With trust in large corporations, the government and the press fading, consumers are increasingly looking to brands to take a progressive stand on the issues they care about. Millennials, in particular, want to put their money where their mouth is and deal with companies that represent their values. Key among those values is inclusiveness and equality for women, ethnic minorities, people with disabilities and the LGBT community.
Here are 4 reasons why your business needs LGBT-marketing:
1. 90% of consumers are willing to boycott a brand if they feel it doesn’t have the right principles. Research from Cone Communications and Ebiquity also shows that 88% of consumers are more loyal to companies that support diversity and social issues. Famously, the LGBT community has boycotted the American fast-food chain Chick Fil A over reports about their six-figure donations to anti-LGBT-organizations. Consequently, different public institutions, including several airports, have banned Chick Fil A from operating on their premises.
2. LGBT consumers want to see more community representation in advertising. YouGov’s 2017 LGBT brand rankings study not only provides an overview of the best-perceived corporations among LGBT consumers but also found that, in the US, for instance, 66% of LGBT individuals say they don’t see enough LGBT-representation in ads, compared to 51% of the general public. The data shows similar results in the UK and Germany, where the differences are 57% to 44% and 40% to 33% respectively.
3. LGBT Consumers are more likely to act after seeing an advertisement. The same YouGov study also asked consumers if they search advertised products and services on their phone after seeing them. 43% of LGBT consumers in the US say they do, compared to 33% of Americans in general. They found the same phenomenon in the UK and Germany.
4. Sheer numbers: In Switzerland alone, between 470’000 and 610’000 adults identify as LGBT. While there are no exact figures showing their purchasing power in Switzerland, the LGBT segment is financially strong, has a high propensity to spend. The LGBT community one of the fastest-growing consumer segments around the world. According to Mannschaft (german), a leading Swiss magazine for gay and bisexual men, a majority of same-sex couples in Switzerland are DINKs (Double Income, No Kids) and spend 30% more for lifestyle products than other consumers. 82% of them travel several times per year and 70% value LGBT-friendly corporations over others. LGBT consumers also spend more time-consuming media – on social and traditional channels. LGBT consumers are also among the most interconnected segments in the market.
In conclusion, going into LGBT-marketing has many benefits. This quickly growing segment with a high disposable income and higher than average propensity to spend is hungry for representation, so let’s make it happen!
What are your questions regarding LGBT-marketing? Let me know in the comments below!
Next week we’ll talk about the Dos and Don’ts of LGBT marketing.
In the meantime, please share my blog post with your peers!
Do you want to know more about LGBT-Marketing? Read my other posts, too!