In recognition of Pride month, CIM’s member exclusive webinar in June highlighted the importance of diversity, equity and inclusion (DEI) in marketing. Expert marketer and Inclusive Growth Consultant Steph Inez Matthews, discussed how pivotal brands’ role is in ensuring inclusive representation and how it can benefit sales, customer loyalty and the bottom line.

Last month’s webinar host, Steph Inez Matthews, has over 20 years of experience working with household names like Virgin Group and ITV along the way. She is also a key note speaker and has delivered talks for the UK Government and at Cannes Lions, focusing on inclusion in brand marketing and people strategies. The session began with Matthews outlining the context of DEI in marketing and the importance of inclusion in brand strategy, and how it impacts company perception and sales growth.

Consumers expect brands to address the social inequalities and actively lead the inclusion agenda, with McCann Truth Central research revealing that 73% of global consumers believing that brands need to do more to promote diversity. The data demonstrates that this issue is becoming increasingly important for consumers, and that brands cannot ignore it.

Why is DEI important?

People and community are at the core of marketing and brands play a leading role in driving social change. Visible DEI efforts from brands can have a significant influence on consumers, with seven in 10 saying that inclusion would impact their purchase behaviour. And this increases if they're Millennials aged between 25 to 34, or if they're from emerging markets.

In a poll undertaken during the webinar, we discovered that 67% of our attendees had used diversity, equity and inclusion in their own businesses’ marketing efforts, which is higher than UK average. Inclusion makes a real difference; 64% of people believe that they would support ads that had diverse representation, and 65% think brands should promote diversity, equity and inclusion in their own business or in society.

Politicisation of DEI

Although it is clear how important inclusion is in today’s market, there has unfortunately been a number of high-profile roll backs on DEI initiatives. The acceleration of anti-woke movements and activists as well as government legislation, particularly in the US, has undone some of the progress made in recent years.

The impact of these roll backs can significantly damage brand reputation and trust from a consumer’s perspective, and sales figures can decline if audiences don’t feel a brand represents their personal values, especially among younger demographics.

Accessibility and representation

Ensuring that your marketing materials are representative creates a positive environment for consumers and a positive association with the brand.

Building a brand that means something to people is important when cultivating your audience and this starts with ensuring they can see themselves represented in the media they consume. Representation is essential both in front and behind the camera to ensure authenticity, and co-creating content with specific communities ensures your messaging is reflected in a favourable light, which is particularly important for supporting marginalised groups.

Benefits of using inclusive marketing

Data on inclusivity in marketing shows an increase in customer loyalty and sales growth due to DEI efforts with 57% of consumers more likely to be loyal to a brand addressing social inequalities. Inclusive ads show high short-term and long-term sales growth and differentiation from competitors.  But inclusive design benefits everyone, not just marginalised groups, and creates authentic connections with a diverse audience when they see themselves or their values represented.

The overarching benefit is that inclusive marketing isn't just socially responsible, it's a strategic business approach that can drive significant financial and reputational advantages. The positive impact on purchase behaviour, particularly among younger generations such as gen Z and millennials is reason enough to include DEI in your marketing, alongside brands’ ethical responsibilities.

Mitigating brand risk

Incorporating inclusivity and diversity into your marketing can present challenges and risks; it can create backlash for brands, particularly online and there is a risk of being seen as performative, sometimes even with the best intent.

Brands must stay true to their core values, think carefully about the impact of their advertisements, and follow through on promises to consumers or employees. Matthews recommends building inclusive brand strategies that benefit marginalised communities while aligning with your brand's values and goals.

When brands get DEI wrong, it can hurt their visibility and reputation. However, backtracking is worse than being controversial and it leads to a breakdown of consumer trust, it is better to stay the course and stick with what you believe. Avoid appearing exploitative when addressing sensitive topics, remain committed and consult the communities you are advocating for during creative development for authentic representation.

Incorporating inclusivity

There are a variety of steps during the creative development process where DEI can be incorporated, from client briefs to focus groups and pre-testing of ads. Creating inclusive marketing campaigns with diverse communities will ensure authentic representation.

To ensure you are incorporating inclusivity into all areas, diversity and representation should be embedded into the culture of a business, which will filter into your marketing efforts. DEI should be included in every aspect of the business: leadership, talent attraction, training, policies, and procurement. Aligning DEI strategies across business functions as well as external communications and messaging helps to build a brand that consumers can trust.

What brands should take away

DEI is a core capability for progressive marketers and staying committed to DEI offers the potential for many long-term benefits for brand equity and trust. Brands need to take responsibility for including DEI across the entire organisation, not just in marketing campaigns. Inclusivity should be a fundamental foundation of the company and reflected in your marketing, despite the opportunity for challenges or potential backlash online. It is not acceptable for brands to ignore DEI or not be clear in their support for minority groups, but make sure your advocating isn’t mistaken for exploiting.

Inclusive marketing is more than positive portrayal in a creative output, it is embedding DEI into the core of your brand strategy, to drive sustainable growth long-term. You have to show up every month, not just in June, and embed DEI internally into your workplace culture too, to make a real difference.

Need help developing your approach to equality, diversity and inclusion? CIM offer a training course to help you understand the fundamental principles of ED&I, and the benefits of integrating it into your organisation. Whether you’re a marketer who is new to the topic or want to learn to promote and protect your brand by including DEI principles, this course will help you integrate.

Sign up for the training course here