As many as 20 million US adults identify as LGBTQ+. It amounts to eight percent of the US’ adult population, which “is almost double previous estimates”. Furthermore, it is the fastest-growing minority with almost 67 percent of 18-24 year olds having someone in their immediate circle who identifies as LGBTQ+.
According to a new report, LGBTQ+ and the future of CX, these population trends mean businesses must prepare for this growing demographic to have a huge impact on the customer experience (CX).
LGBTQ+ spending trends
CX platform DISQO partnered with Do the WeRQ to survey 9,000 people on their perspectives on LGBTQ+ advertising – and it quickly became obvious this growing demographic has strong opinions on how they will spend their money.
Among Gen Z, 72 percent said they would consider brands’ political leanings before making a purchase, while 58 percent of the same age range said they have not bought from a company because they disagreed with their political stance.
Insight from the Branding Strategy Insider backed this, reporting that 63 percent of those that qualify as Gen Z “care deeply” about LGBTQ+ issues.
Co-chair of OPEN Pride David O’Laughlin, says the 67 million Gen Zs recorded in the US census are “not as likely to reward companies for getting it right, but they are more likely to punish them for getting it wrong.”
The power of the cause
Ultimately, brands must incorporate customers’ beliefs in their marketing if they hope to make a profit. As many as 80 percent of CX practitioners said they have seen sales impacted by “consumer awareness of how ethical a brand is.” While the UK Ethical Consumer Markets Report found that the 24 percent increase in ethical consumer spending seen in 2020 has pushed the ethical spending market to values of £122 billion.
According to DISQO, 39 percent believe there should be more LGBTQ+ content in advertising.
This desire for increased visibility – alongside an understanding that 30 percent of customers will shop from brands that publicly support issues they care about – suggests that companies should continue to make their stance on socio-political issues clear going forward.
Authenticity and representation in advertising
DISQO found that only 52% agreed LGBTQ+ adverts are authentic. It raises the question of how brands can enhance authenticity in their LGBTQ+ messaging.
The impetus to see authenticity on a mass scale is rooted in peoples’ desire to be understood, either from the brands they buy from or the art they partake in. Speaking to CX Network Graham Nolan, the co-chair of storytelling and partnerships at Do The WeRQ, said: “The authenticity of your brand will directly reflect how much a company has infused our community talent and perspective into the creation of your brand.”
In 2020, Thomas Roth, president of LGBTQ researchers CMI said the most effective way to engage the community through advertising is to understand its nuances through research. Doing so will provide brands with a “roadmap and competitive edge.”
DISQO’s survey confirmed 57 percent of the LGBTQ+ respondents saw this strand of ads within the content made for them, however only 33 percent of those people said they remember seeing that same kind of advertising in mainstream content.
Co-chair of OPEN Pride David Azulay, argued that enshrining a “queer perspective on the creative and development teams” will work to ensure “that media strategies go beyond a targeted LGBTQ+ echo chamber.”
David Grabert, the VP of brand and communications at DISQO, echoed this when he said that to ensure “more people experience LGBTQ+ people in advertising as authentic, these images must be mainstreamed.”
According to the DISQO survey there was an encouraging percentage increase in the 27 percent who remember seeing transgender or non-binary people in this strand of advertising while 20 percent also recall seeing people of colour.
This is equal or more than those who saw gay men or lesbian women. While this is encouraging, the DISQO report also highlighted that while 26 percent of those surveyed think there should be the same amount of LGBTQ+ led advertising, the diversity of who is represented could be improved.
Diversifying this kind of advertising while ensuring that it reaches the right audience all year round is an easy way to boost the authenticity of a brand.
The causes consumers care about
Among people identifying as LGBTQ+ more than a quarter believe brands have been “essential” to their progress in society, but LGBTQ+ issues are only one of many areas consumers are invested in.
According to Forbes, the willingness of Gen X consumers to “pay more for sustainable products” has increased by 42 percent.
In line with this DISQO’s David Grabert added: “Younger generations have high expectations for brands to operate with a purpose that aligns with their values.” He isn’t the first to notice. Shep Hyken’s Achieving Customer Amazement 2022 report noted that customers’ who support causes “overlook the potential lapses in service because the company is trying to do good in a world where the customer has the same philosophy,”
Companies’ must implement these authentic values into how their business is run on every level, whether that be limiting their carbon emissions or consistently supporting worthy charities.
The action call for CX leaders, CMOs and CCOs
Graham Nolan from Do The WeRQ said: “The era of dissociation is ending and the age of transparency is here. You have values? Live up to them.”
According to DISQO, 52 percent of people under the age of 44 believe brands should be involved in socio-political issues “without qualification”. To resonate, companies must reflect their customers’ priorities and 85 percent of the DISQO respondents said they considered a brand’s political activities when purchasing.
Brands must also recognise that every interaction with the customer contributes to their values. Forbes council member, Michael Ringman, pointed out that social media has the power to make connections “in unconventional ways that create lasting impressions.” But as he goes on to explain a brand’s social media can only be a reflection of the companies’ core values. Or in Ringman’s words: “A person with integrity has their entire character intact.”
This kind of obvious social awareness can translate into real earnings, as Michael Stausholm, founder of Sprout, told CX Network: “Consumers want to purchase products from companies that make a difference.”