend to use digital video and social media more than they watch traditional TV, advertising on places like YouTube, Facebook, and other mobile channels may be a better use of advertising dollars. The average cost of a 30-second primetime television commercial during the 2016-2017 season was $2,500. Think for a minute (or 30 seconds) about how many mobile and social media ads your credit union could deliver with that kind of investment.
As with any Hispanic outreach strategy, the most important thing to keep in mind in your digital transformation journey is that different segments should not be treated as a single, undifferentiated market. Understanding various consumer segments and how they engage digitally is the first step to providing an exceptional consumer experience.Leave a comment
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