Connect with us

MARKETING

What are diversity, equity and inclusion, and why marketers need them

Published

on

What are diversity, equity and inclusion, and why marketers need them

Diversity at all levels of a company is a major indicator of company success and productivity. The benefits of diversity and inclusion can be seen in stock and revenue performance, hiring and retention and customer acquisition and loyalty. A diverse marketing organization aids access to diverse markets.

It’s not a nice thing to have, it’s a necessity. Many studies have shown that more diverse organizations out-perform less diverse ones. 

Having a culture of diversity and inclusion is an outcome of policies and procedures that empower, encourage and provide support to members of groups who have received little to none of that before. It focuses on outcomes, not intent. In this situation, actions must come before words. 

Marketing is all about trust. In fact, 46% of customers will pay more for products and services from brands they trust, according to a Salsify survey. With such a focus on trust-building, you also must represent diversity in your ads and promotions. Why? Nearly 60% of customers will trust you more if you use inclusive ads, according to a Facebook advertising study.

However, it’s essential to note that just adding people of different ethnic backgrounds to your content will not accomplish this. The “faces and festivals” approach, where marketing includes different faces and makes a big deal of particular holidays (Juneteenth, Cinco de Mayo, Ramadan, Pride, etc.) is a recipe for disaster. It all but guarantees gaffes that will cause problems with the audience being targeted. Avoiding that requires having a diverse team.

Consumers want advertisements and promotions that represent them and their needs and interests. They don’t just take that at face value. They look for proof that representation is authentic and get angry if they believe it isn’t.

This is an introduction to diversity, equity and inclusion (DEI) for marketing organizations. It explains basic concepts and suggests steps you can take.

Advertisement

What are diversity, equity and inclusion

Diversity in marketing content and in the workplace are directly related, but take different forms. In content, it means portraying people of different ages, abilities, ethnicities, genders, sexuality identities, religions and other demographic characteristics. In the organization, it is actively seeking out and recruiting people from marginalized communities. It is creating a team that reflects both the society at large and the audiences you want to reach. 

Inclusion means policies and behaviors that ensure people from marginalized groups are heard and they and their contributions are given the consideration and respect they have usually been denied. Just having them on the staff isn’t enough.

Equity means giving these people the support they need — training, mentorship, etc. — to advance in the organization. It requires understanding why the organization has failed to do this in the past and making sure it doesn’t do it again.

Benefits of diversity and inclusion in marketing

Increased audience engagement and trust

  • Nearly two-thirds (60%) of consumers find the topic of diversity and inclusion to be important, according to Quantilope. This is highest among parents with children 2-12 (78%), African-Americans (80%) and younger generations (76% of Gen Z and 72% of millennials compared to just 46% of boomers). 
  • Some 62% of people said that their perception of the brand’s service and products was influenced by their diversity, according to an Adobe survey. Lack of diversity will cost you sales: 53% of African-Americans, 40% of Hispanics and 58% of LGBTQ+ stopped using a brand because of representation issues. 
  • 59% of people say they are more loyal to brands that stand for diversity and inclusion in online advertising, according to Facebook Advertising

Better revenue

  • Companies with higher than average employee diversity have higher innovation revenues, according to a Harvard Business Review study
  • The top 100 Fortune 500 companies have more diverse boards than the other 400 companies on the list.
  • Ethnically diverse companies are 35% more likely to yield higher revenue, while gender diverse companies are 15% more likely to yield higher revenue, according to a McKinsey study. 
  • High growth brands (annual revenue increase of at least 10%) are 1.9x more likely to have diversity-and-inclusion related talent objectives than negative growth brands, according to Deloitte.

Attracting new customers

  • 64% consumers are more likely to consider, or even purchase, a product after seeing an ad that they considered to be diverse or inclusive, according to a Google study. This percentage is higher among specific consumer groups including Hispanic (85%), Black (79%), Asian/Pacific Islander (79%), LGBTQ (85%), millennial (77%) and teen (76%) consumers. 
  • In more than 90% of the simulations run by Facebook, diverse representation was the best strategy for ad recall lift, according to Facebook Advertising.
  • Some 70% of younger millennials are more likely to choose one brand over another if that brand demonstrates inclusion and diversity in terms of its promotions and offers, 66% in terms of their in-store experience. and 68% in their product range. According to the Accenture Holiday Shopping survey.

 Employee acquisition and retention

  • Some 57% of employees and 67% of job seekers consider diversity an important element of their workplace, according to Glassdoor.
  • When employees perceive their organization as committed to diversity and inclusion and they actually feel included, they are 80% more likely to rank their employer as high performing, according to Deloitte.

Steps you can take 

Changing an organization is difficult. Even more so when it comes to diversity, inclusion and equity. A lot of people feel threatened by the idea of diversity and inclusion, let alone its implementation. They may seek to sabotage efforts around this. They may say they are for it while fighting against it. Avoid arguments involving morality and beliefs. Stick to the business case and arm yourself with facts. You are fighting for both your company and your community. 

Here are some steps you can take.

Analyze the situation. Hire people/consultants from marginalized groups to help. They can see better than you can what you are doing right and wrong. You almost certainly do not see all the challenges and obstacles that people different from you face every day.

Develop policies and procedures. Embedding DEI principles within the organization will build trust with employees from groups that have heard a lot of promises and seen few actions.

Listen more than you talk. Pay attention to who isn’t speaking much (or at all) at meetings. Encourage them by calling out their contributions and successes. Tell them one-on-one that you’d like to hear more from them. In meetings be aware of people interrupting or talking over them or doing other things that push them into the background. That is when you must speak up.

Educate yourself and your team. Education and training are vital to diversity and inclusion efforts, but it’s not a one-and-done situation. These efforts must be ongoing in order to educate new employees and reinforce these principals across the organization.

Advertisement

Test and measure. One of the truths of business is we measure the things that matter. Develop metrics and pay attention to them. Test to see if you’re getting the outcomes you want. If not, then try new policies and metrics.


About The Author

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.

Advertisement

Source link

MARKETING

6 martech contract gotchas you need to be aware of

Published

on

6 martech contract gotchas you need to be aware of

Having worked at several organizations and dealt with many more vendors, I’ve seen my share of client-vendor relationships and their associated “gotchas.” 

Contracts are complex for a reason. That’s why martech practitioners are wise to lean on lawyers and buyers during the procurement process. They typically notice terms that could undoubtedly catch business stakeholders off guard.

Remember, all relationships end. It is important to look for thorny issues that can wreak havoc on future plans.

I’ve seen and heard of my share of contract gotchas. Here are some generalizations to look out for.

1. Data

So, you have a great data vendor. You use them to buy contacts and information as well as to enrich what data you’ve already got. 

When you decide to churn from the vendor, does your contract allow you to keep and use the data you’ve pulled into your CRM or other systems after the relationship ends? 

You had better check.

Advertisement

2. Funds

There are many reasons why you would want to give funds in advance to a vendor. Perhaps it pays for search ads or allows your representatives to send gifts to prospective and current customers. 

When you change vendors, will they return unused funds? That may not be a big deal for small sums of money. 

Further, while annoying, processing fees aren’t unheard of. But what happens when a lot of cash is left in the system? 

You had better make sure that you can get that back.

3. Service-level agreements (SLAs)

Your business is important, and your projects are a big deal. Yet, that doesn’t necessarily mean that you’ll get a prompt response to a question or action when something wrong happens. 

That’s where SLAs come in. 

It’s how your vendor tells you they will respond to questions and issues. A higher price point typically will get a client a better SLA that requires the vendor to respond and act more quickly — and more of the time to boot (i.e., 24/7 service vs. standard business hours). 

Make sure that an SLA meets your expectations. 

Advertisement

Further, remember that most of the time, you get what you pay for. So, if you want a better SLA, you may have to pay for it.


Get the daily newsletter digital marketers rely on.


4. Poaching

Clients and vendors alike are always looking for quality people to employ. Sometimes they find them on the other side of the client-vendor relationship. 

Are you OK with them poaching one of your team members? 

Advertisement

If not, this should be discussed and put into writing during the contract negotiation phase, a renewal, or at any time if it is that important.

 I have dealt with organizations that are against anti-poaching clauses to the point that a requirement to have one is a dealbreaker. Sometimes senior leadership or board members are adamant about an individual’s freedom to work where they please — even if one of their organization’s employees departs to work for a customer or vendor. 

5. Freebies

It is not unheard of for vendors to offer their customers freebies. Perhaps they offer a smaller line item to help justify a price increase during a renewal. 

Maybe the company is developing a new product and offers it in its nascent/immature/young stage to customers as a deal sweetener or a way to collect feedback and develop champions for it. 

Will that freemium offer carry over during the next renewal? Your account executive or customer success manager may say it will and even spell that out in an email. 

Then, time goes by. People on both sides of the relationship change or forget details. Company policies change. That said, the wording in a contract or master service agreement won’t change. 

Make sure the terms of freebies or other good deals are put into legally sound writing.

Read next: 24 questions to ask ABM vendors before signing the contract

Advertisement

6. Pricing factors

There are many ways vendors can price out their offerings. For instance, a data broker could charge by the contact engaged by a customer. But what exactly does that mean? 

If a customer buys a contact’s information, that makes sense as counting as one contact. 

What happens if the customer, later on, wants to enrich that contact with updated information? Does that count as a second contact credit used? 

Reasonable minds could justify the affirmative and negative to this question. So, evaluating a pricing factor or how it is measured upfront is vital to determine if that makes sense to your organization. 

Don’t let contract gotchas catch you off-guard 

The above are just a few examples of martech contract gotchas martech practitioners encounter. There is no universal way to address them. Each organization will want to address them differently. The key is to watch for them and work with your colleagues to determine what’s best in that specific situation. Just don’t get caught off-guard.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


Advertisement

About The Author

Steve Petersen is a marketing technology manager at Zuora. He spent nearly 8.5 years at Western Governors University, holding many martech related roles with the last being marketing technology manager. Prior to WGU, he worked as a strategist at the Washington, DC digital shop The Brick Factory, where he worked closely with trade associations, non-profits, major brands, and advocacy campaigns. Petersen holds a Master of Information Management from the University of Maryland and a Bachelor of Arts in International Relations from Brigham Young University. He’s also a Certified ScrumMaster. Petersen lives in the Salt Lake City, UT area.

Petersen represents his own views, not those of his current or former employers.

Source link

Advertisement
Continue Reading

DON'T MISS ANY IMPORTANT NEWS!
Subscribe To our Newsletter
We promise not to spam you. Unsubscribe at any time.
Invalid email address

Trending

Entireweb
en_USEnglish