Marketing to a Diverse Customer Base by Gail Cox AC&M Group

Growing Diversity Marketing to a Diverse Customer Base By Gail Cox AC&M Group

This article was written in honor of Vince Cullers, founder in 1956 of what is considered to be the first ethnic marketing agency in the United States, the Vince Cullers Group.

n 1956, the first ethnic marketing advertising agency, the Vince Cullers Group, was born. The agency was created out of a need for marketing that engaged ethnic customers Iand presented them in a positive light in national advertising. At that time, African Americans and Hispanics were less than 10% and 3% of the population, re- spectively. Efforts and resources invested in reaching these ethnic minorities were minuscule. Vince Cullers

However, there were great market- growth in other ethnic and mixed-race multicultural consumers speak English. ers like McDonald’s, Coca-Cola, Bristol populations, ethnic populations today Consider, however, whether or not Myers and BP Amoco that recognized comprise about 40% of customers. But you would recommend marketing to the value of ethnic customers and that spending against all multicultural seg- women the same way that you market recognized that reaching them with rel- ments still amounts to significantly less to men, even if both campaigns were evant and engaging messaging required than 10% of all advertising spending. done in English. the expertise of professionals steeped in Sadly, most of the efforts in multi- Whether or not you would market to those cultures and experienced in that cultural marketing remain “plug and people in their 20s the same way you work. This gave birth to a much-needed play” efforts: Scripts totally lacking in market to people in their 60s. specialty in the marketing space: Multi- cultural relevance and a random mix of Whether or not you would market to cultural Marketing. faces of color are placed into advertis- low-income customers the same as to Unfortunately, the adoption of best- ing; materials are conceived by general wealthy customers. practices for actively courting multi- population agencies clearly lacking in It is important to understand that cultural consumers has been very slow. any diverse talent and any depth of ex- when companies market to multicul- Efforts have been plagued by limited perience in reaching multicultural au- tural audiences, there is an opportunity budgets and inauthentic and ineffec- diences. not only to reach and optimally engage tive attempts that scratched the surface them as consumers, but also to engage instead of being well-funded and care- DOES MULTICULTURAL them as employees who are a part of fully considered strategic actions. MARKETING MATTER? the process and to do so while support- Fast forward a few decades, and Some might ask if the disproportionate ing minority-owned agencies, minority with a surge of immigrants during the diversity investment vs. diversity repre- talent and minority-owned media ... in 1990s and early 2000s along with the sentation matters, especially when most essence, to support these diverse seg-

18 ACUMA PIPELINE - winter 2021 ments as engines in the overall economy. Ultimately, this participation benefits all Americans and the overall growth in our economy. While some people may postulate that participation in the economy by the ethnic population is neither criti- cal nor necessarily a high priority, it is important to note that without the ac- tive participation of most members of the U.S. population, our economy will suffer. More white deaths per year than white births, Furthermore, to put it bluntly, the contributing to white population decline non-Hispanic White population in the US is declining, and most of the growth White Births and Deaths fueling all facets of our economy will Size and Race Make-up of Populations Under Age 18 and Age 65+ be driven by multicultural populations who are quickly becoming the emerging 2.3M majority in many parts of our country, and eventually in our country overall. (See chart top left.) 2.2M This trend is now accelerating, in part, due to Covid-19. Not only is the DEATHS White population declining, but White 2.1M BIRTHS spending in key categories is also declining. In fact, in the past two decades, 2M 90% of the growth in the population and resulting growth in key categories occurred primarily because of multi- 1.9M cultural customers. 2006 2008 2010 2012 2014 2016 Multicultural customers drove new household formations, home mort- Source: Pew Research Center, Census Bureau gages, car sales, consumable-goods categories and entrepreneurial start-ups. Additionally, these populations make Ethnic Minorities Are Expected to Drive All US Population Growth up the majority of critically important essential-worker occupations including Projected Growth, 2015-2060 nurses and home-care aides, food-pro- 200% 200 cessing workers, construction workers, package sorters and delivery workers. 175 These tangible economic growth 150 contributions don’t even consider the 125 96% 103% important cultural contributions these 100 segments make in setting trends and 75 defining pop culture in everything 50 37% from music, sports, entertainment, fashion and even food. For example, 25 14% -10% most people don’t realize that tortillas 0 have surpassed bread, and salsa has sur- -25 passed ketchup in sales. These items are Whites Blacks American Hispanics Asians 2+ Races Indians and not only being purchased by Hispanics; Alaska Natives they have truly become mainstream. (See chart bottom left.) Old Minorities NEW Minorities It is also important to remember that while almost 40% of the population, on

ACUMA PIPELINE - winter 2021 19 raphers show that the opportunity for WHERE MINORITIES ARE ALREADY THE MAJORITY the U.S. economy to grow increases as we improve the conditions and the opportunities for all—especially when we are able to impact the economic pros- perity of the specific segments that are already growing the most from a population perspective.

SO YOU WANT TO GROW YOUR CUSTOMER BASE? Given that the average credit union has approximately $250 million in assets and that advertising budgets tend to be less than 0.10% of assets, it is estimated that most credit unions have some- where between $200,000 and 400,000 annually to spend on marketing efforts. With such small budgets, it can be dif- ficult to participate in traditional marketing tactics like TV ads, and efforts may be limited to extremely targeted and non-traditional tactics, especially Source: Census Bureau; PEW Reseach Center when attempting to reach multicultural customers as part of the marketing mix. Population Under 18 More Ethnic / Population 65+ More White Many people tend to think of multicultural marketing only in terms of Children and Seniors, 2010-40 adding a few people of color into the Size and Race Make-up of Populations Under Age 18 and Age 65+ images that carry your brand through Millions media to the end-customer, or in terms 90 of translating a few key messages into 80 different languages. 70 In reality, marketing is so much more than that. Multicultural or Diversity 60 Marketing is about understanding who 50 you have as members and who the up- 40 and-coming populations are that you 30 need to get in order to grow. It is about 20 understanding their needs, their cul- 10 tural cues and their motivations. It re- 0 quires understanding the ways that you 2010 2020 2030 2040 2010 2020 2030 2040 can legally address them, especially in a Under Age 18 Age 65+ regulated environment.

Whites Blacks Asians Hispanics Other races It is also about being honest with

Source: 2010 U.S. census and Census Bureau projections, released March 2018 Center your organization about whether or not you have properly prepared to serve the customers you have and the new cus- average, is non-White, in some parts of people and White culture are under at- tomers you might want to reach for the country, minorities are already the tack from multiculturalism and non- growth. majority, representing as much as 97% White races. of the population. (See map above.) Their assumption is that the Ameri- WHO ARE YOUR When protesters in Charlottesville can economy is a zero-sum game and MEMBERS TODAY? angrily chanted, “You will not replace that improving the plight of the grow- As you develop marketing plans each us,” their chants were reflective of the ing, non-White populations can only year, it is important to update your knowledge of the aforementioned come at the expense of others. Howev- understanding of your customer base. trends and their fears were that White er, research and data from top demog- In cases where blind customer data is

20 ACUMA PIPELINE - winter 2021 available with demo- DOES YOUR ORGANIZATION in their native language, especially for graphic identifiers, REFLECT YOUR DIVERSE MEMBER- more complex and important transac- that data can help you SHIP AND THE DEMOGRAPHICS tions in their lives like banking. Customers“ of to easily identify how OF YOUR SERVICE AREA? In fact, in the United States one in you would demo- five people speak another language at Especially given the heightened under- color now are graphically describe home. standing of racial bias and the impact it even more your customers over- When customers come into your can have on someone’s life, customers inclined to all and to identify any branch, it will go a long way toward of color are even more inclined to scru- patterns or clusters making them feel welcomed, valued scrutinize who is tinize who is working in your branch in the data based on and comfortable if they are able to find working in your lobby, in your drive-through and in things like age, eth- someone who can communicate in your main office. branch lobby, nicity and life stage. their language. When someone picks up your lit- in your drive- If analyzing your As you evaluate this, keep in mind erature, what diversity do they see in through and in existing data is not an that in the end, language, though im- leadership of your organization, in option, perhaps you portant, is still just a tactic; your efforts your main office. the contributors to your publications, can gain a deeper un- in reaching multicultural audiences in the illustrations and photographs derstanding of your should not end with simply translating featured? customers through content, but should include an overall Would they take away from all of intercept surveys as strategy and messaging that is cultur- “ these observations that they are wel- people walk into the branch or pull into ally relevant and resonant. come? the drive-through. You can also con- It is also important to keep in mind That your credit union is “for people duct surveys via email, phone or mail that speaking a language, being able to like them”? so you better understand who your cus- listen to and understand a language, be- That there is someone working in tomers are; their awareness and utiliza- ing able to read a language, and being your bank whom they can trust and tion of certain services; and what they able to write in a particular language with whom they can establish a re- anticipate needing in the future. are all very different things, and cus- lationship as they navigate complex tomers may have vastly different capa- financial issues? WHO ARE ALL OF YOUR bilities with each. If you answered “no” to POTENTIAL MEMBERS? Questions to consider: any of these questions, know Depending on whom your Will customers be able to communi- that this is marketing, too. credit union serves, there may cate their needs correctly and easily Think of it as you “preparing be data resources that might be based on the language capabilities of In the“ past two your home” before you invite available to help better under- the workers on staff? decades, 90% of in new guests. stand the demographic profile How important is it to make sure of potential incremental mem- the growth in the that every branch has one or multiple bers. population and ARE YOU people with language capabili- If the credit union is based resulting growth PREPARED ties on staff at all times? on an employee type, an asso- in key categories TO ASSIST If that is not an option, are MEMBERS ciational group or members of occurred there enough employees IN THEIR Research“ and certain trades or professions, who reside in other branches demographic profiles may be primarily PREFERRED data from top or the main office who speak available from employers or because of LANGUAGE? demographers an alternate language who professional associations. multicultural While Hispanics show that the can quickly be reached via Worst case, profiles can be and many other phone to assist customers customers. opportunity for developed using occupational immigrant popu- who come into or call into data from the Bureau of Labor lations are able to the U.S. economy any one branch? and Statistics like this file on communicate in to grow If that is not an option, have “Employed persons by detailed “ English or are bi- increases as you considered engaging one occupation, sex, race, and Hispanic or lingual to some degree, many of the top on-demand inter- 1 we improve the Latino ethnicity.” Other files are also are not (especially older preter services like Language conditions and 2 available on age distributions and in- adults). Line? come. Furthermore, while many the opportunities When someone with limited Once you better understand your customers who are dominant for all. English capabilities calls into current and potential customers, you in another language may your customer service num- can understand the size of the incre- speak some English, they bers, are they quickly and mental opportunity. may prefer to communicate “ easily able to get to an op- ACUMA PIPELINE - winter 2021 21 That is, what is required to guarantee opportunities ... not just for one person of color at a time ... but for many? What does it take for reasonable women and men to recognize that our fates are mu- tually connected? This country’s fate is dependent on us creating opportunities for all people to This“ country’s participate and to fate is thrive, and that there dependent is an obligation to do on us creating so on every level of the socio-economic opportunities for ladder. It is imperative all people to that every organiza- participate and erator who can speak in their partner who can actively participate in tion is considering to thrive. language, or are they able to the strategic planning, media planning, these multicultural access “prompts” in in their creative development and production audiences as entry- preferred language, especial- of your campaigns in a way that in- level employees and ly if that language is Spanish? cludes growing your business with the as leadership, as credit Keep in mind that depending on growing population. union members and as suppliers and “ where your credit union is, there may partners, as agency and media partners, USE PROVEN TACTICS FOR be needs for some of the other most as consumers and as businesses. REACHING CUSTOMERS IN commonly spoken languages in the Know that there are certainly tons of LIMITED GEOGRAPHIES United States like Chinese, Vietnam- viable ethnic customers just waiting to ese, Tagalog (Filipino), Korean, Arabic, While there is certainly an opportunity be engaged, and certainly what credit Hindi and Russian. for consideration of multicultural audi- unions have to offer is a compelling If these languages are common in the ences in every media type and aspect of proposition. area around your branch, then hiring marketing, there is a short list of tactics someone should be prioritized. How- that are especially effective when clients Gail Cox is the Senior ever, until employees with the needed have a limited number of locations and Vice President of language capabilities are available, in- a limited budget and yet they want to Strategic Planning terpreter services like Language Line reach multicultural customers as part for AC&M Group, a are able to assist on-demand in dozens of an overall strategy. multicultural and sports of languages. Those tactics include social media, marketing agency. paid social, digital ads, digital radio, During her career, she ENGAGE A MARKETING AdWords and radio. Many of these can has led the development Gail Cox AGENCY PARTNER WITH be geo-targeted within a radius around of strategic marketing MULTICULTURAL AND branch locations. Optimally utilizing plans for Fortune 100 companies RELEVANT EXPERIENCE these requires that clients work in health care, home improvement, As you seek partners to help in with an agency with experience retail, fashion, financial services and sports. Cox was a speaker at ACUMA’s your diversity marketing efforts, ensuring that multicultural cus- 2020 Conference. Previously, Cox was it is important that you choose tomers are reached in a way that Marketing Director of Home Decor organizations that in some way In “the United is legal, feasible, safe and effec- at Lowe’s Companies, and Director reflect the audience you’re try- States one in tive as part of an overall strategy. for Lowe’s Multicultural Marketing. ing to reach and have expertise in five people Prior to that she was in Health Care developing strategies for diverse ULTIMATELY, IF YOU Brand Management & Retail Customer audiences. speak another WISH TO GROW, Marketing at Procter & Gamble. Cox can If you are not able to confirm language at MULTICULTURALISM MUST be reached at gail.cox@acmconnect. that your agency can bring diverse home. BE CONSIDERED IN talent in management and leader- EVERYTHING YOU DO Footnotes ship positions to the table for your With each successive gen- 1 https://www.bls.gov/cps/cpsaat11.htm projects, then perhaps it is time eration, the question is asked, 2 https://www.languageline.com/ that you found another agency “ “What does it take?” 22 ACUMA PIPELINE - winter 2021