New Study Release – Gen Z -Hispanics vs WNH

Many marketers have begun to concentrate efforts on Gen Z consumers, individuals born between 1996 and 2013 now between 3 and 20 year of age as they are the newest generation of young adult consumers. They are attending college, voting in elections, joining the workforce, making products choices in technology, restaurants, entertainment, personal care, auto, fashion, etc. They also have tremendous influence with their parents and the overall society. This Quant-Qual study begins to explore Gen Z’s perceptions, values and beliefs gaining insight on commonalities and differences.

The New American Upscale & Luxury Consumer – PART I [INFOGRAPHIC]

100% of America’s Upscale consumers’ growth between 2011 and 2014 came from Multicultural Upscale HHs whereas White Non-Hispanic (WNH) Upscales declined. 28% of Upscale HHs are now Multicultural. Latino Upscale & Latino Affluent growth surpassed the growth of all other racial/ethnic segments, 6x faster than Upscales overall and 2x faster than Affluents overall. Latinos generated 6 in 10 of new Upscale HHs and 1 in 8 new Affluent HHs. African American & Asian/Other Upscales are growing 10x faster than WNH HHs. Vitally to the overall Affluent expansion, Multicultural Affluents grew 60% to 114% faster than WNH Affluents.

Unique Differences Between ACA Uninsured Eligible Multicultural & WNH [INFOGRAPHIC]

Hispanic & African American Affordable Care Act eligibles standing in the sidelines differ from White Non-Hispanics (WNH) in some significant ways. Understanding and reflecting some of these nuances in plan design, acquisition and retention efforts may prove more effective than insurers’ ‘one-size-fits-all’ attempts. For instance, Hispanics considering signing on for ACA tend to be family-focused Millennials who have higher propensity to act in healthy ways than ACA eligible WNH but are just as likely to consider themselves their ‘own doctor’ or feel like ‘doctors know best’. In contrast, ACA eligible African Americans have the strongest faith outlooks as well as fully trust doctors and are less likely than any other population to see themselves as their ‘own doctor’.

The Dark Side Of Cutting Hispanic Media Allocation

As Obi-Wan Kenobi said, “It takes strength to resist the dark side. Only the weak embrace it.” Here is why… Companies cutting Hispanic dedicated media allocation, defined as advertising buys in any Hispanic-dedicated media channel regardless of language whether Spanish, Bilingual or English, while increasing allocation to English media (Non-Hispanic-centric), tend to suffer a reduction in their sales growth. In fact, the reduction of the growth is sometimes so large that it could wipe out the average growth of the category as is the case in the Consumer Packaged Goods & Retail category.
The Cost of the Dark Side: Across CPG-Retail, Auto and Financial-Insurance Services categories: AHAA’s study demonstrated that a five point cutback in Hispanic media allocation yields a reduction in Total Market revenue growth rate of minus 1.8% per year.

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WHO WE ARE

Santiago Solutions Group is a strategy, analytics & research consulting firm. We guide clients’ growth strategies leveraging advanced consumer research, marketing & sales analytics, ‘size of the prize’ scenario planning, innovative segmentations and predictive modeling.

Our end goal is to uncover actionable & ‘ownable’ consumer segments insights that enhance clients’ marketing effectiveness and advance sustainable total growth.

By leveraging Client-side and Consulting experience, we arm clients and agencies with intelligence, drivers to purchase, customer journeys and strategic pathways across marketing Ps aligned with the highest ROI options for Millennial, Multicultural, Hispanic and Total Market.

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The Multicultural State of Health & Wellness: 7 Keys to Accelerate ACA Enrollment & Retention

Post 3rd Open Enrollment CMS figures by ethnic & racial group are yet to be published by CMS, however, as of last Fall, most states had yet to enroll more than half of their Hispanic & African American uninsured ACA eligibles. But surprisingly, Multicultural segments eligibles are surprisingly less risky than White Non-Hispanic eligibles. In fact, Multicultural segments tend to be more wellness-minded than WNH eligibles. What's more, Hispanics are the least likely segment to have a preventable chronic disease. In this context of trailing enrollment and vast opportunities, we focused our latest market assessment to identify 7 ways that would reboot Multicultural ACA enrollment and retention ... Read More

Focus on Hispanic Market May Pay Off – Insurance & Investment Journal

November 18, 2015.- The Insurance & Investment Journal by Mathieu Carbasse. According to the AHAA study, financial services companies and insurers that target the Hispanic market with their publicity campaigns see a higher rate of growth in their sales revenues. “This information is convincing, the data reveals that the Hispanic market can be a decisive factor in business success” said Carlos Santiago, president of the AHHA research committee and CEO of Santiago Solutions Group. “Insurance companies and financial services want to win not only some market share among their competitors, they also want to provide growth and stability for their investors, which is why investing in Hispanic marketing is a clear strategy to reach both objectives”.

Hispanic ad spend boasts higher ROI than English-language placements: AHAA – Luxury Daily

November 17, 2015.- Luxury Daily by Forrest Cardamenis. Spanish-language advertisements contribute more to the growth of the automotive sector than English-language ads, according to a new report by the Association of Hispanic Advertising Agencies. To achieve a nine-percentage-point growth in total market annual revenue, only five points of ad spend need to be reallocated from English to Hispanic media. The results suggest that the Hispanic market may be underserved and is a good target for automakers looking to grow.

Multicultural Firms Are Fueling New Boom of U.S. Businesses [INFOGRAPHIC]

3 in 10 US firms are now led by Multicultural owners. In fact, M/C businesses generated the entire increase in US firms since 2007. Hispanic & African American firms expanded the most especially in sectors like Health Care/Social Assistance. Hispanic firms lead in Administrative & Support and Transportation, AA firms lead in Health care & social assistance, and Asian firms lead in Accommodation & Food Services.

5 Reasons Why ACA Acquisitions Falter

Hispanics and African Americans represent half of the remaining exchange eligibles but continue to lag significantly behind the enrollment rate of the White Non-Hispanics — with Hispanics 37 percent below and African Americans 16 below where they should be. Five major barriers still stand in front of health insurers: (1) Lack of Trust in the Government, (2) Poor Value, (3) Ineffective Messaging, (4) Poor Cultural & Language Relevancy, and (5) Lackluster Customer Experience. These barriers will add critical pressure to getting engagement, acquisitions and retention going effectively in the 3rd Open Enrollment round.