Outdated Data Gathering Keeps Sales Numbers
Artificially, and Scandalously, Low
“If the [U.S.] Hispanic market were a nation, it would soon be the 11th largest economy in the world,” global CEO Sol Trujillo told the Wall Street Summit of 2010. That would place it on the list right near Russia, Canada and Australia. At that size, and with tremendous growth potential — the Hispanic market grew 43% in the last 10 years — how can this market still seem invisible so much of the time, failing to get the investment share and business priority it ought to have?
The answer lies in a seriously flawed system for gathering multicultural sales data. What multicultural market researcher experts call the “sales data undercount” is estimated at between 40% to 60% of the true volume of multicultural consumer sales, depending on the brand or product category.
How does this occur? Most consumer product and service companies gather all sorts of multicultural demographic, psychographic and behavioral data and have made great strides in marketing and advertising to these customers. However, tracking sales remains poor: What percentage of corporate sales and growth is generated by purchases of each of the different consumer groups: Hispanic, African-American, Asian-American and Asians?
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