No matter the context, we’re all well-acquainted with the concept of diversity in the workforce and in the output. Gender equality, racial representation, and other social cause endeavors have found their way into public discourse like never before. Yet, it’s sometimes easy to focus on the principles alone, and eventually lose track of the fundamentals of application. Or worse yet, of the actual importance of diversity in practice and its tangible benefits. A recent discussion with colleagues served as a good reminder that the importance of diversity marketing, in this case, is not immune to being forgotten.
Defining diversity in marketing
First and foremost, defining diversity in marketing poses a curious challenge. Namely, that some define it as diversity within marketing teams, while others describe it as diversity-conscious marketing material. Still, both draw from the established audience segmentation method of demographic segmentation, noting:
- Age Sex and gender
- Sexual identity
- Race and ethnicity
- Education and income
- Religious or spiritual views or lack thereof
Fortunately, the two definitions now increasingly converge, with businesses deeming one integral to the other. That is, diverse teams can best produce diverse marketing material, in turn resonating more deeply with increasingly diverse audiences.
The importance of diversity marketing
Definitions aside, then, there are multiple tangible benefits to both applications of diversity marketing. Here, I’d like to highlight 4 of the most notable ones.
#1 ADA compliance
Starting with compliance with the law, diversity and accessibility laws now apply in many countries the world over. US-based businesses specifically have to consider the Americans with Disabilities Act (ADA) and its requirements. In brief, ADA enshrines the civil rights of individuals with disabilities into law, mandating, among others:
- Website accessibility; business websites should accommodate different needs, accounting for users’ visual and other potential impairments.
- Equal employment opportunity; ADA holds that “[e]mployers must provide reasonable accommodations to qualified applicants or employees’
- Physical accessibility; finally, it holds that businesses must make “reasonable modifications” to their premises and facilities to ensure physical accessibility for all individuals.
For a deeper look into this topic, you may find ADA and ADAAA (Americans with Disabilities Act Amendments Act) guidelines and material at adata.org.
#2 More marketing creativity
On to tangible benefits of diversity marketing, internal diversity does indeed boost creativity. Harvard Business Review makes an excellent case for this, noting that “diverse team composition does seem to confer an advantage when it comes to generating a wider range of original and useful ideas”.
Still, they rightfully stress that the “too-much-of-a-good-thing” paradigm applies to diversity as well. Recent evidence seems to support this, calling for deep-level diversity and good leadership as countermeasures to natural creative conflicts. Put differently, diverse marketing teams indeed boost creativity, but active leadership should still safeguard implementation.
#3 Higher revenue
Similarly, as regards output effectiveness, the importance of diversity marketing manifests in higher revenue. Coupled with technology’s productivity benefits, multiple studies confirm the correlation between diversity and financial results. McKinsey’s notable study stressed this in no uncertain terms, noting that:
- “Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.”
- “Companies in the top quartile for gender diversity are 15 percent more likely to have financial returns above their respective national industry medians[.]”
When underrepresented or previously undervalued audience segments hold increasingly more purchasing power, these findings should be easy to justify.
#4 Risk mitigation
Finally, internal diversity seems to offer an excellent risk mitigation safety net. In practice, diverse marketing teams may best account for undetected tokenism and other diversity-based insensitivities and oversights. Among others, The Arthur W. Page Center supports this notion, by citing the infamous H&M “Coolest Monkey in the Jungle” incident from a few years back.
Conclusion: shifting perspectives and diversity marketing
In summary, then, the importance of diversity marketing may only become more pronounced over time. Millennial employers, employees, and audiences alike strongly value diversity in the workforce and in marketing outcomes. Deloitte’s surveys highlight this confidently, as do studies by Weber Shandwick and other agencies and research institutions. Thus, diversity is no longer just a legal and ethical imperative; it is now a lucrative business decision and a noble social cause as well.