Looking to do business in Latin America, but not sure where to start? With a population of 670 million people and Spanish as the official language in 90% of its countries, the Latin American market can seem complex.
In this article, we have compiled 9 general tips to help you do business easier and faster in Spanish-speaking countries.
From being patient and understanding hierarchies to speaking a little Spanish, being mobile-friendly, and making visuals work for you, these tips will help you navigate this diverse and exciting market.
So stop chasing your potential customers and start building meaningful relationships with them today!
Here are 9 tips for mastering the art of doing business in Latin America.
1. Patience is the Ultimate Strategy
First and foremost, it is important to be patient because the concept of time in Latin American countries is very different from other regions of the world.
Processes take time, as does building trust, as Latin American prospects tend to be distrustful and suspicious of others because of high levels of public insecurity in some of these countries.
Although it takes a long time to build a strong business relationship and this can be seen as negative, the plus side is that while taking such a long time for getting to know the brand and building trust, Latin American prospects tend to be more loyal to the products or services.
To use the time to your advantage, you can make business trips, which is also the easiest way to break the barrier of distrust.
During your visit, show your advantages, and demonstrate how your product or service differentiates from others and stands out.
Be ready to handle negotiations, and know the market and possible competitors to sell yourself, your brand, and your product faster.
Keep in mind that even though Latin Americans are known for being highly price-sensitive, it is not always the case, and it also depends on the sector. In some cases, price and quality are equally important.
2. Don’t Offend Your Customers: Knowing When to Use Usted vs. Tú
“Tú” and “Usted” are both Spanish words for “you.” “Usted” is the formal version, and “Tú” and “Vos” are informal.
Knowing this will help you communicate with your prospects in a respectful way according to what respect means for them.
In some countries, using informal communication is disrespectful, but in others, it’s not.
In Mexico, Puerto Rico, Colombia, Costa Rica, Peru, Ecuador, Panama, Cuba, and Bolivia, you should call people “Usted” because they speak more formal Spanish, and in some cases, older people are called “Señor” or “Señora” (Mr. and Mrs.).
In Argentina, Chile, Paraguay, and Uruguay, the way people communicate is more informal, so they call each other “Tú” or “Vos.”
The best way to understand it is to pay attention to the other party and check how they treat others and you.
Having this clear will prevent your customers from feeling somehow disrespected.
3. Speak Spanish, un poquito.
It’s essential to know some Spanish, although there is a significant percentage of bilingual populations that speak English.
They get more comfortable keeping it in their language. When a decision-maker does not speak English, Spanish is an advantage.
4. Understand Latin American Hierarchies for Effective Business Communications
In these countries, hierarchies are crucial for decision-making. Collect information from LinkedIn about the person in charge and the one who will give the last word; this will make processes faster.
In Colombia, for example, hierarchy differences are more obvious. The population is divided into six levels, with the 1st level being at the bottom and the 6th level at the top.
The 6th level is occupied by people with the highest salaries, and they are defined based on possessions, education, and housing.
So this tip is related to tip number 2, because hierarchies will influence the way people communicate, and more special treatment is expected for people in high positions.
5. Know How to Balance Friendliness and Profitability
Regarding relationships, they are pretty important in Latin America.
Be friendly and warm, and avoid conversation topics related to drug trafficking, poverty, and politics.
In some countries, it’s also considered rude to talk too much about money.
It’s better to talk about food and entertainment. Latin people love to have fun, and the best way to break the ice is to make them laugh.
It is also important to draw a line to make them respect you because being friendly gives good results with some of them, but with others, it is just not profitable to be friendly.
From past experiences, some customers thought that they could delay payments because of the friendly relationship.
To overcome these difficulties, send payment reminders one week before the due date.
6. Master the Power of Visuals
Latinos are very visual people, so personal appearance, product, package, digital presentations, and the company’s marketing material must be visually flawless.
In Latin America, good visuals mean good quality.
On the other hand, if there is a complex topic that requires a more detailed explanation, use presentations with simple and eye-catching graphic design.
They will understand faster.
A picture is worth a thousand words.
7. Embrace Latin America’s Mobile Dominance
Even though this tip might seem obvious in 2023, some businesses are still not mobile-friendly.
Make sure your business or information is accessible by mobile phone, and prospects can access your catalog from there.
Test your website performance on mobile devices. Also, investing in digital marketing is critical.
Latin America has the fastest rate of smartphone adoption in the world, according to a report from GfK.
So it is key to communicate with customers through mobile.
8. Customer Satisfaction 101: Listen, Learn, and Deliver
Listen to your customers.
The more your leads talk, the more information you will collect to be able to offer what they are actually looking for.
Plus, everyone loves to be heard. The meeting or call might take longer than expected, but by listening, you will know what to provide.
Use your emotional intelligence to identify pain points.
Listen carefully to what their interests and goals are to be able to offer them faster what they really need.
Sometimes the pain point is very simple and easy to solve. It’s probably something that potential customers do not dare to say freely and is implicit in what they tell you.
Listen to them carefully.
9. Don’t Put the Cart Before the Horse: When to Discuss Payment with Potential Customers
Clearly show how your business works, and explain delivery terms and deadlines.
If potential customers have not touched on the payment issue, it is better to talk about it at the end of the conversation than early on.
Important to Know
While Latin American countries share many similarities, it’s important to understand that each country has its own distinct culture, regulations, and infrastructure.
Therefore, it’s crucial to take these factors into account when implementing any strategies in the region, and it may be necessary to undertake various activities to generate interest, attract potential customers, and build a customer base.
Doing business in Latin America may seem daunting, but with these tips, you will be well-prepared to start your ventures successfully. As a result, potential customers might even start seeking you out.
To recap:
- Patience is key when doing business in Latin America because of longer relationship-building and trust-building processes.
- Understand the use of “Usted” vs. “Tú” to communicate respectfully based on cultural norms.
- Knowing some Spanish gives an advantage when dealing with non-English-speaking decision-makers.
- Hierarchies are important in Latin American countries, so understand and respect them for effective communication.
- Balance friendliness and professionalism to build relationships while maintaining profitability.
- Use visually appealing presentations and marketing materials to cater to Latin Americans’ visual preferences.
- Embrace mobile dominance in Latin America and ensure mobile-friendly communication and marketing strategies.
- Active listening to customers helps understand their needs and provide tailored solutions.
- Discuss payment terms towards the end of conversations, focusing on customer satisfaction and understanding their requirements.
