Authentically Inclusive Marketing. Winning Future Customers with Diversity, Equity, and Inclusion

Today’s marketing is shifting toward more inclusive messaging, and consumers, who are now more diverse than ever, expect brands to truly stand by what they say. Here are three ways marketing can meet these expectations.

On any given day, people may see up to 10,000 ads while awake. But younger generations, in particular, seek more than just a promo or discount. They want to know if a brand supports diversity and inclusion, not just in public but also behind the scenes. This growing demand is pushing more brands to pay attention.

As the population grows more diverse, across race, ethnicity, sexual orientation, and abilities, brands must show genuine representation in their advertising. If they want to connect with tomorrow’s buyers, their messaging must reflect different life experiences. A global survey of 11,500 consumers found that the youngest group (ages 18 to 25) was the most aware of inclusive advertising when making shopping decisions.

In the U.S., when we looked at responses by race and ethnicity, we saw that Asian or Pacific Islander, Black or African American, Hispanic American, Native American or Alaska Native, and multiracial or biracial consumers were up to 2.5 times more likely to notice if a brand promoted diversity when choosing a product or service.

Still, promoting diversity in ads isn’t enough. According to the findings, 57% of consumers are more likely to stay loyal to brands that take real action to fight inequality. To earn that loyalty, brands must prove they’re making a difference – whether through hiring practices, working with diverse suppliers, or designing products for people with different abilities.

Data also shows that fast-growing companies (those with 10% or more annual revenue growth) are more likely to set specific goals and track progress on diversity, equity, and inclusion (DEI) than companies that grow more slowly.

Resonating with authenticity

These results match what we see happening in society. According to the latest U.S. Census, the white population declined for the first time over the past decade. Most of the population growth comes from people who identify as multiracial, Hispanic, or Asian. According to a 2021 Gallup poll, it was found that LGBTQ identification has grown from 3.5% in 2012 to 5.6% in 2020, and among Gen Z (ages 16 to 26 in 2021), one in six identify as LGBTQ. The World Health Organization also reports that 15% of the global population lives with a disability, yet this group is still rarely represented in mainstream advertising.

These changes highlight why brands need to rethink how they connect with younger consumers, especially Gen Z. A large majority (94%) expect companies to take a stand on social issues, and 90% say they are more likely to buy from brands they believe have a positive impact.

However, Gen Z also quickly recognizes when efforts aren’t genuine. Earning their trust means showing true commitment to DEI in every part of the brand, not just in words, but in actions.

Committing to DEI and taking action to fight social inequalities can also help drive business growth. The survey of over 1,000 executives worldwide found that top-performing brands with the highest growth are more focused on achieving fairness in all areas they influence: the workplace, the market, and the broader community. These brands track their DEI efforts more completely and often than lower-growth companies, with apparent differences in four key areas: hiring, keeping talent, brand messaging, and supporting local communities.

Take talent retention, for example. Around 33% of high-growth companies have set clear goals to track diversity in this area. That’s nearly double the 17% of companies seeing negative growth. For hiring practices, 23% of fast-growing companies measure diversity in recruitment, compared to just 15% of those in decline.

The same pattern appears when looking at outward-facing work: 27% of high-growth brands track equity in their community giving, while only 18% of negative-growth companies do. And when it comes to branding, 38% of fast-growing businesses measure diversity in campaigns, compared to 30% of lower-growth ones.

The good news for marketers is that they likely have support at the top. The 2021 survey shows that 94% of CEOs see DEI as a personal strategic priority, and 90% say their organization wants to lead.

How marketers can elevate equity – inside and out

Today’s consumers want to support brands that reflect their identity and beliefs. Companies prioritizing DEI understand that it’s not only about who’s behind the scenes – showing diversity on screen is just as important.

So, how can marketers help lead this change? Here are three ways they can do it across their organizations:

• Ensure teams and suppliers reflect your market. When internal and external teams look like their customers, it helps bridge cultural gaps and build stronger connections. “It’s not just who we hire internally, but who we work with,” says Marissa Solis, senior vice president of portfolio marketing, partnerships, and media at Frito Lay. “We want to make sure we’re working with a diverse array of content creators, agencies, directors, and producers to influence the industry and be culturally relevant in how we convey those messages – in an authentic way.”
• Bring diverse voices back to the organization. Chief marketing officers are often closest to the customer, so they’re in a strong position to listen to and lift underrepresented communities. These voices should not only be heard but also seen in brand content. For example, Avon – a global beauty and personal care company – surveyed 8,000 women during the pandemic to learn what they were facing. When the brand discovered that 41% had lost confidence, it responded with the “My Story Matters” platform, partnering with models of different races, ethnicities, and abilities to spotlight women’s real, unfiltered stories.
• Make your commitments measurable. Messages alone aren’t enough if people think a brand isn’t genuine. One way to avoid this is to ensure DEI goals lead to evident, measurable progress, not just performative gestures.

For Laura Curtis Ferrera, global chief marketing officer at Scotiabank, artificial intelligence (AI) plays a key role in reviewing brand messaging and making sure there’s always accountability. “We’re really investing in representation – inclusion by design – at all levels,” she says. “We tried to do it manually, but it’s really time-consuming, and you may miss things. And when you add a human, you add bias to the process. So now we do it using AI; then we have someone whose actual job title is around managing the inclusion-by-design mandate.”

Looking ahead, younger generations and increasingly diverse communities want brands to do more. At the same time, the fastest-growing companies are actively working to close the gap between who’s on their teams and the customers they serve. Marketers can drive this shift by shaping brand messages and helping lead the move toward a more inclusive, diverse, and fair organization. That way, the message matches the mission.