Tuesday, July 14, 2009
Supermercade de Walmart
Despite the recession Wal-Mart is continuing with its plans to open a series of Hispanic-themed stores. They started in April in Houston and just opened another in Phoenix. The retail giant is fully aware that the buying power of Hispanics in the U.S. is exploding and they don't want to miss out. It's efforts are not without controversy, however, as small family-owned ethnic stores are watching the developments with a wary eye. Will the big box store be able to build sufficiently strong relationships with this close-knit community to become their vendor of choice?
Monday, July 6, 2009
New Customers For A Slow Economy
Don't forget that minorities are already one-third of all Americans and by 2042 the Census Bureau estimates that they will be half. This is a huge and growing market which most businesses are missing. Just learn to be a little culturally sensitive and multicultural customers will beat a path to your door!
Tuesday, November 20, 2007
Myths About Multicultural New Home Customers
There are over one million people from overseas coming into the United States every year and they all want to show friends and family they are successful by buying a new American home. This influx of people has fueled the current boom for homebuilders. In addition, there are already 80 million multicultural Americans already here. This is a huge market for builders all across the country – if you know how to meet the unique needs of people from other cultures.
I believe there are ten myths that keep new home salespeople and customer service reps from being successful with Hispanics, African Americans, Asians, Middle Easterners and others. They are:
1. “PEOPLE FROM OTHER CULTURES ONLY WANT TO WORK WITH A STAFF PERSON FROM THEIR OWN CULTURE.”
Nothing could be further from the truth. Most of the people who complain about having trouble with multicultural customers are European American staff people. They just need to understand how to meet the wants and needs of people from other cultures.
In fact, many cultural groups would prefer to work with a staff person from outside their own culture. Asians, for example, are very private about their financial affairs and many are afraid that if they work with an Asian salesperson they might disclose their income, debts, and real estate holdings to others in their community.
2. “MULTICULTURAL PEOPLE HAVE SUPERSTITIONS AND BELIEFS THAT ARE TOTALLY INCOMPREHENSIBLE TO AMERICANS.”
Remember that people in the United States have beliefs that often baffle outsiders such as the fact that black cats, walking under ladders and the number thirteen are unlucky. Most other cultures have their own beliefs that are just different.
Many cultural beliefs happen to directly affect the purchase of real estate such as the direction a home faces or the numbers in the address. Many Asians believe that the number four is unlucky because when pronounced in Japanese or Chinese it sounds very similar to those cultures’ word for “death”.
Just as there are very few hospitals or hotels with a thirteenth floor in America the same buildings in Asia lack a fourth floor. You can see that this belief is similar in both countries.
3. “SOME PEOPLE FROM OUTSIDE THE U.S. ARE UNETHICAL BECAUSE THEY INSIST ON RENEGOTIATING AN AGREEMENT AFTER IT HAS BEEN SIGNED.”
While it’s true that people from other cultures often try to renegotiate a purchase agreement or service contract after it has been signed it has nothing to do with ethics. America is a “low context” country where everything is spelled out between people either verbally or in contracts. Other countries are “high context” where much more information is derived from the context of the communication and less is spelled out.
In high context countries it is understood that contracts are only the beginning of a relationship which can change as the parties get to know each other. The parties are obligated to help each other “adjust” the contract to their needs until it is completed.
4. “IT’S IMPOSSIBLE TO GET PERSONAL FINANCIAL INFORMATION FROM MULTICULTURAL PEOPLE BECAUSE THEY’RE SO SECRETIVE.”
This is one of those myths that is actually true. Many people who are new to this country are extremely private about their finances. Remember that they are unfamiliar with the banking and legal system in America and do not know whom to trust.
In addition, merely asking a question as innocent as “How much do you have for a down payment” can actually endanger the lives of your clients. Why is that? Many new immigrants do not believe in banks and keep much of their money hidden in their homes.
Have you ever heard of “home invasion robberies” where the occupants are threatened until they reveal the whereabouts of their valuables? These kinds of crimes are commonly committed against Asians or Hispanics, not because they have nicer furniture or stereos than everyone else but because that’s where the cash is often hidden. The author personally knows of one Hispanic client who lost $75,000 in cash to a home robbery.
The easiest way to find out how much a new immigrant client has for a down payment is to give them a “menu” of choices. Show them the required investment and resulting monthly payments for ten percent down, twenty percent down, etc. The client may also be interested in a “quick qualifier” or “no document” loan so be sure to explain the requirements for these as well. Usually, the loan that the client expresses the most interest in is the one they have the down payment for.
5. “PEOPLE FROM OUTSIDE THIS COUNTRY ARE UNREASONABLE WHEN IT COMES TO NEGOTIATING.”
Remember, there are two types of countries in the world – negotiating and non-negotiating. The United States is a non-negotiating country where we generally pay the price asked by vendors. In most other countries around the world people haggle on everything from groceries to clothing to homes. To expect someone from one of these places not to bargain is tantamount to asked them not to breathe.
This is why people from negotiating cultures will bargain over the purchase price, service issues and almost every other aspect of buying a new home. They may make low offers or ridiculous requests because they know they can only go in one direction from there – up. This is why they will start embarrassingly low with their initial offer even if they might be willing to pay full price.
6. “PEOPLE FROM OTHER CULTURES ARE JUST TOO MUCH TROUBLE TO BOTHER WITH.”
The author hears this statement from builders, salespeople and customer service reps throughout the country. Too bad for them because if you know how to meet the special needs of multicultural customers they can be just as loyal and enjoyable to work with as anyone else. In addition, people from other cultures are very good about referring their friends and family if you serve them with sensitivity and patience.
An added bonus when working with people from outside the United States is the opportunity to learn about other cultures. Just think of it. You can take a round-the-world trip without getting seasick or losing one piece of luggage!
7. “PEOPLE SHOULD DO AS AMERICANS DO WHEN THEY’RE IN THIS COUNTRY.”
Did you ever wonder why we are called the “Ugly Americans” when we travel outside our borders? We will fly to Germany, France or China and expect the people there to accommodate us in terms of providing the food and other amenities we are familiar with. We commonly expect to be served pizza in Asia and to speak English in France.
Just as it’s difficult for us Americans to leave our 200-year-old culture at the gate when we travel abroad it’s even harder for those coming here with cultures that are thousands of years old to do as we do here. While they do try to assimilate it is hard for them.
Also, if we want a little piece of business from the fastest-growing segment of the new home market it is we who will have to adjust – a little. Take the time to learn about other cultures, languages and foods. As a bonus you will become a much more interesting person to talk to in the process.
8. “NEW HOME BUYERS FROM OTHER COUNTRIES ARE MORE LIKELY TO BUY A RESALE HOME.”
This is true if you don’t know how to motivate people from outside the U.S. The main competition for new homes are “used” homes. As you know, used homes may feature larger lots and sometimes lower prices.
On the other hand, what say “success” to a new immigrant more than a brand new American home? For Americans, buying a new home is not such a big deal.
Some cultures, such as the Asians, want a new home because many follow the tenets of “predecessor luck”. This means they believe that what happens to a previous owner of a home will happen to subsequent. Can any resale agent guarantee that no bad luck has occurred in a used home? Whereas, in a new home the occupants can create their own luck.
9. “WE SHOULD TREAT EVERYONE EQUALLY, REGARDLESS OF CULTURE.”
Yes, it’s true that we should treat every customer fairly but this does not necessarily mean equally. For instance, if a buyer who is blind comes into your community office would you simply hand them a brochure to “read”? This is equal but is it fair? Hardly. Wouldn’t you try to treat them equally?
Similarly, by taking into account the unique needs of every client aren’t we serving them better? This would be equally true for being culturally sensitive.
10. “PEOPLE DON’T WANT TO TALK ABOUT THEIR CULTURE – THEY JUST WANT TO BE TREATED LIKE EVERYONE ELSE.”
This is probably the biggest myth when dealing with people from other cultures. We know we are different and unless something about culture is mentioned early in your relationship with a multicultural client it will always stand as a barrier to building true rapport.
Once you take a sincere interest in your customers’ cultural background they are usually more than happy to tell you about their language, food and even beliefs. Get into the habit of asking every customer, “Where do your ancestors come from?” Notice, this can get the conversation started with someone from Ireland just as easily as Thailand.
Try asking customers how to say “hello” or even your name in their native tongue. You may be slightly embarrassed as you struggle with their language but they’ll love you for it because now you know how they feel trying to speak English.
If you want to be truly successful with people from other cultures you must make this agreement with each and every one of them. “I will teach you about American new home construction, service agreements, contracts and related laws. In exchange, I want you to teach me about your cultural background.” In this way, you develop a mutually-beneficial relationship which will hopefully last a lifetime.
Do you think these are true in your experience?
Are there other myths I've missed?
I believe there are ten myths that keep new home salespeople and customer service reps from being successful with Hispanics, African Americans, Asians, Middle Easterners and others. They are:
1. “PEOPLE FROM OTHER CULTURES ONLY WANT TO WORK WITH A STAFF PERSON FROM THEIR OWN CULTURE.”
Nothing could be further from the truth. Most of the people who complain about having trouble with multicultural customers are European American staff people. They just need to understand how to meet the wants and needs of people from other cultures.
In fact, many cultural groups would prefer to work with a staff person from outside their own culture. Asians, for example, are very private about their financial affairs and many are afraid that if they work with an Asian salesperson they might disclose their income, debts, and real estate holdings to others in their community.
2. “MULTICULTURAL PEOPLE HAVE SUPERSTITIONS AND BELIEFS THAT ARE TOTALLY INCOMPREHENSIBLE TO AMERICANS.”
Remember that people in the United States have beliefs that often baffle outsiders such as the fact that black cats, walking under ladders and the number thirteen are unlucky. Most other cultures have their own beliefs that are just different.
Many cultural beliefs happen to directly affect the purchase of real estate such as the direction a home faces or the numbers in the address. Many Asians believe that the number four is unlucky because when pronounced in Japanese or Chinese it sounds very similar to those cultures’ word for “death”.
Just as there are very few hospitals or hotels with a thirteenth floor in America the same buildings in Asia lack a fourth floor. You can see that this belief is similar in both countries.
3. “SOME PEOPLE FROM OUTSIDE THE U.S. ARE UNETHICAL BECAUSE THEY INSIST ON RENEGOTIATING AN AGREEMENT AFTER IT HAS BEEN SIGNED.”
While it’s true that people from other cultures often try to renegotiate a purchase agreement or service contract after it has been signed it has nothing to do with ethics. America is a “low context” country where everything is spelled out between people either verbally or in contracts. Other countries are “high context” where much more information is derived from the context of the communication and less is spelled out.
In high context countries it is understood that contracts are only the beginning of a relationship which can change as the parties get to know each other. The parties are obligated to help each other “adjust” the contract to their needs until it is completed.
4. “IT’S IMPOSSIBLE TO GET PERSONAL FINANCIAL INFORMATION FROM MULTICULTURAL PEOPLE BECAUSE THEY’RE SO SECRETIVE.”
This is one of those myths that is actually true. Many people who are new to this country are extremely private about their finances. Remember that they are unfamiliar with the banking and legal system in America and do not know whom to trust.
In addition, merely asking a question as innocent as “How much do you have for a down payment” can actually endanger the lives of your clients. Why is that? Many new immigrants do not believe in banks and keep much of their money hidden in their homes.
Have you ever heard of “home invasion robberies” where the occupants are threatened until they reveal the whereabouts of their valuables? These kinds of crimes are commonly committed against Asians or Hispanics, not because they have nicer furniture or stereos than everyone else but because that’s where the cash is often hidden. The author personally knows of one Hispanic client who lost $75,000 in cash to a home robbery.
The easiest way to find out how much a new immigrant client has for a down payment is to give them a “menu” of choices. Show them the required investment and resulting monthly payments for ten percent down, twenty percent down, etc. The client may also be interested in a “quick qualifier” or “no document” loan so be sure to explain the requirements for these as well. Usually, the loan that the client expresses the most interest in is the one they have the down payment for.
5. “PEOPLE FROM OUTSIDE THIS COUNTRY ARE UNREASONABLE WHEN IT COMES TO NEGOTIATING.”
Remember, there are two types of countries in the world – negotiating and non-negotiating. The United States is a non-negotiating country where we generally pay the price asked by vendors. In most other countries around the world people haggle on everything from groceries to clothing to homes. To expect someone from one of these places not to bargain is tantamount to asked them not to breathe.
This is why people from negotiating cultures will bargain over the purchase price, service issues and almost every other aspect of buying a new home. They may make low offers or ridiculous requests because they know they can only go in one direction from there – up. This is why they will start embarrassingly low with their initial offer even if they might be willing to pay full price.
6. “PEOPLE FROM OTHER CULTURES ARE JUST TOO MUCH TROUBLE TO BOTHER WITH.”
The author hears this statement from builders, salespeople and customer service reps throughout the country. Too bad for them because if you know how to meet the special needs of multicultural customers they can be just as loyal and enjoyable to work with as anyone else. In addition, people from other cultures are very good about referring their friends and family if you serve them with sensitivity and patience.
An added bonus when working with people from outside the United States is the opportunity to learn about other cultures. Just think of it. You can take a round-the-world trip without getting seasick or losing one piece of luggage!
7. “PEOPLE SHOULD DO AS AMERICANS DO WHEN THEY’RE IN THIS COUNTRY.”
Did you ever wonder why we are called the “Ugly Americans” when we travel outside our borders? We will fly to Germany, France or China and expect the people there to accommodate us in terms of providing the food and other amenities we are familiar with. We commonly expect to be served pizza in Asia and to speak English in France.
Just as it’s difficult for us Americans to leave our 200-year-old culture at the gate when we travel abroad it’s even harder for those coming here with cultures that are thousands of years old to do as we do here. While they do try to assimilate it is hard for them.
Also, if we want a little piece of business from the fastest-growing segment of the new home market it is we who will have to adjust – a little. Take the time to learn about other cultures, languages and foods. As a bonus you will become a much more interesting person to talk to in the process.
8. “NEW HOME BUYERS FROM OTHER COUNTRIES ARE MORE LIKELY TO BUY A RESALE HOME.”
This is true if you don’t know how to motivate people from outside the U.S. The main competition for new homes are “used” homes. As you know, used homes may feature larger lots and sometimes lower prices.
On the other hand, what say “success” to a new immigrant more than a brand new American home? For Americans, buying a new home is not such a big deal.
Some cultures, such as the Asians, want a new home because many follow the tenets of “predecessor luck”. This means they believe that what happens to a previous owner of a home will happen to subsequent. Can any resale agent guarantee that no bad luck has occurred in a used home? Whereas, in a new home the occupants can create their own luck.
9. “WE SHOULD TREAT EVERYONE EQUALLY, REGARDLESS OF CULTURE.”
Yes, it’s true that we should treat every customer fairly but this does not necessarily mean equally. For instance, if a buyer who is blind comes into your community office would you simply hand them a brochure to “read”? This is equal but is it fair? Hardly. Wouldn’t you try to treat them equally?
Similarly, by taking into account the unique needs of every client aren’t we serving them better? This would be equally true for being culturally sensitive.
10. “PEOPLE DON’T WANT TO TALK ABOUT THEIR CULTURE – THEY JUST WANT TO BE TREATED LIKE EVERYONE ELSE.”
This is probably the biggest myth when dealing with people from other cultures. We know we are different and unless something about culture is mentioned early in your relationship with a multicultural client it will always stand as a barrier to building true rapport.
Once you take a sincere interest in your customers’ cultural background they are usually more than happy to tell you about their language, food and even beliefs. Get into the habit of asking every customer, “Where do your ancestors come from?” Notice, this can get the conversation started with someone from Ireland just as easily as Thailand.
Try asking customers how to say “hello” or even your name in their native tongue. You may be slightly embarrassed as you struggle with their language but they’ll love you for it because now you know how they feel trying to speak English.
If you want to be truly successful with people from other cultures you must make this agreement with each and every one of them. “I will teach you about American new home construction, service agreements, contracts and related laws. In exchange, I want you to teach me about your cultural background.” In this way, you develop a mutually-beneficial relationship which will hopefully last a lifetime.
Do you think these are true in your experience?
Are there other myths I've missed?
Sunday, October 7, 2007
Multicultural Sales & Customer Service
To increase sales to and customer service ratings with people from diverse cultures we must be sensitive to their culture. This would include: how we meet and greet them, how close or far apart we stand when conversing, the amount of eye contact we give and much more.
What questions or comments do you have about working with Hispanics, Blacks, Asians, Middle Easterners and others?
What questions or comments do you have about working with Hispanics, Blacks, Asians, Middle Easterners and others?
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