Guest Insights How Diversity Unlocks Personalization

social media have acted as the great disruptor for product sales and marketing. How we buy, how we view ads, and how we decide what brands to support have all been revolutionized over the past 20 years. But just when brands were starting to figure out how to utilize social networks like TikTok and Instagram to appeal directly to consumers, the world was hit with another disruptor. The COVID-19 pandemic and the social justice movements following the murder of George Floyd made it clear that even corporations and seemingly innocuous product brands now need to offer consumers more than shiny packaging or free shipping. Consumers are dialed in to current events on the same platforms that are advertising CBD infused lemonade and deodorant. To think that there is no overlap in the values consumers bring from consuming content to purchasing products is the mentality of a dying brand.

According to a recent StudioID study for Food Dive, consumers are 80 percent more likely to make a purchase when brands offer personalized experiences. While levels of personalization can vary greatly from product to product, it’s clear that consumers are no longer interested in simply getting the best deal or one specific trendy item. Of course, those things still matter, but in a world dominated by social media, personalization is the new trend. Ironically, American consumers are demanding greater personalization at the same time that the country is primed to become more diverse than ever before, making true personalization that much more challenging for brands. In less than 25 years, the proportion of white Americans is projected to fall under 50% (to 49.7%) for the first time in history - thus, becoming the new “minority,” while the combined minorities will then become the “new majority,” representing 50.3% of the population. And just 15 years later, that new majority is projected to comprise more than 55% of the population, while the white population falls to a little over 44%. Diversity within this country exists, and it is ultimately unavoidable. The old diversity mindset of just checking boxes could cause significant damage to brands considering how drastic the demographic shifts will be. To successfully continue to operate and understand customers, every brand will need to have an effective DEI (diversity, equity and inclusion) strategy in place.

How can a brand offer a unique personalized experience to an increasingly diverse consumer base if the people developing and marketing products aren’t also diverse? DEI isn’t just a marketing strategy, and it’s not just a performance for the consumer. Diverse thinking requires actual diversity, it’s not something companies can fake through unconscious bias training or clever marketing techniques. You can’t hire a diverse entry level workforce and think that will make up for lack of overall inclusivity and diversity at the decision making level. Companies can’t hire and train employees based on a homogeneous idea of “company culture” and expect them to innovate in a way that will attract a substantial consumer base. Behind the scenes, brands need a diverse and inclusive workforce in order to produce the products and innovation that will appeal to their diverse customers. Inclusive companies are 1.7 times more likely to be innovative, they get 2.3 times more cash flow per employee, and are 120% more likely to hit financial goals.

Today’s consumers are dialed in. They follow their favorite brands on Twitter and listen to recommendations from influencers and celebrities on Instagram. They care whether or not brands “get” them. The marketing profession knows this and yet boardrooms across America continue to lack diversity. The delusion still exists that brands can project a message of diversity - talk the talk - without actually walking the walk. Unfortunately for them, it has become increasingly clear over the past two years that if brands are out of touch or tone deaf towards a certain community, consumers can and will catch on very quickly. If a new brand emerges that speaks to them on a more personal level, they will switch. If a boardroom is filled with 40 year old white men - even if those white men are dialed in, smart, and consumer savvy - there will be missing pieces and glaring holes that will eventually be spotted by consumers.

Diversity has become massively important, not only for brands to “look good” or have talking points during Black History Month, but also as a necessary key to success in an increasingly competitive marketplace. An office filled from top to bottom with diverse talent that is able to speak to the experience of different races, genders, intellectual abilities and languages is uniquely positioned to communicate with consumers and offer the level of personalization they demand. How brands get there will vary, and DEI is a long game, but ultimately those that rise to the top and are able to wow “the new majority” will be those that succeed.

TaChelle Lawson is Founder and President of FIG Strategy & Consulting. Lawson counsels a diverse and elite clientele who’ve come to rely on her brand-building and preservation prowess.