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The evolution of DEI over the past few years has been characterized by corporate capriciousness, with several brands and companies making commitments and setting frameworks, but without real impact or action. In the first wave, DEI was viewed as a matter of moral obligation and compliance. The second wave will reveal how brands that make DEI a true priority will literally begin to put money into the pockets of their shareholders.
Ensuring brand content is authentic and racially appropriate is more important than ever, not only for brand reputation, but also for building and maintaining a loyal and active consumer base.
When diversity and inclusion are recognized as strategic benefits, the boardroom and beyond benefit as well. True his DEI not only benefits employees and society as a whole, but also leads to tangible financial returns to shareholders.
Related: Companies are deprioritizing DEI. Why you shouldn't commit and how to recommit.
open the aperture
39% of purchasing users are multiculturalThis means comprehensive communication can unlock this market. Reaching a larger audience means more advertising dollars, new customers, and happier shareholders.
Entrepreneurs looking for new ways to move their businesses forward need look no further than DEI. While it's easy to understand the importance of diversity and inclusion overall, these efforts are often misunderstood when it comes to marketing.
That's why I founded XStereotype. Xstereotype is an AI-powered platform that allows businesses to predict how effective their content will be across different demographics. We have quantitatively proven that inclusivity sells. The more comprehensive your advertising, the more revenue you will earn.
Our data shows that these traditional demographic markers have less and less influence on purchasing behavior. Socioeconomic status, region, and education do not influence purchase intent as much as actual experience, which includes indicators such as ethnicity, gender, and emotion. These are more important signals about whether a user will buy or not.
Our data reveal a strong correlation between positive emotional reactions and positive interpretations of content diversity. In fact, of the ads we analyzed with high inclusion scores, overall purchase intent scores improved by 10%. That's natural. People are more likely to buy from your brand when they see themselves reflected in the content they're consuming.
From “targeting” to “inclusion”
It's time for brands to update their marketing strategies from “targeting” to “inclusion.” When we are “targeted” as a demographic, we are often treated as a monolith, and therein lies the danger of stereotyping.
Targeted media can make us feel like walking statistics, as opposed to consuming content that resonates with us and makes us feel heard. . Targeting is an old way of approaching marketing. This leads to negative brand sentiment and inherently causes separation.
Many brand leaders make the mistake of trying to focus on the target audience where the most effective ads and content are actually the most effective. all audience. To optimize ROI, reconsider the inclusivity of your messaging and brand personality.
Companies that narrow their horizons and invest money only in more targeted groups will continue to decline, downsize, and go out of business. Opening an opening is the way to survive. 39% of his buying audience is multicultural, so why not talk to them too?
Related: Keys to developing a more informed and comprehensive DEI marketing strategy
Inclusion sells. The real thing sells.
Here's a basic example: Let's say your local hair salon has a poster in its window highlighting the beautiful styles it offers. Sound strategy, right? But what happens when only white women are in these photos, and half of the local community is people of color? Black women don't need a trim, but because the ads don't resonate with them. You might walk past that salon every day without stopping by. Authentic representation is important not only because it’s inclusive, but because it gets consumers through the door.
You don't have to create an entirely new product or service. Just making it more approachable is enough. It's not that these viewers don't want or need what you're selling. It's because they couldn't relate to your content, so your value proposition didn't get across to them.
This is the benefit of being inclusive. Your ads will be stronger, smarter, and better. Multicultural understanding helps your advertising dollars reach further afield and reach a wider audience. Your marketing budget will be optimized when you focus on developing content that speaks to a wider audience in a realistic and unconventional way.
So the next time you're thinking about how to increase your sales or ensure your next product launch is a success, consider the users you might be missing out on. Prioritize diversity, speak with integrity, and watch DEI turn into ROI.
