Coupon Redención

So much for the myth that Hispanics don’t use coupons.

Latinos redeem them just as voraciously as other groups, a study by direct mail media company Advo has found.

They clip the discounts from newspaper inserts and direct-mail pieces. They snatch them from in-store take-one machines or containers. They accept them from brand reps at retail promotional events or download them online.

“Just visit a supermarket in a densely populated Hispanic neighborhood and watch buying behavior at the checkout counter,” says Shayne Walters, president of Carmen’s Cupones, a direct mail company that sends coupons to Latin women.

But it wasn’t always so because marketers didn’t bother sending many coupons to this audience.

“If advertisers would spend more money on coupons they would reach more Hispanic consumers because they skew 33% higher on supermarket spending on a weekly basis than traditional general market families,” says Vincent Andaloro, president of Latin-Pak. “The Hispanic family unit is much larger, so they need more food and they eat home more often.”

Latin-Pak, of Chesterfield, MO, delivers coupons via direct mail, using Hispanic consumer databases. It also delivers them door-to-door, and sends Spanish-language free-standing inserts. Its weekly FSI circulation is about 9 million.

What kind of ROI can marketers expect?

Coupon redemption rates range from 6% to 24% and sales can go up by 20% to 65%, depending on the brand and offer, says Geoff Gropp, president of the Hispanic Retail Network, a company that offers in-store dispensers with coupons.

The Advo study also found:

• Hispanics use coupons for more than their usual brand purchases.

• 74% of Spanish only/preferred Hispanics say they use coupons and would use them more frequently if they received more.

• 77% of English only/preferred Hispanics sometimes use coupons.

• 55% of bilingual Hispanics at least sometimes used coupons, compared to 45% of Spanish only/preferred.

• Circular readership is 32% higher among Hispanics than non-Hispanics.

• 40% said they only receive 10 pieces of direct mail a year, and 39% said they want to receive more.

The bottom line: These consumers like coupons, and don’t mind being marketed. Some 73% of all Hispanic shoppers enjoy looking through coupons and offers in the mail and 62% choose stores based on coupon offers, according to El Mercado, a 2005 study on U.S. Hispanic shopping behavior from the Food Marketing Institute.

Just over 60% of Hispanics look through direct mail grocery flyers on a regular basis, the study found.

Shelly Lipton is executive vice president of Alternative & Innovative Marketing, a San Diego-based Hispanic marketing and promotion firm.

Coupon Do’s

Make sure coupon campaigns are culturally and geographically relevant, especially when it comes to food products and recipes.

Conduct in-store sampling events with bilingual personnel.

Use frequent and consistent messaging.

Use an experienced professional Hispanic marketing group or direct mail company.