Intelligence Report: Within Borders: Globalization at Home
By
Don DePalma,
The President of Common Sense Advisory, Inc.
don[at]commonsenseadvisory.com
www.commonsenseadvisory.com
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Customer
service at many companies is broken. Localization
teams and the language service providers who support
could increase their strategic value by tackling the
online duo of inadequate ethnic marketing and flawed
English-language customer service.
Thirty-eight million Americans - roughly
13 percent of the U.S. population - claim
Hispanic heritage. The 2000 U.S. census alerted Americans
to this emerging majority within its midst. Unlike
previous immigrants and their descendants, many Latinos
retain their language and culture. Some studies show
that up to 70 percent prefer using Spanish for some
or all of their daily interactions.
Earlier
this year Common Sense Advisory sought to gauge the
impact of this group on American business and to size
the opportunities it represents by reviewing the websites
of the 100 most valuable global brands and the top
50 U.S. online retailers. We sought evidence of how
(or whether) these well-known brands and e-tailers
addressed the burgeoning American Latino market.
- We
found that dozen global brands offered substantial
amounts of content aimed at Spanish-speaking residents
of the United States at their corporate websites.
Some did a great job in targeting this population.
For example, Hertz lets renters complete an entire
transaction in Spanish; Yahoo! repurposes investments
from its other Spanish-language sites to serve U.S.
residents; and Netherlands-based Heineken provides
a rich informational site for hispanohablantes in
the States.
-
Only four online retailers could make the same claim
about content for U.S. Spanish speakers. For example,
The Sharper Image and 1-800-Flowers excelled in
providing complete experiences in Spanish, including
a canasta de compras (shopping cart) for their purchases.
Most U.S. online retailers, though, ignored the
Latino market.
What
we found more interesting than this small showing
of ethnically targeted marketing was our follow-up
exercise in e-mail response. We pinged each of these
companies with four e-mails in Spanish asking about
the availability of Spanish content, a compliment
about their site, a complaint about their failure
to answer a previous e-mail, and a question about
where to buy their products or services. As a control,
we sent the same inquiries in English. We used a pool
of 16 different addresses from a variety of servers
to ensure that no company received more than one message
from the same individual.
We
measured a variety of factors, but focused on just
a few in our analysis: whether the company responded
or not, the response lag time, the language of the
response, the correctness of the answer, and the usefulness
of the information they shared.
- The
results from the Spanish exercise were as we predicted
- about a third of the companies responded, many
in English. The quality of the responses varied
greatly, ranging from useful answers composed in
excellent Spanish to the dismissive English please.
Thank you from a multinational oil company.
-
What really surprised us was the shortfall in answers
to our English e-mails. For the 100 global brands,
only half responded to one of the questions, fewer
to the other three. Among the e-tailers, 73 percent
answered two of our inquiries, around 60 percent
replied to the remaining two e-mails.
We
heard several possible reasons for this low rate of
response in our discussions. The knee-jerk reaction
of many people was that companies don't read
their e-mail because they worry about spam and viruses.
However, in both samples, we sent our messages to
70 percent of the companies using the webforms that
they posted at their websites. Thus, our messages
skirted the e-mail server and went directly into whatever
customer database or customer relationship management
(CRM) system those firms use for handling website
interactions. With all this information in a highly
structured format, there is no excuse for not dealing
with these inquiries.
Our
conclusion was that most companies just don't devote
enough time, money, or resources to communicating
with prospects and customers via their premier websites.
In our recommendations, we suggested a systematic
approach to dealing with e-mail or webform inquiries
in any language. The technology component of our plan
ranges from employing tools like auto-responders in
their e-mail servers to utilizing an assortment of
less common solutions such as language identifiers,
machine translation, categorization engines, workflow,
and CRM e-mail response systems.
More
important than these powerful software aids, though,
are the processes that companies define to answer
messages - and the people who do the work. This is
exactly where we see a strategic role for today's
in-house translation teams and the language service
providers that support them. Already language-aware
and managing complex workflows to get products and
documentation to customers, these global communicators
have developed an impressive array of talents little
appreciated in large companies.
An
immediate task for these specialists is to help their
employers and clients meet the e-mail and other customer
service needs of the Latino community. They could
add to their success by creating culturally nuanced
or translated content for Spanish-speaking visitors.
As they extend CRM support to meet the needs of the
Hispanic community, they should ensure that their
process improvements flow over into the flawed, underperforming
Anglophone systems. Executed correctly, these efforts
promise to win them more strategic recognition than
their often hard-to-measure international projects.
Don
DePalma is a former member of the Board of
Directors of GALA and president of Common Sense Advisory,
a research and consulting firm committed to improving
the quality of international business and the efficiency
of the online and offline operations that support
it. He has been writing and speaking about domestic
ethnic markets since the late 1990s. You can reach
him at don@commonsenseadvisory.com or read more about
this research at Commonsenseadvisory.
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