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
A recent PwC report, “Always connected: U.S.-based Hispanic consumers dominate mobile, entertainment and beyond,” found that an astonishing 90 percent of Hispanic consumers stream video on their mobile devices. When it comes to their video channel of choice, YouTube reigns. Seven in 10 Hispanics regularly use YouTube (compared to six in 10 non-Hispanics).
“Hispanic consumers spend a disproportionate amount of their day on the phone—most notably, streaming videos,” write the report’s authors. “Mobile video and, in particular, YouTube, are at the heart of Hispanic consumers. In response, brands looking to win over this mobile-dominant consumer should position the phone, and video, at the epicenter of their marketing plan.”
Credit unions looking to develop and deepen relationships with this young, fast-growing and often underserved segment, should pay close attention to these findings, as well as to how some of their colleagues are having success with video. Below are three ways credit unions have integrated YouTube into their Hispanic marketing and engagement efforts.
YouTube is a great channel for educating consumers on financial wellness topics. Here are just a few ideas:
• The credit union difference
Ascentra Credit Union in Bettendorf, Iowa, has leveraged YouTube to educate consumers, specifically through a monthly video series called Ascentra Making Cents. In addition to YouTube, Ascentra also provides the videos directly to its community partners to share through their own networks. The credit union is currently in the process of adding Spanish subtitles to the videos using funds it received from the 2017 Warren Morrow Hispanic Growth Fund Grant for Hispanic Outreach.
Consumers – particularly those unfamiliar or uncomfortable with traditional financial institutions – want to see certain things from any credit union attempting to make a connection with them. Employees and members who look like them, communications that speak to them and experiences that feel real to them are crucial to encouraging underserved individuals to give credit union membership real consideration. Videos of real members sharing why they chose the credit union and how it’s impacted them can benefit the credit union in many ways, including:
• Building credibility and trust
Community 1st Credit Union in Ottumwa, Iowa, has several member testimonial videos on its YouTube channel. One example tells the story (in both Spanish and English) of how Community 1st helped members who immigrated to the U.S. from Mexico open a restaurant and buy house.
Because it’s free to host videos on YouTube, it can offer a much higher ROI than television advertising. Plus, a Google-commissioned Nielsen study found more Hispanics watch YouTube than any cable network in the U.S. Posting advertising videos on YouTube can help your credit union build brand awareness and share your commitment to the community.
The videos don’t have to be overly complicated. Hapo Community Credit Union in Richland, Wash., has a series of short advertising videos on its YouTube channel. Each features a credit union employee sharing a benefit of banking with Hapo.
When launching a YouTube strategy, it’s important to continually go back to your credit union’s strategic plan to ensure each of your video tactics aligns with your business goals. If you have goals to engage Hispanic consumers, educate your community or promote the benefits of membership, you may find YouTube the perfect place to be.Leave a comment
Google recently surveyed more than 4,500 U.S. Hispanics ages 18-64 about their preferences related to online sources, digital ads and search. The study found U.S. Hispanics use online sources at a higher rate (54 percent) than the general population (46 percent) throughout the purchase journey. It also found:
How can credit unions and other organizations dedicated to serving the underserved Hispanic community meet them where they already are – online and on mobile? Below are a few examples of online and mobile resources being tapped by organizations to do just that.
Putting a twist on the GoFundMe model, PayPal just launched Money Pools, a service that lets people create pages to fundraise for a specific item or effort among family and friends. Could this become a digital tanda? Although the service is too new to have data on usage rates, the focus on family and friends could resonate among many within the Hispanic community.
Social Media Influencers
Connecting with Hispanic consumers online requires not only understanding where they are, but also how they want to be connected with. Google’s study found that including culturally relevant content – food, family and traditions – resonates with U.S. Hispanics online. Consider incorporating content that Hispanic members care about or that which is unique to the Hispanic experience. While not as important as culture, language also matters. For some U.S. Hispanic consumers, Spanish and bilingual content are signals you want to engage with them.Leave a comment
best practices community competition consumer Coopera coopera card credit union credit unions cuna differentiate diversity financial financial education financial institution financial services growth Hispanic Hispanic Opportunity Navigator Hispanic outreach Hispanics immigrant Iowa iowa credit union league issuer juntos avanzamos Latina Latino marketing Mexico outreach prepaid products questions social media Spanish strategy Travis Credit Union unbanked underbanked underserved video warren morrow white paper women world council of credit unions