The LGBTQ consumer is rapidly becoming a market segment that your brand can’t afford to ignore. If you’ve been hesitant or didn’t know quite how to get started, here are four things you should know before you start engaging and marketing to LGBTQ consumers.
1. Purchasing Habits: According to a recent study by Witeck Communications, disposable personal income (DPI) is on the rise among LGBT Americans. The money LGBT Americans can spend collectively, after paying taxes, rose 4 percent to $917 billion in 2015.
There are currently 2.4 Million LGBTQ adults in the United States, a number that is expected to double by 2030 according to a report from UCLA. What is your brand doing to build a relationship of trust with LGBTQ consumers?
2. Think Millennial: A 2017 Prudential LGBTQ Financial Experience survey found that LGBT respondents are “five years younger, on average, compared to general population respondents. Lesbians and bisexuals, in particular, skew young; 45% of lesbian and 58% of bisexual respondents are Millennials.”
Here are some tips from MotivateOUT with best practices on using social media to reach LGBTQ consumers on social media. Remember that, while social media is an effective channel to market to LGBTQ consumers, it’s also a way for this tight knit community to quickly spread the word on brands who aren’t LGBTQ friendly.
3. Be Loyal. A study commissioned by Google found that over 45% of consumers under 34 years old say they’re more likely to do repeat business with an LGBT-friendly company, according to a Google Consumer Survey from August of 2014.
Pro-LGBT policies have encouraged the LGBT community to purchase many brands. When asked to list LGBTQ friendly brands, respondents listed Starbucks, Target and Nabisco products. The same aforementioned study by Google found “more than 54% also say they’d choose an equality-focused brand over a competitor.”
4. Willing to Spend: A 2016 Prudential LGBTQ survey found that “LGBT respondents are more likely to consider themselves “spenders” (48%, compared to 32% for general population respondents).” Marketing to the LGBTQ community should be viewed as a privilege, not a right. When your brand stands up for the LGBTQ community, and do their best to speak out in support, they earn the right to market to LGBTQ consumers.
What is your brand doing to build a relationship of trust with LGBTQ consumers? If you need help learning how to partner with and reach out to this vibrant community, MotivateOUT offers a variety of services and solutions to help your brand reach this highly coveted growth market.